EAI 01 ISSUE 08
100
Is apparel manufacturing coming home? TRENDS
Streetwear’s growing popularity
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE
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AppArel / Chairman’s Message
Dear Friends,
T
he first half of this financial year has ended on a low note with regards to apparel exports. The export performance for AprilSeptember, 2018, largely triggered by significant decline in emerging markets, declined by 15.96 per cent. However, the traditional markets like USA grew by 5.3 per cent.
With the peak season approaching, it is time to introspect on the inherent weakness in Indian apparel sector which is constraining our growth. While the overall exports have increased by 12.6 per cent, after GST issues submitted settling down, export in apparel sector could not recover its downward trend.
The Council had partnered with the Government of India’s initiatives of “Swatchhta Hi Seva” in all apparel clusters. With an aim to improve the health and hygiene of the factories, its neighborhood and apparel clusters at large, I feel that such initiatives can bear direct impact on the health and productivity of workers and thus have a positive impact on the overall business. I am thankful to our members for having joined us in this campaign.
I welcome the new Executive Committee members of AEPC who were elected/reelected at the 39th AGM held on 28.9.2018 at New Delhi.
With the hope that the second half of 201819 brings prosperity, health and happiness to all stake holders of the apparel industry in India, I wish you all Happy Diwali!
HKL Magu, Chairman, AEPC APPAREL EXPORT PROMOTION COUNCIL MAGAZINE
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C O N T E N T S
04 | The BROADCAST
India’s Ready-Made Garment (RMG) Export Update for FY (April-September) 2018-19
05 | The BROADCAST
IIndia’s Textile & Ready Made Garment (RMG) Update for Index for Industrial Production (IIP) for FY (AprilAugust) 2018-19
06 | AEPC EVENTS
AEPC seeks BASA inclusion and initiation of international flights from Coimbatoree
CHAIRMAN AEPC Mr. HKL Magu CHAIRMAN EP Mr. Sudhir Sekhri ADVISOR AEPC Mrs. Chandrima Chatterjee PUBLISHER Apparel Export Promotion Council
08 | AEPC EVENTS
Richa Global awarded with Responsible Leadership 2018 Awards
10 | BUSINESS
Rupee on a free fall, industry divided about its impact on exports
12 | EXPORT
IMF cuts global growth forecast
13 | EXPORT
Bangladesh earns 142 per cent more from Indian exports
14 | TRADE WAR
Tariffs Impact New avenues of growth open up for businesses
16| TRADE WAR Editor-in Chief & Publisher & CEO Sanjay Chawla Director - Salil Chawla Managing Editor - Sujata Dutta Sachdeva VP-Corporate Communications Shraboni Mukherjee Assistant General Manager - Saqib Meer Editorial - Narayan Subramaniam Editorial Asst. - Ranjit Kaur Correspondent - Ajay Kumar Goswami, Special Contribution Editorial - Ajanta Ganguly Supported By - Abdul Hussain, Sumit Masand Graphic Designer - Sanjeev D. Sonavane Production & Admn. - Dhansukh Rathod, Dinesh Poojary Mumbai Office: 38/314, Unnat Nagar 4, Off M. G. Road, MHADA Colony, Goregaon (W), Mumbai - 400 062. Ph: 022 2875 5181 e-mail: dfuif@yahoo.co.in / dfu@rediffmail.com Dehli Office: Salil Chawla, Business & Mktg: New Delhi - 110017, Mobile: +9193503 18639/ 95601 79633 e-mail: dfudelhi@yahoo.co.in Printing Press: VIBA Press Pvt. Ltd. C-66/3, Okhla Industrial Area, Phase-II New Delhi-110020 e-mail: info.vibappl@gmail.com
• US imposes tariffs on wool and related products • US tariffs to affects Chinese luxury market • US-China trade war to damage Asian economies
17| POLICY
India raises import tariffs to reduce current account deficit
18 | SOURCING
• Protectionist Policies lead to uncertainty in US fashion industry
20 | TRADE TREATIES
• India, Uzbekistan to conduct feasibility study for PTA • New trade agreement with Canada and Mexico to boost US textile production
22 | COVER STORY
• Nearshoring paves a new way for global apparel manufacturers
28 | MARKET
• Indonesia to be top Muslim fashion center by 2020 • UK govt committee to review environmental initiatives of fashion retailers
30 | MARKET
UK apparel industry’s resurgence stymied by skills shortage
32 | CONSUMPTION
Consumer expenditure on fashion to touch $72.7 bn by 2022
34 | CONSUMER
• Well-informed consumers boost demand for premium fashion in India
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36 | RETAIL
• Traditional retailers need new ways to compete with fast fashion
37 | COMPLIANCE
• Oeko-Tex reassures product standards • M&S, British High Commission launch program to promote gender equality in Indian RMG factories
38 | BRAND CASE STUDY Burberry takes positive steps towards sustainability, circular economy
40 | BRAND RETAIL
• Interbrand ranks Louis Vuitton as the world’s most valuable luxury fashion brand • British men’s swimwear label Orlebar Brown acquired by Chanel
42 | TRENDS
• Streetwear’s growing popularity sees more brands jumping in the fray
44 | TECH TRENDS
• H&M’s off-price luxury site ‘Afound’ to perk up company’s
46 | AEPC EVENTS
• AEPC organises SHS campaign to spread awareness about the importance of cleanliness
50 | SUSTAINABILITY
• A new set of sustainability standards
52| FIBER FABRIC
• Next-Gen, innovative fibers sets the agenda in global textile industry
54 | COPYRIGHT
Weak copyright laws plague global fashion industry
56 | NOTIFICATION
Subject: Extension of date of payment of Annual Subscription for the Financial Year 2018-19
57 | GST UPDATE 59 | EVENTS 60 | AEPC EVENT CALENDAR
CALENDAR OF EVENTS - 2018
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE
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+++++
APPAREL / THE BrOADCAST
India’s Ready-Made Garment (RMG) Export Update for fY (April-September) 2018-19 India’s RMG Exports RMG exports were to the tune of USD 1103.32 million in September 2018 with the decline of -33.58 per cent against the corresponding month of September 2017, which was USD 1661.19 million. In rupee term export for the Month of September 2018 was ` 7967.69 cr. as against ` 10704.85 Cr. in September 2017 with the decline of -25.57 per cent. India’s RMG export to World in the April-September of 2018-19 was to the tune of USD 7716.17 mn. which has decreased by -15.96 per cent compared to the same period of previous financial year. During April-September 2017-18, India’s apparel exports were to the tune of USD 9181.49 mn.
India’s RMG Export to World Month
FY 2017-18
MoM Growth of 2018-19 over 2017-18 (%)
FY 2018-19
In INR Crore In US$ Million In INR Crore In US$ Million
INR
US$
April
11272.24
1747.44
8859.67
1349.81
-21.4
-22.76
May
10342.55
1605.37
9040.63
1338.57
-12.59
-16.62
June
9979.57
1548.59
9202.63
1357.46
-7.79
-12.34
July
8262.94
1281.95
8757.23
1274.83
5.98
-0.56
August
8552.24
1336.95
8986.67
1292.18
5.08
-3.35
September
10704.85
1661.19
7967.69
1103.32
-25.57
-33.58
April-Sept.
59114.39
9181.49
52814.52
7716.17
-10.66
-15.96
Source: DGCI&S, Kolkata, 2018
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APPAREL / THE BrOADCAST
India’s Textile & Ready Made Garment (RMG) Update for Index for Industrial Production (IIP) for fY (April-August) 2018-19 INDEX OF INDUSTRIAL PRODUCTION Manufacture of textiles
MoM Growth Rate (In %)
Manufacture of wearing apparel
MoM Growth Rate (In %)
April
116
114.2
-1.6
155.5
134.6
-13.4
May
116.7
116.1
-0.5
156.8
136.8
-12.8
June
116.4
115.5
-0.8
145.2
151.6
4.4
July
116.4
119.8
2.9
134.2
147.3
9.8
August
116
125.1
7.8
121.4
144.3
18.9
119.7
2.9
142.6
144.2
1.1
Total April-August 116.3
Source: CSO, 2018 SUMMARY • Manufacturing of Textiles has shown a growth of 7.8% in August, 2018 and growth of 2.9% for the period of April-August, 2018-19 • Manufacturing of Wearing apparel has shown a growth of 18.9% in August, 2018 and growth of 1.1% for the period of April-August, 2018-19
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AppArel / AEPC events
AEPC seeks BASA inclusion and initiation of international flights from Coimbatore
Dr. A. Sakthivel, Vice Chairman, AEPC submitted representation to Hon’ble Shri M. Venkaiah Naidu, Vice President of India
D
uring the visit of .Venkaiah Naidu, Vice President of India to Coimbatore, A.Sakthivel, Vice Chairman, AEPC him briefed on the various avenues for promoting exports and submitted a representation on lack in the operation of international flights from the city Coimbatore. Since, Coimbatore is the commercial capital of Tamil Nadu and there are well established textile industries in the vicinity of the city, the industry needs better flight connectivity from Coimbatore. Shakthivel also stated that many businessmen from Coimbatore travel to international destinations
to promote their business in international market. They have to catch their international flights either from Mumbai, Chennai or Delhi which takes a lot of time due to transition. Coimbatore also does not come under the Bilateral Air Service Agreement (BASA). Dr.A.Sakthivel, Vice Chairman, AEPC in his representation urged Naidu to include Coimbatore under BASA and initiate operation of international flights from Coimbatore. This will foster economic development of the region and save time of exporters. n
6 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | November 2018
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Speak to our Export Finance Advisor +91 99877 79334
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AppArel / AEPC events
Richa Global awarded with Responsible Leadership 2018 Award
M/s Richa Global, Gurugram receiving the award at ascena CONNECTS annual event held at Seoul, South Korea during 11th & 12th October 2018
M
/s Richa Global, Gurugram has been awarded with the Responsible Leadership 2018 Award by Ascena Group Inc., one of the top apparel brands holders of USA, for its outstanding performance in the corporate social responsibility programmes like Herhealth Project, Herfinance Project and Energy Management & Saving Programmes on global level. M/s Richa Global has also been a consistent and sustainable performer
in Supplier CSR Ownership, Social Compliance of Active & Pre-Sourcing Facilities and Environment Conservation. M/s Richa Global has played an active role in these programmes at its factories across India by training over 6,000 workers on health and financial literacy programmes. The company is also one of the members of Ascena CONNECTS – elite global vendor group of top seventeen vendors of Ascena Group Inc. The Ascena Group Inc. has been working for women empowerment worldwide and plans to cover 100,000 women workers in its various women-oriented CSR programmes n
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AppArel / Business
Rupee on a free fall, industry divided about its impact on exports
A
fter falling by over 12 per cent this year, the rupee has hit an all-time low against the US dollar. Though a weakening rupee works well for exporters, experts from apparel industry are skeptical about how it will benefit trade. Harish Ahuja, Managing Director, Shahi Exports feels falling rupee benefits apparel exporters as they get more orders. The depreciation has been only against the dollar, and not other currencies. And dollar exports from India is only around 40 per cent.
Divergent views on pros and cons of currency fall Apparel Export Promotion Council (AEPC) chairman HKL Magu too feels the rupee depreciation will help the industry to get more orders. Although big buyers or top stores ask for this adjustment, they understand currency fluctuation is in nobody’s control and this trend will continue in future. On similar lines, P M S Uppal, MD of Faridabad-based Pee Empro Exports, and President, Okhla Garment and Textile Cluster (OGTC) points out the situation will benefit small and medium exporters. The company is looking to grow at 20 per cent and a weak rupee helps to consistently achieve this target.
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AppArel / Business
However, Raja Shanmugham, President, Tirupur Exporters’ Association (TEA), and MD of Warsaw International, disagrees and says Indian exporters can’t get too much benefit as buyers
ask for bonus money in such a case; especially in repeat orders. Lalit Thukral, President, Noida Apparel Export Cluster and MD of Maharana of India, seconds the opinion that plummeting rupee benefits exporters.
