INDIA
MARCH / 2023 PAG E S 8 4 | I N R 2 0 0 D L- ( S ) - 1 7 / 3 2 0 2 / 2 0 2 1 - 2 3 RNI NO: 67969/98 VOLUME NO: XXV ISSUE NO: XII w w w. a p p a r e l r e s o u r ce s . co m
ALL ABOUT FASHION BUSINESS
Sneakers The Next Growth Segment
Deep Dive Into The Budget From
Buyers’ Picks: The Top Five
Sustainable Marketplace Boom:
Fashion Categories Buyers Are Investing In
A New Era Of Eco-Conscious Consumerism In India
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P/56
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The Textile And Apparel Industry’s Perspective
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February 2023 | AO India March 2023 | AO India3 3
CONTENTS
26
COVER STORY Sneakers, More Than A Speedy Growing Product, Is Culture Now INDUSTRY VERDICT 12 I Apparel Retail Industry Focusing On Strengthening Leadership Teams, Becoming More Organised And Process-Oriented
RETAIL RIGHT// //NATIONAL
14 I Are Private Fashion Labels Turning The Table In The Indian Retail Ecosystem?
RETAIL RIGHT// //NEWS
17 I The Decline In Earnings During Q3 Got Retailers Thinking
p14 Major retailers, adopting omnichannel strategies, have boosted their private label development
RETAIL RIGHT// //INTERNATIONAL 20 I Crypto In The Fashion Retail Market
RETAIL RIGHT// //NEWS
23 I International Fashion And Lifestyle Brands Are Expanding Retail Footprints In India As Never Before
EXPERT SPEAKS
p20 Cryptocurrency is all set to disrupt the fashion market
24 I Influencer Marketing For Apparel Retail
BUYING & SOURCING
37 I Growing Focus On Small Order Size
MANUFACTURING
39 I Deep Dive Into The Budget From The Textile
And Apparel Industry’s Perspective
MANUFACTURING// //NEWS
44 I States Active On Developing Garment Trading Hubs, Textile Parks And Textile Cluster
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p39 More than 20 per cent increase in budgetary grants for growth of textile industry in 2023-24
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CONTENTS
SUSTAINABILITY 46 I Shahi Exports Has Launched Its First-Ever Sustainability Report: Impressive Progress To Achieve Targets
SUSTAINABILITY// //NEWS
48 I International Brands To Indian PSUs:
Thrust On Pet Bottle Recycling For Making Buttons And Uniforms
TRENDS IN FOCUS// //RUNWAYS 50 I Key Menswear Items For Fall/Winter 2023
p46 Shahi Exports’ sustainability initiatives, programmes entailed in its first-ever sutainability report
FASHION BUSINESS 56 I Buyers’ Picks: The Top Five Fashion Categories Buyers Are Investing In
DESIGNERS & LABELS 60 I Shantnu & Nikhil’s Two-Decade Journey Of Merging Indian Decadence With Modern Grandeur To Create Iconic Anti-Trend Led Fashion
TECH TALK 64 I VT Garment Improves Productivity By 95%,
Plan Accuracy By 92% And Increases Its ODTP By 50% With FastReactPlan
p50 Here are the top Menswear trends set to dominate the Fall/Winter 2023 season
START-UPS 68 I Sustainable Marketplace Boom: A New Era Of Eco-Conscious Consumerism In India
START-UPS// //NEWS 71 I Size-Inclusive And Gender-Neutral Apparel Start-Ups Are Paving The Way For New Markets
TRADE STATISTICS
72 I US Apparel Imports (Jan.-Dec. 2022): US Apparel Imports Fall Marginally Short Of US $ 100 Billion In 2022!
p60 As Shantnu & Nikhil complete over two decades in the fashion industry, we put a spotlight on their journey and what sets the label apart
RESOURCE CENTRE 76 I AMANN Continues Its Growth Path In India By Building Its First India-Based State-Of-The-Art Production Facility 80 I INDORAMA (INVIYA® Spandex) Commences Commercial Production Of The Third Plant 81 I Detoxing Fashion Supply Chains For A Sustainable Fashion Industry: With Inputs From Kathy Leung – Senior Technical Director, Global Softlines, Intertek
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p64 Revolutionising garment factory to boost productivity, accuracy and ontime delivery performance
Y T I L I B A N I A T S U S
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BIODEGRADABLE FUSIBLE COTTON SHIRT INTERLININGS MAINTAIN GARMENTS’ OPTIMAL SHAPE AND ARE EASY ON THE PLANET Freudenberg Apparel House of Sustainability For more information about our House of Sustainability, please visit our website: https://apparel.freudenberg-pm.com/benefits/house-of-sustainability Freudenberg Performance Materials India Pvt. Ltd. BANGALORE
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EDITOR’S NOTE
FROM THE EDITOR-IN-CHIEF’s DESK…
Way out to immunise under drawing situation as crises are looming large
Amidst the ongoing discussion on rebound or recession, crises are looming large as there is still an underlying worry that recession could be on the way. A recession instituted first by the unprecedented pandemic followed by the Ukrainian-Russia war. We are seeing the energy crises which has impacted the price rise of all commodities and now food inflation which has hit hardest. Though India has been declared by many economists including IMF for being a bright spot among the large world economies, having economic strength to withstand the recessionary trends with some dignity. With inflation under control at 6.7 percent, the lowest in the world except for Japan and GDP growth expected to be around 6.7 per cent (as against expected 2.7 per cent for the world including China), these together will make the Indian population immune to certain upheavals. So one can expect robust buying activities and with the rural economy on the upswing, the Indian industry could be the saviour.
Apply a better and safe payment recovery system, get your business immunised by insuring your transactions and also get your buyers vetted by some reputed credit rating agencies before transacting with them. Thirdly, the export market will face hard times, specially the fashion clothing goods. So how do you immunise under these drawing situations? Be more conscious of whom you work with, look for safe countries like India, Japan, Korea, GCC countries and somewhat Australia which have better GDP growth projections and low inflation, work with companies which have a good track record of making good their commitment. Thus ensuring to ease your transition from recessionary 2023 to probably better 2024. If you can suggest any other and innovative way, I welcome your opinion!
But it is also quite clear that no country will come out of it unscathed. First and foremost would be job losses, the trailer of which is already in the media where all conglomerates are downsizing. As an individual, hold on to your jobs, add to it new skills and also show willingness to take up newer challenges for the organisation’s well-being. Save for the near future and don’t be extravagant. Secondly, with the increasing bank interest rates to control inflation, the lending rates will go up, thus making businesses teeters.
10 AO India | March 2023
Deepak Mohindra Editor-in-Chief e-mail me at dmohindra@apparelresources.com Deepak Mohindra
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INDUSTRY VERDICT
Q&A In the last two months, the Indian apparel retail industry has seen reasonably good hiring at the leadership level. To mention a few: Clovia appointed Nikhil Gulati as Head of Brand Marketing; Ace Turtle hired Amit Kriplani as CTO and Punit Aggarwal as CFO; Mukesh Lodha was appointed Chief of Finance by G.O.A.T Brand Labs and Groyyo appointed Abhishek Srivastava as CTO. Does this indicate that the retail industry is now more focused to strengthen leadership teams, become more organised and process-oriented? Is it due to growing opportunities in the market or are there other reasons also behind such hiring? How do you see this whole scenario in the long run? Does your company have plans of hiring any CXOs in near future?
Yes, this is a right observation that in the recent few months, there have been hiring and there are a few important reasons for the same like Indian brands increasing their sourcing from Bangladesh, growing Indian population and disposable income of Indians, attraction for high brands, boom in kidswear market postCovid etc.
GK Sood
Universal Management Consultant, Gurugram
Jaimin Gupta
Founder, VS-Virendra Sehwag (Sports Brand), Director, Barcelona Club India
12 AO India | March 2023
At the same time, few of the brands, retailers have good funding and are not lacking behind when it comes to resources. So they can afford the CXOs, especially those who have naturally high salaries.
I strongly feel that all these endeavours are targeting to ensure a better customer experience as nearly all the brands within their respective categories and target audience are doing their best in terms of products, quality, price etc. What makes it different is the customer experience and it is also totally a team game, so good talent at the top level is really required. As to the best of my understanding, this trend is going to continue with the growth of market, companies and
In my individual opinion, I don’t think that this trend is going to sustain for long as CXOs are being hired to streamline the operations and strategic thinking. But at the core, things that matter are product, price, brand and approach to the customers. The market is highly unpredictable also and as usual some of the brands may be doing reasonably good today but will fizzle out in the long run. Issue of ‘Dead Stock’ in Indian apparel retail can become significant and it may also impact the CXOs position negatively. So the hiring seems to be for short-term.
growing expectation of customers. Increasing competition is also something that will force Indian retail companies to have good talent. Overall massive opportunities in Indian retail sector are a big push for hiring CXOs, especially for those companies which do not have such professionals. As far as hiring at top level in our company is concerned, we already have good talent and system in place, so as of now we are not going for the same.
INDUSTRY VERDICT
Nitin Chhabra CEO, Ace Turtle
Devangshu Dutta
Chief Executive, Third Eyesight
The Indian retail industry is growing rapidly. Companies across segments are looking to strengthen their leadership teams to achieve business goals and build sustainable organisations. Strengthening leadership teams in the retail industry will help bring deep domain expertise and process orientation and provide greater bandwidth to plan and execute business strategies. The increase in leadership hiring is a function of the aggressive business goals of companies, the availability of highly experienced talent and the need for building more robust systems and processes to improve profitability and sustainability.
It is good that the Indian apparel retail industry has seen reasonably good hiring at the leadership level and strengthened leadership teams. For a long time, a major portion of the industry has been managed by the founders and their family members. Now that the industry has more growth opportunities and challenges, more diverse professional expertise at top levels is very much required. Such developments have already taken place in other sectors, and
This whole scenario will continue in the long run across start-ups and established companies in the Indian retail industry. This augurs well for the industry’s long-term growth. The skill set requirements at leadership levels have also changed for companies. We have been hiring leaders from new-age high-growth companies as they bring a strong growth mindset apart from deep domain expertise. In addition to a CTO and CFO, we have recently hired senior leaders at VP & SVP levels. I am optimistic that under their leadership, we will be able to build Ace Turtle into a leading, profitable and sustainable retail company enabled through technology.
compared to them, the apparel industry is still behind. It is a must for companies in the apparel sector to identify the skill and gaps and hire top professionals accordingly. Looking at the growth and complexities of the Indian economy and India’s apparel sector, having good talent is essential. Whenever global companies enter India they look at hiring the best talent and Indian companies will also have to ensure that they are not left behind.
NEXT INDUSTRY VERDICT QUESTIONS For the last few years, activewear has remained the focus for everyone and still there is good demand for this category, but at the same time, it is believed that now there seems to be a glut in this product category as there are thousands of brands, manufacturers, start-ups etc., dealing in it. Therefore, there is a dire need to bring changes in this product category, be it in terms of fashion, raw material, consumer experience etc. How do you see the overall situation and what kind of changes you are adopting in your offerings? What more can be done in the activewear segment so that consumers can have a continuous tilt towards it? SEND YOUR COMMENTS
contact@apparelresources.com
March 2023 | AO India 13
RETAIL RIGHT//NATIONAL
ARE PRIVATE FASHION LABELS TURNING THE TABLE IN THE INDIAN RETAIL ECOSYSTEM? The Indian retail ecosystem is a vast and
complex demography of varied cultures wherein regional and national players are competing for a share of the pie. In such a scenario, do private labels truly make a difference?
Indian context per se, private labels have been around for quite some time now like Shoppers Stop launched its first private label ‘Stop’ in 1994. However, there has been a significant traction in the Indian fashion industry in the last five years. Changing consumer behaviour, the increasing penetration of social media and the rise of e-commerce platforms have all contributed to a massive shift in the market dynamics. According to a report by RedSeer Consulting, the Indian private label
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Reports of KPMG 2022 state that private labels are expected to continue growing in the Indian fashion industry, driven by factors such as the increasing demand for affordable and trendy fashion among consumers and the growth of e-commerce in the country
market grew by 1.8 times from US $ 17 billion in 2016 to US $ 31 billion in 2021 and the reports from consulting
firm EY estimated that private labels could account for 30-40 per cent of the overall retail industry in India by 2030. Therefore it’s not wrong to say that private-label brands are expected to grow and become more prevalent in the Indian market. The price margin difference between national and private label products can vary depending on the product category and the specific retailers offering those products. However, in general, private label products tend to be less expensive than their national brand counterparts. A company spokesperson said, “Normally the margin difference between National Brands vs. Private Label swings between 30%-40% but the same gets covered up with higher sales through for private label w.r.t to national brands. But the
RETAIL RIGHT//NATIONAL
bigger concern here should be the fact that national brands have higher marketing budget and hence even if they earn higher margin, they are still no match to private labels which hardly require a marketing budget beyond a certain bracket.”
stores have their own private labels which are not only different in handwriting but also in fabric/textures/prints etc., which eventually becomes a biggest differentiator and helps the customer to make a quick and satisfied decision on final purchase.
What’s fuelling the growth?
Fashion retailers put higher stakes on private labels
Private labels offer great value propositions to customers with usually lower price than branded products with similar or even better quality. The reason behind such cost efficiency primarily lies in the fact that private label manufacturers do not have to incur the same marketing and advertising expenses as branded companies have to. Secondly, shoppers have more opportunities to pick the right choice, thanks to online stores like Ajio, Myntra, Amazon or Flipkart that allow them to compare prices and features, and often times, private label products offer better value for money. Thirdly, e-commerce platforms have made it possible to reach a much larger market than ever before, without being limited by geography. All these factors present tremendous prospects for Indian retailers in terms of potential success with private labels. Additionally, most of the branded retail
Amni
Taavi
There is no doubt that due to retailers’ increased use of omnichannel marketing strategies, the private label goods market is expanding phenomenally. These goods can now be distributed more effectively across a variety of regions as a result of the extensive distribution networks. As per Retail Association of India (RAI) CEO Kumar Rajagopalan, “The increasing adoption of omnichannel strategies by major retailers has given a boost to their efforts in developing private label products. A significant contributor to the growth of private labels is the widespread distribution networks of retailers across different regions.” Almost 50 per cent of the top brands currently sold on Ajio are Reliance Retail’s private labels, against the national and international brands such as Levi’s, Superdry or US Polo Association on the platform. Reliance Retail’s top
Fusion
private brands Teamspirit, Avaasa feature regularly among its top-selling brands during festive season sales. Additionally, Netplay (formal officewear), Performax (specialised activewear), Fusion (fusionwear for women) and Rio & Fig (fashionwear for women) are some of the private labels that contribute around 60 percent of the revenue generated from fashion chain. Similarly, V-Mart Retail which is a known name in Tier-2 and Tier-3 cities also has nine private labels which contribute 54 per cent of its apparel sales (excluding stores) as per its annual report of FY ’22. Myntra, a mega player in the Indian e-commerce market, owns dozen-anda-half private label brands, including Roadster and celebrity-backed brands like HRX, which contribute to the company’s overall profits. Additionally, the price point also plays a major part. The roadster jeans on Myntra costs an average of Rs. 799 compared to Levi’s jeans which costs an average of Rs. 1899 on its website. Private brands like Harvard, Dressberry, Sztori and other 12 + brands are contributing around 35 per cent of its total revenue from private labels. On the other hand, Shopper Stop’s Kashish, Life and Fratini have developed into powerful brands, and in FY ’22, Shopper Stop’s private label accounted for 14 per cent of the company’s overall revenue. Bandeya, an ethnically inspired men’s brand, saw its sales increase by 52 per cent compared to the previous fiscal year, while Kashish, an Indianwear brand for women, saw its sales increase by 56 per cent compared to the previous fiscal year. A significant increase of 83 per cent in comparison to FY ’21 was seen in sales for the women’s western brand Insense. Actress Sanya Malhotra was roped in as the brand ambassador to promote the label. Because private labels are launched keeping in mind the gaps in the market, particularly those related to price, style and quality, they offer consumers an alternative without requiring them to
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RETAIL RIGHT//NATIONAL
Some private labels: Myntra • Roadster • Dressberry • Anouk • Mast & Harbour • HRX • Taavi Flipkart • Metronaut • Divastri • Billion • Anmi • Florence Shoppers Stop • Kashish • Haute Curry • Vettorio Fratini • EllizaDonatein • Ira Soleil • Life Reliance Trends • DNMX • Avaasa • Fusion • Rio • Fig • Team Spirit Pantaloons • Poppers • Chalk • Akkriti • Trishaa • Alto Moda • Rangmanch
make any compromises in terms of the product’s quality or current fashion trends. This could also mean that expansion in Tier-2 and Tier-3 has more potential as the consumer behaviour and psychology pushes the spending capacity and strong value proposition is witnessed.
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Rig
“The growth in private label sales will also see a boost with our expansion in Tier-2 and Tier-3 cities, which usually witnesses higher sales of private labels due to our strong value proposition,” stated the confident MD and CEO Venu Nair, Shoppers Stop.
Challenge to maintain balance between private and national brands Maintaining a balance between private and established brands is a challenging task for retailers, as both types of brands have their own advantages and disadvantages. It’s a known fact that private brands are often cheaper than established brands and provide a higher profit margin for retailers, however, they may not have the same level of brand recognition or trust as established brands. On the other hand, established brands have a reputation for quality and are often more expensive, which makes them less appealing to cost-conscious consumers. Retailers today are working towards leveraging their existing infrastructure to develop private-label products that are competitive in terms of pricing and quality, which creates intense competition in the private-label space. To conquer this, retailers are now investing heavily in building strong brand identities to capture the market share but building a strong brand identity takes time and requires a significant investment in marketing and advertising like the national brands.
Team Spirit
National brands are also not spared in the cutting-edge competitive retail scenario with frequently changing consumers’ mindset and hence, they are radically working on innovative strategies to stay afloat in the market. There is an urgent need for these brands to adapt to changing market dynamics to survive. Vikram Singh, Senior Vice President DBS Lifestyle stated, “Experts believe national brands now have to realise this quickly that merely offering width and discounts is not enough as they are no match to private labels which have not only managed to give a chase to their (brands) for money by offering much better MRP but are also offering much better product in terms of quality and unique designs. National brands will soon have to roll up entrylabel products under the private labels business vertical, if at all they want to remain relevant. They can also go down deep by offering such product lines to the aspirational class in Tier3,Tier-4 cities of this huge market as they are potentially the target audience who can become a hedge for brands and help them to remain afloat.” Despite the multiple challenges, the private label segment is still driving the retailers’ businesses year-on-year and their potential rewards are great, therefore for entry-level or established retailers looking to compete in the growing e-commerce market, private labels are worth considering.
RETAIL RIGHT//NEWS
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The Decline In Earnings During Q3 Got Retailers Thinking Due to a drop in net sales caused by seasonal impact, this quarter’s revenue from operations is flat compared to the previous quarter. Bigger giants also faced a slump in net profits. Hurt by soaring marketing expenses, Aditya Birla Fashion and Retail Ltd. (ABFRL), has reported a steep 92 per cent drop in third-quarter profit. The consolidated net profit of the company remained at Rs. 11.21 crore for the Q3 ended in December 2022 as against a net profit of Rs. 196.80 crore during the same period of the previous fiscal. In a BSE filing, the company said that its revenue from operations increased 20.1 per cent to Rs 3,588.80 crore during the third quarter of FY ’23 as compared to Rs. 2,987.10 crore in the corresponding quarter of the previous financial year. As per the regulatory filing, the company made accelerated marketing investments post a hiatus of two years across businesses as the company reinstated its rigour on augmenting its brands and building customer engagement. Its marketing and strategic investments in new ventures increased by almost 2.3 times during the quarter. The company’s total expenses rose to Rs. 3,602.84 crore in Q3 of FY ’23 as compared to Rs.2,744.35 crore in the corresponding quarter of the last financial year. The company’s branded
business network gained 245 stores including newly integrated Reebok stores, with their ethnic business adding 15 new stores. The company’s network of a small-town format within Lifestyle brands has now crossed over 550 stores, with Pantaloons adding 10 new stores to the network. Similarly, Kolkata-based innerwear and knitted garment brand Dollar Industries Limited’s net profit reduced by 80 per cent to Rs. 9 crore in Q3 of FY ’23 compared to Rs. 44 crore in the same period of last fiscal year. The revenue from operations has been down by nearly 25 per cent to Rs. 285 crore during the Q3 of the current fiscal year. Commenting on the results, Vinod Kumar Gupta, MD of the company said, “Due to the shift in seasonality and cyclical slowdown in discretionary demand in winter products, coupled with volatile raw material prices and high-cost inventory, our Q3 sales and margin have been adversely affected.” He further added that things are getting stable and channel inventory has also been reduced due to low volume offtake by the business partners in this quarter. High inventory cost has also been optimised. With these, the company is expecting good demand in the coming quarters due to early festival sales in quarter four. Marketing spending has also been optimised and the company doesn’t have
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RETAIL RIGHT//NEWS
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SNIPS Cantabil Retail aims to open 6-7 stores every month Uniqlo’s first highway store in India will be in Punjab V2 Retail witnesses increased revenue and decreased profit in Q3 any major campaigns in the coming quarter. Also, during the thirdquarter results, Rupa and Company Ltd., one of the leading innerwear and knitted garment companies, observed that the net profit and revenue of the company are negatively impacted in this quarter, but it is optimistic about long-term growth. Among them, the company has also announced massive national and international retail expansion. During Q3 of FY ’23, the company had a drop of 91 percent in its net profit to Rs. 6 crore while the same was Rs. 58 crore reported in Q3 of FY
’22. Its revenue for the third quarter of the current financial year has also been down by 46 percent to Rs. 236 crore, compared to Rs. 433 crore in the third quarter of last fiscal. In its earnings report, the company said that it is optimistic about posting strong numbers in the coming quarters and is expecting its revenue to grow 5 times by FY ’24 from FY ’22 revenue of Rs. 33 crore. V2 Retail, the value fashion retailer, reported a net profit of Rs. 9 crore for Q3 of FY ’22-23 compared to Rs. 12 crore in Q3 of FY ’21-22. Its revenue for the third quarter
“Due to the shift in seasonality and a cyclical slowdown in discretionary demand in winter products, coupled with volatile raw material prices and high-cost inventory, our Q3 sales and margin have been adversely affected. ” Vinod Kumar Gupta MD, Dollar Industries Ltd.
