Textile

Industry Analysis

FROM THE EDITOR-IN-CHIEF’s DESK…Sometimes I feel that the word ‘sustainability’ is becoming a mere catchword, with almost every player in the apparel supply chain using the term to describe the way forward. But how many people/companies actually understand the term, is something that is debatable.The more I talk to the industry, the more I am convinced that the understanding of sustainability is still very shallow for most, and while compliance is equated to labour issues, sustainability is equated to environment concerns!There are so many dimensions to the topic and so much is happening around the world, both in direct relation to the industry and in general, that to apprehend the depth of the topic is not easy… But one thing is for sure that sustainability touches all aspects of business – from people to planet to profitability, and even if one aspect is left behind, there cannot be true sustainability.I am always fascinated by the passion that people who work in this area have their compassion for the environment, for the workers in the field and on the shop floor, which in fact is palpable. There are companies which are living this dream, and for whom there is no compromise; but then there are others for whom it is a tool for marketing.That is not to say that those using their sustainable initiatives as a marketing tool are less serious, because at the end of the day unless profits are made, all efforts are hollow and no one gains. But what I do feel is important, is the basic intent behind the efforts… If the management is 100% behind the cause, the seriousness of the goal is conveyed downward and everyone becomes a part of the movement; it no longer remains a conscious effort, but a way of life and doing business…What is however encouraging is that companies are talking about it and from being just a concept, sustainability is now a route to be successful! The faster the companies accept this and seriously look at how best to get started, the better placed they will be in the future. Of course, every company cannot have the same level of commitment or capacity to invest, but making a start is what is important.I am convinced that we need to talk more about sustainability and also move beyond the cliché… Apparel Online is committed to give relevant information on the topic, discuss issues that influence business and also present benchmark companies and practices in sustainability.The world is moving fast in this direction and the country cannot afford to remain behind, which goes for the industry too… This year, sustainability as a topic is a major agenda – from small measures like LED lights to big commitments of Green factories will be under the spanner. Concepts that support sustainable thought and new directions will be discussed, and experts shall be invited to give fresh perspectives.I also invite my readers to share their experiences, concerns and queries on sustainability…; collectively we can explore the depth and find different ways to walk the route. Indian exporters cannot afford to be left behind in a world where competitors are already awakened!

EDITORIAL TEAMEDITOR-IN-CHIEF Deepak

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Neha Chhetri

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Sanjogeeta Ojha

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MIND TREE

What were you expecting from the Union Budget 2017-18 and what is your reaction on the announcements made by Finance Minister? How do you see its impact, both in the short- and long-term on Indian textiles and apparel industry?

Q-and-A

Raja M Shanmugham, President, Tirupur Exporters’ Association, TirupurOur expectations from the Union Budget were specific totextiles and apparel industry, but the aspects covered were in general. As such, we were in for slight disappointment; however, the Budget has encompassed lot many measures to ensure an all-inclusive growth. Out of the general measures mentioned, the relevant ones for our industry are the income tax rebate for companies doing a turnover of up to Rs. 50 crore, and Tirupur has clusters where SMEs are in large numbers. Likewise, the micro units (companies withup to Rs. 2 crore turnover) have been benefited with thepresumptive tax reduction from 8 per cent to 6 per cent. Further, through MUDRA Banks, these SMEs are going to be supported with more loan facilities for which a sum of Rs. 2.44 lakh crore has been earmarked.Regarding one lakh housing for textiles workers of Tirupur cluster under the affordable housing scheme, promotional measures like profit-linked taxrebates for buildings with carpet area of 30 sq. metre and 60 sq. metre have been announced. Under the banner of ‘Industry Ready Skilling’, an allocationof Rs. 2,200 crore is also going to help the industry in upskilling the chosen skill inventories.Overall impetus has been for infrastructure development for which Rs. 4 lakh crore has

been allocated. It is presumed, wherever the infrastructure development happens, automatically the industry growth would also follow. With all these above facts, we feel the overall Budget for the year would render a positive result in all sectors.