Currency depreciation a global realty Anil Peshawari, MD of Noida-based Meenu Creations says,
Chinese Yuan depreciated nearly 10 per cent while Turkey’s Lira depreciated more than 50 per cent. Turkey, which earlier was doing mainly knitted garment, is now focusing on woven garments also. Moreover its proximity to Europe is boosting imports. Bangladeshi Taka depreciated 2 per cent, in recent months. But Dhaka already has a lot of advantage over India. Indian exporters were already working on nominal margins and to attract orders, they are passing on the minor benefit of rupee depreciation to buyers. If the US imposes tariffs on Chinese apparel, China will move more aggressively to EU, and can also supply apparel at extremely low cost as they have to keep their capacities occupied. Experts say a strong dollar leads to exporters being involved in hedging. Magu believes most big exporters have hedged their currency and got Rs 67 or Rs 68 against the dollar. This will benefit them in the long run when exporters will hedge the dollar for Rs 75 after one year. Medium level exporters who normally don’t hedge also have an eye on the situation. Most will hedge only if the rupee goes above Rs 75. n
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AppArel / EXPORT
IMF cuts global growth forecast
T
rade wars, tighter credit and darkening market outlook have led to the International Monetary Fund (IMF) cutting its forecast for global growth. Three months ago, the fund had predicted that the world economy would grow 3.9 per cent this year and next. However, IMF revised its World Economic Outlook to 3.7 per cent on Oct. 9 ahead of opening its annual meeting in Bali, Indonesia. While IMF acknowledged global expansion as still being the fastest in seven years, recent data suggests a cooling. Factory activity has plunged from Asia to Europe in September. The protectionist policy is turning into “actual trade barrier,” spreading uncertainty
Increase in domestic and foreign demands leads to surge in manufacturing index
among businesses and consumers. A strengthening US dollar and tightening financial conditions have increased challenges for many emerging markets. The IMF urged the countries to resolve their trade disputes, warning that the fracture of corporate supply chains could have “devastating” effects. The organisation has repeatedly warned that an all-out trade war could curb growth at a time when the world is enjoying the broadest upswing in years. But the US and China are not backing down, leaving no in sight to a long and bruising dispute. n
US trade deficit increases to highest levels in August
T
he US trade deficit in August increased to its highest level in six months. The trade deficit rose to 8.6 per cent over the same period in 2017. Businesses rushed to import goods before tariffs hit on China in late August and September,
N
ikkei India’s Manufacturing Purchasing Managers’ Index strengthened in September to reach 52.2 from 51.7 in August. A reading of over 50 on this survey-based index indicates expansion, below that contraction. As per the survey report, underpinning the overall expansion was a firmer increase in levels of new work and gains in both domestic and foreign demand. Moreover, export sales strengthened, with the net gain the best recorded since the start of the year. Firmer gains in new orders, output and employment were some of the factors that led manufacturing record an improvement in growth in September n
including importing products needed in stores for the holiday shopping season, driving up the trade gap. Exports of tariff-targeted goods declined while American consumers snapped up imported cars and mobile phones. Retaliatory tariffs imposed by China continued to whipsaw American farmers. Even adjusting for price changes, it looks like the trade deficit widened significantly in the third quarter, greatly slowing growth. The gap in goods trade with China rose to $38.6 billion for August and with Mexico hit $8.7 billion both the highest monthly totals ever. At $31.1 billion, imports from Mexico also were the highest ever. n
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AppArel / exports
Bangladesh earns 142 per cent more from Indian exports
B
angladesh earned 142 per cent more revenue from exports to India in the first quarter. The country’s RMG garment exports to India grew 167 by per cent. Its western and Indian clothing brands have set up a good number of stores in India and raised procurement from Bangladesh. Bangladesh’s earnings from two major export destinations, the US and Germany, also registered sizable growth. Its exports to the US and Germany grew by 14.23 per cent and 14.53 per cent respectively in the quarter while export earnings from most European countries, except the UK, saw a growth of 10 per cent. The ongoing trade war between the US and China created additional demand for Bangladeshi apparel products in the US market contributing to higher growth. US buyers have started considering Bangladesh as an alternative sourcing destination besides China. Export earnings from Japan increased due to a surge in apparel exports by 49 per cent in July-September in the current
Vietnam exports increase by 17 per cent
F
or the first nine months of 2018, Vietnam’s exports increased by 17.5 per cent yearon-year, higher than the 15 per cent jump posted in the first quarter. The domestic sector’s positive export performance contributed to a yearly rise of 15.4 per cent in the country’s nine-month export turnover, nearly double the growth target set for the whole year. The US remained Vietnam’s biggest export market during the period, with spending up 13 per cent year-on-year, followed by the EU (up ten per cent) and China (up 27 per cent). Export of 26 commodities contributed to 90.3 per cent of the country’s total export revenue. The country’s import value of commodities in the period saw a modest surge of 12 per cent. Of the sum, the foreign-invested sector’s contribution was up 12 per cent while the domestic sector’s contribution was up 11.7 per cent. Key products imported included electronics, computers and components, equipment and machinery, telephones and components, fabric, iron, steel, plastics, oil and gas, metal, footwear, chemicals, and garment and textile materials. China was Vietnam’s largest exporter during the period with the turnover up 12.5 per cent year-on-year. South Korea’s turnover was up 1.4 per cent year-on-year while Asean countries’ turnover was up 13 per cent. n
fiscal year compared with that of the same period of the last fiscal year. Overall exports to Japan and China grew by 31.84 per cent and 24.54 per cent respectively. The growth in export earnings from Japan and China turned around in the period after experiencing frustrating performances in the last few months. n
Subdued global trade forcast to have adverse effect on Indian exports
S
ubdued global trade forecast of 3.9 per cent in 2018 and 3.7 per cent in 2019 is likely to have adverse affect on Indian exports. According to the exporters’ body FIEO, India’s exports in 2018-19 are likely to touch $350 billion. On the global front, sanctions on Iran, payment problems in Venezuela, huge depreciation of currencies of Argentina, Turkey, South Africa, Russia, Brazil and banking restrictions on large number of countries like Syria, Sudan, Libya, and Iraq are affecting exports. Global exports from September to November 2017 grew by over 25 per cent. On the domestic front , the flow of credit to the export sector led to a decline by over 41 per cent in April-June.n
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AppArel / Trade War
Tariffs Impact
New avenues of growth open up for businesses
W
ith Trump’s tariff taking its toll on business, experts recommend several ways to deal and adjust business models to cope. Darrin Beer, Western Regional Manager, CIT Commercial Services advices retailers and importers to seek new sourcing alternatives. However, he feels the process of shifting sourcing overnight without risking quality, production schedules or both as virtually impossible. Therefore, he advices, retailers and their suppliers to make their own decisions on how to engage with tariffs issue and whether to protest through trade groups or elected representatives.
Technology to the aid Ken Wengrod, President, FTC Commercial Corp urges companies to utilise and invest more in technology so they can speed up the creation-to-engineering process by cutting down sampling costs, improving yields on their raw materials and reducing idle times in transition, especially on the water. In similar fashion, US importers need to find alternative places of production within the US and Latin America to reduce their cycle time
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AppArel / Trade War
Focus on supply chain Sydnee Breuer, Executive Vice President, Rosenthal & Rosenthal recommends tightening the supply chain. She terms the idea of burdening factories entirely with tariffs as unrealistic. Tariffs will impact higher-end brands with their higher margins lesser than lower-margin and lower-priced private-label business. The lion’s share of this price increase will have to be borne by factories and importers, which in turn will compel them to trim their operating expenses. Rob Greenspan, President and Chief Executive, Greenspan Consult believes as companies affected by tariffs will continue to look for sources of production outside China; they will try to pass additional costs to the retailer, who will in turn, pass them to the consumer. This will refrain consumers from buying the product. However, Sunnie Kim, President and Chief Executive, Hana Financial is more concerned about the impact on supply
chain, resulting in lower sales and profits for clients and higher prices for consumers. The retail industry will likely be impacted in the same manner. While Robert Meyers, President, Republic Business Credit believes the tariffs will impact clients depending on their category, reliance on Chinese suppliers and the actual price sensitivity of customers. Small businesses like Flintridge Financial Solutions will have to pass on the higher prices to their customers, especially if they do significant business with major discount chains. However, bigger companies like Wells Fargo Capital Finance would ultimately raise their prices. They will continue to have the option of shifting to vendors with alternative supply chains. Technology to the aid Ken Wengrod, President, FTC Commercial Corp urges companies to utilise and invest more in technology so they can speed up the creationto-engineering process by cutting down sampling costs, improving yields on their raw materials and reducing idle times in transition, especially on the water. In similar fashion, US importers need to find alternative places of production within the US and Latin America to reduce their cycle time. The uneasiness of potential apparel tariffs will thus open business’s mindsets to welcome the change in environment.n
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AppArel / Trade WAR
US imposes tariffs on wool and related products
T
he US has announced the third round of import tariffs on goods from China. The latest batch imposes a 10 per cent import duty on wool and wool-related products from China. The first two rounds earlier this year imposed 25 per cent tariffs on goods imported from China. China retaliated each time with its own punitive import duties on US products, such as cotton, soybeans, wine, fruit and beef. The latest round of US duties means that around 44 per cent of China’s exports to the US now have excess duties imposed. The list does not include any finished wool or wool blend clothing, such as suits, jumpers, trousers, coats, overcoats and so on. These
US tariffs to affects Chinese luxury market
products make up the vast majority of US imports of apparel-related wool products from China. China accounts for 53 per cent of all US imports of wool clothing. An extra duty would hurt the trade by pushing the price paid by US consumers higher. n
US-China trade war to damage Asian economies
T T
he US tariffs on Chinese goods are likely to affect mink furs, crocodile handbags, leather accessories, silk, handmade lace, gold leaf, and fabrics used specifically for ballet, opera and theater sets. Fur garments made in China and sold in the US are subject to both import and export tariffs. Retail prices for mink coats in the US are likely to increase by as much as 45 per cent. This will affect American mink farmers, 80 per cent of whose market belongs to Chinese consumers. Steeper prices on fancy products will affect shoppers of modest products such as leather flat goods. These accessories help a consumer get the feeling of being in the big league. Leather coats are another example. A cowhide version of a coat costs 20 times as much as a pigskin version. A 25 per cent tariff on a pigskin will eliminate that product from the market and take that choice away from the middle-income customer. n
he US-China trade war may damage Asia’s export-reliant economies. China’s economy is expected to grow 6.3 per cent in 2019, slower than its 6.4 per cent forecast in July. Southeast Asia will have dimmed growth outlook, with growth projected to slowdown to 5.1 per cent from the July forcast of 5.2 percent. Inflation across the region is expected to remain under control, helped by country-specific factors like moderate food
price inflation in India and China and fuel subsidies in Indonesia and Malaysia. Also Asian countries have enough policy space to handle shocks and pressure from currency depreciations. China has set a growth target of around 6.5 per cent this year. The country has started to roll out growth boosting measures as the trade war threatens to put further pressure on the already cooling economy. Though domestic consumption in China seems to be quite robust and supporting a 6.5 per cent growth this year, the effects of further escalation of the trade dispute on consumer’s sentiment not known. n
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AppArel / Policy
India raises import tariffs to reduce current account deficit
I
ndia has increased import tariffs on items such as air conditioners, refrigerators, footwear, speakers, luggage and aviation turbine fuel to reduce its widening current account deficit and tackle the sharp slide in the rupee. This move could hit imports from countries like China and South Korea, which manufacture some of the high-end washing machines, refrigerators and air conditioners sold in India. The decision could also affect India’s gem and jewelry sector as the tariffs have been raised on imported diamonds and gemstones. The current account deficit last stood at around 2.4 per cent of the GDP, in the April-June quarter, and it is expected to widen to 2.8 per cent for the year ending March 2019. The effective import duty may also be raised on some steel products. The rupee has weakened by more than 12 per cent this year and is Asia’s worst performing currency. But there are doubts if the move can
rein in the rupee weakness since the demand for the high-end goods is largely price inelastic. It is felt the central bank needs to intervene more actively in the forex market to support the rupee and that tariff measures won’t help in the long term. n
Sri Lankan VAT on imported fabric reduced to 5%
S
ri Lanka has reduced the value added tax (VAT) on imported fabric from 15 per cent to 5 per cent considering the requests made by stakeholders in the fabric industry. The ministry noted that 15 per cent rate had been set for the industry on Aug. 16 .But smaller companies not covered by VAT have protested as the tax would have a negative impact on them. The ministry then decided to reduce the VAT on imported fabric to 5 per cent in order to lend helping hand to proposed small-scale industrialists under the Enterprise Sri Lanka Program. This is a subsidised loan plan introduced by the ministry to help medium and small-scale manufacturers obtain fabric at a lower cost. As per the Sri Lanka Apparel Export Association, the country’s apparel exports grew by 4 per cent to $2.8 billion for the first half of
the year compared to the same period a year ago. U.S. apparel imports from Sri Lanka declined by 12.15 per cent to 28.93 sq. mt. equivalents in July compared to a year earlier. For the year through July, apparel imports from Sri Lanka reduced by 4.65 per cent to $1.84 billion worth of goods, giving the country a 4.65 per cent market share. n
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AppArel / SoURCINg
Protectionist policies lead to uncertainty in US fashion industry
U
nited States Fashion Industry Association’s (USFIA) tagline: Dedicated to fashion made possible by global trade, is very pertinent today with the kind of policies being pursued by President Trump. As per the US Trade Commission in 2016, textiles and apparel accounted for 9.7 per cent of imports from China, compared to 39 per cent electronic products. However, the impact on the sector is of huge significance not just in the US but also globally. A recent article ‘Walmart, Nike Suppliers Put on Notice by China Tariff Threat’ revealed how Chinese and Hong Kong company Li & Fung with 64 per cent revenue coming from the US was most at risk by Trump’s tariffs. However, the US Trade Representative
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AppArel / SoURCINg
agreements for the US. Nearly 77 per cent of the USFIA members supported reduction in documents required for importing and exporting textiles and apparel under FTAs. Administration time and complexity are proving to be a barrier to existing trade policy benefits that the US fashion companies might avail of. Exceptions to the ‘Yarn- forward’ Rules of origin are a case in point.
uncerTainTy confronTs Trade The World Bank describes the rule whereby cumulation allows producers to import materials from a specific country or regional group of countries without undermining the origin of the final product.
defends President Trump’s policies by saying he is fulfilling his election promise to push for trade reform to ensure fairer outcomes for US workers and businesses, and more efficient markets for countries around the world.