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of the current financial year has been Rs. 239 crore, as against Rs. 238 crore for the same period of the last fiscal. The company, offering a large variety of womenswear, menswear and kidswear, also announced the appointment of Prank Adukia as Chief Financial Officer (CFO) in its earnings update. During the third quarter, the retail giant opened one new store and closed five of its nonperforming stores to end the calendar year 2022 with a store count of 99 and a total retail area of 10.59 lakh sq. ft. It was observed that the seasonal trends, consumer behaviour, high price of raw materials, economic factors such as fluctuations in the stock market and changes in interest rate are also shivering the profits which indirectly hits the spending capacity, increases competition in the retail industry and also impacts profits during Q3. With more players in the market, retailers may need to lower prices or increase promotional efforts to compete for customers, which can impact profits.
Zouk focuses on physical retail and plans to open stores across Citykart appoints Ritesh Rathi as the company’s President and COO Reliance Retail planning to launch a value apparel format! Nykaa Fashion introduces GenZfocused label MIXT to strengthen portfolio Reliance Trends launches new store in Bandipora, J&K Blenders Pride Glassware Fashion Tour marks its entry into the metaverse BlissClub expanding its physical presence
March 2023 | AO India 19 March 2023 | AO India 19
RETAIL RIGHT//INTERNATIONAL
CRYPTO IN THE FASHION RETAIL MARKET Crypto is now firmly on the radar of retailers around the world.
According to The Harris Poll, in the USA, more than three out of ten Americans believe that cryptocurrencies are the ‘future of money’. Youngsters are more comfortable adapting to this digital currency revolution compared to their older counterparts. If crypto is accepted as the future of money by the retailers, then the possibility of it being considered as the future of rewards and loyalty programmes is quite high. Though crypto is undoubtedly cheaper and faster in many ways like having to pay no remittance fees and cash
20 AO India | March 2023
transfer fee to the receiver bank, providing better security and preventing money laundering, it also has many pitfalls such as crypto transactions being irreversible, being subject to uncertain tax implications and being highrisk financial assets.
A dive into the global fashion retail market with crypto take-off Besides the pitfall, numerous retailers like Whole Foods, Home Depot, GameStop, Newegg, Starbucks, AT&T and Microsoft now accept bitcoin and other cryptocurrencies at their physical stores. In addition to looking at the
technology, Amazon is preparing to introduce its own cryptocurrency. To give customers the option to buy cryptocurrencies, retailers are implementing point-of-sale systems, in-store ATMs and self-service checkouts. This enables customers to make purchases using debit cards
and cash. It is just as quick and easy to buy things with bitcoin as it is with a debit or credit card due to mobile wallets allowing users to store and send bitcoin. This has been reflected by many of the e-commerce platforms as they have started accepting cryptocurrencies as
Numerous retailers like Whole Foods, Home Depot, GameStop, Newegg, Starbucks, AT&T and Microsoft now accept bitcoin and other cryptocurrencies at their physical stores. In addition to looking at the technology, Amazon is preparing to introduce its own cryptocurrency.
RETAIL RIGHT//INTERNATIONAL
a different form of payment, signalling the official entry of cryptocurrency into the fashion industry. Although cryptocurrencies are new, they reflect the way the business will operate in the future, making it simpler and safer to complete transactions. Gucci being the first one to accept cryptocurrency, is hopeful that 100 per cent of its stores across the USA will start accepting crypto payments soon. Along with Bitcoin, Ethereum, Dogecoin and many others, ApeCoin and Euro Coin will also be accepted by Gucci through the cryptocurrency payment processor BitPay. While everyone is aware of the price fluctuations associated with crypto, Balenciaga is hopeful about the future of digital money. Currently, it accepts Bitcoin and Ethereum payments and is not much worried about the volatility of crypto. Tag Heuer has however put a cap of up to US $ 10,000 in cryptocurrency in the luxury watch brand store. Farfetch, the retail platform dealing in luxury items, aims to accept crypto payments from the USA, UK, and Australian customers.
As the popularity of digital tokens is rising, consumers are replacing cash with crypto and more companies around the world are starting to accept payments in cryptocurrencies. Burberry, Givenchy and Dolce & Gabbana are other few of the top fashion brands and stores experimenting with NFTs, a different kind of cryptocurrency.
Chief Marketing Officer of American Eagle Outfitters, Craig Brommers, remarked at the CommerceNext 2022 Conference that he was uncertain regarding the readiness to accept cryptocurrencies. The chaotic crypto trend made him rethink his idea about accepting crypto payments. Even businesses were warned by Consumer Financial Protection Bureau Director Rohit Chopra, who told Bloomberg that stablecoins might not be ready for payment. Yet, many merchants have declared they will take cryptocurrency as payment. Trends keep changing. Though the crash of crypto cautioned many retailers,
the younger audience still finds it an attractive way to purchase goods. Both Pacsun and American Eagle Outfitters are investing in digital transformation as a strategy to grab the attention of the younger audience. By initiating activities in Roblox, both businesses have been active in online gaming and commerce. Michael Relich, co-CEO at Pacsun, stated that they are focusing a lot of their efforts on social media and online shopping to fit and connect with the Gen Z audience on a more personal basis. The tendency of youngsters to adopt and adapt to cryptocurrencies coaxed them to offer BitPay as another
August 2021 witnessed the rise of Philipp Plein, a popular German fashion designer and founder of a luxury e-shop, becoming the world’s top fashion house accepting payments in 15 different cryptocurrencies. Following the trend, OffWhite announced that it would accept bitcoin payments at all of its flagship locations in Paris, Milan and London. This indicates the changing face of business as more and more brands are supporting the growth of digitalisation in every sphere. We all remember the crypto market crash in May 2022 which wiped out massive long positions on significant exchanges worth billions of dollars. Following the meltdown,
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the cryptocurrency for a less volatile digital asset or convert it to fiat and withdraw it.
Perspectives of crypto exchanges and retailers
payment option and win their confidence. But American Eagle Outfitters thinks otherwise because its experience proves that the market is still naïve and not ready to accept crypto payments.
Union Budget and Crypto in India India has a growing crypto industry, since the Supreme Court removed the RBI’s ban on cryptocurrency transactions but since then, there are no clear regulations regarding digital assets. A significant step towards realising the potential of the industry was taken when the Government announced a 30 per cent tax on cryptocurrency revenues in the Union Budget of 2022. The flat 30 per cent tax on cryptocurrency has not changed in the Union Budget
2023 too, as announced by Finance Minister Nirmala Sitharaman. Although the Indian cryptocurrency sector is unregulated, several businesses are already taking steps to take advantage of the user community that is growing. While some have already started accepting money, others are thinking about it. Contrary to other industrialised nations, India is still in the early stages of cryptocurrency trading. Users can purchase crypto from crypto exchanges. To make a crypto payment, the user can send bitcoins from their digital wallet to the recipient’s specific bitcoin address using an app or website. The recipient has a few options when the money arrives in their account they can either exchange
Owners of Bitcoin now have the option to purchase gift cards from a list of 90 brands which includes hotels, restaurants, lifestyle items, apparel and more. All you need to do is have Bitcoin in your digital wallet and be a KYC-verified customer.
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Since June 2020, CoinSwitchKuber, the biggest cryptocurrency platform in India, has added close to 8 million new users. “Cryptocurrency sector is trending and companies are looking to enter the market with increased interest,” said the Chief Business Officer of CoinSwitchKuber, Sharan Nair. Owners of Bitcoin now have the option to purchase gift cards from a list of 90 brands which includes hotels, restaurants, lifestyle items, apparel and more. All you need to do is have bitcoin in your digital wallet and be a KYC-verified customer.
on platforms like WazirX and Binance to execute transactions, it hopes to develop its own payment system soon. Although these small businesses have trust in cryptocurrencies, their larger competitors seem to be waiting for the Indian Government to clarify its stance on them. Additionally, RBI has stated that it is preparing to introduce its own cryptocurrency. A turning point will be achieved once the largest merchants begin accepting cryptocurrency payments frequently. By that point, using cryptocurrency will not only be acceptable but also commonplace.
Growing popularity of Crypto
WazirX is another India’s premier and trusted crypto exchange and a trading platform. According to Nischal Shetty, the Co-owner, consumer goods that make digital currencies more usable in daily life will represent the next wave. More crypto education is required if digital currency is to be widely accepted in India and around the world.
A recent survey of 2000 senior executives in the USA conducted by Deloitte proved that retailers are hopeful about accepting crypto payments and investing in digital money. According to the study, 83 per cent of merchants said they anticipate their customers’ interest in crypto payment options to increase in future and 64 per cent of those respondents said their customers have a substantial interest.
Highkart, The Rug Republic, Purse, Sapna are few of the marketplaces which have courageously started to accept cryptocurrency. The top amongst them, The Rug Republic is a Delhi-based decor business that accepts the top 20 cryptocurrencies by market valuation apart from Bitcoin. Although the company currently relies
Another survey of 596 consumers in the USA conducted by Gartner’s Software Advice in 2022 proves that users do not get fully affected by market fluctuations. Nearly half of the respondents polled that they would consider using crypto in the coming years. Only 29 per cent of those polled expressed concern about market swings.
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International fashion and lifestyle brands are expanding retail footprints in India as never before
According to the India Retail Figures of H2 of 2022 report by real estate consulting firm CBRE South Asia Pvt. Ltd., international brands like Victoria’s Secret and Uniqlo continued to expand their retail footprint during July-December 2022 despite the pandemic pause. Chandigarh welcomed the first Uniqlo store and Dehradun welcomed Biba and Shoppers Stop. Two locations of the American home furnishings retailer Pottery Barn opened in the Delhi-National Capital Region in the second half of 2022. In Delhi-NCR, the German lifestyle brand Adidas also opened its largest-ever experience store, joining the likes of Zara, Nike and Azorte, all of which have recently
Over 60% of international retail brands in India expanded operations in JulyDecember 2022: CBRE
opened both experience and flagship stores in the region. Regaining momentum, we expect India’s retail industry to keep going strong through 2023. “International brands are expanding not only in Tier1 cities but also penetrating Tier-2 and Tier-3 cities as they see India as a potential market,” said Anshuman Magazine, CEO of CBRE, despite the gloomy global economic outlook. According to Ram Chandnani, Managing Director, Advisory and Transactions Services, CBRE India, “As the cities started to reopen after the pandemic, many shoppers returned to physical retail and have since adopted ‘hybrid commerce’. There was an uptick in spending from July to December of 2022 that pushed sales past their levels before the pandemic. Predicted space take-up in newly constructed shopping malls is expected to boost leasing activity in the first half of 2023. Uniqlo, Zara and H&M have been expanding in Indian cities after the pandemic. Other brands are likely to take a similar approach
with more clarity on the pandemic situation. Luxury goods have been consistent in India. Many luxury brands have patterned with Reliance Industries for India’s footprint. Palladium and Jio World are prominent luxury shopping hubs in Mumbai while Emporio in New Delhi, UB City in Bengaluru and Quest in Kolkata are other high-end shopping malls in other prominent Indian metro cities. The report found that between July and December of 2022, retail leasing activity increased by 5 per cent to 2.43 million square feet from the 1.31 million square feet reported in the January through June 2022 period. Overall it increased by 20 per cent in 2022, reaching 4.7 million square feet. Between July and December of 2022, almost 80 per cent of all available office space was leased. The top three markets in terms of leasing activity were Bengaluru, Delhi-NCR and Chennai/Mumbai. “Even amid difficult global economic conditions, international brands are expanding not only in Tier1 cities but also penetrating Tier-2 and Tier-3 cities as they see India as a potential market,” Anshuman stated. Due to the high demand for shops, most cities saw halfyearly increases for prime real estate on the streets of DelhiNCR and Bengaluru, rents increased by around 4-8 per cent; in Ahmedabad, by around 4-12 per cent; in Mumbai, by around 1-3 per cent.
SNIPS Shein rival Temu all set to disrupt, scales up Apple’s US App Store Cotopaxi expands its product line and enters kidswear Esprit announces brand’s official return, opens headquarters in New York City Puma to launch NFT collection to celebrate 75th Anniversary Online retailer Very to add AI-powered search functions to its e-commerce platform Luxury brand Eli Bitton opens first flagship store in New Delhi Red Bull’s smart clothing brand AlphaTauri is all set to enter the US market Rag & Bone partners with Astound Commerce to leverage digital transformation The Dibz helps brands sell unsold merchandise Zara partners with Rhuigi Villaseñor again and opens a store in New York
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EXPERT SPEAKS
INFLUENCER MARKETING FOR APPAREL RETAIL Influencer marketing has undoubtedly
lent fashion and lifestyle brands a new dimension and channel for connecting with target consumers. The fashion industry has transformed phenomenally with the advent of influencer marketing. This has also impacted how people discover brands, look for products and invest in them. Social media allows brands to connect with a pool of audience that helps them upturn their consumer base and improve their visibility further.
Soumali Chakraborty Head, Marketing, Arrow (Arvind Fashions Limited)
Soumali, an alumnus of the MICA, Ahmedabad, is one of the youngest marketing leaders in the industry today. At an early age, she has been credited to have attained success on her own terms and paved way for the entire organisation towards growth path with her valuable contribution. A firm supporter of the power of digital marketing, she aims to embrace the changing market realities by following a consumer-centric approach, media buying and an enhanced focus on content creation and marketing strategies.
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Consumers are now more than ever dependent on social media to research products and services. While companies do use social media to reach their audience, posts and messages many times tend to sound inauthentic and overly promotional. In this case, influencers help bridge the gap between providing the message of the brand and sharing a genuine story or recommendation. According to industry research, 67 per cent of marketers believe that influencer marketing helps them reach a more targeted audience. Influencer marketing in fashion and lifestyle has been there for a while, but the marketing strategies keep evolving. Fashion and lifestyle influencers largely dominate the digital space these days and this makes them all the more critical for this particular niche. Lifestyle influencers have also made it possible for high-end brands to become more approachable and consumerfriendly. While there is already a lot going on in the lifestyle and fashion space as far as influencer marketing is concerned, there is always space for some more insight.
Almost every brand wants to bank on influencers to increase their reach and sales, but the question is how. Though influencer marketing for fashion and lifestyle may look like a no-brainer, it sure has many layers to it. Fashion and lifestyle brands connect with influencers to reach potential customers. Brands opt for different social media platforms to put their message across to meet their goals and objectives. The content curated by the influencers for these brands encourages the users to take the desired action towards the brand. Brand marketers design influencer marketing campaigns and collaborate with influencers to put forth their brand message actively on social media platforms. This marketing technique is used especially for new collection releases, product launches, product upgrades and new brand announcements, to name a few.
How brands can benefit from Influencer Marketing Know your audience better: With the help of influencer marketing campaigns, you can understand your audience preferences better. The way the users respond to your campaigns can tell you a lot about how your product or brand is being perceived. This will also help you make effective upgrades to your products to suit the needs of your target audience. Reach to an undiscovered audience base: Influencers are followed by a pool of users. Brands can get access to an undiscovered audience base too. Influencer marketing campaigns help you reach a passive audience base too
EXPERT SPEAKS
that can further help increase brand reach and engagement. Influencers help create a need/desire for your product/brand: Consumers buy products and services only when they are aware of why they need it. Influencers can help generate that need! The influencer campaign you frame will tell the audience why they need your product and how it will benefit them. This is a crucial step required for generating sales. Gain an edge over your competitors: Influencer marketing helps you gain an edge over your competitors. This marketing technique allows you to put forth your brand highlights effectively and gives the audience an idea as to why they should opt for your brand and not the others. Allows to place a proper call to action: With the help of influencers, you can dictate what action you want the audience to take towards your brand.
Though influencer marketing for fashion and lifestyle may look like a nobrainer, it sure has many layers to it. Fashion and lifestyle brands connect with influencers to reach potential customers. Brands opt for different social media platforms to put their message across to meet their goals and objectives.
This can either be for increasing sales or generating brand awareness. Influencers will help you frame content that give you results as per your campaign objectives.
In today’s competitive fashion industry, succeeding in retail requires brands, no matter how big or small to work with influencers in various ways to showcase their designs to the public. Designs and retail stores need to make use of this essential tool in order to effectively reach their target consumers and increase their sales. They are the best way to make an impression on the market, and a great way to turn potential buyers into loyal customers of your store. Influencers are changing the fashion retail industry in more ways than one, which is why it is crucial for brands to collaborate with them if they are seeking success. Nowadays, almost everyone uses social media, and fashion influencers are able to change purchasing decisions dramatically through their impact on social media. Their contribution to the transformations in the fashion retail industry cannot be ignored.
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Sneakers are a very clear example of brands’ symbolic power for identifying who we want to be and how we want to present ourselves
SNEAKERS, MORE THAN A SPEEDY GROWING PRODUCT, IS CULTURE NOW If any product category in non-apparel
lifestyle products in the last 4-5 years has attracted youth the most, it is sneakers which is undoubtedly on the top. The international sneaker market is probably unique in the way it’s constantly moving between innovation and nostalgia. Sneakers can be worn with any kind of attire and anywhere, right from a party to workplace or while workout. It is believed that due to the growing health concerns amongst youth, sneakers are preferred
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as they ensure style and comfort both. More than a fashion product, a hobby or a passion, sneaker is now a culture. Nearly all stakeholders in the fashion and shoe segment, be it international or national brands, start-ups, D2C selling platforms, manufacturers or B2B marketplace, are enthusiastic about the growth of this product category.
claim that the worldwide sneaker market value is US $ 86.86 billion, and with around a CAGR of 6.8 per cent, it is expected to reach US $ 139.8 billion by 2032. With regard to India, revenue in the sneakers segment amounts to US $ 3.01 billion in 2023. The market is expected to grow annually by 5.88 per cent CAGR during 2023-2027.
Massive market, impressive growth
Compared to the Western world, sneaker culture arrived a bit late in India, but as Bollywood sets trends here more than any other form of media, a massive spike
Various international research reports
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store (houses the biggest sneaker wall in India) and it has plans to soon open an experiential retail store in Mumbai. It claims to witness 350 per cent year-onyear growth since 2019. Established Indian fashion sports brand Alcis started sneakers two years back and is continuously adding new styles. The company has witnessed 20-30 per cent Y-o-Y growth in sneakers, so it is also increasing its offering in this category. It is known to have developed 100 styles last year.
Team Moglix (L-R): Amit Gupta, Director, Fashion and Lifestyle; Suparna Thakur, Senior Manager; and Harshita Jotwani, Manager, Business Development and Marketing (Fashion and Lifestyle)
in sneaker sales was observed after the release of the movie Gully Boy (2019). To create a buzz in the market, there are focused events In India for sneakerheads like Indian Sneaker Convention, Sneaker Festival and specific Sneakerhood campaigns too. Indeed there is no such place across the retail world, where the sneaker market is not booming, however mainly the market in India can be classified into majorly three segments: first, the international top brands like Nike, Adidas, Puma, New Balance, Converse, Fila, Vans, Asics, Skechers, Veja, Reebok, Salomon, Common Projects, Hoka, Bata, The Underdogs, Aldo, Veja, Diesel, Steve Madden, Replay, Decathlon, Superdry Levi’s and UCB to mention a few. Many of these are enjoying good growth in India. The second is leading Indian platforms (marketplaces) like VegNonVeg (India’s first multi-brand sneaker store), The Mainstreet Marketplace, Crepdog Crew (CDC), Superkicks, SoleSearch and startups or brands like Neeman’s, 7-10, Sko, Thaley, Flatheads, Elevar, Saree Sneakers, Badhuche. The third segment is Indian footwear/ apparel brands, manufacturers which now have stronghold in sneakers like Red Tape (Mirza International Limited),
Woodland, Alcis, Relaxo, Liberty, Campus and Asian etc. Retailers like Blackberry are also offering this product category. Indian brand Neeman’s has seen almost 15 times growth in the last one year and sold over 7.5 lakh pairs in the last three years, and served more than 5.5 lakh customers in the segment. The typical customer of the brand is aged between 28 and 40 years and resides in metro cities. But overall sneaker craze is not limited to metro cities as the sale of sneakers extends beyond the metros. Millennials, Gen Z, women are buying as many sneakers as men. Since its inception in 2019, CDC has expanded from an Instagram page to a website to a 6,000 square feet flagship
With regard to India, revenue in the sneakers segment amounts to US $3.01 Billion in 2023. The market is expected to grow annually by 5.88% CAGR during the 2023-2027
One can’t ignore the presence of sneakers on e-commerce platforms like Amazon, Tata Cliq, Myntra, Flipkart etc., which are also the main propagators and sellers of sneakers not only for Indian brands but also for international brands which are usually not available in the local market. Myntra added ‘New Balance’, on its platform. To tap the Indian market, Saucony (124- years-old American brand) is present with its specific Indian website and across many stores and exploring the dealer network too. Not only direct consumer-related brands, start-ups or such platforms, B2B Marketplaces are also focusing on this segment. Moglix, comparatively a new tech-enabled sourcing platform that serves as a one-stop solution for lifestyle brands, started offering sneakers four months back. The company is mainly into trendy sneakers which are from the mid-premium affordably priced segment and Amit Gupta, Director, Fashion & Lifestyle, Moglix feels that the same has been much in demand. He states, “Our experience has been amazing in this product category and we are expecting that sneakers will be 40 per cent of the non-apparel business of the company in the next one year.” Having strong presence in physical retail, Bata India has introduced new Sneaker Studios in stores which showcase 300 styles and nine brands. It has seen the demand for the sneaker category grow by 40 per cent in the last few years. Flatheads, gaining momentum for premium sneakers, was recently a point of discussion as its Co-founder
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Ganesh Balakrishnan, who is also an IIT-IIM graduate, appeared in Shark Tank India. He believes that the Indian sneakers market has evolved and with the tremendous opportunities, this is the best time for premium range sneakers’ companies to create their strong space in India. He tells Apparel Online (AO), “Various collaboration initiatives of international brands are now more visible to Indian consumers. At the same time, now youth are self-conscious about their lifestyle and overall appearance. We are also expecting good growth.” Flatheads started just before Covid and now after its appearance in Shark Tank, it is geared up to grow.