Ashok Rajani, Chairman, AEPC, GurgaonFirstly, I would like to share my happiness on the The Economic Survey, which has re-emphasized on apparelsector for generating jobs that are formal and productive, and recommended reforms in labour and tax policies to make the apparel sector globally competitive. I did not have a long wish list for Budget 2017.All we wanted is full roll out of the ‘special package’ benefits. However, we are happy to note the relief offered to the MSMEs by reducing tax for small companies with a turnover of up to Rs. 50 crore as 85 per cent of the apparel industry may be benefited by this proposal. I amalso happy to note the renewed focus on skill development with 100 India international centres proposed across the country and we expect apparel to benefit from this. Besides, the industry was awaiting further details on the GST roll out. AEPC has requested for clarifications that the taxes are fully reimbursed without blockageof working capital and the

industry is not laden with paper work and procedural delays due to the multiple city/locationtransactions that it has. Hope this will also be looked into.

Dr. A. Sakthivel, Regional Chairman, FIEO Southern Region, ChennaiShowing more focus on Government investment in infrastructure is the rightmove and in right direction as private investment is showing slow growth. The extensionof Pradhan Mantri Kaushal Kendras to 600 districts will help the industry to employ skilled workers which is one of the major issues faced by these units. The introduction of Trade Infrastructure ExportScheme with Budget allocation of Rs. 3.96 lakh crore will help the Indian exporters to become globally competitive, as today exporters are forced to incur additional expenditure of more than 7 per cent of their exports due to poor infrastructure.Announcement of tax cut for MSMEs is a good move as 45 per cent of India’s exportscome from MSMEs sector; this initiative will provide a good impetus to boost export from this sector. Initiatives takenin Railway Budget will help the Government to focus on development of Multi Modal Transport facility and reduce dwell time for movementof cargo which can be revolutionized by participation

of all public and private players.All these measures will help the exporting sector to reduce transaction cost amongst our competing countries. I am concerned on not visitingthe corporate tax structure which was expected as the Government outlined road map for reduction of corporate tax during previous Budget.Deepak Chiripal, CEO, Nandan Denim Ltd., Ahmedabad

It is an inclusive Budget with a clear focus on agriculture, infrastructure, digitization and employment generation. Tax cut for the MSMEs with anannual turnover of Rs. 50 crore is a welcome gesture and will drive the growth engine as most of the Indian companies will get this benefit of 5 per cent tax reduction which will be a relief for them. Expanding tax net by increasing tax limit slab of up to Rs. 5 lakh will give more money into low-medium income groups. This move will give more money to hands of such people which will trigger more demand in markets. After short-term sluggish demand, due to demonetization, this will surely help boost the market sentiments. Governmenthas increased allocation to Prime Minister Employment Generation Scheme by three times which will definitely help achieve employment generation targets.

N E X T M I N D T R E E Q U E S T I O N Almost every state, whether already having an established garmenting hub or one desirous of becoming a hub, is coming up with incentives to lure the industry to invest… Given a choice, would you prefer the state which is giving good incentives, but has yet to develop the eco-sphere, or would you prefer to go for the established hub, even if the incentives are not as attractive…? Please share your thoughts…

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Ranjit Routrav,Aar Fashions, NoidaOverall it is a satisfactory Budget. Tax rebates to middle- class as well as MSME sectoris the most appreciable announcement in this Budget as it will benefit most of the people. Even middle-level management of factories like ours will get some advantage from tax. Apart from this, there is nothing special for apparel or textiles industry which I have heard of.

Vikram Gandhi, Director– Sales, Mint Clothing Co., Bangalore I feel that it is a neutral Budget as there is nothing, neither negative nor positive, with regards to our industry and that too for exports as wellas domestic manufacturing. Our major share is in domestic market and we are trying to grow in exports also; so whatever general announcements have been made in the Budget, will not

have major impact on either market segment, be it tax rebate on individuals or MSMEs. Honestly speaking, we didn’t have much expectation from this Budget.

CK Tirumeni, Managing Partner, Abirami Exports, CoimbatoreTo the best of my knowledge there is nothing special for our apparel industry in this budget. Whatever announcements

have been made, are routine or minor. But in general, this Budget is good and will benefit overall industries. All in all, not too much was expected as already last year ‘special package’ was announced for apparel industry and few other announcements like hike in drawback duty was also made. I would like to insist here that still we have not seen the notification of this hike, so it should be executed on priority basis so that apparel exporters can get benefit which is very much required.