Trump’s proTecTionisT policies a challenge USFIA’s 2018 Benchmarking Study, based on a survey of 28 executives in leading US fashion companies, reveals protectionist trade policy and the uncertainty it causes at every level from markets to supply chain and retail, is the top most business challenge. Adding to this is the challenge of increasing production and sourcing cost. If production and sourcing is repatriated to the US, it will impact the consumer who may in turn choose to change buying preferences. out of the total survey, eight out of the top 10 sourcing destinations are in the Southern hemisphere. The USFIA survey notes sourcing from the Western hemisphere is increasing. Free trade agreements in the sector remain underutilised. There is slight, though hardly significant, increase in the utilisation of NAFTA, CAFTA-DR and AgoA the main three FTA
However, the interpretation of this rule is not entirely transparent for example the final assembly of the Apple iPhone takes place in China. Yet the added-value in China is less than 2 per cent (2014 figures) and the applicable US Rule of origin confers origin on China. Similarly, a T-shirt produced in Bangladesh that imports around 80 per cent of its yarn. The yarn-forward rule then means apparel goods made up in the country often does not necessarily qualify for preferential treatment under FTAs. The outcome is low utilisation of trade preferences for apparel. While a company like the VF Corp may have the resources to untangle such regulations a SME does not, putting them at a competitive disadvantage. The single biggest challenge facing the industry today is uncertainty. It seems, America, like the rest of the world will have to wait and watch. n
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India, Uzbekistan to conduct feasibility study for PTA
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ndia and Uzbekistan will constitute a group to conduct a feasibility study and commence negotiations for a preferential trade agreement by the end of 2018. Under a PTA, two trading partners reduce or eliminate duties on a certain number of goods traded between them. The target is to have bilateral trade worth $1billion by 2020 and to balance the trade between the two countries by reducing the existing trade deficit. The two countries will encourage their business communities, companies and enterprises to participate in exhibitions, trade fairs, business forums and
India to boost bilateral trade with Bangladesh
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angladesh and India will sign the Comprehensive Economic Partnership Agreement (CEPA) to boost bilateral trade. If negotiated carefully, the deal will benefit Bangladesh immensely. The country currently, as an LDC, enjoys zero-duty benefits on exports to India for all goods except for 25 alcoholic beverage items. The deal could lead to more Indian investment in Bangladesh, more energy cooperation and aid for trade between. India has signed CEPA with some countries like South Korea and Japan and is in negotiations with the ASEAN (Association of South East Asian Nations) to hammer a similar deal. The CEPA is a greater partnership deal between two countries or with any trade bloc, under which special treatment is given in areas of trade, investment, energy cooperation, logistic support and so on. Under the partnership, both countries will work towards improving logistic and trade-related capacities of Bangladesh. n
other joint business activities. Indian universities will offer courses in tourism and hotel management in Uzbekistan. Indian companies have been encouraged to set up an IT park in Uzbekistan. To promote investments, companies and the business community will be offered incentives. India and Uzbekistan will enhance cooperation in agriculture and allied activities by way of exchange of technology in crop production, improved water use efficiency, plant quarantine, animal husbandry, food processing and agriculture and food trade. n
Philippines, US to start free trade negotiations by November
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he US and the Philippines plan to start free trade negotiations by next month as the two allies plan to strengthen their economic relationship amid uncertainty over security ties. Once completed, the free trade agreement will be the US’ second in Southeast Asia after the one with Singapore. The move comes after both resolved issues around a Trade and Investment Framework Agreement, including those related to e-commerce. The talks, which could last one to three years, are part of President Donald Trump’s strategy to pursue bilateral rather than multilateral trade agreements to let Washington secure the best possible deal. The US ranks among the Philippines’ major trading partners. In 2017, bilateral trade totaled around $20 billion, with the US registering a $3.2 billion trade deficit, according to the Census Bureau. The Trump administration has been tough in trade negotiations, but Lopez is upbeat on a win-win deal. For the Philippines, a free trade agreement with the US would upgrade the current Generalised System of Preferences scheme wherein the U.S. reviews zero-tariff privileges given to more than 3,000 Philippine products every three years. n
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New trade agreement with Canada and Mexico to boost US textile production
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extile production in the US will get a boost due to the agreement signed with Canada and Mexico. The provisions will also strengthen customs enforcement and facilitate broader consultation and cooperation among the parties on issues related to textiles and the apparel trade. If passed by all three countries, the agreement promote greater use of made-in-the-US fibers and yarns by limiting rules that allow for some inclusion of non-NAFTA inputs in the textile and apparel trade. The provisions require that sewing thread, pocketing fabric, narrow elastic bands and coated fabric, when incorporated in most apparel and other finished products, be made in the region for those finished products to qualify for trade benefits. The agreement establishes a textiles chapter for North American
Study on CPTPP benefits to be completed this year
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study on the benefits and impacts of joining the Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP), a newly formed bloc of 11 Pacific Rim nations excluding the US, is likely to be finished later this year. The Trade Negotiations Department has finished public hearings held in all regions throughout the country from August to September to gather feedback from stakeholders about the CPTPP. The public hearings highlighted concern about issues relating to market access for goods, services and investment; intellectual property (IP) protection; public health; investor-state dispute settlement mechanisms; and government procurement. Thai farmers and civil society organisations also vented their concerns about the impact of the new pact’s IP chapter that prevents them from saving and reusing seeds that contain patented plant material. Various farmer groups also raised concerns about the dumping of agricultural products from other countries on the local market and higher competition from imports. Another roadblock was the possible import of genetically modified organisms (GMOs) if Thailand joins the new bloc. n
trade, including textiles-specific verification and customs cooperation provisions, fostering new tools to strengthen customs enforcement for fraud and circumvention prevention in this sector. n
China to reform WTO
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hina, with support from the EU and Japan, is planning to reform the WTO. The country wants to curb the rise of unilateralism within the multilateral trading system represented by the organisation. It feels reforms in the organisation need to address the concerns of members, especially emerging economies, which have a larger total population than developed countries. The majority of WTO members are developing countries, and each has its own ideas on WTO reform. China, like other emerging countries, follows a primary strategy of promoting economic and social development. The growing spending power of consumers in developing countries injects vitality into the global market. China supports the work of the WTO but it is against the changes proposed by the US, Japan and EU on the notification system for domestic industrial subsidies. These countries and groups feel some WTO members such as China have failed to comply with a notification system. n
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Nearshoring paves a new way for global apparel manufacturers
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ith growing costs in ‘cheaper’ Asian destinations and the call for bringing production nearer home, many Western companies are slowly shifting manufacturing closer home. It’s a tussle between speed and marginal cost cutting. With nearshoring gaining ground global apparel industry could undergo a sea change in near future For much of the new millennium, outsourcing production to cheaper destinations in Asia was the mainstay of big global businesses based in the US and Europe. The approach is however, changing now with cost advantage of Asian countries declining somewhat with rising labor costs
in countries like China. The very purpose of outsourcing to cheaper destinations is lost and nearshoring has gained considerable ground at least in the US and the Europe. Rising nearshoring for US companies Nearshoring is now the new kid on the block for outsourcing of business processes, to companies in a nearby country, often sharing a border with the target country. Economically both countries benefit from each other due to their close proximity of location, time zones, cultural, social, linguistic, economic, political, or historical linkages. Nearshoring and automation could be important enablers in achieving a circular value chain in the current economic markets of India and the world.
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The bigger apparel companies in the US are now setting up nearshore centers in places like Mexico and Turkey which offer more stability when compared to offshore units in faraway countries like Bangladesh, China or Vietnam. Closer proximity with the outsourcer and the vendor in the same time zone and similar culture and language leads to better coordination and communication. With frequent visits to the near sourcing partner as well as lower cost of freight and duties due to the closer proximity, companies work better and react to market fluctuations much faster. This is important in the apparel segment as fashion cycles, which once embraced a six-month turnaround, today faces a market that is capped by a time period of just around six weeks. For UK brands, many East European countries are important nearshoring destinations. Over the years, the fall
of all borders created totally new markets as well as low-wage regions. Today, the industry is at crossroads where speed beats marginal cost advantage and basic compliance is upgraded to an integrated sustainability strategy. The traditional supply chain setup is now challenged, and as labor costs converge, brands and retailers are starting to rethink their sourcing and production models more broadly. Increased nearshoring and more automated production models have the potential to enable sustainability further and support the adaptation of a circular economy in the apparel sector. When choosing a nearshoring model, businesses move operations or functions to a physically closer but more costeffective location, with small time-zone differences and fewer cultural discrepancies. Since these nearshoring countries within Europe are bound by similar financial and legal
It is not the only luxury brand sourcing closer to home in the US, UK and Europe who earlier got their supplies from budget suppliers in China, India and Southeast Asia. Affordable luxury brands in particular are moving production closer to home, as they seek higherquality suppliers as their customers become more discerning.
constraints, they are usually preferred than the earlier outsourcing destinations in India and China since they provide greater social and economic stability. Nearshoring, automation link well In the garment industry, consumers are currently well aware of the environmental impact of traditional linear apparel production modes and the wastage concerning overstock liquidation of various garment segments. Mass-market apparel players that include automation technologies and become faster and more sustainable, will be successful in the near future. Nearshoring is economically viable in many countries during market shifts in the apparel and garment segment. For many n
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AppArel / cover story Increased nearshoring and more automated production models have the potential to enable sustainability further and support the adaptation of a circular economy in the apparel sector. When choosing a nearshoring model, businesses move operations or functions to a physically closer but more cost-effective location, with small time-zone differences and fewer cultural discrepancies.
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ith growing costs in ‘cheaper’ Asian destinations and the call for bringing production nearer home, many Western companies are slowly shifting manufacturing closer home. It’s a tussle between speed and marginal cost cutting. With nearshoring gaining ground global apparel industry could undergo a sea change in near future For much of the new millennium, outsourcing production to cheaper destinations in Asia was the mainstay of big global businesses based in the US and Europe. The approach is however, changing now with cost advantage of Asian countries declining somewhat with rising labor costs in countries like China. The very purpose of outsourcing to cheaper destinations is lost and nearshoring has gained considerable ground at least in the US and the Europe. Rising nearshoring for US companies Nearshoring is now the new kid on the block for outsourcing of business processes, to companies in a nearby country, often sharing a border with the target country. Economically both countries benefit from each other due to their close proximity of location, time zones, cultural, social, linguistic, economic, political, or historical linkages. Nearshoring and automation could be important enablers in achieving a circular value chain in the current economic markets of India and the world.