Niche focus Interestingly, there are emerging brands that are very niche in this segment and have highly value-added sneakers. Embroidered sneakers is one such part. Kolkata-based The Saree Sneakers (Cute Little Fashions) is specifically known for its hand-embroidered sneakers and it
Flatheads offers sneakers for casual work dressing and its innovative sneakers are made using natural materials such as linen, bamboo yarn and banana stem fibres
also offers sneakers for bridals. It also has customised service to prepare sneakers as per the wearer’s outfit or choice. In Mumbai, the recently launched Anaar came up with a one-of-a-kind bridal sneaker wedge range, infusing style with comfort for this wedding season. It makes both flat and high-heeled sneakers.
However, the pain point of manufacturing sneakers in India is mainly regarding raw material as there are limitations to their availability and trained manpower. Amit Kapoor, Director, Kaps Overseas, Agra is working with top sneakers brands
Talking about her initiative, Tanushri Biyani, Founder, Anaar says, “Weddings are a huge thing in India and sneakers have a widespread consumption.”
“Various collaboration initiatives of international brands are now more visible to Indian consumers. At the same time, now youth are selfconscious about their lifestyle, and overall appearance. We are also expecting good growth.” Ganesh Balakrishnan Co-founder, Flatheads
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Anaar has a small unit where its sneakers are meticulously handcrafted. Each pair can take up to 50 hours to make. It truly believes that fashion doesn’t have to be uncomfortable, and that is the main manufacturing aspect of Anaar. Anaar also has plans to launch sneakers for men as well.
Manufacturing also evolving with growing market The Indian sneaker manufacturing industry is getting more matured as many international brands’ sneakers are being produced in India for Indian markets as well as overseas. Ganesh from Flatheads has witnessed investment taking place in this segment and is hopeful that in the next 3-4 years, there will be much more development on the manufacturing front.
“As of now we have monthly capacity of manufacturing 1.25 lakh pairs of footwear and 65 per cent of this is sneakers. We have expansion plan for sneakers and in long run we can start the manufacturing for sneakers’ raw material also.” Amit Kapoor
Director, Kaps Overseas, Agra
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Anaar: Recently launched Anaar has come up with a one-of-its-kind bridal sneaker wedge range, infusing style with comfort for this wedding season
Making sneakers for many leading brands, Kaps Overseas has a monthly capacity of manufacturing 1.25 lakh pairs of footwear and 65 per cent of this belongs to sneakers
like Neeman’s, Lee Cooper and Thaely etc. Kaps Overseas has a monthly capacity of manufacturing 1.25 lakh pairs of footwear and 65 per cent of this belongs to sneakers. The company has further expansion plans also and has started manufacturing raw materials for sneakers.
Rohit Aneja, Partner, Paragon Apparels (Alcis) agrees that now manufacturing strength of sneakers is growing in India as he says, “We were earlier importing sneakers from China but to serve Indian consumer taste better now, all our sneakers are being sourced from Indian factories.”
In fact, sneaker manufacturing is growing rapidly across all shoe manufacturing hubs and Agra is not an exception. There are a few good manufacturers in the city that produce sneakers for top brands such as Dawar Footwear Industries, Virola Shoes, Lamba Footwear Industries and VRD Exports to name a few. Chennai, Ranipet, Noida, Bahadurgarh in Haryana are also hubs for sneaker manufacturing.
Focus on being sustainable Innovative raw materials, especially for shoe’s upper part are being developed with increased thrust on comfort and sustainability, Hyderabad-based sustainable shoe brand Neeman’s claims that every product of the brand is made using natural, renewable and sustainable materials, be it recycled PET bottles,
Australian Merino wool, 100 per cent natural cotton, knitted fabric and stretchability ensuring that the product is breathable. The start-up founded by Taran Chhabra and Amar Preet Singh has received good funding so far and its major sourcing of sneakers is from Agra. Its shoe uppers are made with mango pulp, mushroom and so on. For few sneakers brands, sustainability is at the core like budding start-up Thaely started with specific sneakers that only use components recycled from waste materials. It claims on its website that the aim of the exercise is to find a solution to the problem of the 100 billion plastic bags
For few sneakers brand, sustainability is at core and their dedicated focus like budding startup ‘Thaely’ started with specific sneakers that only uses components recycled from waste materials.
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used each year that use 12 million barrels of oil and kill 100,000 marine animals annually. Flatheads offers sneakers for casual work dressing and its innovative sneakers are made using natural materials such as linen, bamboo yarn and banana stem fibres. Using canvas made from organic cotton and a variety of other raw materials like recycled rubber for the sole, Amit Kapoor also believes that there are limitations in the availability of raw material, so sometimes they have to import it. He is also hopeful that with the growing demand of sneakers and the tilt of the industry towards sustainable material, there will be increase in the availability of the same. In the long run, he also has plans to invest in manufacturing of raw materials.
In-house design development is priority for many While the top brands start working on their design development around 1-2 years ahead, emerging brands and start-
ups normally work six months ahead. Thrust is majorly on in-house developed designs. Moglix’s in-house design and sourcing team supports vendors regarding product development and even helps them to source better raw material. Its design team also works with similar teams of
various brands and comes out with effective results. Even Alcis sells its own designed sneakers as it has a full-fledged in-house design team. For budding start-ups, small orders and speed to the market are major concerns and they work accordingly on their product development. For Flatheads, the turnaround time is around 90-100 days and its design development, replenishment are based on market intelligence. “For us, speed to market is very important and we offer small quantities with many design options,” says Ganesh. Extremely fashion-forward Anaar plans designs six months in advance as currently, it is working on monsoon wedding range. It plans about the kind of materials, colours, styles and designs which can be used and explores the ones in trend.
Rohit Aneja, Partner, Paragon Apparels (Alcis) and Vidhi Aneja of Grapevine Design
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Few of the leading brands give their own designs also to their vendors and sell products designed by their vendors purely. To come out with the best design, brands and vendors work collectively on product development, exchange a lot of ideas and follow each other’s suggestions. Amit Kapoor also follows similar kind of process with the top brands which are his clients for years.
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FUTURE OF FOOTWEAR IS NON-LEATHER: ARUN KUMAR SINHA, MD, FDDI Moving toward completing four decades
of its inception, Footwear Design and Development Institute (FDDI), under the aegis of Ministry of Commerce and Industry, is an institution of national importance. With 12 campuses across India, it is working with the objective of mainly developing Human Resources within the country by imparting appropriate knowledge and skills to promote the rapid growth of footwear and allied industries. Serving as MD, FDDI for last six years, Arun Kumar Sinha (IAS), a Chemical Engineer from IIT, Kharagpur and Masters in Public Policy and Management from London School of Economics and Political Science, has added significant value to FDDI with his
Arun Kumar Sinha, IAS, Managing Director – FDDI
dynamic and entrepreneurial acumen and focus on tech curriculum. Prior to joining FDDI, Arun served at the state level in various posts like Deputy Commissioner, Director Education, Sports and Tourism, Additional Secretary Health, Commissioner Excise, OSD (ADMIN) in India Trade Promotion Organization (ITPO) and many other posts. In an exclusive interview with Apparel Online (AO), he shares that due to sustainable aspects and changing preference of customers, the future of footwear is nonleather. He highlights how, with many initiatives, the institute is geared up to align with the changing market scenario and the need of the footwear industry. AO: How FDDI has become instrumental in the growth of footwear industry in India and what are the major achievements of FDDI so far? What is FDDI doing to make the industry grow? Arun: There are many steps FDDI has taken over the years besides working upon academics, testing and R&D; consulting; design and forecasting; and executing various projects of the Government of India. The industry is getting advantage of our centre which is a strong support structure for them. I am proud to say that so far, almost 9,000 students have passed out from FDDI and many of them are working across the globe in reputed positions. We have signed various MoUs with national and international organisations with regard to supporting each other on Cluster Development; Skill Development; Consultancy. On grass route level, FDDI has provided training to artisans in remote villages/ SMEs engaged in the leather sector. We
use advanced technology to keep our students up-to-date. AO: As the industry is mainly a small-scale one which is largely unorganised, do you see a shift towards a large segment going ahead? Where do your students get placed and get adjusted after coming out from a premier institute? Arun: I am happy to inform that in the year 2021-22, our campus witnessed 230 recruiters and the highest package of Rs. 14 LPA was offered by Landmark International. Yes, our industry is mainly into MSMEs and there is scope of more pay for our students. I must say that if students work consistently in the initial days with the MSME sector, there are massive opportunities for them to grow and work with leading national and international manufacturers, brands and retailers. There are many such good examples also. Driven by larger penetration into Tier2 and Tier-3 cities and the growing rural market, various premium footwear brands are foraying into non-metro market which holds enormous growth potential for the overall footwear industry. Growing fitness consciousness is leading to rise in athleisure footwear in metros as well as smaller cities. All this will also increase job opportunities for professionals at various levels. AO: The Union Government has notified the Indian Footwear and Leather Development Programme (IFLDP) with an outlay of Rs.1700 crore for implementation during 2021-26. But it is common perception that the Government doesn’t have a major thrust in the footwear segment. How do you see this and what more needs to be done for the industry?
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Arun: It can’t be denied that the Government is committed to the growth and development of the footwear industry. In view of the potential which the leather and footwear sector holds, it has also been included among Champion Sectors’ in the category of manufacturing sectors under the Department for Promotion of Industry and Internal Trade (DPIIT). There are many schemes that cover the footwear sector and support regarding technology upgradation, besides fresh investments also supporting it to become green, sustainable. All these efforts are helping the footwear companies to become more competitive and increase their market share and to become more profitable. In my opinion, to improve the growth rate, some industry clusters should be developed on the modern method of manufacturing technology which is supported with adequate skilled manpower. Design and Retail information must be regularly made available to footwear manufacturers to help them suitably address the season’s requirement. Besides this, Technology Upgradation; Market Access; Intellectual Property Rights and Patents; Incubators and Entrepreneurship Development; Quality Management Standards are needed. PLI scheme is also needed for the footwear sector. Strengthening footwear value chain with focus on building component industry is the need of the hour and strategic
We have connected more than 4500 alumni of FDDI and we make sure through formal, informal events, the existing students get some advantage of our Alumni’s learning and experience.
32 AO India | March 2023
interventions for promotion of component sector, institutional collaboration within the country shall provide capacity building in machine/ tooling. AO: The thrust is also on start-ups. How do you encourage start-ups and so far how many good start-ups have come up with the support of FDDI? Arun: Most of the beginners in our industry encounter challenges in the initial stage of their business and by the inputs provided by the guidance of FDDI’s Faculty, they have overcome those challenges and created a niche for themselves. To mention a few of our good start-ups, Dhanushika Ramesh and Jeffry Jacob ventured into a start-up Briller. Swati Mehrotra has grown to be an entrepreneur with her own label SWATIMODO bespoke shoes and a shoemaking academy to her credit. Abhishek Ranjan who found We source and Rohit Jadoun who is the Founder of Four Seasons have also been part of our institute. Niren Anand, Ever Trade India and Niren Anand India, Virendra Awal of Mochiko Shoes are some other such successful entrepreneurs. Going forward, we plan to have more thrust on the start-up culture and motivate, support students with various steps like inviting budding start-ups as guest lecturers, offering infrastructure as incubation for students who wish to be part of a start-up. AO: Technology is playing an important role in development. How FDDI has thrust upon technology, be it in course curriculum as well as in overall infrastructure? Arun: To meet the cutting-edge technologies’ requirement, we have state-of-the-art infrastructure across all the levels such as additive manufacturing, Al application in design and data analysis, latest software and augmented reality application, digital enterprise. FDDI has already initiated the processes of Industry 4.0 application for footwear sector through Center of Excellence
(CoE). We also have digital classroom facility and software like Adobe, Rhino, Tinkering studio etc. The Government has sanctioned Rs. 129.62 crore to set up CoE at 7 campuses of FDDI in different areas such as non-leather footwear; highperformance footwear; specialised footwear; design studio. These centres will provide the much-needed R&D and address concern of the industry in product development, centre for incubation and entrepreneurship. We have adopted best practices like our working committees in curriculum revamping are composed of members from IIT; representatives of companies like Bata, Woodland and Reliance etc. We have redesigned the entire syllabus of B.Des program and this is further augmented with the smart wearable technology and biomechanics and ergonomics. Though all these, FDDI ensures that the student fulfils the industry expectation and we observe a seamless shift when our students start working in the industry. AO: There is a variety of raw material being used in sneakers. How do you see this scenario and what more development can be anticipated in this direction? Arun: In footwear, the world is moving towards non-leather and that is also the future. The raw material segment will move towards embracing newer technology notably in chemicals, 3D printed material with specific applications such as polyamide, Nylon, TPU for specific purposes and technology-based knitted material for product application. In 3D and 4D printing, particularly use of SLA, FDM-compatible products based upon application will also have space. At the same time, materials with natural fibres will continue to have their presence when it comes to raw material. As sneakers is a growing product category, we are also organising various workshops for the same.
COVER STORY
COVER STORY
LATEST SNEAKER TRENDS DOMINATING THE FASHION INDUSTRY Along with the desire for comfort, the
athleisure trend’s continuous dominance has had a substantial impact on the rising sales of sneakers. Sneakers, once a representation of athleticism, have evolved beyond their original purpose to become widely desired consumer products. Sneakers have established themselves as cultural commodities, appearing in everything from sportswear and street style to runway couture. In 1985, Michael Jordan’s Nike Air Force Sneaker made its debut and went on to become a legend in popular culture. The shoe was advertised for everyday use in addition to sports. It quickly rose to the top of the most sought-after sneakers in contemporary fashion and sneakerheads continue to adore it today.
a simple form of footwear; they regard them as prized possessions.
Sneakers have established themselves as cultural commodities, appearing in everything from sportswear and street style to runway couture.
Sneakerheads, also known as sneaker collectors, are aware of the adverse impacts that the invention and rising craze for sneakers have had on them. For them, sneakers are more than just
But how exclusive are sneakers today? For luxury brands, sneakers are the new goose that lays golden eggs. Due to the growing ‘sneakerisation’, luxury brands are dominating the sneaker market. From 2009 to 2015, sales of luxury sneakers tripled, thanks to millennials’ penchant for fusing high-end products with more affordable options. Nowadays, it appears that the majority of the sector gets its inspiration from appealing to a larger audience. Even so, the luxury sector continues to hold a competitive advantage. Although the excitement may have subsided a little, sneakers are still regarded as one of the items that people would be proud to acquire.
March 2023 | AO India 33
COVER STORY
Resellers taking utmost advantage There are haves and have-nots in the world of streetwear fashion (those wearing Balenciaga) (and those in the Zara knock-offs). The reselling business rapidly jumped on to the streetwear trend to provide clients with affordable dupes because not everyone can buy
The Rise of Collaborative Sneakers Many sneakerheads eagerly anticipate adding sneakers to their collections that are the result of incredible partnerships with various celebs, fashion houses, or even food companies. Three of the most talked-about pairs of sneakers to ever hit the market—the Air Jordan x Dior Jordan 1, the Adidas x Prada Superstar and the Nike x Sacai LDWaffle—showcase the
Sneakers in Runways When it comes to runways, sneakers on the catwalk can highlight inventive, new styles. Modern fashion brands are free to create unconventional forms, alluring colour schemes and premium materials. The first Heron Preston presentation to be presented during New York Fashion Week in 2023 took place in a sanitation department. His sneakers on the runway could be totally recycled because they were composed of cellular film, a kind of polyurethane. During this year’s Paris Men’s Fashion Week, sneakers were spotted
34 AO India | March 2023
or obtain an exclusive pair of brand sneakers. Sneaker buying and selling has shifted from the time when it was handled in a neighbourhood and driven by passionate collectors. This transitioned to faceless trades driven mostly for financial benefit for a while, like most sectors. The sneaker reselling industry in India has grown
quickly over the past four years and is now recognised
as a developing alternative investment.
After its September 2022
launch, 2023 is the anticipated year for the PUMA Stewie 1. Breanna Stewart most recently unveiled a PUMA Stewie 1 colourway called ‘Reintroduce’ on Instagram.
The ‘Reintroduce’ colourway, in contrast to the ‘Quiet Fire’ and ‘Causing Trouble colourways, features a straightforward colour scheme with shades of beige and cream.
on numerous catwalks. By fusing fashionable apparel with casual sneakers, Louis Gabriel Nouchi really elevated the shoe. Conversely, Amiri, a luxury brand, primarily went with white sneakers and matched them with graphic T-shirts, coats and sweaters. At Pitti Uomo’s Spring 2023 fashion show, Lotto, an Italian show brand, drew inspiration from the heyday of Italian basketball for its most recent collection. At Voile Blanche, sneakers were in abundance. The hero Club aesthetic is always evolving, using daring colour combinations and silk-screen prints that include the company’s insignia on
designs for casual footwear. The Flower Mountain, a Japanese lifestyle footwear brand, fall offering had an adventurous and climbing vibe to it. The uppers of the sneakers,
which are modeled after the traditional Japanese stitching method known as Sashiko, include textured and frequently 3D features that give them a distinct edge.
confluence of streetwear and high fashion. Two colourways of the newest Adidas Forum Wings 4.0 ‘Opal Pack’ from Jeremy Scott and Adidas Originals will make their debut in 2023. With his collaboration with the Nike Air Jordans, Travis Scott will return to the sneaker world in 2023. Black suede serves as the foundation of the Travis Scott x Air Jordan 1 Low OG WMNS ‘Olive’ while off-white leather accents serve as a striking contrast.
COVER STORY
Gender-Fluidity in Sneakers By exploiting female role models and defying the common misconception that shoe wearers are men, the sneaker business is able to broaden its audience.
Women are now choosing flat-soled sneakers over uncomfortable heels and pumps. The majority of women now wear casual sneakers to work. They are wearing them successfully with both dresses and jeans. Now, there is less pressure on women to
wear expensive heels because they are used more for special events. Women like Aleali May, Creator of the Air Jordan 1 ‘Satin Shadow’; Melody Ehsani, who created the Air Jordan 1 Mid ‘Fearless’;
and Chitose Abe, who was in charge of the Nike X Sacai collaborations, have revolutionised the sneaker industry with not only their designs but also with their women’s-only sneakers and forward-thinking fashion statements.
LATEST FASHION SNEAKER TRENDS TAKING OVER THE FASHION WORLD
As denim did in the 1950s, sneakers are now widely accepted in society. They’re no longer just for drenching exercises. Instead, they have discovered a respectable spot on the red carpet, in the streets, as well as at work.
Moc-Toe Sneakers Moc-toe sneakers are among the dressier-looking but not necessarily formal designs that will be a huge hit in 2023. This type of footwear is basically a hybrid design that combines the room and comfort of a traditional
Y2K Skate Sneakers The early 2000s skate shoes, with their voluminous, weighty and cushioned grandeur may just be the next major sneaker phenomenon to watch.
3D-Printed Sneakers The vivid blue sneakers were presented during US brand KidSuper’s Spring/Summer 2023 show at Paris Fashion Week. They are constructed of layers of thermoplastic polyurethane, a rubbery plastic. The laceless shoes have an
For its newest footwear design, Prada chose to combine sneakers and formal shoes. The sneakers have an upper with elevated edges that are reminiscent of a moc
toe. This pair leans even more towards sportswear with its sporty lace loops and vibrant colour combinations like crimson/burgundy and yellow. The large sole on which Prada’s most recent design for Paris Men’s Fashion Week 2023 is supported, complete with an oversized heel.
The craze began when minimal sneakers dominated the Dior runway the previous year. The premium version of the traditional shoe has embellishments on the sides and large Dior branding on the tongue. For S/S’
23, Saucony unveiled its upcoming collaborations, which included a modernised version of the classic Sonic Spotbilt sneakers and numerous reimagining of the US company’s Y2K running models.
expanded arch that gives them a more formal appearance. They have a knit-like texture that is soft and bouncy to the touch. The Puffer Boot, created by Rains for the Paris Men’s Fashion Week, has numerous carved-out areas all over its upper that make it look like a stone sculpture. The puffer-inspired pieces that
make up the upper and inspire the design’s name are actually 90 per cent air. This Fall/ Winter fashion week, even the
moccasin with an outsole that has tread or roughness for walking around.
menswear label Botter created a stunning pair of 3D sneakers in tropical colours by drawing influence from 3D painting.