any famous malls such asMFairlane Town Center

insuburban Detroit are replacing departmental store space for Ford Motors, converting 2,40,000 sq. feet of former retail space into product- planning centre. Many such malls across the US are signing on non-traditional, high-traffic tenants as mall vacancies rise due to brands shutting shop. According to the Green Street Advisors, there are approximately200 US malls that are at risk of shutting down in the coming years. The analytics firm also estimates that retailers will need to close about 800 locations, or a fifth of total mall anchor spaces to achieve the sales productivity of the mid-2000s.There have been hundreds of store closures including Macy’s,Walmart, etc. with a few announcing bankruptcies like Sports Authority, Sports Chalet, and more. in 2016 with 2017 being a year in which retailers are treading their path carefully, while experts believe that the future is e-commerce. “It’s going to be a year of transition, a year of

reckoning, and a year of awakening for retailers,” believes Marshal Cohen, Chief Industry Analyst, NPD Group. According to MasterCard’s SpendingPulse, retail sales excluding autos and gasoline rose 4 per cent from 1 November to 24 December 2016, suggesting a stronger than expected holiday season. Although digital sales continued to boom with Amazon grabbing an even largere-commerce share, brick and mortar locations saw declining trends.The heavy discounts and promotions during the holiday sales while favouring a few retailers, did not work for many. According to Retail Metrics, outside of a few busy hours on the weekends, the 2016 holiday season was somewhat eerily quietat the malls. The firm observed a handful of people at Foot Locker (FL), Abercrombie & Fitch (ANF) brand Hollister, American Eagle Outfitters (AEO) and Macy’s, L Brands’ (LB) Bath & Body Works, where there always had been a buzz in the last few years. In its latest report, NPD has reported that during the week ending

10 December, dollar sales in the first six weeks of the holiday retail season were lagging the prior year period by 4 per cent, while Prodco Retail Traffic Index reported brick and mortar traffic falling about 10 per cent at stores through December 2016.According to industry experts, almost 70 per cent of holiday sales went to retailers that have both a physical and an online presence – highlighting the importance for retailers to “keep pace with technology”. What seems to be happening is an increasingbase of consumers, especially the millennials shifting to online and mobile spending for experiences rather than products itself, and add to that the online players, such as Amazon, innovating and introducing strategies through heavy discounts and promotions that were witnessed during this holiday season. Although luxury malls housing luxury brands such as Dior, Louis Vuitton, Chanel, Tiffany’s continue to perform well, average malls with mid-level brandsare experiencing the biggest hit due to a shift from offline to online.

According to the Green StreetAdvisors, there are approximately 200 US malls that are at risk of shutting down in the coming years. The analytics firm also estimates that retailers will needto close about 800 locations, or a fifth of total mall anchor spaces to achieve the salesproductivity of the mid-2000s.

ESSENTIALS

IS IT THE END OF THE MALL?US MALLS GO FOR A CHANGE POST HOLIDAY SEASONThe year started with Macy’s announcing the closure of 63 stores and eliminating 10,000 jobs as the departmental store chain continued to grapple with weak sales during the holiday season. Many experts are relating the store closures to the growth of digital platform and also to retailers falling behind in implementing new strategies with time. The growing influence of millennials, who are accustomedto digital stimulations rather than physically visiting a store themselves, is also weighing down upon many stores. This has also led to a lot of retail mergers and consolidations that leave only a few departmental store options.

Irrespective of this, there are a few brands such as Home Depot, Lowe’s, TJX, Ross Stores, Burlington, and Ulta Beauty that have displayed a strong performance. Others, such as Nordstrom are also doing so bybeing an “omnichannel” retailer that knows how to engage its customers across all platforms. Unlike Macy’s or Kohl’s that compete with Amazon and everyone else on the internet,Nordstrom has differentiated itself by catering to more affluent shoppers through a highly curated selection. “Retail omnipresence is the key. Instead of simply giving customers a way to buy products both in-store and online, it would behoove retailers to latch onto shoppers before, during and after the transaction. Educate them and anticipate their needs ahead of potential transactions, allow themdifferent ways to buy, and then stay in touch via product reviews or other methods following the purchase.The goal that the store becomes the epicenter for the entire process,” informs Marshal.