The bigger apparel companies in the US are now setting up nearshore centers in places like Mexico and Turkey which offer more stability when compared to offshore units in faraway countries like Bangladesh, China or Vietnam. Closer proximity with the outsourcer and the vendor in the same time zone and similar culture and language leads to better coordination and communication. With frequent visits to the near sourcing partner as well as lower cost of freight and duties due to the closer proximity, companies work better and react to market fluctuations much faster. This is important in the apparel segment as fashion cycles, which once embraced a six-month turnaround, today faces a market that is capped by a time period of just around six weeks. For UK brands, many East European countries are important nearshoring destinations. Over the years, the fall of all borders created totally new markets as well as low-wage regions. Today, the industry is at crossroads where speed beats marginal cost advantage and basic compliance is upgraded to an integrated sustainability strategy. The traditional supply chain setup is now challenged, and as labor costs converge, brands and retailers are starting to rethink their sourcing and production models more broadly. Increased nearshoring and more automated production models have the potential to enable sustainability further and support the adaptation of a circular economy in the apparel sector. When choosing a nearshoring model, businesses move operations or functions to a physically closer but more cost-effective location, with small time-zone differences and fewer cultural discrepancies. Since these nearshoring countries within Europe are bound by similar financial and legal constraints, they are usually preferred than the earlier outsourcing destinations in India and China since they provide greater social and economic stability. Nearshoring, automation link well
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The bigger apparel companies in the US are now setting up nearshore centers in places like Mexico and Turkey which offer more stability when compared to offshore units in faraway countries like Bangladesh, China or Vietnam. Closer proximity with the outsourcer and the vendor in the same time zone and similar culture and language leads to better coordination and communication. In the garment industry, consumers are currently well aware of the environmental impact of traditional linear apparel production modes and the wastage concerning overstock liquidation of various garment segments. Mass-market apparel players that include automation technologies and become faster and more sustainable, will be successful in the near future. Nearshoring is economically viable in many countries during market shifts in the apparel and garment segment. For many apparel companies whose lead times are long and production processes laborious and linear, nearshoring and automation in their manufacturing process works well. There is great saving in freight duties and other port charges and frequent visits for quality control is possible because of proximity. For example, an US apparel company that moves production of basic jeans from Bangladesh to Mexico can maintain or even slightly increase its margin, without higher full-price sell-through. For Europe, unit costs remain significantly lower when sourcing from Bangladesh but reshoring from China to Turkey is more economically viable. Landed-cost prices for denim, for example, can be 3 per cent lower when sourced from Turkey. Onshoring production to Germany or the US, however, will not result in breaking even. A recent McKinsey & Company report reflects, another
emerging trend that may factor into nearshoring is automation. It points out that although the apparel industry is lagging behind other sectors but automating processes like sewing could reduce labor cost drastically while moving forward. Automating sewing process, however, may be a slow transition due to technical difficulties with different fabrics, and the alreadylow costs of labor. However, other steps higher in the supply chain are ready for a change and this includes gluing/ bonding tech, 3D knitting and automated finishing processes. All these present opportunities for manufacturers to accelerate production while reducing production costs. Nearshoring vital for high fashion brands The wave of nearshoring is currently on an alltime high as production and manufacturing costs in the standard low cost countries keep increasing. In 2005, labor costs in China were about one-tenth that of the US but today it is
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AppArel / cover story around one-third. This kind of rise in prices in these so-called labour intensive cheaper countries has shifted manufacturing away to nearshore countries of South America where it is not that much more expensive than in China or Bangladesh. Experts feel the average costing to manufacture a basic pair of jeans in China and then to import it into either the US or Germany, is around 12 per cent less than making it in Mexico. For a company looking to import its jeans into Germany, Turkey was 3 per cent less
or Bangladesh may cost 20 per cent less than countries like Turkey and Mexico, when you factor in the much shorter delivery times from those countries which is just a few days, versus a full month if a brand manufactures in the other countries, it is not economically viable. Shorter lead times yield a number of benefits, creating an added economic bonus in the longer run as the garment factory operates according to seasonal trends. Although China has always been the world’s biggest clothing exporter because of their cost efficiency as well as being quick and reliable, current fashion trends are now redrawing the world’s garment-manufacturing map. As the mass-market apparel sector is
expensive than China. Nearshoring is vital for European high fashion brands from Paris or Milan-based brands who earlier outsourced from Asia. Shipment may take eight to nine weeks plus extra for customs clearance. Given at least a month in production time and product development at the start, a brand will have to make a commitment on volumes sometimes six months in advance, often well before they have knowledge of what will sell. A supplier in Eastern Europe, meanwhile, can deliver to a distribution centre in a few days, allowing a company to react to market demands faster. A similar response in the US has also seen the growth in suppliers in Central American nations like Honduras and El Salvador, ranked seventh and tenth biggest suppliers of US clothing in 2015, according to Textiles Intelligence. President Trump’s overtures to impose an additional tariff on Mexican and Chinese apparel imports may add to demand for suppliers in Central America. Every manufacturing country provides different costing figures and it is up to the different companies in the US to choose whichever option is the most suitable. Even if producing in China
moving to a demand-focused, agile supply model with labor costs rising, automation will play a key role in increasing labor efficiency, throughput, and flexibility. In the future, automation will be crucial to increasing the financial viability of on-demand nearshoring or onshoring models. Nearshoring needs more time to be viable Fashion may lag behind other industries in implementing automated manufacturing but companies are starting to embrace new technologies in their efforts to speed up production. Most global apparel sourcing executives feel a big change in nearshoring for speed is quite likely by 2025. Mass-market apparel players that embrace automation technologies to become faster and more sustainable will likely be tomorrow’s winners. For the bigger US companies, Mexico and Guatemala are the prime manufacturing destinations whereas Turkey has emerged for labels selling in Europe. About four-fifths of nearly 200 global apparel industry sourcing executives says “a step change in nearshoring for speed is somewhat or highly likely by 2025,” reveals a survey by McKinsey & Co. and The Sourcing Journal, a trade publication, in September. Most respondents came from companies based in the Americas or Europe. Almost 80 per cent of the respondents also said it’s “highly likely” or “somewhat likely” that “trade agreements change offshoreonshore equation.” For starters, China has built up a manufacturing infrastructure and capacity that other countries just can’t match.
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Some brands are already moving a share of production to nearby countries but a large-scale shift might not be possible until those countries are able to build factories to handle the workload. One of the biggest hindrances is it is these low cost countries in Asia, specially China that make the actual textiles, especially in the case of specialized fabrics, like those that athletic brands use. Even if US companies want to assemble finished garments in Mexico or Turkey, they still have to buy and import their materials from these countries which are far away. With shipping and freight costs and import and export duties added on, many of the US and European bands are likely to keep their production in Asia rather than move it nearby. The industry is at a crossroads where speed beats marginal cost advantage and basic compliance is upgraded to an integrated sustainability strategy. The traditional supply chain setup is now challenged, and as labor costs converge, brands and retailers are starting to rethink their sourcing and production models. A move to increased nearshoring and more automated production models have the potential to enable sustainability further and to support the adaptation of a circular economy in the apparel sector. The escalating trade war between the US and China is also a hindrance. Experts don’t see a quick resolution, and the fashion industry is settling in with the expectation that the tariffs the US is placing on goods from China are here for the long term. In a highly competitive market, a fast, flexible supply chain is an advantage. It allows brands to respond better to the demands of internet-enabled shoppers and is the reason why power brands including Nike, Adidas, Levi’s are changing the way they make their products and investing in things like automation and moving production nearshore. Fashion brands have to deliver goods faster than ever are making it more cost-effective for Western brands to produce their simple styles in low-cost countries nearer at hand. New countries emerge nearshoring hubs It is not the only luxury brand sourcing closer to home in the US, UK and Europe who earlier got their supplies from budget suppliers in China, India and Southeast Asia. Affordable luxury brands in particular are moving production closer to home, as they seek higher-quality suppliers as their customers become more discerning. Further the fall in value of the Euro versus the dollar makes the cost advantage in sourcing overseas. Working with suppliers positioned closer to large consumer markets in Europe allows brands to be more responsive to demand, boosting overall productivity both in the US and across the Atlantic. Close to the US, which is considered to be the world’s largest consumer market, countries such as Mexico, Honduras, El Salvador and Guatemala are the hot favourites with a mix of low wages, technical ability and proximity. In Europe, there are some growing East European counties that are now competing for business with traditional Asian hubs. Producing items in Eastern Europe provides brands from European fashion capitals with flexibility for late manufacture in order to add detailing according to changed fashion trends and also additional volumes if necessary. Fashion quality in Eastern Europe is generally better than Morocco and Tunisia, which are known for denim and basic apparels. Also, Romania and Bulgaria are able to produce complex, sophisticated
The industry is at a crossroads where speed beats marginal cost advantage and basic compliance is upgraded to an integrated sustainability strategy. The traditional supply chain setup is now challenged, and as labor costs converge, brands and retailers are starting to rethink their sourcing and production models.
items thanks to years of technical production, while Morocco is known for its denim and other parts of North Africa tend to produce more basic apparel. East European manufacturers also allow mid-sized companies to order lower minimum quantities per item compared to bigger producers like China and Bangladesh and frequent physical checks on quality issues before the final product is shipped across is much easier. The successful apparel companies of the near future will be those that take the lead to enhance the apparel value chain on two fronts of nearshoring and automation. Both must be addressed in a sustainable way as apparel brands and retailers in Europe and the US can no longer do business as usual and expect to thrive. Owing to stagnation in Western markets and to the internet, competition is fiercer than ever, and consumer demand is more difficult to predict. Having the capability to manufacture close to where customers are located can also increase customer responsiveness and decrease turnaround times, making the supply chain more predictable. From offshoring of yesterday to nearshoring of today to the rightshoring of tomorrow, time is money in the demand and supply value chain and companies will do what suits them best so to each his own. n
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Indonesia to be top Muslim fashion center by 2020
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ndonesia aims to become one of the world’s Muslim fashion centers by 2020. The country has adopted a strategy to boost growth of startups in this field. The country’s exports of Muslim fashion products increased by 8.7 per cent in 2017 from the previous period. It will continue to encourage Muslim fashion industrialists and designers to continue making innovations by increasing their productivity and strengthening their brands to be able to penetrate the export market. At present, the Muslim fashion industry is projected to be able to absorb 1.1 million of the total 3.8 million fashion industry workers in the country. Indonesia has the largest Muslim population in the world. In addition, Indonesia is among the top five members
Activewear to witness steady growth through 2019
of the Organisation of Islamic State Cooperation, which is the world’s largest Muslim fashion exporter. Others are Bangladesh, Turkey, Morocco and Pakistan. The market for Muslim fashion products is expanding. One of the drivers is the increase of Muslim population in Indonesia and the world. The value of the global Muslim fashion market is expected to reach $327 billion by 2020. Muslim consumers spend an estimated $230 billion on clothing - more than the combined clothing markets of the UK, Germany and India. n
Sale of women’s jeans increases by 9 per cent
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s per research by The NPD Group, the market for women’s jeans has registered a 9 per cent increase in sales in the year ending July 2018 compared to a year ago. The overall sales in the $16.4 billion US jeans market increased by 5 per cent in the year ending July 2018 over same period last year. Both classic and new jean styles played an important role in growing the jeans category, particularly women’s jeans.
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ccording to a recently released study of Future of Apparel by The NPD Group, activewear, which currently represents 24 per cent of total apparel industry sales, will grow steadily through 2019. The total sale of sweatshirts, in the 12 months ended June 2018, increased by double digits and that of active bottoms by 5 per cent. This growth is attributed to the fact the segment has mainstreamed across ages and demographics. For instance, social shoppers, a consumer segment identified in the Future of Apparel report that represents the largest portion of the population, are indicative of the athleisure consumer. They consider themselves to be social, fashion, and image conscious and activewear is a big part of their future purchase plans. n
Skinny jeans are still the most preferred women’s jeans with sales of this style increasing by 6 percent over year ago and accounting for nearly 40 percent of women’s jean sales. According to fashionistas and fashion journalists, more fashionforward style jeans, like high-waisted, straight-leg jeans ,cropped flares, ultra-cuff, and denim sweatpants are more popular with teens and young adults. n
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UK govt committee to review environmental initiatives of fashion retailers
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he UK House of Common’s committee has written to chief executives of the UK’s 10 leading fashion retailers to know about the environmental initiatives undertaken by these retailers to reduce the environmental and social impact of the clothes and shoes they sell. The companies that the Environmental Audit Committee has
Millennials upturn luxury business globally
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he surge of millennial buyers is transforming the traditional demography at shopping malls. Their increasing incomes and family financial support is allowing the young to shift from fast fashion to posh clothing and accessories. By 2025, millennials and the Generation Z (people born after 1996) are expected to consume 45 per cent of luxury fashion sold globally. As millennials account for a big proportion of purchases of high-end brands, traditional outlets have undergone a makeover to make them millennial-friendly. These outlets are incorporating a café look. They have has a check-in area specifically meant for taking photos. Their stores have their own signature color, with red being a symbol of fortune and light blue and pastel pink representing youth. Also as the main customers of these outlets are youngsters, luxury brands are employing people in similar age groups in managerial positions. n
written to include Marks & Spencer, Primark, Next Retail, Arcadia Group, Asda, Tk Maxx and HomeSense, Tesco, JD Sports Fashion, Debenhams and Sports Direct International. According to the Westminster’s environmental audit committee, the Textile Recycling Association has already submitted evidence to show that UK uses 26.7 kg per capita. This compares to a consumption rate in the next-highest countries of 16.7 in Germany and 16 in Denmark - and just 12.6 in Sweden. Also, there are concerns that the demand for fast fashion is fuelling the need for quick turn-around in the supply chain, leading to poor working conditions in UK garment factories. n
Forty-five per cent of the total luxury market to be represented by millennials by 2025
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ccording to a survey of over 3,000 consumers across China, Europe and the US by UBS Group AG, millennials in the age of 18 to 35 years will represent 45 percent of total high-end spending by 2025. They contributed to 85 percent of the growth in the luxury market last year. The favorite brands of these millennials include Gucci and Louis Vuitton. Although these millennials engage in online shopping, they prefer to shop in physical stores. Chinese millennials, a major driving force behind sales growth, allocate about 20 percent of discretionary income to purchasing luxury goods, a similar share as older generations. Younger people in Italy and the US spend more than their elders. n
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UK apparel industry’s resurgence stymied by skills shortage
hough it’s difficult for the millennial to imagine the UK as a mass producer of clothing and textiles, in the 1970s UK had a thriving textile manufacturing industry. The industry started to drift slowly by early 1980s when retailers and brands relocated to emerging markets to cut costs and increase margins. The bulk of this manufacturing drifted to China, which effectively began churning out goods for markets across the globe. In the early 2000s, the UK clothing and textiles sector reached its low¬est number of
employees, totaling only about 90,000 workers. As expected, with a big fall in demand, factories across the UK closed down, although some firms specialising in tailoring, outerwear and premium knitwear clung on to British soil.