March 2023 | AO India 35
COVER STORY
Running Sneakers 2022 began with a sudden increase in the popularity of all-white sneakers. Nevertheless, performance manufacturers are now introducing something even more eye-catching: distinctive soles that stand out. Bright colours including yellow, baby blue, tangerine and red
Suede Sneakers Suede has recently become the preferred material for all shoe trends. Its classic style, which combines neutral and flexible suede with vibrant bursts, has everyone drooling. Sneakerheads’ shoe racks for 2023 are filled with a lot of navy blue and pale olive colours. These are neutral colours, although they have
Chunky Soles The maximalist hefty, bulky or dad trainer sneaker fashion is a clear reference to the minimalist sneaker craze. Currently, this trend is being rocked hard by brands like Balenciaga and Gucci. Go for a shoe with sleek upper and simple or neutral
Trainers Fashion is getting more futuristic by the minute, which may be due to the metaverse. The new collections are far ahead just by looking at all the space-age silver that covered both the A/W ’22 and S/S ’23 runways.
36 AO India | March 2023
being used by brands to cover sneakers. Most streetwear lovers today wear running shoe brands like New Balance, Asics and Salomon. As a result, it is not surprising that Kenzo entered the fray by introducing its own brand of running sneakers during the Fall/Winter 2023 season. Although it’s hard to picture The Beatles or British
more visual intrigue than a straightforward brown.
mods sporting modern ‘dad shoes’ let alone a pair of Kenzo x Hunter rain boots, Kenzo’s interpretation of this trend feels much more understated and wearable than similar products by other high-end fashion houses. The shoes have a big midsole, a chunky tongue and subtle logo hits on the lateral and tongue.
The trendy shoe colours of the season are being joined by even deeper shades of olive and burnt orange to make them even louder and more captivating. Sneakers were given some subtle but significant updates by Grace Wales Bonner for Paris Men’s Fashion Week 2023, including premium black suede uppers,
gold eyelets and a scaleddown Three Stripes logo from the original pairs. These changes made the sneakers more appropriate for a runway than the neighborhood gym. Two pairs from Ryota Iwai’s technical brand’s most recent creations were introduced this Fall/Winter. Each has a monochromatic upper that combines suede and mesh, with cream midsoles.
colours if you want to try the huge-sole sneaker trend. Both the heavy sole and the overall design will be softer as a result. The founder of the New York City-based brand Kidsuper, Colm Dillane, was chosen to create its Fall/ Winter 2023 collection. The sneakers emerged on the runway in a variety of
variations and have a spongy, chunky sole. Even pairs that resembled burgundy mesh trail running shoes and ones in a metallic colour with zipup laces were available. Kenzo too offered a pair of silver and blue shoes with a chunky midsole for the Fall/Winter season.
Yet, wearing new shoes—or, in this case, trainers—is one of the simplest ways to adopt any new trend.
on Cecilie Bahnsen’s S/S ’23 runway were worn with trainers. All of the subtle dresses in white, pistachio green and powder blue were set together with stand-out trainers with embossed floral embellishments in different styles and colourways.
Vegan trainers are neither unique nor original, but in 2023, they will undoubtedly be more widely available. See how many of the outfits
BUYING & SOURCING
GROWING FOCUS ON SMALL ORDER SIZE Inventory at the brands’ and retailers’
end and the decisions of their buying professionals have a close relationship as poor buying decision leads to unsold stock and poor planning leads to stock out or unsold inventory. In this changing scenario of the global apparel trade, which is undoubtedly quite unpredictable, small orders are unavoidable. Rather than going for commitment for full-year sourcing, buyers are now exploring newer and different options. In fact, in some of the good international sourcing events, various manufacturers or stakeholders in the apparel sourcing supply chain highlighted that they are eager to do small orders as they know that to survive and grow, these smaller orders are now a must. To control excess inventory, brands, buying communities are on their toes, so the manufacturers are also aligning themselves accordingly. Apart from all this, more thrust on e-commerce sailing is also increasing the focus on small order quantity. As far as the number of pieces or order size is concerned, there is no such set
standard or common figure but all stakeholders of the industry, right from leading exporters to micro-level firms agree that there is a significant reduction in their order size by most of their buyers and now it is like a set pattern that there will be more number of styles with less number of pieces per order.
Buyers are under pressure Rather than going for state-of-the-art technology for analysis, a large segment of buyers (including some big companies also) are still depending on their traditional ways, and a few of them are banking on software like Excel. With the growing number of styles and several orders (not the overall business volume), buying experts believe that there is no other way. Test and learn, buy and react is their mantra when they have the opportunity to get things quickly and work with MOQs. Indeed one has to understand that by the time the buying professional or backend planners realise that style x is working in one region of the country and not the other, almost half the season is over. Once the stock is shipped and sent to
the store where the style sells, it’s often too late and it anyways ends up getting discounted. Buying professionals also suggest that being bullish is very pivotal to being a buyer because if a buyer is not courageous enough to expose his customers to a new trend, buyers are denying them an opportunity to ride the wave and thereby falling back in the game.
Changing Manufacturers’ Mindset On the manufacturers’ front, things are improving with small orders, having grey (in few cases ready fabric also) fabric in stock, separate lines for small orders, insisting on more price for smaller orders and the most important thing, the mindset to do small order size. Earlier good prices for small orders used to be a mandatory condition as apparel manufacturers who were comfortable doing small orders used to insist on comparatively high prices. But now as their regular buyers, who usually place volume orders or comparatively reasonable size orders, are also banking on small orders and are not giving any extra price, the previous notion of higher prices for smaller orders is gradually receding. This entire scenario is conducive for smaller order quantities as things are becoming easier with dedicated companies now serving smaller orders and providing support of all kinds right from sourcing to execution. Various B2B Marketplaces are also having their focus on such orders as they have all kinds of buyers and suppliers as well. As this business of small orders is comparatively more consistent, small and mediumlevel manufacturers are now tilting more towards this prolific option.
March 2023 | AO India 37
INDIA’S PREMIER SOURCING SHOW
20-21 July 2023
Sheraton Grand Whitefield, Bengaluru
2023 ASW 2023 is a Premier Sourcing Show comprising of only 100 apparel manufacturers from Asia and 50 fabric and accessories manufacturers from around the globe showcasing their developments with major focus being on sourcing, knowledge, inspiration and networking.
OPPORTUNITY
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ASW is all about creating enhanced business opportunities with top Asian manufacturers of apparel, textile and accessories.
Attend the many interactive brainstorming platforms led by industry leaders to learn and unlearn the paradigms of fashion retail.
INSPIRATION
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Fashion is a by-product of inspirations - meet thought leaders in forecasting and get inspired at the experience zone.
Meet peers, competitors, influencers and people who matter to the fashion retail industry at numerous networking interventions.
Presented by:
2-Day Apparel Sourcing Show: 20-21 July 2023 at Sheraton Grand Whitefield, Bengaluru
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100 Apparel Manufacturers from India, Bangladesh, Vietnam, Sri Lanka, Indonesia and China
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50 Fabric and Accessories Manufacturers from around the world
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Visitation of 7500+ Representatives of Brands and Retailers from India, Japan, Australia, South Korea, Gulf Cooperation Countries (GCC), USA, UK and Europe
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25+ Seminars, Workshops and Open House Discussions
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Vendor Session by 4 Prominent Brands and Retailers
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1 Networking Evening and 2 Lunch Networking
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38 AO India | March 2023 38 AO India | March 2023
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MANUFACTURING
DEEP DIVE INTO THE BUDGET FROM THE TEXTILE AND APPAREL INDUSTRY’S PERSPECTIVE A quick look at the budgetary
allocation shows that there is more than a 20 per cent increase in budgetary grants for the textile industry which could be used for the growth of the industry. The total grant for textiles for the year 2023-24 is fixed at Rs. 4,389.34 crore which is about 22.6 per cent higher than the revised budget grant for 2022-23. In the present budget, a grant of Rs. 200 crore has been kept for PM MITRA Parks, while for PLI Scheme, the grant is budgeted at Rs. 5 crore. Higher budgetary allocations are for schemes promoting capacity building and investments like National Technical Textiles Mission (NTTM), PM-MITRA and textile development cluster scheme. Here is an analysis of the budget and opinion of industry stalwarts on the same.
To enhance the productivity of extralong staple (ELS) cotton, the Government will adopt a clusterbased and value chain approach through Public Private Partnerships (PPPs). This will facilitate collaboration between farmers, state and industry for input supplies, extension services and market linkages. In the long run, it will be helping garment industry provide raw material security.
There are some good decisions taken in this budget. Overall this budget is positive, growth-oriented and forwardlooking. The focus on infrastructure, investment, green growth, youth power and inclusive development will boost India’s journey to be the fastest-growing robust economy. The announcement to cover more sectors under the PLI scheme and support to the MSME sector will help thrust exports and investment in the country. But at the same time, some of the decisions will have their negative impact also. The Government could have avoided the increase in the Basic Customs Duty on textile machinery as the country is not even producing 20 per cent of the machinery requirement. This will impact the new investments planned in this
March 2023 | AO India 39
MANUFACTURING
sector. Industry has urged to have only 5 per cent import duty for all types of textile machineries for the next three years or till the domestic manufacturers establish themselves to meet the domestic demand. This will have some impact on the global competitiveness besides the recently announced PLI Scheme and PM MITRA Scheme in the absence of Technology Upgradation Fund Scheme which was in vogue from 1st April 1999 to 31st March 2022. There has been no announcement on the continuance of ATUF Scheme in the Union Budget and it is being hoped that Government would announce something with regard to it in near future. The increase in allocation for the MAI Scheme from Rs. 160 crore in 2022-23 to Rs. 200 crore in 2023-24 is a welcome one but this may not be adequate as the global trade shows are increasingly giving opportunities for showcasing which need to be exploited. A planned scheme for aggressive overseas marketing may be notified with a sizable corpus to encourage exporters to showcase globally.
which are import dependent or need further incentivisation. l
l
Fund for RoDTEP scheme has been increased from Rs.13,699 crore in 2022-23 to Rs.15,069 crore in 202324.
l
The allocation for RoSCTL scheme has increased from Rs.7,641 crore for 2022-23 to Rs.8,405 crore for 202324.
l
Rs 9,000-crore corpus for a revamped credit guarantee scheme will alleviate the stress of small and medium enterprises. It will enable additional collateral-free guaranteed credit of Rs. 2 lakh crore reducing the cost of the credit by about 1 per cent. The textile industry would be the major beneficiary out of the scheme since more than 80 per cent of the textile units come under the MSME category.
l
Increased allocation for the Interest Equalisation Scheme (IES) from Rs.
Textile and apparel industry benefits (direct/ indirect) from the budget l
l
l
Increased 38 per cent allocation of ATUFs from Rs.650 crore in 202223 to Rs.900 crore in 2023-24; this will help in the release of payment for pending cases faster. To enhance the productivity of extra-long staple (ELS) cotton, the Government will adopt a clusterbased and value chain approach through Public Private Partnerships (PPPs). This will facilitate collaboration between farmers, state and industry for input supplies, extension services and market linkages. In the long run, it will be helping garment industry provide raw material security. Five new HS Codes for cotton have been identified for further classification of cotton as per staple length. This will help in calibrating policy support for the segments
40 AO India | March 2023
The support for the procurement of cotton by the Cotton Corporation under the Price Support Scheme is withdrawn. Although it is difficult to predict the impact at this stage, a chunk of industry feels that it looks like the Government is trying to move towards price discovery and self-sustainable farm-to-factory cotton movement.
The total grant for textiles for the year 2023-24 is fixed at Rs. 4,389.34 crore which is about 22.6 per cent higher than the revised budget grant for 2022-23. In the present budget, a grant of Rs. 200 crore has been kept for PM MITRA Parks, while for PLI Scheme, the grant is budgeted at Rs. 5 crore
2376 crore in 2022-23 to Rs. 2932 crore in 2023-24, which is up by 23 per cent, will help support exports. l
The focus on building a green infrastructure will go a long way in reducing carbon footprints and making textile and apparel facilities sustainable.
l
The Government has identified 100 critical transport infrastructure projects for last- and first-mile connectivity for ports, and will be undertaking investment of Rs. 75,000 crore (incl. Rs. 15,000 crore from private sources), and will promote coastal shipping for passengers and freight.
l
Launch of Pradhan Mantri Kaushal Vikas Yojana 4.0 will further facilitate skilling lakhs of youth with Industry 4.0 courses like coding, AI, robotics, mechatronics, IOT, 3D printing, drones and soft skills. The focus on quality education, skilling and training will help in creating a credible workforce which will be fit to the industry quickly, ensuring a strong backup to the manufacturing jobs. The Direct Benefit Transfer under pan-India National Apprenticeship promotion scheme has been rolled out.
l
The establishment of Skill India International Centres would further prepare a skilled workforce for international opportunities.
l
50 years interest-free loan to states to incentivise infrastructure investment, highest capital outlay for Railways, 100 infrastructure projects in port will have a positive impact on overall business and the employment sector.
l
States will be encouraged to set up a Unity Mall in their state capital or most prominent tourism centre or the financial capital for promotion and sale of their own ODOPs (one district, one product), GI products and other handicraft products, and for providing space for such products in all other states.
MANUFACTURING
Analysis of Demand of Grants for Textile Sector in Budget 2023-24 % Change 2023-24 (Budget) to 2022-23 (Revised)
2021-22 (Actual) (Rs. Cr.)
2022-23 (Budget) (Rs. Cr.)
2022-23 (Revised) (Rs. Cr.)
2023-24 (Budget) (Rs. Cr.)
81.21
337.18
369.58
376.95
2.0%
Amended Technology Upgradation Fund Scheme (ATUFS)
625.31
650.00
650.00
900.00
38.5%
Procurement of Cotton by Cotton Corporation under Price Support Scheme
8,331.96
9,243.09
780.71
0.01
-100.0%
Total-National Handloom Development Programme
360.93
200.00
156.00
200.00
28.2%
Total-National Handicraft Development Programme
299.73
220
221.11
278.33
25.9%
Total-Integrated Wool Development Programme
6.25
15.00
15.00
27.11
80.7%
Total-Development of Silk Textiles
854.08
875.00
875.00
917.77
4.9%
Total-Development of Jute Industries
86.94
115.00
62.20
142.00
128.3%
Total-Powerloom Promotion Scheme
36.41
-
-
-
Integrated Processing Development Scheme
41.26
70.00
31.20
60.00
Scheme for Integrated Textile Parks (SITP)
55.00
-
-
-
Assistant to Textile Committee
25.00
25.00
59.79
-
-100.0%
Total-Textile Infrastructure
121.26
95.00
90.99
60.00
-34.1%
59.76
100.00
25.00
115.00
360.0%
National Technical Textile Mission
-
100.00
37.00
450.00
1116.2%
PLI Scheme
-
15.00
7.50
5.00
-33.3%
Textile Cluster Development Scheme
-
133.83
88.00
141.54
60.8%
Others- Research and Capacity Building
199.68
130.00
34.10
0.02
-99.9%
Total-Research and Capacity Building
259.44
478.83
191.60
711.56
271.4%
Total-North East Textiles Promotion Scheme
13.60
-
3.90
-
-100.0%
PM-MITRA
-
15.00
3.50
200.00
5614.3%
Raw Material Supply Scheme
-
105.00
130.00
160.00
23.1%
Scheme for Protection of the Handloom and Implementation of the Handloom (Reservation of Articles for Production) Act, 1985
-
5.00
5.00
7.00
40.0%
Total-Central Sector Scheme/Project
10,995.91
12,016.92
3,185.01
3,603.78
13.1%
Other Central Sector Expenditure
(17.31)
28.04
25.02
408.61
1533.1%
11,059.81
12,382.14
3,579.61
4,389.34
22.6%
Particulars
Total-Establishment Expenditure of the Centre Central Sector Scheme/Project
Textile Infrastructure 92.3%
Research and Capacity Building Integrated Scheme for Skill Development
Total-Budget Allocation
March 2023 | AO India 41
MANUFACTURING
INDUSTRY REACTS “The budget has focused on the growth potential of the Indian economy by focusing on investment and infrastructure to help the country remain as the fastest growing economy as projected by the international institutions.”
A Sakthivel President, FIEO
“It’s a forward-looking, growth-oriented budget. Change in the direct tax will boost savings and make our economy resilient to face the tough time. Removing a large number of compliances converting over 3400 legal provisions into decriminalisation and amending 42 Central Acts, will help in smooth revival of businesses.”
Narendra Goenka “We term the budget as pragmatic and futuristic laying a strong foundation for India @100! The new AI-driven data collection of agricultural products will also help in better crop estimation and lend predictability to cotton prices.”
T. Rajkumar Chairman, CITI
Chairman, AEPC
“The Government has given thrust for inclusive growth, infrastructure and investment in green growth, skill development, etc., that would greatly help the highly labour, power and capital-intensive textile industry.”
Ravi Sam Chairman, SIMA
It is encouraging to see that key pillars of growth include skilling and job creation, opportunities and reduction of compliance burden for small entrepreneurs and the empowerment of women entrepreneurs. This is consistent with our expectations of including incentives to enable the empowerment of women entrepreneurs in Tier-2, Tier-3 and Tier-4. The reduced tax burden for small entrepreneurs will mean reduced supply chain costs and hence more competitive markets. Steps like carry forward of losses for start-ups in case of shareholding, extension of date of incorporation amongst other steps is a step forward for the start-up ecosystem,”
Abhay Batra Co- Founder & CFO, Clovia
42 AO India | March 2023
“As expected nothing really for Textile Industry in budget except more disposable income in hands of consumers due to tax cuts plus with inflation taming means more consumption. The separate HS Codes for ELS Cotton indicates the intent of the Government to differentiate the same in import duty going ahead.”
Sanjay K Jain MD TT Ltd and Chairman, ICC National Textiles Committee
MANUFACTURING
INDUSTRY REACTS “The 8.25 % custom duty will be implemented on all types of high-speed weaving machines imported from any country. The overall capital investment will be expensive by 8.25%, which will hamper the growth in installing highspeed weaving machines. Surat will face heat of this decision.”
Ashish Gujarati President, The Pandesara Weavers Co-op Society Ltd.
“At the macro level, with an increase in income tax exemption limits and rationalisation/reduction in income tax slabs and rates, there will be more money in the hands of the aspiring middle-class and will lead to higher consumption which augurs very well for boosting the much needed retail demand.”
Priyavrata Mafatlal Vice-Chairman, Arvind Mafatlal Group
“The proposal on increased spending on capex will keep the wheels of growth in motion. The reduction in personal income tax slab and eliminating deductions will help in bringing in more spends and marginally higher dispensable incomes. Currently, we are facing tepid demand due to recessionary pressures in both overseas and in our country. We therefore welcome the budget this year as it is focused on growth, economic progress, modernisation and sustainability.”
Sanjay Vakharia CEO, Spykar Lifestyle
“The priority given to infrastructure development will go a long way for reduction of logistics cost, a major need for the exporting units. The focus given on green growth, is a major discussion point by the knitwear industry now in Tirupur cluster.”
K.M.Subramanian President, TEA
“The decision to relax taxation for start-ups for up to 10 years, coupled with the setting up of bio-hubs in rural areas, will greatly ease the process of setting up units in villages. Our efforts to improve the supply chain network for all our stakeholders in the natural fibre ecosystem supply chain receives a major boost from the decision to support collaborative projects between farmers, states and businesses to provide input supply extension services and market connections. Besides providing direct access to global markets, ready access to the internet will expose the farming community to the best trade and agricultural practices the world over. The promise of financial assistance to traditional artisans such as weavers, who are ReshaMandi’s strategic stakeholders and partners, is a decision we welcome with much delight.”
“There are certain announcements that may benefit the handicrafts sector which include PM Vishwakarma Kaushal Samman, wherein a package for artisans has been conceptualised which would certainly help in the capacity building of the artisans engaged in the sector. Initiatives like reduction in the cost of credit by 1 per cent through infusion of Rs.9000 crore corpus for the MSMEs would help the sector.”