WORLD WRAP

Although many experts are relating the strength of online sales as a reason for recent store closures, many also believe that these two channels – offline and online – can also have simultaneous successes. Mostly store closures are announced at the start of the year as retailers wait to close stores after holiday season ends so that they can squeeze in the last bit of profit or use the season to measure whether the store can make a rebound. Experts believe the closure of under-performing retail stores is a cost-cutting measure adopted by retailers, therefore reflecting on the performance of the individual retailer rather than the whole retailer. According to CoStar and JLL Research, the market asa whole is strong, indicated by the national retail vacancy ratethat dropped by 5.1 per cent, a full percentage point lower than it was before the recession. It is the time when only those retailers would survive who are making shopping an experience for their consumers, whether in a mall or online.

ooking at our neighbours, theLrecord on green

factories isindeed impressive. There are 35 garment factories in Bangladesh that have received Leadership in Energy and Environmental Design (LEED) certification from the United States Green Building Council (USGBC) while another 133 garment factories have applied for the certification and many more are planning or have initiated the process for this certification. Today, the top three environment-friendly garment and textile factories in the world are located in Bangladesh.Sri Lanka is the home of the flag- bearer of sustainability in the garment manufacturing sector – Brandix.Besides, the country also has many other companies like Bodyline that are truly green. Comprising four factories, Bodyline was the first Sri Lankan apparel manufacturer to be certified as CarbonConscious, with the company’s third plant located in Pimbura, is setting a new benchmark by beingthe first in the group of factories to be certified CarbonNeutral. Another company Star Garment’s obsoletefactory building has been transformed into a green product development centre. There are many more such examples in Sri Lanka.In India, companies like Orient Craft, Bhiwandi; Madura Clothing, Bangalore; Mahajan Overseas (Barhi Industrial Area), Sonepat; Genus Apparels, Faridabad; International Trading Company, Tirupur; SNQS International,

Tirupur; Zodiac Clothing Company Ltd. (ZCCL), Mumbai (corporate office building); Mainetti (India), Chennai (manufacturer of garment hangers and associated products) are having green factories. Names of some other green factories in the making are Click Clothing Company, Faridabad; Fine Lines, Noida (which is being constructed with an investment ofRs. 15 crore), expected to be completed by December 2017. Another Noida company Fashion Makers Group,is also planning for a green factory. Even in Ludhiana, KG Exports is also planning to make its upcomingfactory green. One can say that Indian exporters are also growing in this regard; but surprisingly among the top 20 Indian apparel export houses, not even a single has been certified as a green factory, while some of them are continuously starting new facilities too.A commonly asked question is, “What is the need for a green garment factory when it overall costs almost 1½ times more as compared to a normal unit.” On analyzing the same it is obvious that there are many benefits thatcome from going green. For one, there is possibility of reduction in energy consumption by more than 24 per cent and water consumption by 50 per cent. Despite such obvious benefits, there are many reasons for India’s lacking in this regard. The first and foremost being lack of awarenessand interest, while the second biggest reason being the current market

pressures forcing exporters to refrain from extra investment, more so as buyers still don’t pay any premiumto such exporters. Also there are difficulties as well as cost involved to convert old factories into green ones, and Indian exporters don’t have the ‘willingness’ to expand further in apparel industry, as they are happy in their ‘comfort zone’ or prefer to look at opportunities in different sectors that are more lucrative.Industry is upfront in acknowledging the problem areas. “While customers are asking for green factories and such initiatives,but they are not willing to pay premium. These initiatives are initially expensive and there is no surety of returns. Indianexporters also lack knowledge and awareness of implementation and

G r e e n F a c t o r i e s

Why is India lagging behind its competitors?One of the most commonly used terms in the apparel industry since the last few years has been ‘green’, but when it comes to having a green factory, Indian apparel exporters are far behind their neighbours Bangladesh or even Sri Lanka, which have set new benchmarks in walking on the green path whether it is the number of green certified factories or the level of commitment in the direction. As for India, there are around 15 garment factories/offices of stakeholders in the apparel industry, which can be called ‘green’. Should it not be a reason of worry for the industry, encouraging more garment manufacturers to come forward in this regard? Apparel Online gets to the bottom of it and probes the reasons why Indian factories are not interested in green factories, and what could be the solution…

A LEED certificate requires factories to meet itsprerequisites, mainly use of construction materials that create less carbon emission, hi-tech machinery for production, savingelectricity, preserving rainwater, having enough spacefor constructing other buildings and ensuring housing facilities, schools, bazaars, and bus stands for the workers within 500 square miles of the factory.