A revival in the millennium In 2007, Zara swooped on to the global market, creating a fast fashion model that others envied. Some retailers and brands started to bring manufacturing – albeit a small amount – back to the UK. This resurgence was also fuelled by a newly found interest in Made in UK products. The emerging BRICs economies (Brazil, Russia, India and China) created a new wave
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of consumers with new spending power, and they desired British-made goods. The biggest increase came from a rise in the number of garment manufacturers, to 3,830 companies, while the number of textile producers increased to 4,030. This growth was attributed to the rising cost of overseas production, increasing need for supply control and flexibility, and growing demand for UK-produced clothing. The number of people employed in textile and clothing manufacturing (including self-employed) was at its highest level since 2006, at about 132,000. The UK’s decision to leave the European Union also encouraged retailers to look closer home for sourcing. The weakness of sterling since the Brexit vote – and the attendant effect on exchange rates – resulted in higher import costs, and makes buying in pounds from within the UK a more attractive prospect than it has been for some time.
Skill shortage a big drawback A survey of textiles employers by the Alliance Project in 2015 revealed, 37 per cent firms felt skills shortages were a barrier to growth. Almost half (49 per cent) reported hard-to-
The biggest increase came from a rise in the number of garment manufacturers, to 3,830 companies, while the number of textile producers increased to 4,030. This growth was attributed to the rising cost of overseas production, increasing need for supply control and flexibility, and growing demand for UK-produced clothing fill vacancies, and half said their recruitment problems in the past two years had related to small number of applicants with the experience and qualifications required. In April 2017 ONS Labour Force survey found the UK’s textiles workforce stood at 127,500 across all skill levels, from packing
and warehouse staff to board directors. The age profile of workforce is another limitation. A lot of manufacturing workforce is above 40 years. So brands have to make manufacturing more appealing to young people and urge them to take it up as a career. The prospect of Brexit makes predictions about how UK manufacturing will pan out, tough. But most analysts remain ¬optimistic. Certainly, the industry needs to rally together to help keep up the momentum. n
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Consumer expenditure on fashion to touch $72.7 bn by 2022
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ith growing economic prosperity, Asean consumers are spending more on fashion and lifestyle. As per a Euromonitor International survey, consumer expenditure on clothing and footwear amounted to $ 51.2 billion in 2017 in the Asean region. Over the next five years, this figure is expected to grow on an average 7.3 per cent annually to touch $72.7 billion in 2022. According to HKTDC’s ASEAN Middle-income Consumer Survey, more than half respondents in Jakarta, Kuala Lumpur, and Bangkok are expected to spend more on fashion items in next two years. The
distribution of fashion spending was: business attire (28 per cent), casual wear (26 per cent), shoes (22 per cent), accessories (12 per cent), travel goods and handbags (8 per cent), and spectacles (4 per cent).
Fashion’s popular retail concepts Concept stores, department stores and multi-brand stores are dominant distribution channels for fashion in the Asean region. Besides bricks-and-mortar retailers, e-commerce has become a strong force in the fashion industry. Concept stores: Concept stores sell well-curated products matching that store’s special theme. They constantly seek unique items to add corresponding accessory labels to their product offerings.
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own sites (H&M and Adidas). Retailers like Central Group and MAP Group, have also embraced e-tailing by creating their own online platforms.
Luxe brands making inroads
Department Stores: Department stores are an important fashion distribution channel in Malaysia. Major department store chains, such as Parkson and Metrojaya, continue to upgrade their product portfolios to include a wider selection of brands attractive to middle- and high-income consumers. In Thailand, Central Group has: Central Department Store, Robinson Department Store and Zen, as well as managing Marks & Spencer and MUJI. The Mall Group operates The Mall department stores, Siam Paragon, The Emporium, and The EmQuartier.
Online retail With just three per cent, e-commerce penetration in Asean countries online is still only 3 per cent of total retail sales. The Asean fashion ecommerce market includes classified sites (Mudah and OLX), C2C (Tarad, Tokopedia, Bukalapak, Shopee), B2C (Lazada, Zalora, MatahariMall) and brands’
Luxury groups such as Louis Vuitton, Christian Dior, Chanel, Prada, and many more, usually enter the Asean market by opening exclusive flagship stores to ensure total control of brand image. Sportswear brands, such as Nike or Adidas, mostly expand through franchisees. Fast fashion brands, like H&M, Zara, and Uniqlo open brand stores in major cities. Upcoming fashion designers either approach department stores with their portfolio or opt for joint promotion events, such as a trunk shows. Large brands choose to participate in large-scale iconic fashion shows in the region, such as the Bangkok International Fashion Fair and Kuala Lumpur Fashion Week. Smaller brands showcase their collections at private fashion events organised by fashionista and public relations consultants. Partnering a retailer to host a trunk show is another alternative. Meanwhile social media has become an essential tool for marketing, public relations, and customer service. Brands need to make sure that their social media content is timely, engaging, and relevant to their target market. They can also hire influencers to gain immediate access to the right customers. n
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Well-informed consumers boost demand for premium fashion in India
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ndia’s fashion and lifestyle segment is estimated at $80 billion and growing at a CAGR of 10 per cent. Online fashion contributes around 7-8 per cent or approximately $6 billion. It is further expected to reach $12-$14 billion by 2020 with the overall retail market at $100 billion. The driving forces behind this growth are: changing consumer preferences, brand awareness, increase in disposable income, and a rise in tech-savvy millennial population.
Global brands show the way International brands foraying in India is leading to the growth of premium apparel and
luxury segment which is likely to command 20 per cent share in the overall fashion e-commerce market. This exponential growth offers brands an opportunity to reap huge benefits. Meanwhile improvement in logistics, infrastructure and convenient payment channels is leading to the growth of e-commerce in the country. Availability of numerous options at a single click keeps fashion consumers well-informed and ontrend. However, to carve a niche, one needs to focus on local needs. The country’s youth is influenced by online research on current trends, product quality and company’s production ethics while making purchases. This leads to growin g awareness about the brand and its quality. Rising purchasing power is luring brands to foray in smaller cities. As an ASSOCHAM study says, the rise in purchasing power of Tier II & III cities has attracted many fashion brands
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to these markets. Premium brands are scaling up operations, offering products at attractive price points. People who are aware about brand value and spend lesser than they would have on a luxury brand, are an attractive market for entry-level premium brands.
Brands tap shifting demand Changing buying habits have pushed brands to address the shift in luxury consumer behavior. E-commerce players offering luxury and premium products are aligning their offerings to the needs of consumers. Internet boom and the penetration of social media have played an essential role in creating awareness about premium products. Consumers regularly seek the first
source of information from social media, and many seek personalised, targeted promotions like emails on new collections and discounts from brands they wish to own. Global luxury fashion brands are partnering premium e-retailers to leverage growing demand. A Euromonitor, Forrester and McKinsey study reveals digital share of global luxury market will be around 20 per cent by 2025.
Social media a big influencer With the spread of social media shoppers spend a considerable amount of time online, and 50 to 60 million consumers buy fashion online. By 2020, this number is expected to double. A recent BCG and Facebook study estimates 70 per cent of the branded apparel in future will be digitally influenced. India’s luxury spending is at par with the UAE, far ahead of Turkey, Thailand, and Argentina, and growing faster than Singapore and Australia. The country, with its favourable trade and FDI policies and penetration of organised sector, is one of the most promising markets for investors. n
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Traditional retailers need new ways to compete with fast fashion
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ast fashion has gained ground in the millennium. The move started by the likes of Zara, IDEXY and H&M, has today catapulted the global fashion industry. The recent success story is of lifestyle brand Urban Outfitters, known for catering to a young demography through hip and stylish merchandise. Its major success factor has been the ability to accurately adapt latest fashion trends. Similarly, Japanese brand Uniqlo made waves by partnering tennis legend Roger Federer. The brand going ahead would be labeled as a fast fashion brand that tracks the world’s latest trends.
landscape. Companies like Nordstrom JWN and Kohl’s KSS have already started taking steps in that direction. For instance, Nordstrom has laid out a new five-year growth plan that is clearly influenced by fast fashion. The plan focuses on boosting the company’s e-commerce as foot falls at malls have started declining. On the other hand, Kohl’s signed a deal with Amazon in September 2017, and the partnership has paid off well. Traditional companies will have to pursue innovation and continue making strategic initiatives to stay at the forefront of retailing. Clothing retailers like Kohl’s that make successful changes should see growth, while others could be left behind. n
Traditional retailers lag behind Traditional retailers aren’t happy with the change and understandably so, as fast fashion brands are forcing other major brand to make decisions and decide on how to respond to changes in today’s retailing and clothing
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Oeko-Tex reassures product standards
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s confirmed by a recent Oeko-Tex study ‘The Key to Confidence’, independent product labels such as the Standard 100 or Made in Green make buying decisions easier and prove that children’s clothing can be fashionable, child-friendly and sustainable. According to the study, transparency, product stewardship, and trust go hand-in-hand when parents shop for textiles. The Oeko-Tex system supports brands, manufacturers, and retailers as they implement product responsibility strategies and build more sustainable supply chains. The range of Oeko-Tex products in testing, certification and product labeling has increased significantly. Globally harmonised standards like those in the Oeko-Tex system set the bar for defining and measuring textile safety and sustainability. From raw materials through to the final product, third party certifications help brands and retailers reassure consumers that products are made in environmentally and socially responsible ways and are safe for people to use. Oeko-Tex helps companies throughout the
global supply chain easily test their organic cotton products for GMOs (genetically modified organisms). Parents represent the most demanding consumer segment of all with regard to product safety and responsible production of textiles. n
M&S, British High Commission launch program to promote gender equality in Indian RMG factories
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he British High Commission and Marks & Spencer have launched a program to promote gender equality in the workplace and prevent harassment in India’s garment and clothing factories. Phase 1 of the program focused on two factories in Bangalore. Phase 2 covered 11 factories in Delhi NCR, Bangalore and Chennai. Workers were made aware of legal provisions guaranteeing their safety at the workplace, and trained to educate fellow employees also. Supervisors at factories were trained on gender equality, protecting rights of women and how to work responsibly. These gender centric programs, sharing learning and open source resources, are
expected to help the garment industry in India and other businesses address gender issues and empower women to have the skills and confidence to take up leadership roles, contributing to a safe and gender equal society. n
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AppArel / Brand Case Study
Burberry takes positive steps towards sustainability, circular economy
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uxury fashion brand Burberry is working hard to transform its business model, which redefines waste and embeds the circular economy into an industry pierced with fast fashion discrepancies. The announcement came just after the brand burned more than ÂŁ28 million worth of stock over the past 12 months. But
it is not alone in burning its defective, unused stock. Other big players including H&M and Nike too have been following this practice to keep their brand value intact. Indeed, counterfeiting is a huge risk for fashion companies and the industry is worth $450 billion. UK’s Anti-Counterfeiting Group says, counterfeiting and theft of intellectual property fuels drugs smuggling and cases of human trafficking. The Burberry says, they have careful processes in place to minimise
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the amount of excess stock produced. And when disposal of products is necessary, they do so in a responsible manner and continue to seek ways to reduce and revalue waste. Burberry, which has been included in the Dow Jones Sustainability Index for three consecutive years, is keen to lead this transformation. Pauline Bohl, Responsibility Programme Director, Burberry says the luxury fashion brand is turning to collaboration and innovation to kick start a journey that pushes Burberry and the industry towards a resource revolution that promotes closed-loop practices. One of the goals for 2022 is to revalue waste. Burberry recognises the need to address the issue of waste, which is a huge one for the industry and to invent new approaches that view waste as a resource. The company intends to foster business models that keep clothes in use. Luxury is quality, it is built to last and it’s the core of its products and customer expectations. The second focus area is creating renewable materials.
Fashion waste an ongoing issue In the UK, an estimated 300,000 tons of clothing and fashion waste ends up in landfill each year. It is largely driven by the fast fashion industry; accelerated production of cheap clothing that encourages consumers to purchase more items frequently. For luxury brands like Burberry, it is of paramount importance that counterfeit products don’t end up in this highturnover cycle. An Ellen MacArthur Foundation’s report reveals UK economy loses £82 million through landfilling of clothing and textiles annually. Taking due cognizance of the situation, Burberry is keen to partner on solutions that make products more durable and reusable. The company is a core partner of the Make Fashion Circular initiative from Ellen MacArthur Foundation. This is a project to create business models which will keep garments in use, utilise materials which are renewable and find ways of recycling old clothes into new products. Companies like Nike and H&M have also signed up to this initiative.