Mayank Tiwari
Raj Kumar Malhotra
Founder and CEO, ReshaMandi
Chairman-EPCH
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MANUFACTURING//NEWS
www.apparelresources.com
States active on developing garment trading hubs, textile parks and textile cluster Various states are on their toes for the development of the textile and apparel industry and are actively launching garment trading hubs, textile parks and textile clusters. The Maharashtra Government will soon release its textile policy and is also planning to set up a garment trading hub in Mumbai. Chandrakant Dada Patil, Minister for Higher and Technical Education and Textile Industry, recently said that the proposed garment trading hub in Mumbai will be on the lines of China’s Guangzhou and Turkey’s Istanbul. The present textile policy of Maharashtra has been operative from 2018 to 2023, expiring on 30th March 2023. The Government has appointed a committee of 30 various stakeholders, including two representatives of CMAI. This committee has recommended extending the present textile policy for further three months. The committee will submit its final report by March end 2023. Based on these recommendations, the Maharashtra Government will form its new textile policy. West Bengal, having major textile hubs like Kolkata, has decided to set up a textile park on a 200-acre land identified in Salboni, within Paschim Medinipur district and at Durgapur and Asansol in Paschim Bardhaman district. This decision is being seen as an outcome of a workshop on Expanding opportunities in the Textiles sector of West Bengal
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Harish Ahuja, Anant Ahuja and JD Giri of Shahi Exports recently met Shivraj Singh Chahuan, Chief Minister, MP for investment in MP
organised by the MSME and Textiles department of the state. The MSME and Textiles department have further decided to set up dyeing facilities and design centres at Phulia and Shantipur in Nadia district. This is being done to support weavers and exporters in the state. A statement released by the State Government following the workshop also stated that the MSME and Textiles department would, in collaboration with the Indian Institute of Foreign Trade (IIFT), conduct export facilitation for handloom exporters in Nadia and Burdwan districts. The said workshop was chaired by Chief Secretary HK Dwivedi. Also in attendance were Principal Secretary of the MSME and Textiles department and various representatives from
Shahi Exports Exploring MP As per reports, Harish Ahuja, CMD of Shahi Exports recently met Shivraj Singh Chouhan, CM, Madhya Pradesh and made a proposal regarding the establishment of an apparel facility with an investment of around Rs. 200 crore on 25 acres of land near Indore.
the chambers and associations representing the textile industry as well as industry representatives. The Chief Secretary also suggested forming a task force and coming up with a time-bound action plan to boost and get more investment in the textile sector, while
assuring the gathering that the Government would take all necessary steps for the sector’s growth. While in Madhya Pradesh, the newly developed textile cluster at Nimbola village in Burhanpur has received over 120 buyers for plots while a third of the industries are slated to be operational by the end of the year. The Nimbola cluster is expected to be the first of four such clusters proposed in Burhanpur. These clusters are for local powerlooms and textile units. An investment of over Rs. 200 crore is expected for the cluster, according to the industries involved in the development of the cluster. The cluster is also expected to provide employment to over 5000 people. Pradeep Kedia, President of the Fair Deal Exporters Cooperative Society Ltd., which is the special purpose
MANUFACTURING//NEWS
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SNIPS
Senior team of EPIC Group met Shivraj Singh Chauhan, Chief Minister, MP
vehicle developing the cluster, said “Plots have been allotted to 127 industries in the textile cluster. The cluster will have textile units, dye chemical units, powerlooms and various other textile-related units. The aim is to use advanced machinery and develop quality products that can be exported from here.” Developed in four phases, the cluster will be subsidised by the State Government, which will provide either 10 per cent of the total infrastructure spending or Rs. 10 crore, whichever is lower, while the remaining expenses will be the responsibility of the industries. In a separate development, Jammu and Kashmir ( J&K) is inching towards attracting apparel manufacturers of Punjab as a delegation of the Punjab garment and textile industry recently visited J&K. The visit was regarding their exploration of investment opportunities in the region. The delegation, after meeting with various departments of the J&K Government and in
EPIC Group to invest Rs. 400 crore As Apparel Online reported earlier that EPIC Group will invest in MP, now its officials Ranjan Mehtani , Executive Chairman and Anu Arora, Vice President of EPIC Group met the CM and discussed the action plan for setting up a vertical fabric and garment unit with an investment of Rs. 400 crore. The unit is expected to be on 35 acres of land near Bhopal and is expected to generate employment opportunities for about 10,000 persons. The group also discussed the opening of training centres in the state.
the resulting discussions, said that the incentives offered were more lucrative than those they managed to get in Punjab. Harish Dua, President of Knitwear and Apparel Exporters Organisation, said, “Our delegation’s visit to J&K was very fruitful. During the meeting with different departments and senior officials, we became familiar with many schemes for the new industry. We also cleared our doubts regarding incentives on offer from the Government of J&K and from the Centre for new investors.” The delegation met Khalid Jahangir, Managing Director (MD), Jammu and Kashmir Trade Promotion Organization; Atul Sharma, MD, J&K Handloom and Handicraft Development Corporation; and Raman Kesar, MD of J&K State Industrial Development Corporation. The interested businessmen gave their expression of interest in investing in J&K to the Government there.
Gurugram-based leading garment manufacturer Matrix Clothing has implemented WFX Smart Factory to digitally transform its manufacturing facilities and improve production floor visibility. It has been using WFX’s ERP (Enterprise Resource Planning) system since 2003 to manage operations and production. A Panchi (dress for tribals) manufacturing unit has come up at Mohammad Bazar in Birbhum in West Bengal. This will be the first unit which is dedicated to the production of garments meant for tribal people in the region. Sanathan Polycot, a leading textile comapny will be investing Rs 1,600 crore in man-made fiber sector at Fatehgarh Sahib, (Punjab). The state Chief Minister Bhagwant Mann said the state has received good investments in various sectors including textile.
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SUSTAINABILITY
SHAHI EXPORTS HAS LAUNCHED ITS FIRSTEVER SUSTAINABILITY REPORT: IMPRESSIVE PROGRESS TO ACHIEVE TARGETS India’s number one apparel
manufacturer and exporter Shahi Exports has come up with its first-ever Sustainability Report. The report covers the company’s overall operations under direct operational control in India for FY 2021-2022. This is the first time that India’s only apparel manufacturer has launched a sustainability report (so far companies like Aditya Birla, Arvind etc., having presence in both apparel manufacturing and retail, have released their sustainability reports). The 76-page report highlights and reflects the company’s sustainability policies, initiatives, programmes and results against the identified material topics. This report has been developed in adherence to reporting principles as per Global Reporting Initiative (GRI) Standards–Core-2020, as well as other reporting frameworks, including United
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Nations Sustainable Development Goals (UN SDGs), National Guideline for Responsible Business Conduct (NGRBC), Government of India Regarding energy and emissions, the company has a target of achieving renewable electricity of 100 per cent by FY 2026 which is currently 68 per cent, while for carbon-neutral energy, the aim is 50 per cent by FY 2026 (currently 35 per cent). Having set up its solar power plants, the company has mitigated approximately 400,000 MT of carbon emissions between 2018-2022. In the company’s garment factories, energy intensity, i.e., energy consumed per piece, remained the same between FY 2019 and FY 2021. However, emission intensity, i.e., emissions produced per piece, decreased by 14 per cent during that time. This is a direct result of raising the share of carbon-
neutral energy in garment factories and adopting energy efficiency measures such as: l
Replacing T8 and T5 fluorescent lamps with LED
l
Replacing sewing machine clutch motors with servo motors
l
Fitting Variable Frequency Drives (VFDs) in equipment
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Installing energy-efficient machinery for sewing, washing and other utilities
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Installing occupancy sensors in lesser-used areas
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Installing skylights, rooftop ventilators and aluminium insulated rooftops
l
With regard to recycled water used in garment processing (factories), the target is 85 per cent by FY 2024 (currently 80 per cent). At present,
SUSTAINABILITY
In 2021, the company’s CSR projects focused on enhancing education, improving public health and promoting environmental and community management. Shahi aims to reach thousands of women with menstrual, sexual, reproductive and maternal health awareness and services. Similarly, its efforts in expanding green cover, providing migration support and STEM education continue in full swing.
Shahi at a Glance
recycled water used in textile processing (mills) is 68 per cent. l
The company will train 300 people in leadership roles against unconscious bias and it will be initiated in FY 2023.
1,500 kg of virgin polybags were replaced with recycled polybags in FY 2021 and Shahi is expanding this initiative further as per the report.
Regarding Governance, the company targets factories covered under SLCP (Social and Labour Convergence Programme) 100 per cent by FY ’24 and factories with Inache grievance redressal tool also in the same time frame. The company’s 69 per cent permanent employees are females and 46 per cent of females are in supervisory roles. It also has 80+ centres for skill training. In FY 2021, all its applicable employees underwent performance appraisals guided by open and helpful feedback. By 2024, the company has a target to train 65,000 community women in soft skills and technical skills, while in FY ’21, it trained 44,000 community women.
“I am proud to be presenting to you Shahi’s first sustainability report. For nearly five decades, right from when my mother started the company as a small home workshop, Shahi has put people and the planet at the forefront of business strategy. Sustainability has remained a key pillar of success over the years. In a fastchanging global environment, our ‘Responsible For’ framework guides our actions in line with our values. Our key stakeholders such as our customers, employees, business partners, suppliers and civil society organisations support us in achieving our goals.”
Harish Ahuja Chairperson and MD, Shahi Exports
With regard to the use of sustainable raw material, 26 per cent of sustainable fabric and 46 per cent of sustainable yarn are being used. The company segregated its cotton waste (100 per cent in composition) and shared it with Usha Yarns for mechanical recycling. The recycled cotton fibre was then combined with recycled polyester blended yarns and delivered back to Shahi for knitting, finishing and garment production. The project proved to be economically viable for manufacturers and recyclers as it enabled higher-quality recycled products. Shahi Exports recycled 38,447 kg or 84,761 pounds, of cotton-cutting waste through this partnership. The report also highlights that by deploying best-in-class technologies such as e-Flow and G2 Ozone, the material-liquid ratio (MLR) has reduced from 1:6 to 1:1. Through these measures, Shahi uses 30 litres of water on an average on per pair of jeans.
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SUSTAINABILITY//NEWS
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International brands to Indian PSUs: thrust on PET bottle recycling for making buttons and uniforms Recycling of PET bottles and making textile products is the focus of nearly all stakeholders of the textile industry. Interestingly international brands to Public Sector Undertakings (PSUs) are coming forward in this regard and taking good initiatives. An initiative of H&M Foundation in Bengaluru has turned waste collected by plastic waste pickers into 152 million buttons. These buttons are being featured on garments sold worldwide. Ensuring sustainability completely, the buttons are traceable down to the source of the waste along with names of the workers, social security, salaries and working conditions at the aggregation centre. Launched in 2020, this firstof-its-kind US $ 11 million initiative, Saamuhika Shakti, was targeted to address the gaps in the system that keep Bengaluru waste pickers in poverty and exclusion. Now, plastic waste collected by informal waste pickers is becoming a valued resource in the fashion and textile industry. As per H&M Foundation, Saamuhika Shakti unites ten local experts and NGOs across sectors in a holistic ecosystem in Bengaluru, aiming to equip waste pickers to lift themselves out of poverty. The initiative has already impacted 32,000 people in the community in various aspects like education, health and safety while contributing to a circular economy.
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Maria Bystedt, Strategy Lead, H&M Foundation says, “If we collaborate holistically to circularity, we can catalyse solutions that allow both people and planet to thrive. By addressing challenges related to waste pickers’ lives, they have the potential to lift themselves out of poverty as well as contribute to a global circular system.” In another development, the leading PSU Indian Oil Corporation (IOC) has come up with an initiative, ‘Unbottled’, under which uniforms will be made, with each uniform supporting the recycling of around 28 used PET bottles. This project is based on Prime Minister Narendra Modi’s pledge to phase out single-use plastic. The PM recently launched the uniforms at an event and regarding the ‘Unbottled’ initiative, he said 10 crore PET
bottles will be recycled to help protect the environment. IOC will supply the uniforms to retail customer attendants and LPG delivery personnel made from recycled polyester and cotton. The company is taking this initiative further through ‘Unbottled’ by creating a brand for sustainable garments, launched for merchandise made from recycled polyester. Under this brand, IndianOil targets to meet the requirement of uniforms for the customer attendants of other Oil Marketing Companies, non-combat uniforms for the Army, uniforms/ dresses for institutions and sales to retail customers. The dress materials for these uniforms have been extracted from recycled polyester derived from the processing of used and discarded PET bottles.
SNIPS Fashion Craft Ltd. – Bengaluru-based manufacturing unit of ABFRL – has been awarded TRUE Zero Waste Gold certification by Green Business Certification Inc. (‘GBCI’). It is said to be the first industrial manufacturing unit in India and the second worldwide to receive this certification. Ralph Lauren Corporation has taken its sustainability efforts to the next level with the introduction of the first Cradle-toCradle (C2C)-certified gold cashmere sweater and cashmere recycling programme. This crew-neck sweater is the first of five iconic Ralph Lauren products that the company plans to C2C-certify by 2025. Asos is partnering with Goodweave to address the issues of modern slavery and child labour, and to combat the label’s supply chain risks in the Indian fashion industry. As a result of this partnership, Goodweave will introduce its sourcing standard to key Asos suppliers in India by the end of 2023.
SUSTAINABILITY//NEWS
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Research supporting industries on Sustainability front maintaining their real colour for outdoor usage. It helps in obtaining 2D effects, easy care, water repelling and softening of fabric, he added. Rajeev Ahuja, Director, IIT Ropar said that at IIT Ropar, “We are inventing and incorporating newage processing methods to conserve water for future generations.”
Research by Indians and overseas institutes can help the textile and apparel industry in a big way and recently on the sustainability front, two important research theories have come out. A new and innovative green technology has been developed by the Indian Institute of Technology (IIT), Ropar – air nano bubble – which can, reportedly, reduce water usage in the textile industry by up to 90 per cent. The leading institute said that the technology is based on nano bubbles of air and ozone. The bubbles are hydrophobic in nature, and therefore, interact better than water with the fabric and distribute chemicals and dyes in the fabric much more efficiently than just water. This technology was developed by Neelkanth Nirmalkar, Assistant
Professor at the chemical engineering department of IIT, Ropar. As per Neelkanth, the laboratory reports suggest that the air nano bubble dispersed in water can reduce the water consumption and chemical dosage by 90-95 per cent which ultimately saves 90 per cent of the energy consumption as well. The bubbles are of a size equivalent to 1/10000th times of a human hair. Ozone nano bubbles efficiently remove extra dye during fabric wash and degrade the dye in the water, he added. Besides saving water consumption, the water processed with a nano bubble machine can be reused. Nanobubble serves as a carrier for the processing chemical and reduces the extra chemical required, he said and claimed that the treatment of garments through this patented technology helps in
It is worth mentioning here that IIT Ropar has developed this eco-friendly technology under a start-up named NanoKriti Pvt. Ltd., which is also working towards cleaning the environment and is expanding to develop new applications, ranging from water treatment to healthcare. In a separate development, a major new study on the microfibre impacts of the textile industry has concluded that changes in wet processing, such as dyeing, offer the most potential for tackling pollution. As per reports, the 21-month research programme was led by the Forum for the Future sustainability non-profit, in partnership with vertical textile manufacturer Ramatex and Swedish fashion giant H&M. Entitled ‘Tackling Microfibres at Source’, the project was supported by the UNDP Ocean Innovation Challenge and also involved the Nanyang Environment and Water Resources Institute, VDE Consultancy and University of Technology Malaysia.
SNIPS Advanced Clothing Solutions (ACS), the foremost circular fashion hub in the UK, has been named the first-ever Official Circular Partner of Nudie Jeans. The new ACS repair capabilities will be the company’s first remote repair service that directly supports Nudie Jeans Repair Shops’ repair teams. OEKO-TEX is set to officially launch its new ORGANIC COTTON label in April 2023. Two initial pilot customers (Indian textile supplier Milan Group and Turkish cotton producer Akasya) for the new organic label have already been successfully certified by the testing service provider Hohenstein. Thanks to rising awareness about sustainability, the apparel rental market is set to see a growth of 101.2 per cent to US $ 9.9 billion between 2022 and 2026. Forecasting this, a report of GlobalData, a leading data and analytics company, has revealed that between 2016 and 2022, the rental apparel market grew by 89.3 per cent to US $ 4.9 billion.
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TRENDS IN FOCUS//RUNWAYS
KEY MENSWEAR ITEMS FOR FALL/WINTER 2023
The international menswear presentations for Fall/
Winter 2023 have come full circle, allowing us time to process and decipher the key fashion trends that will be dominating the world stage come mid-year. There is a renewed interest in wardrobe staples such as long coats, tailored blazers and suits while things are shaking up a bit with non-conformist fashion coming to the fore with skirts for men gaining momentum. In terms of prints and colours, gender-defying rules continue to apply with designers and brands going all
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out to add a little vibrancy to winter’s otherwise drab and muted palette. Comfort-led styles continue to soar with a strong focus on soft materials, knit fabrications and technical garments experiencing great demand, whilst preppy dressing and grunge aesthetics creep into the scene owing to influences drawn from pop culture. Read on to discover the key trends to consider and invest in for the upcoming season!
TRENDS IN FOCUS//RUNWAYS
LONG LINE COATS Falling just below the knee or grazing the calves and ankle, the long coat has become a winter wardrobe staple for both men and women, so there is no surprise that this item features on the list. Featuring a classic, timeless aesthetic, designers are updating long coats for the upcoming season by offering more oversized and deconstructed silhouettes, often in vibrant colours and/or featuring bold graphic prints.
Billionaire
Alexander McQueen, Ami and Dries Van Noten presented clean-cut takes on the trend whilst Bluemarble and Casablanca brought out the artists within with vibrant colour mashups and patterns. Egonlab, Givenchy and Amiri played around with faux fur variations whilst Billionaire and Federico Cina presented a contrasting pattern on an otherwise muted look. Faux leather and patent leather variations also feature high as seen at JW Anderson, Gunther and Billionaire. Striking graphic prints caught our eye at Alexander McQueena and Dhruv Kapoor.
Bluemarble
Louis Vuitton
SKIRTS FOR MEN Even though western culture has seen skirts predominantly being worn by women, history points towards the contrary with skirts having historically been worn by men in many cultures around the world such as the Scottish kilt or the African dashiki. But the more recent shift towards genderfluid dressing has given a rise to men’s skirts as a part of avant-garde fashion. This non-conformist style features wrap skirts, sarongs and kilts updated with modern iterations such as asymmetrical hemlines, the use of unconventional fabrics such as the ones used in men’s suiting and denim, and bold prints as seen at Dior Men’s Look 8, Etro’s Look 25 and Wales Bonner’s Look 16, amongst others. Dior Men
Etro
Wales Bonner
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TRENDS IN FOCUS//RUNWAYS
PREPPY DRESSING Dating back to the late 1890s and early 1900s, the ‘preppy’ style was considered as a status symbol back in the day with the style being worn by wealthy men who attended preparatory and Ivy League schools. Featuring button-downs, knit sweaters and loafers, the trend extended to include college women by the 1930s, as well. In the 1950s, the trend expanded even more with twin sets and sweaters styled over collared shirts, sporty rugby shirts, as well as the rise of plaid. The trend made a comeback last winter and saw merchandise that was minimal and comfort-led. The trend continues strong for the upcoming Fall/Winter 2023 season with designers and brands experimenting with a slew of patterns including checks and argyle prints, to v-neck collars, and button-down shirts paired with shorts. Key looks to note include Etro’s Look 6, Kenzo’s Look 31 and Amiri’s Look 28. Amiri
Etro
Kenzo
OVERSIZED TAILORING A wardrobe staple for both men and women over decades, the tailored blazer has gone through periods of becoming simply a generic piece of officewear, to today, where its oversized silhouette has seen a resurgence in popularity due to the rise in thrift and vintage shopping. This particular fit features a softer silhouette and provides a more casual take on the workwear piece, making it suitable for environments both in and out of office. A transeasonal item, the oversized tailoring trend works well for both a summer evening and also as an added winter layer. For Fall/Winter 2023, Louis Vuitton, Ami and Louis Gabriel Nouchi presented more clean-cut iterations, each showing styles with prominent shoulders and paired with matching bottoms, whilst Sean Suen presented an androgynous take on the trend. Gucci, Kenzo, Egonlab and Emporio Armani each showed options in vibrant colourways adding colour to a winter palette dominated mostly by neutrals and blacks. Egonlab
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Gucci
Louis Gabriel Nouchi
TRENDS IN FOCUS//RUNWAYS
BURGUNDY A rich, deep shade of red that has been associated with nobility and royalty through the Medieval era and Renaissance era, the shade has been passed on through centuries and is especially popular during the Fall/ Winter seasons. A versatile colour that can be paired with a range of colourways and styles, the hue works well for the season owing to its gender-neutral and non-conforming characteristic, making it an apt choice for designers and brands looking to offer more inclusive and diverse fashion pieces. For the upcoming season, Botter’s presented a silk number in the royal shade while Louis Vuitton presented an updated take on a mix between a long coat and blazer paired with a handbag, bucket hat and footwear in the same hue. Van Beirendonck’s Look 24 saw the colour over an unconventional fabric. Botter
Louis Vuitton
Walter Van Beirendonck
LEISUREWEAR The leisurewear trend continues to surge owing to the practicality and comfort it offered during the pandemic years, with brands and designers including the category as a mainstay within their collections owing to increasing consumer demand. Versatile and seasonless, the trend can be worn beyond activities that just include working out. Brands have been paying attention to what consumers want by responding with updated iterations to suit a wide range of environments and situations, as well as by dropping collaborations with sports and athletic brands to meet a wide variety of needs and cater to a more diverse audience. The Fall/Winter runways saw soft knits, silks, nylons, cotton and technical fabrics being explored at length by designers to offer comfort as well as performance at the same time. Key looks include Givenchy’s Look 23, Bianca Saunders’ Look 11, Dolce & Gabbana’s Look 50 and Saint Laurent’s Look 5, among others. Bianca Saunders
Dolce & Gabbana
Givenchy
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TRENDS IN FOCUS//RUNWAYS
CARGO PANTS As military-inspired fashion makes its way back onto the runways as well as retail, cargo pants emerge as a key item for the upcoming Fall/Winter 2023 season. Brands are modernising the practical and functional garment with features that include wide-legged cuts, high-waisted silhouettes and alternative material choices. These new additions take the style beyond its armybased roots to appeal to a wider range of shoppers, from Gen Z girls to older men. Adding to the already expansive options of military-inspired designs available in the market, the cargo pant has emerged as a style that has only surged in popularity over the years. Its comfortable silhouette and modernised evolutions make it an ideal choice that appeals to a wider audience and environment, cementing its place as a wardrobe staple. Billionaire
Bluemarble
Louis Vuitton
GRUNGE Characterised by an anti-fashion aesthetic that rejected the mainstream fashion trends of the late 1980s and early 1990s, Grunge emerged as a subculture that originated in the Pacific Northwest region of the United States, specifically Seattle. Since then, the trend has taken on a world of its own and given rise to many sub-trends that have grown to become trends in their own right. These include oversized jackets, distressed finishes, baggy jeans, worn out effects that convey an unfussy vibe. Heavily influenced by the grunge music movement, particularly by bands such as Nirvana, Pearl Jam and Soundgarden, the trend continues to be a mirror of the times with the demand for chunky platform boots accelerating this year owing to the popularity of Jenna Ortega’s character in the Netflix series Wednesday, as well as developments in the music industry that are also in sync with the comeback of this trend with Blink-182, My Chemical Romance and Paramore, all due to start their world tour in Spring 2023. Dhruv Kapoor
Egonlab
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Federico Cina
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FASHION BUSINESS
BUYERS’ PICKS:
THE TOP FIVE FASHION CATEGORIES BUYERS ARE INVESTING IN With the Fall/Winter 2023 season in full swing, fashion buyers from across the world have shared their forecasts on what the key trends for the upcoming season would be. Based on hints and clues gathered from the Pre-Fall ’23 season and last year’s Fall/Winter 2022 collections, predictions of what is in store and how the looks can be achieved have been detailed in this report. Denim continues to rise with designers and brands coming up with a slew of iterations in terms of silhouettes, washes and texture finishes, whilst tweed gets an all-new makeover with updated patterns and colour combinations. Functionality and practical design remain key with cargo pants and hoodie sweatshirts gaining prominence. Read on to discover more!