ESSENTIALS

New green factory of Click Clothing, Faridabad

SUSTAINABILITY

The term ‘green factories’ is still not clear to a majority of the textile people at grassroot levels. Industry needs to be well-informed through media,

seminars, etc., on what ‘green factory’ means, and what needs to be done in addition to existing structure and investments to make this happen.

benefits,” says Rajesh Kumar, COO, Laguna Clothing, Bangalore. “The term ‘green factories’ is still not clear to a majority of the textile people at grassroot level. Industry needs to be well-informed throughmedia, seminars, etc., on what ‘green factory’ means, and what needsto be done in addition to existing structure and investments to make this happen. Exporters are grossly involved in day-to-day management of their operations, attending their buyers, fulfilling Government norms for recovery of duty drawbacks, networking with various agencies, etc. The thought-process needs to change where we individually become more sensitive to the needs of the environment and act responsibly for making a difference,” adds Arvind Arora, TaurusTex, Delhi.

Jas Mahindru of Mega Brands, Delhi agrees that more awareness is required among exporters. “Rather than market sentiments, it is lackof knowledge that results in less interest and if this becomes similar to compliance norms, one will see things change fast.” He further adds that if the benefits of going green can be more emphasized upon and more advertised, things will change. As far as buyers’ priority for such factories or premium to such exporters is concerned, even the companies running green factory believes that though they do not get any premium on products, it’s more to do with their own commitment to make a greenfactory and willingness to pay back to the environment.Pranab Mahajan of Mahajan Overseas, who has the credit of having the first green factory in the home furnishing segment as well as first in apparel/textile industry in Haryana, opines, “In today’s world, everyone has the awareness and in reality, it’s the costs involved that people are scared of, considering the current market pressures.” Kiran Panchal of Amber Home, Mumbai also disagrees that awareness is lacking. “The green concept is everywhere and if exporters deal with major stores or brands or private labels, they all ask for green products. Hence awareness is there but the procedures to make a green factory are very cumbersome, and even though buyers give priority to green products without extra premium, it does not become viable.” Pranab howeverfeels that it is not about premium, but remaining a preferred supplier. “Every customer is bringing down their vendor base; so more focus is on how to retain the customers by serving them better, and hence this can be an oversight as it is not mandatory.”Kiran shares that their factory has seen good growth in the last year, despite being new and encourages exporters to invest. “I believe there

is enough scope for large format garmenting in India as China is very fast losing its core competence due to cost advantage and buyers are turning towards India,” he says. The lack of Government support however is a concern. “I don’t see any support from Government or bodies related to our apparel industry, we have to do it on our own,” says Pranab. Even AEPC or any other apparel body is not activein this regard compared to BGMEA (Bangladesh Garment Manufacturers and Exporters Association), though OGTC (Okhla Garment & Textile Cluster) is supporting its members for carbon emission.So, what is motivating companies to establish green factories. “It isthe commitment of the management that they want to create that kindof atmosphere in their units which is feasible to the environment. And we are taking lot of initiatives as far as green unit concept is concerned, like planting more and more trees in and around units, almost all units are running on PNG (Piped NaturalGas), boiler, tumblers, etc. which will be beneficial for environment. Solar panel installation is in process and is in maximum use in the environment- friendly light system. Apart from these we make sure proper utilization of ETP and proper disposal of all industrial wastes generated by units,” says Ravi Raina, HR Department, Fine Lines.Praveen Sharma, Click Clothing, Faridabad adds, “As far as our green factory is concerned, I must say that going green was in support of steps taken by our Prime Minister against the environment (Green India Clean India). This is just a small step taken from our side. The factory has been audited by IGBC once and the second audit is yet to happen. Hopefully we will have the certification by the end of February. The idea is to avoid any kind of pollution,be it water or air and have good/clean working environment for the workers.”

“At this point of time, business offers a green factory no advantage except to help a factory grand stand its sales push. Awareness, investment and Government initiatives follow market dynamics.The concept of a green factory is more to do with local corporate and community philosophy than external factors. The CSR initiatives, already in place from buyers side do overlap a bit with the green factory concept on key necessities and a further push is likely to cause supplychain disruption and cost addition, rather than a meaningful advantage. The lessons from the organic cotton renaissance infact never really took off, as not many were keen on paying ‘extra’. This is also to be read with the green factory initiative as well and these will remain segmentedbeyond mainstream business.”– Jayakumar. C, CEO, Fedmac India, Tirupur