The Burberry Foundation, set up as an independent charity, awarded £3 million to the Royal College of Art to establish the Burberry Material Futures Research Group, the first of its kind in the world, and expand the Burberry Design Scholarship Fund. The Research Group is one of the first to utilise Science, Technology, Engineering, Art and Mathematics (STEAM) research to apply radical thinking to invent sustainable materials. The program aims to inspire and get the industry to think about the circularity issue and potential.
Future plans Burberry is keen for its products to not only drive circularity but also improve sustainability in the supply chain. Another key pillar for the company’s 2022 goals is to ensure that 100 per cent Burberry products have at least one positive attribute. The attributes can range from using cotton sourced through the Better Cotton Initiative, leather from certified tanneries, or ensuring the person who made the garment is paid a living wage. To date, 14 per cent of Burberry products have more
than one positive attribute while 28 per cent have one. Burberry is just starting out on this journey to promote circularity. As Bohl says, all consumers are becoming aware of the impact of their purchasing decisions. There is an expectation that being in luxury means they are doing business in a responsible way. n
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Interbrand ranks Louis Vuitton as the world’s most valuable luxury fashion brand
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nterbrand has ranked Louis Vuitton as the world’s most valuable luxury fashion brand. The list, based on financial performance, ability to influence consumer spending and competitive strength, ranks Chanel on the second position followed by Gucci. Having a strong point of view in everything it does, Louis Vuitton has been relentless with its engagement with millennials and is noted for investing in people. Similar trends are seen at Gucci. China’s domestic luxury market expanded by 20 per cent in 2017, with mainland growth outpacing the rate of purchases made overseas. Luxury is the biggest story of
Lucrative opportunites for American Sports brands in China
the report and has an ability to connect to cultures and next generations. It has cracked the code by having a point of view in the market. Luxury is a space of excellence, whether it’s fashion, leather or jewelry. n
VF to reshape brand portfolio
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pparel, footwear and accessories leader VF Corp is reshaping its brand portfolio by selling brand Reef to the Rockport Group. The company, which owns brands like Vans, The North Face, Timberland, Wrangler and Lee, aims to deliver sustainable, long-term growth and superior returns to shareholders. It recently sold Nautica and picked up performance athletic shoe maker Altra. Prior to that, it acquired Dickies parent Williamson-Dickie and shed its Licensed Sports Group. In 2016, VF closed the sale of its Contemporary Brands business, which included the 7 for All Mankind, Splendid and Ella Moss brands.
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ig American sports brands face lucrative opportunities in China as Chinese infrastructure of sports marketing vehicles, including platforms such as WeChat, Alibaba, Tencent and even videos and selfies, all contribute to the market being ripe for development. Since the millennium, China has made rapid progress in global sports and is expected to surpass the United States by 2024. With 1.4 billion people, China is expected to soon dominate the Olympic Games. The country’s emerging middle-class is hungry for highquality products, which has turned it from mostly producing to more global branding. n
Rockport own brands like Rockport, Aravon and Dunham, as well as the Cobb Hill collection. The company outfits sailors with high-tech, nautically inspired shoes. It currently employs nearly 70,000 people worldwide with operations across over 170 countries. Its Responsible Sourcing program is a global collaborative approach to sourcing products responsibly including collaborating with industry partners and multistakeholder organisations across 50 countries. n
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British men’s swimwear label Orlebar Brown acquired by Chanel
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fter acquiring a 20 per cent stake in F.P. Journe, luxe brand Chanel has bought British high-end men’s swimwear and board shorts label Orlebar Brown. The purchase was made from the label’s founder Adam Brown, the Piper investment fund and a few minority shareholders. Adam Brown, who founded Orlebar Brown in London in 2007, will continue to act as the brand’s creative director, alongside CEO Paul Donoghue. This acquisition offers an ideal opportunity for collaboration between Orlebar Brown and Eres. Orlebar Brown could enable Eres to boost its digital expertise and optimise its omni-channel distribution strategy. Orlebar Brown, on the other hand, can benefit from the retail experience and know-how of a long-established player in the high-end beachwear segment. Orlebar Brown was launched as an online brand 11 years
H&M profit declines by 19 per cent
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&M’s operating profit declined by 19 per cent in the three months to August, marking the tenth decline in 12 quarters. This decline was mainly due its apparel backlogs. Its stockin-trade rose by 15 per cent. The company is working through the excess stocks and will be able to scale back discounting as a result, even as it irons out its supply problems. The retailer has taken the market share in most markets, largely because its new collections have been appreciated by customers. However, H&M won’t hit its sales growth target of 10 to 15 per cent this year.Online sales were a bright spot for H&M, rising 32 per cent, though the retailer still may struggle to reach its target for a full-year increase of at least 25 per cent because first-half e-commerce missed that level. Weakness among clothing retailers has pitted them in a battle to lower prices. Sales at Gap, discount-clothing retailer Primark and Esprit have been under pressure, and Inditex reported its weakest sales growth in four years this month. n
ago, and 40 per cent of its current sales are generated via its e-tail site. The label has a brick-and-mortar network of 24 directly owned stores in 11 countries, and is also available at over 250 specialised retailers. n
US retailer Kohl launches woman’s plus brand Evri
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ohl recently launched a woman’s plus sized brand. Evri (Easy, Versatile, Real value and Inspiring) that aims to empower women with stylish and functional pieces for all shapes and sizes. Evri will offer a deep assortment of modern wardrobe essentials and relevant fashion wear that can be worn from day to night, with Kohl’s signature quality and value. The brand’s focus on fit solutions will also ensure an easy shopping experience to its customers. The apparel will feature dresses, tops and bottoms in sizes that take in account both shape and height, ranging from short to tall, with additional options available in more curvy and less curvy. With this brand, Kohl’s aims to enhance its women’s plus offerings to customers. n
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Streetwear’s growing popularity sees more brands jumping in the fray
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treetwear has constantly been evolving in unexpected ways. Offering something for everyone, streetwear has emerged as an important category today.The market for US urban streetwear in 2015 was valued at about $80 billion by Statista. A study by Bain & Company last October revealed, high-end streetwear helped boost global sales of luxury brands by 5 per cent. A takeaway from the sportswear segment, streetwear is the buzzword in fashion today. From heritage houses to fast-fashion brands, retailers and big-budget investors, everyone wants a stake in this category. Almost half a century old and hyper commercialised, street fashion is all about youth culture in its truest form and
youth culture sells. In fact, its global mainstream dominance has democratised the entire fashion system.
A lucrative business proposition As a category streetwear emerged decades ago, but now its witnessing a huge growth, despite the advent of new players, luxury collaborations, and high-end designers. Wanting to look different, streetwear caters to ones needs by offering limited drops or releases by reputed brands like Nike, Supreme and Johnny Cupcakes The popularity of streetwear can be gauged from the fact that Supreme that started out as a skate brand in New York and never held a runway show, won the CFDA Menswear Designer of the Year Award last June. In fact, the brand’s recent sale saw jackets, sweatshirts, and the coveted Madonna “Justify My Love” T-shirt sell out in seconds. The Madonna tee retailed
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on Supreme’s site for $48, sold out in all Colorways, and was reselling later that day for $250 on StockX, the ecommerce resale marketplace. As analyst and insights director of Edited Katie Smith points out, the shift towards more comfortable and functional clothing has led to an increase in activewear as a trend. But with a saturation point in activewear, consumers went looking for the ‘new cool’ and turned to the street. Streetwear has a similar casual aesthetic, with a wider and less sporty silhouette. In India, popular ‘street’ brands are not more than five years old. These include: Noughtone, Sahil Aneja, Huemn or Theorem. Being new incumbents, these brands are yet to make a mark and will take a long time to shake the designer fashion system that continues to be dominated by ethnic wear designers. However, top designers are incorporating street influences to give a fresh spin to their work. For example, designer Narendra
high-priced, oversized jackets, sweatshirts, sweaters, and leggings. According to Monitor Survey, around 92 per cent of consumers prefer clothes made from natural fibers like cotton and 66 percent of them willing to pay more for them.
Streetwear’s luxe makeover Kumar went all out on sport influences, using ‘fakes’ as the main theme for his last collection. Similarly, more traditional Indian wear labels like Ritu Kumar and Anita Dongre, embraced sporty accessories like elongated belts on saris and bum bags and sneakers with everything in collections.
Cotton the first choice Most brands incorporate cotton fabrics into their streetwear offerings. However, Supreme’s Fall/Winter collection also includes denim, a cotton corduroy shirt with flannel hood, printed and oxford button-front cotton shirts, and cotton twill shirts and pants. The brand prefers to stick to natural fibres. The Yeezy collection of luxury labels Kanye West has also been cotton-rich from the beginning. The Kanye and Adidas Originals Yeezy Season 1, launched in February 2015, featured
In recent years, luxury labels like Gucci and Burberry have joined the category. Other labels like Louis Vuitton are also adding streetwear designers to their brand. There are loads of collaborations happening at the highest levels like Adidas Originals by Alexander Wang, Topman x Vision Streetwear, Off-White, and Jimmy Choo. This mixing of high and low brands and price points is been done with great effect. These collaborations lend a taste of luxury to shoppers without harming the reputation of the designers. Luxury labels will continue to offer streetwear because that’s what the consumer wants, bringing their designers recognition among these young buyers. n
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H&M’s off-price luxury site ‘Afound’ to perk up company’s bottomlines
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&M, the $26 billion Swedish apparel company, the second largest in the world, launched Afound an offprice luxury site that offers goods from wellknown brands at discounted rates. In fact, the site offers many of H&M’s own wares such as H&M, Monki, and Cheap Monday labels, accessories from and Other Stories and COS.
New strategy to boost market value The new acquisition is part of H&M Group’s strategy, which, in recent years, has
been branching out from just selling pocket friendly garments and accessories. The brand, which, once was the fastest brand to offer garments and accessories has of late become archaic compared to ‘ultra-fast fashion’ entities like Fashion Nova, ASOS, Boohoo and Missguided, which offer new items every week. The group’s shares have lost nearly two thirds of its value after achieving record highs in 2015. It lagged behind competitors in adoption of e-commerce capabilities and overall approach to merchandising. These losses have compelled the group to not only address
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logistical issues but also broaden the roster by introducing & Other Stories, COS and Arket, its more up-market (than H&M) apparel companies, and Nyden, its millennial-focused “affordable luxury line,” among others. Afound is the latest addition to the list. The $62 billion off-price market is well-established in the US, with roughly 80 per cent of sales taking place there. As per Euromonitor, in Western Europe, sales in the off-price retail market for the five years leading up to 2017 grew nearly 50 per cent; in Eastern Europe, they were up by over 90 per cent. In keeping with this trend, H&M Group launched Afound. The idea was to create an innovative marketplace in the off-price segment.
H&M’s winning strategy With Afound, H&M is also planning to adopt strategies similar to those of T.J. Maxx, the off-price retailer which, despite its brick-and-mortar exclusive existence, has recorded remarkable revenues in recent years, in large part, due to its affordable prices and treasure hunt-like experiential shopping. Afound is also incorporating another winning strategy from its liquidation counterparts: the bait-and-switch. Companies such as T.J. Maxx are known to routinely offer quantities of “it” bags and other high fashion items in order to lure consumers. Once shoppers are in its stores, T.J. Maxx, for instance, can
With Afound, H&M is also planning to adopt strategies similar to those of T.J. Maxx, the off-price retailer which, despite its brick-and-mortar exclusive existence, has recorded remarkable revenues in recent years, in large part, due to its affordable prices and treasure hunt-like experiential shopping then sell them other products. Afound is using the same strategy, particularly since its H&M Group-branded items significantly outnumber the Gucci and Prada ones. As of now, Afound is accessible to consumers through two brick-and-mortar stores in Stockholm and Malmö, Sweden, both of which opened in June, and a Swedishspecific e-commerce site, which launched at the same time. The ecommerce site is planning to launch additional stores in Gothenburg, Skärholmen and Kristianstad later this year. n
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AppArel / AEPC events
AEPC organises SHS campaign to spread awareness about the importance of cleanliness
Dr. A. Sakthivel, Vice Chairman, AEPC has initiated plantation of Sapling/Tree at Jaivabai Girls Higher Secondary School, Tirupur in the midst of Council’s EC Members Mr. V. Elangovan, Mr. Raja M Shanmugam, Mr. B. Shanmugasundaram, Mr. K.M. Subramaniam, Mr. D.M.Kumar, Exporters, Head Master, Teachers, Students of Jaivabai School, Officials of AEPC & ATDC
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he Apparel Export Promotion Council (AEPC), to spread awareness on the importance of cleanliness, organised the “Swachhata Hi Seva” (SHS) campaign from September 15-October 2, 2018. This campaign included Swachhata camps in apparel units. The AEPC regional offices also collaborated with the local Municipal Corporations for identifying the areas in the cluster where there is no waste disposal system.