APPAREL Cargo pants Known for their functional and practical usage, cargo pants gained popularity after being originally designed for military purposes. In recent years, cargos have made a comeback in the fashion world and are being heavily adopted by both men and women. The trend continues well into Fall/ Winter 2023 with the item ruling both runways as well as the street, often being paired with oversized jackets, crop tops and hoodies. Versatile and transeasonal, cargo pants are a good investment and can easily be incorporated into any wardrobe.
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Dion Lee
Buyers are betting big on a look from Dion Lee’s F/W ’23 show which can be achieved via cargo pants being paired with merchandise such as sweater knits, button-down shirts or blouses.
Trench coats
A fashion classic that never goes out of style, trench coats have remained popular for decades owing to their lightweight and versatile style. Fall/Winter 2023 sees the garment arrive in a slew of muted as well as bold colourways and patterns. Details such as belted double-breasted styles, oversized collars and gender-neutral silhouettes are gaining momentum for the coming season, allowing trench coats to be worn by anyone regardless of gender or body type. Buyers are endorsing a look from Erdem Pre-Fall 2023, which can be achieved by pairing trench coats with lace-up boots.
Erdem
FASHION BUSINESS
Hoodie A style that has surged sweatshirt in demand since the pandemic, the hoodie sweatshirt is showing no signs of slowing down with the product being explored across segments and paired with a wide variety of styles albeit casual, formal, party, lounge, travel and even work! This season sees a rise Adeam in oversized and boxy fits, as well as cropped lengths in a wide range of colours, from Buyers have their eyes on classic neutrals to bold, to a look from Adeam’s Premore dopamine-inducing Fall 2023 look that can be hues. Standout graphic prints achieved by pairing a hoodie and logomania feature high in sweatshirt with sweatpants or loose flowy pants. the luxury domain.
‘Chanel’ First style introduced jackets by Coco Chanel in the 1920s, the Chanel-style jacket has since become a timeless wardrobe staple that is just as classic as it is iconic. Instantly recognisable by the use of its main materials aka tweed, wool, or boucle, the jacket has a boxy, collarless design with four patch pockets featuring a contrasting trim. With its charm only increasing with each decade that passes, this piece of fashion has been making its comeback with designers and brands presenting an updated take on the classic design. Iterations include experimenting with bold
Del Core
patterns and unexpected colours and unique fabrics and textures. Buyers are eyeing a look seen at Delcore Pre-Fall ’23 where the jacket is paired with crop tops, knits and midi-length skirts.
Boudoir Slip dress influences leave closed doors and come out into the limelight as slinky slip dresses in silk and satin dominate the season. Accentuated with metal hardware and closures, slip dresses are being taken up a notch this Fall with designers and brands exploring standout prints and diverse materials such as lace and velvet. There is keen attention to the hems with rhinestone detailing and feathered edges coming out on top. Ruching continues to be a game-changer.
for a more refined look or simply with a pair of sneakers and a jacket for a more casual appeal.
In terms of styling, slip dresses are being presented as being able to be dressed up or down, depending upon the requirement, with either statement heels or jewellery
Buyers are endorsing a look as seen at Alberta Ferretti Pre-Fall 2023, which can be achieved by pairing cloth overcoats, faux fur jackets, strappy sandals or boots.
Alberta Ferretti
Pleated Claiming some fame miniskirt owing to the revival of preppy fashion last season, pleated miniskirts are making a comeback for the Fall/ Winter 2023 season. Schoolcentric breakout Netflix series Wednesday might also have a role to play in the rise of the trend. Designers and brands Ermano Scervin are experimenting with varied fabrics to lend a modern and edgy twist that appeals to the Pre-Fall 2023 where a pleated younger cohort more. mini skirt is styled with Buyers are keen on a look spotted at Ermano Scervino
sweater knits and over-theknee boots.
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FASHION BUSINESS
ACCESSORIES Headgear: faux fur hats and caps
As the colder months approach, warm and cosy headgear will gain prominence with faux fur hats and caps emerging as key items to watch. On the runways, Alessandro Michele showed a trapper hat in acid green at Gucci, while Versace presented a bucket hat in pink, red and black to match a look in the same colourway. Hui Zhou Zhao showed a white short fur peaked cap.
Gucci
Hui
Versace
Roksanda
Anteprima
Neckwear: Nylon neck scarves
Fall/Winter calls for keeping your neck covered and one of the key accessories dictating an overall look of the garment is the neck scarf. If the Pre-Fall and Fall/ Winter 2023 collections are anything to go by, the upcoming season is expected to see designers and brands experiment with nylon as a material. Anteprima presented a selection of nylon scarves that featured a beige scarf with embroidered decals matched to a coat, whilst Rocco Iannone for Ferrari
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Ferrari
showed busy mixed prints in a neon colour palette. Roksanda Ilincic used an off-white nylon scarf to accessorise a voluminous faux fur and synthetic coat.
FASHION BUSINESS
Belting it up
A key accessory item across seasons, belts complete the look by accentuating the feminine form upon cinching the waist. Worn with knit dresses, pleated skirts, trench coats, maxi skirts, puffer jackets, et al., this accessory is a must have for the season.
At Miu Miu, Miucca Prada showed identical brown belts featuring gold buckles stacked on a plaid miniskirt with double belt loops. At Peter Do, three black leather belts in a variety of widths and
Altuzarra
buckle shapes were stacked over a floor-length pleated skirt and black blouse with a leather bolero.
Handbags: soft shapes Tapping the trend from the previous season, soft shapes and rounded forms continue to rule the bags category. Multiple designers and brands presented soft bags in synthetic materials within their collections. At Dsquared2, the Caton twins showed a caramelcoloured hobo shape while Givenchy presented a soft black gathered leather clutch. Matthieu Blazy for Bottega Veneta showed a square-shaped clutch in soft burgundy leather.
Bottega Veneta
Dsquared2
Miu Miu
In his collection for Altuzarra, Joseph Altuzarra presented two belts, one with a mix of conch shells and silver on
leather; the second one with a silver on leather paired over a maxi- length leather skirt.
Footwear: white ankle boots with heavy lug soles
White is a colour to watch when it comes to the footwear category with the hue serving as the perfect contrast to complement a slew of looks and patterns. At Balmain, Olivier Rousteing showed an ankle-high wedge boot with ski boot detailing, while Boss designer Marco Falcioni accessorised a look with white leather moto boots featuring black straps. Filipino designer Rian Fernandez showed a lug sole white Chelsea boot.
Balmain
Boss
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DESIGNERS & LABELS
Shantnu & Nikhil’s
TWO-DECADE JOURNEY OF MERGING INDIAN DECADENCE WITH MODERN GRANDEUR TO CREATE ICONIC ANTI-TREND LED FASHION
Started by brothers Shantanu
Mehra and Nikhil Mehra, Shantnu & Nikhil is an Indian couture label that was founded in 2000 with an aim to delineate progressivism and distinctiveness by encapsulating the essence of vintage India and merging it with the glee and excitement that modern India brings to the table. A contemporary occasionwear brand for luxury shoppers worldwide, the brand takes pride in its ‘anti-trend’ design values that satiate its customers’ sartorial taste in living as well as the way they express themselves via the fashion they wear.
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After having completed and dominated two decades in the Indian fashion industry and simultaneously bringing Indian fashion on to the world’s stage, Shantnu & Nikhil has reached a point where fashion and couture is not merely about selling outfits and making sales the brand strives to make its customers experience the entire tale of the ensemble itself.
HOW IT ALL BEGAN Shantanu and Nikhil Mehra spent most of their youth in the United States owing to their education. Shantanu acquired an MBA in Finance from the Ohio State University, Ohio, USA,
post which he went on to work at the corporate finance wing at General Motors. It was during his time in the USA that he realised the power and potential that the Indian fashion industry held. Nikhil, on the other hand, decided to pursue a Master’s degree from the Fashion Institute of Design & Merchandise (FIDM), Los Angeles, California, USA after graduating. While there, Nikhil’s work caught the eye of the heads of Universal Studios, Hollywood, where he showed one of his early collections. A few months later, St. John Knits, the American luxury
DESIGNERS & LABELS house founded in 1962, hired him as an in-house designer.
jumpsuits, layered ensembles, waistcoats, trousers skirts and co-ord sets.
But India was never far from his mind and heart and come 1999, Shantanu decided to marry his knowledge in business and finance and consumerist skills with his brother Nikhil’s creative ideation and design skills and launched the maison Shantnu & Nikhil in 2000.
Rounding it off, the label also provides an extensive range of accessories which include gloves, belts, brooches, shoes, bags, pocket squares, wallets and mufflers.
PRODUCT CATEGORIES AND BRAND USP The brand caters to both men and women via its ready-to-wear, couture and the more recently launched Bridge-toLuxury line S&N by Shantanu & Nikhil, which serves as a natural extension to lead the designers’ contemporary Indian artisanal values to the world. “The new brand is a juxtaposition of heritage and spunk, traditional and modern, ceremonial and military, exuding modern twists like neo-drapes balanced with new age details,” Shantnu Mehra told Apparel Online India (AOI), in an exclusive interview. Menswear includes shirts, kurtas, co-ord sets, knits, waistcoats, layered ensembles, bandhgalas, trousers, sherwanis, jackets, sweaters and cardigans, whilst the brand’s womenswear offering features an array of shirts and tops, dresses, saree gowns,
DETAILS AND TECHNIQUES A strong advocate of egalitarianism, the brand believes that both men and women have masculine and feminine energies and each of them use the respective energy when required. This created the foundation of the label’s philosophy and its focus on gender fluidity, offering androgynous sartorial choices. The label is known to marry Indian heritage with modern grandeur while celebrating the masculine and feminine energies of both men and women by presenting gender-fluid fashion. Techniques such as 3D appliqué, metallic bugel bead embroidery - all amalgamated with technology-led techniques such as laser cut details - form the USP of the label. “We consciously make an effort to include our storytelling via mediums and techniques we use. For our couture
collections, we’ve used baroque lace embroidered in work, whilst the menswear range has velvet texturing of pin tucks with metallic details,” Nikhil said, adding, “Our latest collectionCapella has been emboldened by an array of colours merging from Blush- Pink, going into pristine Off-White, MintGold- all an ode to the magnificent interiors of a Baroque palace. For our Bridge-to-Wear collections, incubate around the concept of using innovative stretch fabrics and daring drape techniques that have defined agility in the movement for us.”
PRODUCTION AND MANUFACTURING What began in 2000 with a small team of 5-6 people, has, over two decades, grown to a family of 400 people. While the brand’s main unit is located in Delhi-NCR, its strategic partnership with ABFRL, gives it access to the conglomerate’s production facility situated in Bengaluru - Madura Fashion & Lifestyle. The entire production of S&N is done by Madura, whilst the production of the Shantnu & Nikhil Couture line is handled in-house at the brand’s own manufacturing unit.
Following an anti-trend path, Shantnu & Nikhil can best be described as a contemporary disruptor with a strong India-proud sentiment. Representing an amalgamation of Indian decadence and modern grandeur, the brand replaces traditional embroideries and styles with exaggerated neo drapes.
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DESIGNERS & LABELS (ABFRL) recently acquired a 51 per cent stake in Shantnu & Nikhil’s company, Finesse International Design Private Limited (which is run by the label), in a Rs. 60 crore deal. In partnership with the conglomerate, the brand is constantly exploring new opportunities to be more sustainable through its #ReEarth pledge. From reducing carbon emissions to going 100 per cent plastic-free, the designer duo are rethinking their brand models to showcase relevance and resiliency. “As a brand, we have reinvented our production model to ensure no overproduction on either side of the brand. While couture follows a more seasonless, bespoke model of design now, we ensure limited inventory for S&N where the same inventory is shared between the physical and digital stores, thus controlling production,” Shantnu explained.
SUSTAINABLE AND ETHICAL PRACTICES AT SHANTNU & NIKHIL “Lately, fashion hasn’t been just about sporting the new trend, it is about an ethical approach towards a better environment while looking chic. We’ve noticed a shift in how people feel about fashion these days; they’re a lot more emotive in their decisions and responsible in their consumption. Brides are looking for timeless pieces which can be reworn a few years down the line and can be Re-loved, Re-owned, and Re-Used,” Nikhil said, commenting on the consumer sentiment surrounding ethical and timeless fashion. “Fashion is being looked at as a fraternity of global impact and community for change. We have integrated this shift in our philosophy and are now envisaging a future focusing on art, creativity, sustainable development and collaborations.” Aditya Birla Fashion and Retail Limited
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“As a brand, we have reinvented our production model to ensure no overproduction on either side of the brand. While couture follows a more seasonless, bespoke model of design now, we ensure limited inventory for S&N where the same inventory is shared between the physical and digital stores, thus controlling production.” - Shantnu Mehra
DESIGNERS & LABELS
“We’ve noticed a shift in how people feel about fashion these days; they’re a lot more emotive in their decisions and responsible in their consumption. Brides are looking for timeless pieces which can be reworn a few years down the line and can be Reloved, Re-owned and Re-Used.” - Nikhil Mehra
democratising fashion further, Shantnu & Nikhil has been disrupting ceremonial couture with new design aesthetics.
S&N Cricket Club
AOI: Having transitioned from Readyto-Wear, to Couture, and more recently, to Bridge-to-Luxury, what has been the one valuable lesson/ skill you learnt that has been essential to the successful running of fashion business in the Indian landscape? S&N: S&N by Shantnu Nikhil was created as a ready-to-wear extension of the mother brand Shantnu & Nikhil. While we are the original drape makers in menswear and have been making bespoke couture for over 20 years, our Bridge-to-Luxury wear gave us the knack to be more experimental with our silhouettes. Shantnu & Nikhil has always been a ceremonialwear brand whereas S&N by Shantnu Nikhil is a ready-towear brand, a bride-to-luxury for all celebrationwear needs.
With S&N, we have seen there is a need for our designs beyond wedding and ceremonies and have been trying to evolve with our design aesthetic to cater to the same. In couture, we have the privilege of time to ace every piece to perfection but with BTL we have to deliver the same without compromising on our silhouettes and cuts. We are experimenting with new design aesthetics and methods to keep the freshness of the brand alive. AOI: What are your future plans for the label? S&N: Both the brands- Shantnu & Nikhil and S&N by Shantnu Nikhil are experiencing new shifts and changes this season. While S&N is coming to Tier-2 cities like Ahmedabad, Raipur and
Our Bridge-to-Luxury brand was launched during the pandemic in 2020 and since then it has been on a journey that only goes higher. S&N by Shantnu and Nikhil aims to become India’s brand for the world advocating the strong India-proud sentiments that’s a portrait in our ensembles. We have opened eight retail stores in a span of two years with a robust e-commerce platform. We are furthering our vision of integrating both the brands together into a hybrid store like we did in Ahmedabad, for a more nuanced experience for our patrons. Twenty years into its journey, Shantnu & Nikhil as a brand, has democratised Indian couture through a modern Indian narrative that speaks the language of structure and strength in its most inimitable form of luxury. This progressive philosophy over a period of time, has further disrupted to advocate a decisive India-proud sentiment that is young, sartorial, gender-fluid and patriotic-chic.
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TECH TALK
VT GARMENT IMPROVES PRODUCTIVITY BY 95%, PLAN ACCURACY BY 92% AND INCREASES ITS ODTP BY 50% WITH FASTREACTPLAN CASE STUDY About the customer: Founded in 1981, VT Garment Co. Ltd., is an award-winning global manufacturer of outerwear, sportswear and protective equipment, such as ski jackets and pants, boardshorts, polyester padded jackets, woven jackets and pants, knitted jackets and bulletproof armour-plated materials. Around 20 per cent of VT Garment’s electricity usage comes from solar energy and it has ISO 9001-certified facilities in Thailand and Myanmar which produce over 136,000 pieces per month. The company boasts an annual turnover of US $ 50 million and its customers include Patagonia, Jack Wolfskin, Montbell, O’Neill and other big and small brands in the United States and Europe. VT Garment supports a
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The adoption of FastReactPlan helped VT Garment secure the prestigious ‘Golden Award’ at the ‘Thailand Lean Award 2017’ in recognition of its outstanding LEAN manufacturing and management processes.
workforce of 2,000 and has one of the largest Original Equipment/Original Design Manufacturing (OEM/ODM) factories in the world with Fair Trade
certification. The company’s dedication to innovation, local sustainability, environmental protection, fair wages and advanced digitisation has secured it a raft of awards including Thailand Lean Award (Golden), Thailand Quality Award (Golden) and the Thailand Kaizen Award (Golden). The Challenge – Inaccurate planning processes negatively impacted the whole business and restricted business growth. Prior to implementing FastReactPlan, VT Garment found that the lack of automation and real-time visibility in the production planning process not only meant there was limited information sharing between different departments, but also that manually produced capacity plans based on unreliable historical data, were time consuming and cumbersome
TECH TALK
KEY FACTS Customer: VT Garment Co. Ltd. Location: Bangkok, Thailand Challenges: l Manual processes meant planning was inaccurate and laborious l Capacity was often overor under-booked l Lack of visibility caused late delivery and overtime costs l Poor planning resulted in material waste and loss of business to produce and not accurate enough to make informed production decisions from. As a result, VT Garment’s management and planning teams found that capacity was often over-booked or under-booked, causing late deliveries and unnecessary staff overtime costs. Insufficient tools and resources for monitoring and optimising production efficiency, lengthy reporting times and limited information sharing and coordination between departments also meant that VT Garment was unable to respond to customer demands for quicker order confirmations, resulting in lost business and poor customer satisfaction levels. This led to increased pressure on staff, wasted resources and decreased profitability. An inability to make informed business decisions consequently not only negatively impacted the overall company performance, but also its potential for growth. The Solution – Accurate, highly visual capacity plans have significantly increased productivity, optimised on-time deliveries and enabled staff to work on other business improvements. Following the implementation of FastReactPlan, VT Garment now has
the ability to view capacity plans from multiple perspectives, resulting in a comprehensive understanding of its production capabilities and limitations. The solution has enabled VT Garment to easily compare different plans and select the most optimal option based on factors such as cost, efficiency and delivery time. The automation of planning processes has also freed up time for staff to focus on other important tasks, such as improving customer satisfaction and supporting new innovations and business growth. A significant reduction in errors and a more accurate representation of its production capabilities has also led to an unprecedented 92 per cent improvement in plan accuracy which has improved VT Garment’s ability to meet customer delivery expectations. The ability to quickly review and revise plans immediately by monitoring late order requests and on-time items has also increased its OTDP performance by 50 per cent. Since the implementation of FastReactPlan, VT Garment is now able to quickly evaluate the efficiency of each plan variation, which has reduced the time spent on planning from four
KEY BENEFITS l Productivity improved by 95% l OTDP improved by 50% l Plan accuracy improved by 92% l Planning time reduced from 3 days to 2 hours l Reduction in time spent loading orders by 67%
hours to 10 minutes. This has helped the company reduce planning time by 57 per cent, reduce order plan loading by 67 per cent and improved its overall productivity efficiency by 95 per cent across the whole business. The Solution – FastReactPlan has eliminated overtime hours, improved staff morale and enabled the company to take on more complex orders. The solution has enabled VT Garment to save significant staff hours by streamlining the planning process, from order placement and checking delivery
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TECH TALK
support our journey towards operational excellence. One of the defining reasons for our selection of Coats Digital was to support our entry at the ‘Thailand Lean Awards 2017’. We were subsequently delighted to win the prestigious ‘Golden Award’ for recognition of our adoption of FastReactPlan. The award is a testament to the effectiveness of how the FastReactPlan system has been instrumental in supporting our Lean Manufacturing objectives to help us achieve significant improvements in our production processes.”
dates to tracking production activities, which has meant that extra time can be dedicated to delivering an enhanced customer experience. VT Garment found that the FastReactPlan implementation had a positive impact on staff morale by simplifying the challenging task of planning and reducing unnecessary and unplanned overtime hours, so that staff had a more consistent, stress-free working environment. With the ability to anticipate future plans and understand available capacity, VT Garment can now accurately calculate working hours effectively to take on additional business orders that it would have previously shied away from. FastReactPlan has also enabled the company to handle a wider range of orders, including shorter and more complex order requests, as it has the visibility and agility needed to make informed decisions based on accurate plan variation assessments. The Solution – FastReactPlan helped the company become an award winner in Lean Manufacturing. The adoption of FastReactPlan was instrumental in helping VT Garment secure the coveted ‘Golden Award’ at
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the ‘Thailand Lean Award 2017’ - an influential government-subsidised nationwide awards ceremony covering all manufacturing industries. The annual Thailand Lean Award recognises companies that have undertaken strategic changes to their businesses to adhere to lean management principles. Award winners serve as exemplary leaders to others who are looking at adopting lean management for quality, savings, delivery and speed.