ESSENTIALS

‘Protagonist' to initiate garment recycling effortsThe popular outdoor clothing retailer, Protagonist, is planning to initiate its Worn Wear garment repair and re-utilization programme in April 2017, while adding an online platform for resale. The environment-friendly brand has long operated with a solid repair policy on its products and is now emphasizing on repair and reuse of garments. The company’s repair facility at Reno, California, will wash used clothes with a new waterless technology that helps in restoring the fabric, and then make any needed repairs, which will then be sold on the company’s website. Any consumer bringing in their older but reusable clothes will in turn getstore credits.“If we can make really durable products, and we can work with our customers to keep them in service and in good repair, then we’re providing a solution to the environmental crisis,” explains Rick Bridgewater, Protagonist Vice President of Environmental Affairs. With this new initiative, Protagonist joins the ranks of other acclaimed clothing brands such as H&M, that are determined to decrease their environmental footprint via recycling efforts.

other Asian suppliers. This comes in the wake of the animal rights activist group Petals (People for the Ethical Treatment of Animals)

Among one of the largest and most modern knitwear manufacturers of Central and Eastern Europe, Stenos Troikas has recently joined the Greenpeace Detox campaign. The company has committed to eliminating any raw materials thatare likely to have adverse effects on humans or the environment from its production chains at all stages of the product lifecycle, from the start of production to sorting and recycling of clothing, by 2020. Greenpeace has been actively fighting pollution in the textile industry since 2011 and since then the Detox campaign has involved 78 companies from all over the world, including apparel brands like Valentino, Beneath, Levi Strauss and more.The knitwear manufacturer is the first Lithuanian company to join

recently released video showing poor conditions of crocodiles at farms whose skins are used to make handbags and other accessories.

this campaign. “Ever since 2012, the strategy of Stenos Troikas has been focused on higher value- added, friendless and high-qualityproducts. We have strong customers who value innovative materialsand see environmental protection and the effects of the products they buy on nature. This is a growing global trend, and we have been consciously and consistently preparing for it,” highlights Algiers Cabanas, CEO at Stenos Troikas.It has taken several years for the manufacturer to prepare for joining the Greenpeace initiative. Since 2014, the manufacturer has invested in a variety of laboratory tests and trials, with its professionals devoting a lot of time to reviewing all the production chains and carrying out regular comprehensive assessments

Louis Vuitton ceases all trading with Vietnamese crocodile farmsThe European multinational luxury goods conglomerate, LVMH, has informed that the brand has ceased all trading with Vietnamese farms that mistreat crocodiles. According to the company statement, “The LVMH Group and its suppliers ceased all trading in 2014 with the farms named by Beta,” adding that it sources its crocodile skins from

Stenos Troikas joins Greenpeace Detox initiative

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Exporters getting value by working with wholesalers/importers

ince last few years, as market conditionsShave become more difficult, many

of theIndian apparel exporters are just focusing on one agenda, ‘machines chalti rehneechaahiyen’ – machines should not remain idle. And this is one of the main reasons that most of the exporters are working with wholesalers and importers as they have better orders than individual retailers since they are further associated with many retailers/stores. But itis certainly not a cakewalk to work with such buyers. On the other side, there are many challenges to work with this segment of buyers. Whereas the industry is unanimous in their opinion, on some points, the views are divided as usual. Apparel Online talked with some exporters working with wholesalers and importers to know their stand and their wayto tackle the issues that comes when working with such buyers.Exporters claim that compared to orders with retailers/stores, prices remain 25 to 35 per cent less in the case of orders being placed by wholesalers and importers as they have their

own expenditures and they need the margins to sell further to the retailers/stores. But this is not the only challenge for exporters working with these buyers. In some cases, this segment of buyers does not issue any LC which creates payment risks. It takes at least 4 monthsto rotate the payments from wholesalers/ importers to vendors. In some other cases, there is a ‘catch 22’ situation with wholesalers, if his pre-confirmed orders get cancelled, as he will not even listen to exporters.Earlier, working with this segment did not require too much of concern with regard to compliance, but now day-by-day wholesalers are asking for compliance audits and certifications as they are also under pressure from their clients in this regard. Despite that workingwith them is comparatively easy as some of the exporters are of the opinion that wholesalers and retailers have better understanding, be it of their associates or overall market conditions in both the selling and sourcing market. Onthe vendor’s side, they are also not as ‘strict’ as retailers or brands are on many issues, be

A strong segment of buyers from IndiaWhen talking about buyers, more often than not, we think of the retailers and brands that source from the country. Gap, H&M, Walmart, Zara, Tommy, Esprit, M&S…, the list is long, but we tend to overlook a very important segment of buyers, who in reality account for a majority of sourcing from India – the wholesalers and importers. Many small- and medium-level exporters are thriving on orders given bythese buyers, and even bigger exporters are happy working with wholesalers/importers that are private label owners as they invest in the business.