The regional offices initiated the cluster level programme which encouraged the unit to maintain cleanliness in the factory premises as well as the neighborhood. During the campaign, officials of AEPC HO and its regional offices, briefed about importance of cleanliness and encouraged to keep the clean the near areas, plantation of sapling, use of separate dustbins for disposal of plastics & papers, keep the dry & wet waste separately, weeding out of old records, to make a habit to watch and take steps to keep the work place and surrounding areas hygienic. n
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Swachhata pledge at M/s CTA Apparels, Noida
Swachhata pledge at M/s Sun Star Apparels, Tirupur
Swachhata pledge at M/s Swati Exim, Noida
Swachhata Hi Seva camp at M/s Neetee Clothing, Gurugram
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Swachhata pledge at M/s E-land Fashions, Tirupur
Swachhata pledge at M/s Raj Exports, Tirupur
Plantation of saplings at M/s Himanshu Apparels, Gurugram
Swachhata pledge at M/s Cotton Blossoms, Tirupur
Swachhata pledge at M/s Cheer Sagar, Jaipur
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Swachhata pledge at M/s Meenu Creation, Noida
Swachhata pledge at M/s Veenar Fashion, Mumbai
Swachhata pledge at M/s B S Apparels, Tirupur
Swachhata pledge at M/s Global Fashion, Mumbai
Plantation of saplings at M/s RMX Joss, New Delhi
Cleanliness drive by children at AEPC Day care center in Noida
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AppArel / Sustainability
Companies adopt sustainable recycling solutions
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ompanies around the world are implementing sustainable and business friendly recycling solutions. American start-up AlgiKnit makes fibers from kelp that can be spun into yarn. The company offers a solution that can transform the highly polluting textile industry into a circular economy by using biomaterials. After having been used, this seaweed textile can serve as compost or animal feed. This also reduces the carbon footprint of the clothing industry, because no harmful fiber particles are lost during washing, such as is the case with polyester. The company is working on prototypes of T-shirt and sneakers.
New innovations being made in fiber recycling
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echanical and chemical innovations are being made in industry scale recycling of pre and post-consumer waste of cotton that also assures the quality of recycled fiber. The current fiber system is not really sustainable. Noble fibers such as cashmere, mohair, and wool are natural and renewable resources with low impact on the environment. Segragating these different types of fibers is a huge challenge to recyclers. Almost 150 million metric tonne of clothes and shoes are sold every year worldwide. This huge consumption negatively impacts the environment. More than 70 per cent of the world’s clothing eventually ends in a landfill, of which less than 15 per cent is collected to recycle. Less than one per cent of this is regenerated into new clothing. n
The Great Bubble Barrier from The Netherlands has developed an air bubble screen for use on riverbeds that catches plastic before it arrives at sea. Approximately 80 per cent of the plastic floating in the oceans enters the sea via rivers. The barrier sends high-pressure air through a perforated tube on the riverbed, in order to tackle plastic soup. This creates an air bubble curtain that blocks both the stream of plastic waste on the surface and the floating micro particles underwater. The plastic then floats to the waterfront along the air bubble curtain, where it is collected for recycling. n
GOTS co-organises ICSTS in New Delhi
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OTS was the supporting partner for the recently held ‘International Convention on Sustainable Trade and Standards’ (ICSTS) in New Delhi. The event was convened by the Quality Council of India (QCI) in collaboration with the United Nations Forum on Sustainability Standards (UNFSS). The convention focused on the practical questions of leveraging trade, standards, and global value chains as engines of sustainable development. It encompassed sustainable trade concept which acquires a broader conception of environmental, economic and social sustainability. GOTS is actively working with national and international brands to bring in more transparency and accountability in textile supply chains. The criteria include traceability, waste treatment, environment, working conditions and other aspects of social compliance. This includes prohibition of child labor, excessive overtime and insistence on fair remuneration and so on. GOTS can help to improve the supply chain interactions; all certified operations are listed in a public database for sourcing and proof. n
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AppArel / Sustainability
Fashion firms to preserve brand value through eco-friendly initiatives
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ashion businesses are adopting eco-friendly initiatives to preserve their brand value. Popular brand Stella McCartney, in its 2019 Spring/Summer Collection in Paris, has created an invitation card that explains its use of environmentally conscious materials in the format of comics. The brand makes its clothes from sustainable materials such as recycled nylon. Upcoming brand Marine Serre has used the upcycled method to create new dresses out of unsold clothing and material. Designers, in the current age of clothing abundance, feel no need to use new materials. For them, it is possible to create outstanding clothing with materials already available. Burberry recently announced it would no longer engage in mass disposal of unsold products. The BBC and other media outlets had reported in July that in fiscal 2017 alone Burberry disposed products such as clothing and perfume worth about
H&M launches new upcycled capsule collection
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wedish fast fashion giant H&M has launched a new upcycled capsule collection which uses discarded workwear products to make garments such as jackets, chinos and T-Shirts. The new capsule collection consists of jackets, work chinos, tees, sweats and a bags, all made from discarded workwear to create the worn look. Through this collection, the brand highlights unexplored sources to creating new garments through the upcycling of workwear. The process saves on virgin materials, climate emissions, water and chemical use. The project is initiated by Cheap Monday together with Re:Textile, a project within Science Park Borås in Sweden which focuses on developing structures for circular processes and redesign in the textile industry. The new collection will be rolled out from this month through its Cheap Monday initiative, a pilot lab for its sustainability work. Released once a year, the capsule collection explores new materials and processes to create more sustainable products. n
¥4.2 billion, bringing significant criticism. The LVMH conglomerate, with 70 brands under its umbrella, touts reducing carbon dioxide emissions and raising the use of renewable energy. n
Gap joins public education campaign Open to All
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S-based Gap has joined the public education campaign Open to All. The campaign is joined by brands like Yelp, Levi Strauss, Lyft, as well as more than 1,500 small businesses and 200 nonprofits. There are over 2,300 Gap, Banana Republic, Old Navy, Athleta, and Intermix stores in the US. Open to All, launched in 2017, is a public education effort that unites and galvanises national leaders in business, civic engagement, and the non-profit sector to take a stand for shared American values of fairness and equality. In addition to the business members, Open to All includes more than 200 nonprofit members spanning civil rights and racial justice organisations; lesbian, gay, bisexual, transgender equality organisations; health and disability organisations and faith organisations. Gap has been ranked as one of the world’s most diverse and inclusive companies for the second consecutive year in the annual Thomson Reuters Global Diversity and Inclusion Index. n
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AppArel / Fiber Fabrics
Next-Gen, innovative fibers sets the agenda in global textile industry
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he introduction of innovative, environment-friendly materials ranging from recycled polyester, upcycled and regenerated fabrics, recycled cotton and cellulosic fibers have fast-tracked developments in fibers. Some new innovations in fabrics that have taken the textile world by storm are:
Repreve polyester makes a mark One of most striking examples is the development and widespread commercial use of Unifi Inc.’s Repreve polyester fiber made from recycled post-consumer plastic water
bottles. Two years ago, Unifi opened a bottle processing facility in Reidsville, N.C., to convert plastic bottles into polyester fiber and yarn, a year later it expanded its Repreve Recycling Center in Yadkinville, N.C. That gave the company an annual capacity to produce up to 60 million pounds of Repreve and other premier value-added products. Last year, Unifi recycled over 10 billion plastic bottles and it now targets 20 billion recycled bottles by 2020, and 30 billion by 2022. The company has recycled 10 billion plastic bottles into fiber for new clothing, shoes, home goods and other consumer products. This fiber is used by many of the world’s leading brands including New Era, Levi’s, Target and Ford. In January 2018, Unifi introduced its Champions of Sustainability Award, which is given to 25 brand and retail
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AppArel / Fiber Fabrics
partners that used 10 million or more bottles, and 15 textile partners use 50 million or more bottles, through the use of Repreve fiber.
Innovative insulation fibres Polartec recently introduced the upgraded Polartec Power Fill insulation made from 100 per cent post-consumer recycled (PCR) materials. It is a warm, lightweight package insulation that is hydrophobic, fast-drying and highly compressible. It’s made of proprietary hollow fibers bonded together through a process that reduces environmental impact, while simultaneously providing superior insulating properties, durability and hand. When the insulation was introduced a year ago, it featured 80 per cent recycled content. Polartec has now upcycled more than 1 billion post-consumer plastic bottles into hundreds of fabric styles and category-creating platforms.
Fall, and since then demand has been strong, which prompted plans to increase production capabilities to accommodate it. At the same time, Lenzing will expand its capacities of Tencel Luxe filament yarn that was first launched in the market last year. The company will invest up to $35 million in a pilot line at the Lenzing site in Austria.
C.L.A.S.S. shows the way
Tricia Carey, Director of Global Business Development at Lenzing says, Tencel with Refibra technology has been adopted by six brands: Country Road, Patagonia, Our of the
Increasing the exposure of sustainable fabrics is the mission of C.L.A.S.S., which recently launched e-commerce on its revamped website, classecohub.org to make recycled, upcycled and repurposed fabrics from its consortium of mills available to small designers and students to purchase, with 50-meter maximums. Among C.L.A.S.S.’s firms whose uptake of materials have been expanded include Ecotec by Marchi & Fildi’s collection made from already dyed, pre-consumer cotton
Woods, Reformation, Marco Polo and Mara Hoffman, and four more brands are expected to adopt the fiber, which substitutes traditional Tencel in the fabric construction. Refibra is made using the closed-loop Tencel lyocell production process and is the only commercially available fiber made from recycled cotton and wood pulp. Lenzing has also expanded the production of its Ecovero brand of viscose fibers to its Lenzing Nanjing Fibers facility in Nanjing, China. Ecovero, a fiber derived from sustainable wood pulp from certified and controlled sources, has been produced in Lenzing’s Austrian facility since it was launched this past
clippings that come in 70 colors, and Cupro fiber from Bemberg by Asahi Kasei made from the transformation of cotton linter bioutility waste converted through a traceable and transparent closed loop process. There’s also Re.VerSo, derived from wool and cashmere pre-consumer clippings supplied by a collaboration of five premium textile Italian producers, and Roica by Asahi Kasei, a sustainable elastane fiber that uses 50 percent pre-consumer materials. n
Fibers from recycled materials
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AppArel / Copyright
Weak copyright laws plague global fashion industry
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espite its importance in the global economy, the fashion industry hasn’t been able to gain strong IP rights and protection. Even countries like the US haven’t shown any willingness to address this issue. And as a few critics say, fashion designs are not art, and therefore, do not require similar protection, or that current laws sufficiently protect apparel and luxury brands. Added to that, the rapid turnover of new fashion designs makes IP protection useless because registrations do not typically issue until after copied designs reach the market. Ease of pirating fashion designs has
outperformed legal developments especially in the US, which requires fashion companies and designers to become more strategic in their approach to IP protection. Moreover ambiguities within copyright laws limit the protection of designs in different countries. Fast fashion retailers have attempted to legitimise and defend their production and sale of copied designs. Forever 21 was charged over 50 times by different designers and has never actually lost a case, instead resolving lawsuits in settlements. In 2017, the retailer found itself involved in three of the most significant fashion lawsuits of the year with Adidas and Gucci, but this did not deter the brand from producing and selling copies of other brands. In fact, in March 2017 Forever 21 went on the offence, making the bold decision to file suit against Adidas, calling the German
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AppArel / Copyright
Fashion companies and designers should register their brand names as trademarks to deter counterfeiting. Ideally,
may also prevent trademark squatting. Not only has e-commerce attributed to growth of copycat designs; fast fashion retailers are also constantly opening new physical stores. Research has shown some e-commerce fast fashion retailers present an astounding 700 new styles per week. To address fakes, some countries are adopting a new type of protection, simply referred to as ‘design rights’ or ‘design law’. In 2001, the European Union recognised an expansive definition of ‘design’: The appearance of a whole or part of a product resulting from the features of, in particular, the lines, contours, shape, texture and/or materials of the product itself and/or its ornamentation. This concept has since been adopted by Japan, Brazil, India and Israel. Under EU law, design protection exists as a registered or unregistered right. A registered right protects original designs for a renewable period of five years, with a maximum duration of 25 years from the original filing date. An unregistered right protects designs from blatant copies for a maximum of three years from the date the design was first made available to the public. As a result, the new
one should prioritise those countries where the brand is or imminently will be sold or manufactured. While certain jurisdictions recognise common laws, registration provides most protection; having an already registered trademark means there is no battle over who has the rights. Filing a trademark early
design laws offer protection from infringers to both registered and unregistered designs. In addition, both design rights and copyright can protect fashion designs in countries that allow for cumulative protection. n
sportswear brand a ‘bully’. IP lawyers are keeping a cautious eye on these cases to see which way the IP pendulum may swing.