TESTIMONIALS Chalumpon Lotharukpong Managing Director, VT Garment
“Hyperinflation leads to softening market conditions leaving large amounts of excess stock for brands and retailers. This, in turn, adversely impacts order volumes for manufacturers. Against this backdrop, apparel manufacturers need to rethink and overhaul their operations. To combat the current ‘fluid’ fashion environment, it is inevitable that we needed to be more lean, digital and agile. We, consequently, chose Coats Digital as our transformation partner because of their experience in delivering innovative solutions that
“We are exceptionally pleased with FastReactPlan. It allows us to plan better because we can choose the plan based on different factors, such as Capacity, Efficiency and OTD percentages, which has eliminated the need for manual calculations altogether. The customer experience has also greatly improved as a result of our ability to provide timely and accurate information, which is crucial for customers to make informed commissioning decisions. With the implementation of FastReactPlan, we are now able to send accurate plans and information to customers in less than two hours, rather than the usual three days it took before the implementation.” “FastReactPlan has effectively eliminated the need for overtime work. Prior to its implementation, our planner often had to work four to six additional hours of overtime to meet delivery deadlines. Since implementation, our planner now has much more time for other tasks
FastReactPlan is the market-leading apparel production planning software solution, supporting a faster, more reliable order confirmation process and production plan which is optimised for delivery, speed and efficiency
TECH TALK
Chalumpon Lotharukpong, Managing Director, VT Garment
KEY BENEFITS AND ROI l Overall productivity improvement of 95% l Plan accuracy increased by 92% l OTDP improvement of 50% l Overall planning time optimised by 57% l Reduction in time spent loading orders by 67% l Overall planning time reduced from 3 days to just 2 hours l Quicker response in accepting or changing customer orders l Ability to confidently take on new business l Elimination of costly overtime hours l Significant reduction in errors l Reduction in last-minute firefighting l Plan-based capacity monitoring in minutes l Standardised PO, colour and delivery level visibility across all departments l Increased productivity across all departments l Improved staff morale l Automated data capture and consolidation l Reduced shipping freight costs l Quicker response in accepting or changing customer orders l Reduced report generation time saving of 67% from 3 days to 1 l Reports on Shipment and Plan vs. Actual generated within less than 10 minutes
that can greatly enhance the business. Because all our plans are now based on accurate data, we are also benefiting from a significant reduction in overtime hours on the factory floor, as well as greatly
reduced levels of firefighting, since we can now anticipate potential issues with future orders – such as delayed raw materials or late orders – and address them proactively.”
“With its many functions, FastReactPlan has enabled us to cope with all situations, whether large or small orders. In a nutshell – it is awesome. Each order is now identified by different colour codes, which makes it much easier for executives or planners to differentiate tasks, assess work in progress and act immediately if there are any issues. We can also plan activities super effectively, such as communicating the date to send a pattern file, since everyone involved in that job receives an alert when the file needs to be sent. This makes the whole production process run seamlessly and smoothly. And as an old industry saying goes, ‘If you have a good capacity plan, then half of the victory has already been achieved’. Greater resilience and agility will undoubtedly enable us to navigate through and respond quickly to supply chain shocks, and future-proofing for agile manufacturing will undoubtedly be the key to our success in 2023 and beyond.”
Pakawan Veerarote Customer Success Manager, Coats Digital
“We are absolutely thrilled that VT Garment has experienced such unprecedented results since its adoption of FastReactPlan. The solution has positively impacted all areas of the business and proves just how vital, accurate and highly visual capacity plans are to the future growth of a fashion apparel manufacturer. We are also extremely proud that Coats Digital has played such a pivotal role in helping VT Garment secure its muchdeserved recognition as one of the most innovative manufacturing companies in Thailand. With its strong commitment to sustainable practices, fair wages, great working conditions and technological innovation, we are honoured to be continuing to play an important part in VT Garment’s journey towards increased award-winning digitisation and further global success.”
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START-UPS
SUSTAINABLE MARKETPLACE BOOM: A NEW ERA OF ECO-CONSCIOUS CONSUMERISM IN INDIA Consumers of today are embracing an
eco-conscious fashion aesthetic in which organic textiles continue to capture a larger share of the market and are experiencing a surge in popularity in India at the moment. With sustainable raw materials in their product line such as organic cotton, sustainable marketplaces are truly sustainable adhering to 100 per cent ethical sourcing, following sustainable practices in their daily activities (even in packaging and shipment), fair trade, zero waste, local sourcing, transparency and social responsibility.
awareness about the importance of sustainability among Indian consumers. There are many online sustainable fashion marketplaces offering multi-category products such as Sustainkart by Kanthi Dutt, Brownliving by Chaitsi Ahuja, Saahra by Saachi Bahl, Meolaa by Ishita Sawant and Shuffling Suitcases by Devyani Kapoor. Each of these platforms cater to 300-1000 brands. According to the Bain report, sustainability is also a growing concern for Indian consumers; 20% of consumers in India are environmentally and socially conscious while 49% are health conscious.
The trigger that has motivated the Indian consumer to move towards sustainable products has been the personal impact due to environmental issues, followed closely by family and friends who have influenced their choices. The trigger that has motivated the Indian consumer to move towards sustainable products has been the personal impact due to environmental issues, followed closely by family and friends who have influenced their choices. These marketplaces not only meet the needs of consumers who are increasingly concerned about sustainability, but they
The growth of the global sustainable fashion industry is projected to be US $ 9.81 billion in 2025 and US $ 15.17 billion by 2030 growing at a CAGR of 9.1 per cent, therefore hinting at the transition of the market dynamics.
The growth of sustainable marketplace in India Sustainable marketplaces in India emerge as a response to growing environmental concerns and a desire for more ethical and sustainable consumer products. Previously, brands sold independently on Facebook or Instagram, but there has been a shift in how these brands operate now. The emergence of sustainable marketplaces enables brands to be listed on them, increasing their reach and also helping to promote sustainable living and consumption in India and create
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Upcycleluxe
Saahra
START-UPS
Meolaa
also demonstrate that it is possible to build a profitable business while also focusing on social and environmental responsibility.
Celebrity co-founded private labels Sustainable marketplace SustainKart brings onboard brands that are actually committed to supplying sustainable items from well-known businesses that are run by celebrities and influential people in its network. This Hyderabad-based brand founded by Kanthi and Shilpa Reddy is actually making progress towards its goal, having already raised US $ 1.5 million in funding and boasting 2.7L different SKUs and more than 2200 different brands. The platform provides sustainable offerings in categories like fashion and lifestyle. SustainKart has also founded Kare & Karess with Kitchlu Aggarwal, a babycare line that offers toys, skincare, food and snacks, baby wipes, accessories and more. In 2022, it launched its first flagship store in Jubilee Hills, Hyderabad, making it the first mover among the sustainable marketplace. Some brands listed on SustainKart are Planet over Profit, Biopads, Nia ethnic, KeeBee Organics, Superbottoms, Skosh, whitewaterkids etc.
Customers are exploring the shop by certification Modern consumers are savvy about
Brownliving
product certifications and increasingly prefer to make purchases based on these labels. What they wear and how it affects the planet both factor into their commitment to sustainability. The certifications listed on the websites are Ayush, Ecocert, FDA, FSC, GOTS, Oeko-Tex, PETA, USDA organic. Chaitsi Ahuja’s Brownliving is a multi-category, eco-friendly online marketplace for fashion and lifestyle. The business offers plastic-free shipping and Pragya Kapoor, an environmentalist and film producer, is affiliated with the organisation. Having received 75 lakhs from an angel investor and seeking further funding, the marketplace boasts of 420 different brands with a total of about 12,500 products and its quarterly growth is at about 44 per cent. Brownliving with its sustainable practices till now has been able to save 2,03,602 kg plastic from entering landfill since its inception in 2019. Some brands listed on it are Nimbu Pani, One less, AAtman, Mhysa, ECO 365, Naari Pads, Malhars children, Tarasha. “Brown living is different from other sustainable marketplace as we only list verified sustainable and 100 per cent plastic-free products, after doing a detailed check on sustainable metrics through the Brown Lens for each brand. Our intent is to ensure true and genuine sustainable consumption, so consumers don’t get any
falsely-claimed products or get greenwashed,” – Chaitsi Ahuja
Luxury segment is also an integral part of sustainable marketplaces Luxury segment which is considered a niche is one of the most hooked segments of sustainable marketplace. It offers unique symbolic value to a highly selective audience that is focused on quality and status over price. Harshita Chandra and Kartikey Chandra founded Upcycleluxe, a Delhi-based fashion-tech supported carbon-neutral marketplace for ethical and sustainable products. Upcycleluxe has around 200+ brands and caters approximately to 7000+ products and serves both B2C and B2B segments. Upcycleluxe focuses on responsible consumption and includes homegrown designers from India to offer customers a mindful shopping experience of all products made consciously. Integrated science-based sustainable target solution on the platform allows the consumers to ask ‘what is their impact’ before they make a purchase. Upcycleluxe was selected by The Do school, Berlin on behalf of UN Women’s industry disruptor, WeEmpowerAsia Program with Catia Dawood and Katherine Kirschenmann. Some brands listed on it are Taraasi, Orbaan, Earthy Route, Tamaksh ,Ewoke, The rover journal.
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START-UPS
for ethical homegrown brands to connect with their target audience but is also bringing artisans to the forefront of the production chain. By prioritising sustainability and community building, Shuffling Suitcase hosts exhibitions that bring together likeminded individuals who share a common goal of protecting our planet. The platform’s efforts are not only limited to virtual events, but also extend to a popup store featuring sustainable products across multiple categories, including fashion. Shufflingsuitcase
Sustainkart
Another eco-friendly sustainable marketplace is Saahra founded in 2016 by Saachi Bahl. Currently it caters to the luxury segment and has three verticals under its umbrella. First is sustainable retail which has all the 32+ sustainable brands having 1000+ products. Second is its power annual design show named as ‘ConsciousEfforts’ which hosts conclaves, exhibitions and clean tech challenges and has prominent sponsors such as Redfm , lopera, godaddy , affinity etc., supporting the good cause and thirdly, it provides corporate consultancy to sustainable material and processes. Recently they have teamed up with Mahindra & Mahindra in their quest to identify futurefacing sustainable materials.
for the commerce experience. Founded by Ishita Sawant, Meolaa is aiming to be known as one of the most inclusive shopping platforms in India.
Some brands listed on Saahra are Sui, Banera, Leh Studio, Joskai studio, conscious chemist, The house of Ara.
Promoting conscious consumerism Many modern consumers are interested in what is called ‘conscious consumerism’ or the adoption of shopping habits motivated by a desire to have a positive effect on the world around them. Next generation-sustainable start-up Meolaa kicks off this plan including dedicated experience-driven pop-ups, advanced technological augmentations within the platform and overall innovation
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The online marketplace, Meolaa has already onboarded 300+ brands housing 15000+ products across verticals such as athleisure, loungewear, relaxed fits and face yoga/massages among others and is committed to introduce more brands that address the conscious needs of new-age consumers across India. Compelled by growing technology, the brand aims to resonate with the values of the next generation. Launched in conjunction with the WeWork Labs and StrongHer Ventures Arise Mixer, the first experiencedriven pop-up of Meolaa witnessed participation from numerous brands including Praanapoorna, Imars Fashion, Palison, ItiDor etc. The recent pre-seed round led by StrongHer Ventures, Swiggy and Sixth Sense Ventures is a testament to Meolaa’s potential. Brands listed on it are Doodlage, the cotton staple, Luna Blue Dress, Amoshi, Megasa, The Terra Tribe, Ora Organics, Palison.
Community-based sustainable marketplace Devyani Kapoor, Owner of Shuffling Suitcase, is not only offering a platform
This initiative is a testament to the power of collective action in driving sustainable change. With Shuffling Suitcase’s efforts, India’s fashion industry is taking a significant step towards becoming more ethical, transparent and environmentally conscious. Brands listed on it are Yam, Aarjvee, Jazba, Mati, B label, Shiori, Vilayaa, Kaatn Trail.
Challenges hinder the pace of growth but there is still scope India has made strides towards creating a sustainable marketplace, but the country still faces significant challenges. One of the biggest obstacles is the lack of knowledge and awareness among consumers and businesses about sustainable practices. This means that many products that are not sustainable are still being bought and sold, perpetuating the unsustainable status quo. Additionally, the price of sustainable products and the infrastructure to support sustainable practices can be barriers to adoption. Another challenge is the complex supply chain ecosystem in India, which makes it difficult to ensure that supply chains are ethical and sustainable. Finally, funding for sustainable businesses can be scarce due to slow growth and a lack of interest from investors. “To address these challenges, there is a pressing need for more awareness and collaborations in the ecosystem,” has been the unanimous verdict of all marketplaces.
START-UPS//NEWS
www.apparelresources.com
Size-inclusive and gender-neutral apparel start-ups are paving the way for new markets where it is currently only available in 60 per cent of Tier-1 cities and 40 per cent of Tier-2 cities. The plan calls for shifting the ratio to 70 percent growth in secondary or Tier-2 cities, from the current 30 percent. The new business sells all over India and features 200 SKUs. Not only does it have its own website, but it also has a presence on both Amazon and Myntra.
Size-inclusive and genderneutral garments are becoming increasingly popular in the fashion industry. This is due to the growing acceptance of diverse body types and the need for clothing that can be worn by anyone, regardless of gender identity. There has been a shift in recent years towards size-inclusive and gender-neutral fashion. This is in part due to the increasing visibility of plus-size and transgender models, as well as a general move away from traditional gender norms. As a result, more and more brands are offering size-inclusive and gender-neutral garments. There is a need for more brands to come up with such products so that people have more choices. These garments are being seen as more comfortable and stylish options than traditional options. Vishakha Bhaskkar and Asana Riamei founded their inclusive women’s apparel brand
Angrakhaa about five years ago. Their pitch on Shark Tank India helped them get Rs. 40 lakh funding from Amit Jain, Co-founder of CarDekho. “I have struggled with comments about my body all my life, and it starts at home. When a nasty relative makes a thoughtless comment in front of 50 other people, it leaves a mark, no matter how old you are. Even when you are an adult, it’s humiliating,” says Vishakha Bhaskkar, Cofounder of Angrakhaa. Angrakhaa offers fashionable, inclusive clothing with sizes ranging from XXS to 5XL and over 400 designs. Angrakhaa focuses on cotton and viscose and designs are created to be comfortable and convenient. The brand offers outfits in three categories - summerwear, occasionwear and Indianwear. The collections are offered throughout the year. The summer dresses are usually
priced under Rs.3,500, while the special occasion garments are made of luxurious fabrics and feature embellishments. Another brand that caters a size-exclusive activewear category is Aastey which crossed Rs. 1 crore ARR (annual recurring revenue) within the first six months of launch and is now growing at 3X rate. It has a community of more than 60,000 women across India. “We will soon be opening our next round of funding to scale online and open our own stores. Early last year, we took the brand to the market post raising a seed round of Rs. 10 crore from Kalaari Capital through their CXXO initiative. We are using this round to get early traction and find our product market fit,” Jeevika, Co-founder of Aastey says. There are plans for Aastey to expand its presence in the Indian TG (target group),
Aligning with the same ideology and concept, Gavin Paris is another fashion start-up, basically streetwear, that caters to gender-neutral oversized clothing. The start-up made sales of Rs.1.4 crore in just seven months of operations. Gavin Paris shows the potential of using digital channels to scale up sales quickly in the competitive retail market. As more companies take advantage of digital technologies, we are likely to see many more start-ups thriving off the back of such innovative strategies. Freedom of speech is the ideology that brands believe in and the design philosophy behind brands’ clothing is focused on making sure they look great while also being comfortable enough to wear regularly without feeling restricted or uncomfortable. Overall, size-inclusive and gender-neutral garments are an exciting new trend in fashion. With more retailers beginning to offer these items, and more people searching for them, it is likely that this trend will continue to grow in popularity in the years to come.
March 2023 | AO India 71
TRADE STATISTICS
US APPAREL IMPORTS (January-December 2022) US apparel imports fall marginally short of US $ 100 billion in 2022! while volumes were up by 5.55 per cent. China declines in its volume-wise shipment to the USA, while India, Bangladesh and Vietnam upped their respective exports to the US market both in values and volumes.
The apparel imports value of USA amounted to US $ 99.93 billion in 2022 – the highest of all time. Though it fell short of clocking US $ 100 billion, the trend is clear – consumers are still increasing their spendings on apparels. The imports saw a substantial 22.48 per cent Y-o-Y increase in values,
Global Apparel Imports by the US (January-December 2022)
Change in UVR
22.48% 16.04%
(Average UVR in the review period was US $ 3.21 as against US $ 2.77 in the same period last year)
Percentage change in top 3 product categories imported by USA T-SHIRTS
TROUSERS
Cotton
Cotton
0.44%
Wool
Change in Value
Change in Value
5.55%
Change in Quantity
Change in Quantity
29.87%
MMF
8.36%
Silk & Veg
Wool
Volume (2.57%)
Volume (14.78%)
Value (24.48%)
Value (20.16%)
Value (39.63%)
Percentage change in India’s top product category export (T-Shirts) to USA 30.24%
11.51%
Value rises
Volume rises
US $ 3.21
US $ 2.77 0
Value-wise share to USA by top 5 apparel exporters
1
2
7.54 7.48
9.29 8.12 8.51 8.64 9.33
10.36 9.58
8.14 6.34 6.60
3 4 5 6 7 8 (Value in US billion $)
9.75%
5.61%
(The information has been extracted from US custom site and further analysed.)