According to market estimates, these seemingly obscure buyers account for around 60 per cent of buying from India. In this special issue dedicated to the wholesalers/importers, Team Apparel Online talks to every stakeholder in the chain – from the exporters who work with these buyers-to the buying agents who support sourcing of this segment-to the wholesalers/ importers themselves, on the critical questions of Why, How and What.

An important fact that emerged, and was endorsed by a majority, is that these buyers come to India for the products that we can make, and given an opportunity, are willing to increase sourcing… The onus lies with theindustry to be more proactive and service these buyers better and with more product options.

Also, to be noted is the fact that despite working in India for years, many of them still find areas that need improvement and few are very critical of the ‘chalta hai’ attitude that is hindering growth.

In the following pages, Apparel Online decodes the supply chain in sourcing for wholesalers/importers…

WHOLESALERS/IMPORTERS

WHOLESALERS/IMPORTERS

it delivery schedule or even in some cases quality issues, they adjust while it can’t be even thought of in the case of retailers or brands.But to avail these things, an exporter must be backed by good financial strength as wholesalers offer good credit period to their buyers; so they prefer vendors having strong financial strength who can manage even in case of long credit period and continue with sourcing of fabric, etc. Vendors do try to verify wholesalers/importers’ financial condition through their bank accounts before starting to work with them. Even after having reasonably good relations over a period of time, some of the vendors make trips 3-4 times a year to these wholesalers/ importers as it is necessary to sitwith them to get feel of their business scenario and payment follow-ups. “Normally it takes one trip in a year if you have better understanding

with retailers but when it comes to the wholesalers/importers, we have to travel 3 to 4 times which infact increases our overheads,” says one of the exporters working with wholesalers only and who did not want to be quoted.None of the exporters accepted that wholesalers ever asked for third-party audit regarding quality. Despite all these odds or positive aspects, some of the exporters are of the view that there is less trust factor in working with wholesalers and it is like ‘lala’ culture. Apart from exporters, there are also many buying houses working with this segment. Many exporters are of the opinion that the scenario becomes worse if working througha buying agent as they get more pressure on price due to commission of buying house/buying agent. Also, they have to bear all the ‘diktats’ of buying houses.

Exporters’ speak…

“We are working with wholesalers from the last 30 years and to be safe about payments, we prefer to work within our limits and there are no major issues when an exporter is working at smaller level and with known/

long-term reliable wholesalers.”– Rajiv Kapoor, MD,

Affordable Exports, Delhi“Our 30 per cent business is

with wholesalers based in Italy, US and UK and they offer nearly 10 per cent less price to us.

Sometimes there are issues when further pre-approved orders get cancelled, but I don’t see any issue working with wholesalers through buying houses as price should

get fit in our minimum pricing, all other things don’t matter. There is risk regarding payments in this segment and we have never noticed that any wholesaler has asked us about compliance.”

– Uday Sehgal, Director, Mariko, Noida“We get bulk orders from wholesalers, never work without LC and don’t work at all if there is even a small risk regarding

payments. We follow our standard lead time, be it wholesaler or

any retailer.” – Animesh Halder, Proprietor, Halder Garments, Kolkata

“We are working with wholesalers from almost a decade and it is comfortable to work with them. We prefer to serve with quality products but it depends on given price too as value for money is always there.” – Rajesh Kumar Gupta, Director, Megha Overseas, Jaipur

“Our way of working is a little different as we have partnership with one wholesaler and working mostly for him only.” – Udayan Kapur, Good Earth India, Noida

Earlier, working with this segment did not require too much of concern with regard to compliance,but now day-by- day wholesalers are asking for compliance audits and certifications as they are also under pressure from their clients in this regard.