Laws vary in each country James Donoian and Margarita Wallach, McCarter & English, LLP in their analysis stated that France is the only country with full copyright protection on fashion designs. French copyright laws protect ‘any original work expressed in any form’. The French system provides copyright protection regardless of the medium of the work. In addition ‘originators of all creations of form, even the most modest, receive a generous bundle of economic and moral rights for a term of life plus 50 years from creation.’ Copyright laws in the United States offer minimal protection. In the US, functional objects such as articles of clothing are not protected by copyright. However, under the concept of separability, copyright may protect authorship in pictorial, graphic or sculptural designs that can be identified separately from or exist independently of the utilitarian aspects of the article (ie, when the design can be separated from the garment and stand on its own as a copyrightable work).
Dealing with fakes
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AppArel / Events
Sourcing, Expo, Footwear and Leather Shows to be held in Australia
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he Sourcing Expo and Footwear and Leather Show, to be held from November 20 to 22, 2018 in Australia will have over 4,000 trade visitors. The shows will bring together 700 textile, apparel and footwear manufacturers and agents from 16 countries. The Sourcing Expo will attract sourcing managers for Australia’s large fashion retailers, niche fashion brands, online outlets and designers. It will allow buyers to meet with more reputable suppliers than they could physically visit on an overseas buying trip. The trade-only event will showcase a full spectrum of product and service offerings from off-the-shelf
IATF to hold its ninth edition in Dubai
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he ninth edition of International Apparel and Textile Fair (IATF), the sourcing hub for fabrics, textile, apparels and more, with exhibitors from 14 countries, will be held from November 12–14, 2018 at the Dubai World Trade Centre. Organised by Nihalani Events Management, the fair will be attended by over 110 exhibitors. IATF will bring together manufacturers and their agents along with some of the most influential buyers and designers to the MENA region. The event will provide an extensive platform to connect and network with industry professionals, create long and promising professional relationship and giving all exhibitors an opportunity to expand their business boundaries. One of the innovations this year is Incalpaca from Peru which will showcase their alpaca yarn. New and past exhibitors from countries including Turkey, China, Thailand, India, etc will showcase fabric, haute couture and ready-made apparels and garments. n
clothing through to madeto-order pieces, fabric and functional textiles. Exhibitors are drawn from India, China, Bangladesh, Pakistan, Hong Kong, Fiji, Indonesia, Vietnam, South Africa, Taiwan, Turkey, Australia, South Korea, Malaysia and Singapore. India’s Council for Leather Exports will represent the growing leather industry in India and showcase the quality of the nation’s products at Footwear and Leather Show. This show will provide a novel and excellent platform for Indian companies to showcase their products to Australian buyers. n
The 9th Bangladesh Denim Expo to be held in Dhaka
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he 9th Bangladesh Denim Expo with the motto “Simplicity” will be held on November 7 and 8, 2018 in Dhaka. The expo will hold three panel discussions that will focus on different aspects of the topic. The first of these discussions will dwell on the simplicity of collaboration between the designers and consumers. The second will deal with the need for simplifying the standards and certificates for the global textile industry besides clarifying the procedures between producer and buyer. The third discussion will deal with simplicity in production. It will discuss the innovation, technology and optimised handling of resources in the industry. Since its premiere four years ago, the Bangladesh Denim Expo has proven to be one of the major fairs for the denim community. The expo is known to be an important hub for innovation and sustainability. It’s 9th edition in November will present 60 exhibitors from all over the world who will showcase their offerings in material production, jeans production, chemicals, equipment and technology. n
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AppArel / Notifications
Subject: Extension of date of payment of Annual Subscription for the Financial Year 2018-19 Dear Sir/Madam At the outset on behalf of the Council we convey our Greetings to you. We would like to take this opportunity to thank you for being member of the Apparel Export Promotion Council and allowing us to serve you. As per the provision of Memorandum and Article of Association and guidelines on registration of the council, Annual Subscription for financial year 2018-19 be deposited up to 31st May, 2018. It may please be noted that it has decided by the component authority to extend the last date for receiving of Annual Subscription for the financial year 2018-19 from Members and Registered exporters, with additional charges of Rs. 1000/plus GST upto 31st March, 2019 as detailed Below: Member Exporters (Regn. No 1 to 10000 & 100000 up to 200000 Register Exporter (Other than above Nos.)
Subscription Amount (Rs.)
Additional Charges (Rs.)
Total GST Total Amount (Rs.) 18% (Rs.) Payable (Rs.)
8500
1000
9500
1710
11210*
80000
1000
9000
1620
10620*
(* Including Goods & service tax @ 18%)
Arun Kumar Sharma Joint Director
Ministry Notification Sub: Seeks to reduce the import duty on parts/ components used in manufacturing of specified textile machinery to Nil CBIC is its notification no 72/2018-Cus, dt-28-09-2018 has reduced the import duty on parts/components used in manufacturing of specified textile machinery to Nil For Full Notification: http://www.cbic.gov.in/resources//htdocs-cbec/ customs/cs-act/notifications/notfns-2018/cs-tarr2018/cs72-2018.
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APPAREL / GST UPDATE
An update on refund under GST The administration of tax is run through a mechanism thereby maintaining a fine balance between the revenue collection and cash follow available to the business. In every tax statute there has to be a provision of refund for any amount which was not levy and collected properly or for the amount which by the process of law is required to be refunded. The Central Goods and Services Tax Act, 2017 in Chapter XI has dealt with the provisions of refund elaborately. In this paper we will examine the concept of refund in terms of substantial law and Rules as made available under the statute. Section 54 of the CGST Act is substantive provision for claiming the refund. It plainly says that any person claiming any refund of any tax and interest or any amount may make an application in prescribed manner within two years of the relevant date. Section 54 visualise certain refunds which are required to be given if claimed within time. Some of the situations for claiming the refund in terms of Sections 54 and 77 of the CGST Act are as follows: 1. Export of goods or services 2. Supplies to SEZ units and developers 3. Deemed exports 4. Refund of taxes on purchase made by UN or embassies etc. 5. Refund arising on account of judgement, decree, order or direction of the Appellate Authority, Appellate Tribunal or any Court. 6. Refund of accumulated input tax credit on account of inverted duty structure 7. Refund of CGST & SGST paid by treating the supply as intra-State supply which is subsequently held as inter-State supply and vice versa Limitation: The claim of refund in GST is subject to limitation of two years from the relevant date, in which the claim is to be filed. The relevant date is defined in the section itself and it may be different in different situations. Section 54(14)(2) define relevant date and claim of refund is to be made with in relevant date is as follow. Refund of tax in following situations :a. Zero rated supply: It means export goods and services or both and supply to SEZ developer or to a SEZ unit. Here the exporter has two options, he may export the goods with payment of IGST and get the amount refunded as per provision of the CGST Act, 2017. In alternative he may export under Bond or LUT and claim the refund of Input Tax Credit as per statute.
At the option of the exporter provisional refund can be granted of the 90% of the total refund claim in case of export and same will be paid within the seven days of the acknowledgement. However if the supplier was prosecuted during five years immediately preceding the refund period, the provision of provisional refund is not available. b. Payment of wrong tax: The payment of tax under wrong head is to be refunded and any application in this regard will be entertained without subjecting the same to the provision of unjust enrichment. c. Refund to casual/non-resident taxable person: Any advance payment of tax paid by the casual/non-taxable person is to be refunded if the advance deposit is more than the actual tax liability on supply. d. Refund to UN and other notified bodies: Section 55 of the CGST Act mandates that tax paid by the UN, consulate or embassy or foreign county or any other person specified in this behalf here is to be refunded, the relevant date is before the expire of the six months from the last date of the quarter in which was supplies were received. Refund of the accumulated credit: Any credit accumulated on account of rate of tax of inputs being higher than the rate of tax on output supply (other than Nil rated and fully exempted supply) is to be refunded [Section 54(3)(III) of the CGST Act, 2017]. Interest Any delay in refund attracts interest @ rate of 9% if tax is ordered to be refunded in terms of Section 54(5) i.e. where order to give refund came into force after an appellate order which attains finality. In any other case the rate of interest is upto 6% as notified by the government. [Notification No. 13/2017-C.T., dated 28-62017]. Documents attached with the refund application: Rule 89 sub-clause (2) prescribes any of the list of documents as applicable to establish the refund is due to the applicant,any of the documents mentioned in the list can be attached with the application. The refund provision has been dealt with in the CGST Act and Rules adequately and we can hope that the same will be granted efficiently in order to accelerate the growth of the trade.
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APPAREL / GST UPDATE
Changes in Refund Procedure on Export Goods (Amendments in Rule 96(10) of CGST Rules) If the exporter has availed any benefits under the above said notifications, the exporter shall not be eligible for refund of IGST paid on export of goods. These restrictions essentially meant that refund of IGST paid on export is available only when no other export benefit has been taken in procurement of inputs or export goods. The said rule is being amended vide Notification 54/2018- Central Tax dated 9th October, 2018 by adding the clause “except so far it relates to receipt of capital goods by such person against Export Promotion Capital Goods Scheme” related to Customs Notifications 78/2017 and 79/2017. It means that even if an exporter has availed EPCG benefit for import of capital goods under EPCG scheme, he shall be eligible for refund of IGST paid on export goods under Rule 96 of the CGST Rules. Rule 89 (4B) has been reworded to make it consistent with Rule 96(10) of the CGST Rules. Notification No. 53/2018- Central Tax dated 9th October, 2018 restores Rule 96(10) to the position that existed before the amendment carried out in the said rule by notification No. 39/2018- Central Tax dated 04.09.2018. The implications of these changes are as under: 1. Exporters receiving supplies of inputs under advance authorization directly without payment of IGST under Notification 79/2017 – Customs are not eligible for claiming refund of IGST paid on export of goods or services. However, this bar shall apply prospectively with effect from 09-10-2018 only. 2. Exporters receiving capital goods under EPCG Scheme directly without payment of IGST under Notification No. 79/2017 – Customs have been excluded from the bar on refund of IGST imposed under Rule 96(10). In other words, exporters who are directly importing capital goods without payment of IGST under Notification No. 79/2017 – Customs can follow the IGST refund route for their exports. 3. However, an exporter who is importing both inputs as well as capital goods without payment of IGST under Notification No. 79/2017- Customs shall be hit by the above bar because of operation of Sr. No. (1) above.
For Full Notifications: h t t p : / / w w w . c b i c . g o v. i n / r e s o u r c e s / / h t d o c s - c b e c / g s t / n o t f c t n - 5 3 - c e n t r a l - t a x - e n g l i s h - 2 0 1 8 . pdf;jsessionid=3FAF17971A2CC810651A343D4C3CF343 h t t p : / / w w w . c b i c . g o v. i n / r e s o u r c e s / / h t d o c s - c b e c / g s t / n o t f c t n - 5 4 - c e n t r a l - t a x - e n g l i s h - 2 0 1 8 . pdf;jsessionid=8D6CE8B920286EF9B1297D2132708AC0
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AppArel / aepc event calendar
CALENDAR OF EVENTS -
1
2
10-13 Novermber, 2018, TAIWAN
2018 12-14 November, 2018, DUBAI
Taipei In Style Taiwan Taipai
3
14-16 November, 2018, SRI LANKa
4
20-22 November, 2018, AUSTRALIA
Intex South Asia Sri Lanka COLOMBO Fabrics/Yarn
5
International Sourcing Expo Australia Melbourne
6
09-10 January, 2019, UK
14-17 January, 2019, HONG KONG
London Textile Fair UK London
7
16-18 January, 2019, INDIA
Hong Kong Fashion Week Hong Kong
8
10-12 February, 2019, UK
International Garment Fair India New Delhi
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International Textile & Apparel Fair UAE Dubai Fabrics
PURE London UK London
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BOOK YOUR SPACE
4-7 Febuary 2019
Las Vegas Convention Centre, 3150 Paradise Road, 89109 Las Vegas, Nevada, USA
This one-of-a Kind Convergence of Fashion’s Global Supply Chain connects Established and Emerging Brands to an unparalleled network of Manufacturers, Materials, Technology, Logistic Solutions & Talent
Contact for further details : Mr. K S Bisht, Jt. Director (Fairs & Exhibition) Apparel Export Promotion Council Apparel House, Institutional Area, Sector - 44, Gurgaon-122003, Haryana, (India) Tel: +91 124 2708156(D), 2708000-003, Fax: +91 1242708004, Mobile: +91 9810527747, Email : kbisht@aepcindia.com The Application form may be downloaded from our website www.aepcindia.com (Highlights Section) Limited Stalls available on First Come First Serve Basis
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