9
10
India’s average unit prices of shipped garments to the USA were US $ 3.80 in 2022 China
18.26% Vietnam
5.69%
72 AO India | March 2023
Jan. 22 Feb. 22 Mar. 22 Apr. 22 May 22 Jun. 22 Jul. 22 Aug. 22 Sep. 22 Oct. 22 Nov. 22 Dec. 22
21.75%
53.13%
Month-wise USA apparel import trend
LADIES DRESSES
Volume (6.93%)
22.40%
Silk & Veg
UVR change in apparel imported by USA (2-year comparison)
Jan.-Dec. 2021
34.06%
MMF
36.38%
Jan.-Dec. 2022
20.93%
Bangladesh India Indonesia
US $ 3.80 per unit in 2022
US $ 1.61 billion
TRADE STATISTICS
Total apparel exports to the US by 5 major manufacturing destinations (January-December 2022)
Value-wise export to USA
Volume-wise export to USA ( Qty in mn SME)
-3.11%
( Value in US mn $ )
10781.79
China
21734.25
4912.41
Vietnam
18246.42
3141.94
Bangladesh
9746.16
1496.13
India
5684.38
1383.45
Indonesia
5607.44
12.28%
20.65%
16.73%
24.89%
10.83%
26.97%
36.38%
35.50%
35.29%
Overall apparel imported by USA was worth US $ 99.93 billion in the said period with 22.48% increased (Y-o-Y)
Item-wise quantity increase/decrease in apparel imports by the US: Jan.-Dec. 2022 (Qty in doz, legwear in dpr, babieswear in kg) Exports to USA
Total Imports by USA
China
APPAREL TYPE
India
Bangladesh
Vietnam
Indonesia
2021
2022
% Change
2021
2022
% Change
2021
2022
% Change
2021
2022
% Change
2021
2022
% Change
2021
2022
Babies Wear
134,813,468
136,047,691
0.92
46,386,719
45,417,691
-2.09
15,566,722
17,542,821
12.69
15,408,543
16,571,081
7.54
16,744,632
16,975,582
1.38
2,589,722
2,821,948
8.97
Foundation Garments
64,557,494
57,728,953
-10.58
32,136,418
26,226,142
-18.39
765,932
855,329
11.67
6,633,079
4,911,654
-25.95
7,873,206
8,558,436
8.70
5,045,763
6,142,626
21.74
Jackets & Blazers
46,061,992
53,128,544
15.34
19,376,776
21,178,134
9.30
743,062
1,084,224
45.91
4,712,427
5,216,702
10.70
9,372,918
11,917,403
27.15
2,242,797
2,455,232
9.47
Ladies Blouses
34,199,869
41,981,385
22.75
11,669,238
12,777,985
9.50
5,936,113
7,561,416
27.38
2,397,870
3,768,003
57.14
6,278,399
8,135,579
29.58
3,500,126
4,565,057
30.43
18.61
Ladies Dresses
42.85
2,119,571
2,650,706
3,599,766
4,152,633
15.36
Ladies Skirts
14,674,702
18,167,958
23.80
6,384,804
7,184,453
12.52
959,799
1,608,170
67.55
2,033,551
2,310,940
13.64
2,543,767
3,154,676
24.02
759,594
1,205,724
58.73
Legwear
435,246,044
369,584,964
-15.09
310,101,837
261,046,403
-15.82
3,195,042
2,801,115
-12.33
581,741
214,071
-63.20
15,639,901
11,318,615
-27.63
647,457
583,811
-9.83
Men's Shirts
26,141,634
36,931,492
41.27
3,255,839
5,359,480
64.61
2,639,485
4,188,723
58.69
7,801,208
11,779,869
51.00
3,798,774
5,377,299
41.55
1,528,349
2,116,350
38.47
Nightwear
49,913,716
57,024,306
57,291,805
14.78
22,053,209
28,554,106
22,965,318
4.14
5,249,003
7,498,226
3,216,326
25.06
9,575,043
11,356,906
% Change
47,444,351
-16.80
16,666,612
-41.63
4,387,263
4,373,609
-0.31
2,884,621
-10.31
8,081,924
8,784,080
8.69
1,659,147
1,971,354
18.82
Suits / Ensembles
6,813,210
11,209,948
64.53
4,031,169
6,451,433
60.04
252,369
419,288
66.14
253,151
446,036
76.19
836,706
1,246,413
48.97
165,238
313,841
89.93
Sweaters
17,693,661
17,740,127
0.26
12,441,600
12,083,791
-2.88
89,970
107,423
19.40
1,403,727
1,445,946
3.01
785,291
874,576
11.37
608,471
787,608
29.44
Trousers
327,140,929
335,539,202
2.57
78,249,630
63,511,958
-18.83
7,691,318
8,744,824
13.70
53,532,327
64,452,806
20.40
61,913,073
64,787,960
4.64
19,816,639
22,171,579
11.88
T-Shirts
599,278,916
640,835,075
6.93
92,129,838
83,270,011
-9.62
28,487,493
31,767,693
11.51
41,075,683
49,443,318
20.37
77,694,802
82,254,193
5.87
24,257,843
28,620,449
17.98
Undergarments
290,500,156
270,876,738
-6.76
61,110,445
54,810,208
-10.31
21,202,426
20,327,764
-4.13
33,686,260
33,667,375
-0.06
64,555,516
59,165,806
-8.35
2,556,369
3,253,607
27.27
Item-wise value increase/decrease in apparel imports by the US: Jan.-Dec. 2022 (Value in US mn $) Exports to USA
Total Imports by USA
China
APPAREL TYPE
India
Bangladesh
Vietnam
Indonesia
2021
2022
% Change
2021
2022
% Change
2021
2022
% Change
2021
2022
% Change
2021
2022
% Change
2021
2022
% Change
Babies Wear
2,465.61
2,705.66
9.74
645.40
642.18
-0.50
368.20
457.31
24.20
248.69
289.77
16.52
368.99
409.70
11.03
72.83
86.80
19.19
Foundation Garments
2,824.08
2,842.02
0.64
941.81
798.42
-15.22
43.88
57.89
31.95
167.86
150.79
-10.17
547.86
646.54
18.01
267.03
363.71
36.21
Jackets & Blazers
6,407.65
8,273.80
29.12
1968.33
2508.53
27.44
147.10
225.30
53.17
552.25
684.08
23.87
1673.64
2253.71
34.66
367.40
434.55
18.28
Ladies Blouses
2,187.10
2,928.56
33.90
536.91
651.03
21.25
476.16
659.74
38.55
126.55
208.80
64.99
363.24
484.63
33.42
265.60
364.82
37.35
Ladies Dresses
3,738.42
5,219.95
39.63
1304.06
1714.77
31.49
533.66
876.23
64.19
94.86
138.10
45.58
639.13
855.64
33.88
275.21
380.63
38.30
Ladies Skirts
603.28
909.53
50.77
191.12
263.54
37.89
53.11
87.78
65.28
43.35
65.39
50.83
113.26
185.47
63.75
32.50
63.25
Legwear
2,369.64
2,421.27
2.18
1424.63
1416.44
-0.58
47.41
51.34
8.30
1.03
0.63
-38.26
84.77
83.51
-1.49
4.78
6.86
43.52
Men's Shirts
2,160.49
3,242.89
50.10
190.43
331.52
74.09
208.77
343.74
64.65
465.58
770.83
65.56
355.86
561.30
57.73
132.28
205.73
55.53
Nightwear
3,206.16
2,616.05
-18.41
1450.02
671.95
-53.66
206.97
228.36
10.34
166.94
159.22
-4.62
493.30
646.30
31.01
109.07
162.73
49.20
41.02
165.07
164.08
157.52
73.23
140.62
Suits / Ensembles
643.90
32.07
15.48
63.71
30.43
94.59
1,206.53
87.38
128.78
276.80
114.94
54.86
71.06
Sweaters
1,620.99
1,837.26
13.34
1011.49
1113.36
10.07
9.25
10.73
16.04
90.21
96.79
7.30
78.87
103.51
31.24
47.64
61.76
29.63
Trousers
19,605.50
23,557.17
20.16
2906.03
2907.74
0.06
469.04
609.24
29.89
3,055.57
4,216.92
38.01
4074.36
4823.24
18.38
1065.72
1408.63
32.18
T-Shirts
22,226.21
27,667.54
24.48
3081.71
3300.54
7.10
1042.41
1357.67
30.24
1,161.72
1,610.35
38.62
3570.13
4467.54
25.14
1110.20
1450.52
30.65
Undergarments
4,261.78
4,469.72
4.88
927.43
873.81
-5.78
360.01
428.13
18.92
390.29
446.39
14.37
827.50
918.60
11.01
76.68
98.89
28.97
March 2023 | AO India 73
TRADE STATISTICS
Canada Apparel Imports (Jan.-Dec. ’22) Canada concludes 2022 with US $ 12.41 billion worth of apparel import values Canadian apparel imports noted 28.35 per cent yearly growth to conclude 2022 with US $ 12.41 billion values. These values remained the highest of all time – a result of remarkable first half for apparel retailers in the country’s consumer market. All major Asian apparel manufacturing destinations such as China, India, Bangladesh, Pakistan, Vietnam and Indonesia noted growth in their respective apparel exports to the Canadian market.
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28.35%
The knitted apparel reported 25.70% surge during the review period, whereas the woven segment upped by 32.05% in value terms.
45.89%
Knitted garment exports from Vietnam to Canada surged by 42.40%, while export of woven garments increased by 50.23%.
34.97%
Bangladesh’s shipment to Canada upped by 30.16% in knitted segment, while woven garment exports increased by 40.08%.
46.72%
The value of Indian knitted apparel exports upped by 35.83%; while export value of woven segment grew by 62.43% on Y-o-Y basis.
Canada Imports
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Japan Apparel Imports (Jan.-Dec. ’22) Japan sources US $ 24.53 billion worth of garments in 2022 The apparel import values of Japan remained positive almost after three years in 2022. The country sourced apparels worth US $ 24.53 billion in 2022, noting 26.38 per cent Y-o-Y surge. Weight-wise imports also jumped by 4.46 per cent, resonating the positivity in the Japanese apparel market. China, India, Bangladesh, and Vietnam grew both in weight-wise and value-wise shipments to Japan, while Indonesia, Pakistan and Sri Lanka could see growth only in export values.
26.38%
Japanese apparel imports increased by 4.46% in weight, while values increased by 26.38% in the review period.
38.88%
Vietnam got a boost of 12.84% in weight-wise exports to Japan, while values increased by 38.88% on Y-o-Y basis.
37.74%
Bangladesh’s garment exports to Japan saw growth by 37.74% in value-wise exports and weight increased by 10.51%.
24.96%
Indian apparel exports to the Japan upped by 6.56% in weights and 24.96% in values.
Japan Imports
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74 AO India | March 2023
March 2023 | AO India 75
RESOURCE CENTRE
AMANN CONTINUES ITS GROWTH PATH IN INDIA BY BUILDING ITS FIRST INDIA-BASED STATE-OF-THEART PRODUCTION FACILITY About AMANN
New management team
AMANN Group, founded in 1854 in Germany, is one of the leading international manufacturers of highquality sewing threads, embroidery threads and smart yarns. More than 2,600 AMANN employees in over 100 countries worldwide work to deliver success. The sewing and embroidery threads are manufactured exclusively in our own production facilities in Europe and Asia, creating the basis for maximum flexibility and customer proximity.
After more than 25 years as CEO of AMANN Group, Bodo Bölzle retired at the end of 2022 and bowed out as sales set new records. During this time, Bölzle transformed the AMANN Group from a European company into a global player and market leader with productions in Germany, UK, Czech Republic, Romania, China, Bangladesh, Vietnam and soon in India too.
Today, AMANN Group is one of the three globally operating manufacturers of industrial sewing threads. Despite the highly dynamic growth of the family business founded in 1854, the company has held true to its founding principles maxim to this day by leveraging entrepreneurial foresight and pioneering spirit with level-headedness. This attitude is deeply rooted within the company and has formed the basis for its long-term growth for ongoing two centuries. AMANN Group is part of Hanns A. Pielenz Foundation, which was founded in 2005 by its namesake and former owner of AMANN. By transferring his shares to the foundation, Hanns A. Pielenz ensured the continued existence of the traditional family business. The non-profit foundation is a shareholder of the AMANN Group alongside the Pielenz family and supports projects in the fields of art and culture, science and research, as well as education and upbringing.
76 AO India | March 2023
The new management team of the AMANN Group is now complete. In addition to Wolfgang Findeis (CFO) and Peter Morgalla (COO), Ivo Herzog as Chief Sustainability and Innovation Officer (CSIO) and Arved Westerkamp as Chief Sales Officer (CSO) will be shaping the future of this manufacturer
of high-quality industrial sewing threads, embroidery threads and smart yarns. With the creation of the Sustainability and Innovation Department, the company will now resolutely take its next step on the path to a holistically sustainable orientation in its business model as the basis for future economic success.
New production site in India Currently, AMANN’s most important international project is the construction of the first production site in India, which is located in Ranipet (Vellore), Tamil Nadu. The commissioning of the production facility in Ranipet within 2023 marks another milestone in the rapid development the AMANN Group has taken since 2010, when the first
(R-L): Findeis-CFO, Westerkamp - CSO, Morgalla – COO and Herzog – CISO
RESOURCE CENTRE
Sanjeev K. Grewal
Regional Business Director – SW Asia & ME + CMD Amann India
Asian production was inaugurated in Yancheng, China. The factory in Ranipet will be state-ofthe-art in terms of resource conservation and sustainable processes and the first AMANN production site worldwide to be equipped with a zero-liquid discharge wastewater treatment plant (ZLD). ZLD is a wastewater management system that ensures that there will be no discharge of industrial wastewater into the environment. This will allow the entire production of water to be recycled and reused completely. Moreover, the plant in Ranipet will also have a green electricity profile, as photovoltaic systems will cover the electricity demand of the whole plant. The investment into this green, stateof-the-art production site following the highest demands in terms of sustainability reflects AMANN’s serious commitment towards the Indian market and its customers.
Chennai. Under his regional leadership, AMANN has been enjoying impressive business development, which laid the foundation for the investment into the Group’s latest production facilities in different Asian countries.
Latest product innovations There is no stagnation at AMANN. In addition to providing sewing and embroidery threads for sustainable garments and shoes, the spirit of innovation is key to offer solutions that make the difference. Outdoor-Pro,
AMANN’s most recently launched product innovation was developed especially for extreme weather conditions. The bonded sewing thread made from high-strength polyester continuous filament is equipped with an environment-friendly, PFC-free, waterrepellent finish as standard. Outdoor-Pro has excellent resistance to UV radiation and allows for very good light fastness results. Due to its bonding, Outdoor-Pro is excellently suited for multidirectional sewing and the processing of heavy, even coated, textile surfaces. The technological functionality of the seam is not at risk
The driving spirit for the new production site in India is Sanjeev K. Grewal, who has acquired comprehensive international working experience of more than 25 years in global textile industry. Grewal joined AMANN Group in 2006 as Regional Business Director for South-West Asia and the Middle East. In 2007, he established Amann Sewing and Embroidery Threads Pvt. Ltd., in
March 2023 | AO India 77
RESOURCE CENTRE
sustainability vision - since only the transformation from the linear business model to circular economy can solve the ecological and social challenges of our time.
even under demanding weather conditions such as prolonged exposure to sunlight. The use of special dyes enables excellent resistance to UV radiation, making the brilliant colours of Outdoor-Pro particularly durable. Therefore, OutdoorPro is also an excellent choice for the production of high-quality sports as well as safety shoes.
Sustainability Today’s portfolio of sustainable AMANN products is characterised by two different approaches: with the Recycled product line, AMANN offers sewing and embroidery threads that are certified according to the Global Recycled Standard (GRS). These threads are made from recycled PET bottles and fully meet the high-quality standard of AMANN.
With the Lifecycle product line, AMANN offers sewing threads, which are Cradle to Cradle Certified®. This certification reflects on the concept of circular economy and stands for a consistent, continuous recycling management, where no waste is generated, as the Cradle to Cradle Certified® products can be used either as biological nutrients in biological cycles, or they are continuously kept in technical cycles as technical nutrients. With Lifecycle Polyamide for the technical cycle and Lifecycle Cotton for the biological cycle, AMANN offers product solutions for both Cradle to Cradle cycles. The circle is blue – this claim embraces AMANN’s holistic corporate direction towards circular economy and its overall
Being a member of the United Nations Global Compact since 2019, we are fully committed to its ten universal principles and the vision of an economy that is inclusive, sustainable and for the benefit of all. We constantly work to close raw material and product cycles and thereby establish sustainable standards in our production facilities worldwide. With the successful development of circular threads, we actively contribute to the protection of our environment for future generations.
Success story in India Sanjeev Grewal emphasises, “Success is always the result of a trustful collaboration. Our global brands and Indian customers are key for our success. We are very grateful for our long-term business relationships which form the foundation for our today’s role in the Indian sewing thread industry as quality and innovation leader.” If you would like to learn more about AMANN, Outdoor-Pro, AMANN’s endeavours in India or AMANN’s sustainable product range, then please visit our website: www.amann.com/iilf
50 German Leaders video
Outdoor-Pro video
78 AO India | March 2023
March 2023 | AO India 79
RESOURCE CENTRE
INDORAMA (INVIYA® SPANDEX) COMMENCES COMMERCIAL PRODUCTION OF THE THIRD PLANT Indorama India Private Limited
commenced commercial production of its third manufacturing facility at Baddi in Himachal Pradesh on 4th February 2023. The company which is engaged in the production and marketing of the INVIYA® brand of spandex since 2012, said that the groundbreaking ceremony was solemnised in December 2021 and commercial production has started in an ambitious time frame of 13 months. With the new plant becoming operational, Indorama India has now added another 25 metric tonnes per day capacity and has taken the total production capacity to 65 metric tonnes per day, which is a giant leap from less than 15 metric tonnes per day in 2017.
Indorama India further reported that INVIYA® holds a leadership position in providing functional solutions to highend garments, accessories like elastics, tapes and hygiene products like diapers. The company offers a complete range of spandex products under the brand names INVIYA® (SemiDull), STOLID® (Full-Dull), ECOModa100™ (100% Recycled) and SnugFit® (Diaper grade). Alongside the offerings, it includes other differentiated/specialty spandex products like Coloured Spandex from 20D onwards and Ultra-Fine Deniers like 10D/15D. Incidentally, Indorama is said to be the only company in the Indian subcontinent to produce spandex
meant for hygiene applications, which is available under the brand SnugFit® that caters to baby and adult diaper manufacturers. The development of these products is a result of heavy investment done by Indorama India in building strong technical capabilities. The company has an in-house polymer R&D facility along with a textile and diaper grade application development centre to study customer needs, formulate various polymers, continuously improve and offer world-class products. “On the business front, INVIYA® remains bullish on growing business opportunities aided by PLI Scheme, PM Mitra Parks and FTAs, being pursued by the Government of India along with decisive actions undertaken to promote MSMEs, which form the backbone of the fragmented textile and clothing value chain, will help Indian textile sector in emerging as a strong competitor in the global market,” read a press release sent by Indorama India Pvt. Ltd. to Apparel Resources. INVIYA®’s success is an excellent example, as stated by Indorama India, of an indigenous technological foray by Indorama in contribution to the Government’s ‘Make In India’ dream to make India self-sufficient in technological development and manufacturing. INVIYA® is widely accepted as a dependable raw material by yarn and fabric manufacturers and accessories manufacturers alike in India and across many countries.
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DETOXING FASHION SUPPLY CHAINS FOR A SUSTAINABLE FASHION INDUSTRY With inputs from Kathy Leung – Senior Technical Director, Global Softlines, Intertek
It’s been nearly 12 years since Greenpeace
launched the Detox My Fashion campaign. Eliminating all hazardous chemicals from fashion supply chains is a long journey but the progress has been positive, thanks to concerted actions from leading global brands. In recent years, the pace of industry transformation is picking up and more manufacturers are prioritising the matter of hazardous chemical management. According to the United Nations Environment Programme (UNEP), the fashion industry accounts for about 20 per cent of water pollution worldwide. Chemical management is the key to detoxing the fashion supply chains
as hazardous chemicals can easily be discharged into waters and oceans during the manufacturing processes such as dyeing and finishing. From production to end products, many harmful chemicals such as perfluorinated compounds (PFCs), phthalates, heavy metals, formaldehyde, sensitisers and flame retardants, are used to provide a wide range of performance features and can remain in clothing and/ or end up in the environment. According to the European Environment Agency, an estimated 62 per cent of the volume of chemicals consumed in Europe in 2016 were hazardous to human health. That is why Sustainable Chemistry management is an urgent issue that must be included
as part of a holistic approach to make the fashion industry sustainable. And yet, the matter of sustainable chemistry is rarely in the spotlight. This is partly because the topic is complex to many, which is why this article aims to make it easier to understand.
Sustainable Chemistry – the key to detoxing fashion supply chains Detoxing fashion supply chains is hugely important, and the industry is taking on a more holistic approach to managing hazardous chemicals used in the input, process and output stages of manufacturing supply chains. Instead of only focusing on chemical testing of
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end-products to ensure compliance with different global restrictions or regulations like European REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals), European Persistent Organic Pollutants Regulations, The Consumer Product Safety Improvement Act (CPSIA), etc., brands are also managing the input chemistry in the upstream using a manufacturing restricted substance list (MRSL) and doing wastewater testing in the output stage to look for hazardous chemicals such as alkylphenol ethoxylates and heavy metals. A key strategy to sustainable chemistry is to have regular reviews of chemical inventories during the input stage to prevent hazardous chemicals from entering the supply chain in the first place. This includes understanding the usage of chemicals at different production facilities, including fabric mills, spinning, dyeing, bleaching, laundry facilities, etc. It is also important to have a good chemical management system in place to communicate with suppliers their chemical conformance target and discuss more sustainable alternatives, offer onsite education, audits and trainings, and work with them for using safer chemicals effectively through their own MRSL or product RSL. Suppliers are encouraged to regularly review their chemical orders or standards of chemical formulations.
Positive actions, for example, include increasing the number of certified chemicals in their chemical inventories. A digital chemical management platform is an effective tool for brands to trace and track their chemical inventories from multiple stakeholders online. It can facilitate increased transparency and traceability on whether their chemical inventories are certified against various industry standards, such as the widely recognised ZDHC MRSL Certification Programme.
Intertek ToxClear for digital chemical management To help brands and businesses implement sustainable chemistry and best practices in the fashion industry, Intertek’s ToxClear digital chemical management platform connects with ZDHC Gateway – Chemical Module for real-time ZDHC MRSL conformance data mapping and generation of ZDHC Performance InCheck Reports. ToxClear enables hassle-free chemical inventory data exchange and communications between brands and suppliers seamlessly, 24/7, providing total traceability and transparency of chemicals used in the supply chains. The easy in-system communications function allows brands and suppliers to exchange real-time information from the system and to communicate with each other. Brand users can have full visibility on suppliers’ chemical inventories and effortlessly evaluate their ZDHC MRSL Conformance performance. They can see the monthly conformance percentage of the chemicals purchased or used by their suppliers, filtered by the facility. Supplier users can manage the chemical inventories
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of multiple facilities, have full visibility of their chemical conformance performance for continuous improvement and generate ZDHC Performance InCheck Reports. Based on Intertek’s extensive experience in chemical management and built on cutting-edge cloud-based secure technology, ToxClear offers end-to-end Total Chemical Assurance solutions for safer, cleaner and more sustainable supply chains, with the ultimate goal of achieving zero discharge of hazardous chemicals.
Integrating sustainability into your chemical management roadmap Stakeholders working towards more sustainable chemistry should adopt a chemical management platform with real-time data exchange and analytics for supporting their commitments to offer transparency and traceability on chemicals used in the supply chains and drive hazardous-chemicals-free production. This will also enable them to communicate and offer toxic-free and sustainable products to meet rising consumer demand. The sustainability challenges of the fashion industry can only be addressed through commitment and science-based decisions. Detoxing the fashion supply chains is the cornerstone of a more sustainable industry. As the industry makes progress, new yardsticks are being set for other sustainability goals such as air emissions, net zero carbon emissions, microplastics, end-of-life extended producer responsibility, etc. Even so, sustainable chemistry will always be fundamental to a safe, sustainable and responsible fashion supply chain. *Source: Global Chemical Outlook II, UNEP (2019)
Sustainable Solutions Begin with G A STO N SYSTEMS PRECISE CHEMICAL APPLICATION SOLUTIONS long-term business sustainability metrics. We are leading the way in new textiles and styles for cutting edge fashion designs.
Save water Chemicals can be applied from any direction to one or both sides of the fabric.
Lower energy cost Reduce waste
Founded in 1979, Gaston Systems has more than 500 installations worldwide and an international reputation for high quality and innovative technologies. In 2022, Gaston Systems joined the Navis group of brands.
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