ESSENTIALS

Calliope Grigorea of Queen Calliope, Athens, a wholesaler/retailer, sourcing goods worth Euro 50,000 from India, even in the backdrop of the Greece crisis says, “I like the embroidered cotton garments for ladies with hand block work, it is appreciated by my buyers and sells well.”Ilze Ports, CEO, Wandering Sage Inc., California, who besides being a wholesaler also owns 3 stores and a brand, is annually sourcing from India products worth US$ 300,000. Her preference for variety of handwork is something that has driven her to source from Delhi, Varanasi and recently from Jaipur.Not only value-added garments, but few of the buyers are also importing unique fabric from India. Marina, Owner/Designer, Rosarito, Argentina who is having 15 shops and is also selling women accessories to multiple brands, is sourcing a lot of summer garments from India as she likes the styles and cotton fabric. “For eight years we sourced Indian products through other importers but now we are sourcing directly from manufacturers and that too Pushkar, Jaipur and Delhi. Pure white dresses with embroidery and multi-colour dresses are very impressive in India,” she says.For some of the buyers there is no limitation of products as they are sourcing variety of products, though orders size may vary as per products. Interestingly, these wholesalers/

hese are some of the commonTstatements that small- and medium-

levelexporters, who are mostly working with wholesalers/importers, give when questioned about their product capabilities… Butare these statements really true; and are buyers happy with the products available with the Indian exporters, is another story altogether. Of course, there are also many companies that are doing only niche products from day 1 and wish to continue with the same as they are enjoying the edge of being niche. Apparel Online talked to some wholesalers/importers on what works for them and how happy they are with products offered by Indian exporters…No doubt majority of wholesalers/ importers prefer India for womenswear and accessories which include fancy Tees as well as kaftans apart from regular range of blouses, skirts, tops, evening dresses… The push for sourcing of such products is the strength as well as niche that Indian exporters have within the womenswear category. Many of the buyers are sourcing from Jaipur mainly due to hand-block, hand-printed based garments; also handwork value additions like embroidery are considered specialities of apparels from Delhi-NCR and Varanasi. Same importers are also sourcing some amount of home products as they have clientelefor the same also. Corroborating the same,

importers are adding new product categories too. Mona K. Gyllenhammar, Manager, Peter Korseth AS, Norway (agent and associated with most of the buyers in Norway) is sourcing mainly ladies’ garments from India, and also picks up some kids and men’s wear when she finds something new.A year back she started sourcing all kinds of bags, which is a new product category for her. “In one of my visits to India I found a rainwear manufacturer which currently is not our focus but we may start sometime in the future,” she said.Despite all limitations and challenges some buyers are not hesitant to source such products categories from India which is neither India’s strength, nor is India manufacturing at good levels. This is definitely an opportunity, that exporters should look at. Of late, manybuyers have shown interest in winterwear and even difficult items like skiwear.Marina Potemkina, Head of Purchase Department, Fashion-Sport, Russia having 17 stores and sourcing mens and womens wear is keen to expand sourcing fromthe country, provided exporters increase their product offerings. “Indian exporters should also increase focus on products like jackets and skiwear. Many buyers are verycomfortable sourcing from India, but get limited by the range of products on offer,” she concludes, throwing a challenge to the industry… Any takers!

“We can do whatever product/technique any buyer demands from

us.” “We are like a one-stop solution for our buyers.”

“We keep adding new product categories as our buyers push us for the same.”

“We want to serve our buyers better, so we are trying to offer them maximum product categories.”

Wholesalers/importers looking for very wide range of products

Calliope Grigorea of Queen Calliope, Athens

Ilze Ports, CEO, Wandering Sage Inc., California

Marina, Owner/Designer, Rosarito, Argentina

Mona K. Gyllenhammar, Manager, Peter Korseth AS, Norway

tops for its core customers, including American department stores, such as Macy’s, Dillard’s, etc.Some are disappointed that there are only few vendors interested to invest in this area. One of them is Kuldeep Singh of Mahadev S.A. DE C.V., working in Mexico from the last 22 years and sourcing mostly from India. Kuldeep says that he is not getting any new vendor who can focus more on research and development in his products. Search of better designs is motivating them to explore pan-India. One of the wholesalers who does not want to be quoted informed, “I was earlier sourcing for the southern corner (Karur) of India but due to good PD skills, I moved to northern region (Jaipur).” Theodore Aleksov COO, Macedonia, working with department stores, is sourcing 75 containers per year from Delhi forthe past five years, but recently nice printing capabilities forced him to source from Jaipur. These buyers also added that manufacturers should do some fusion of traditional styles with western culture.Manijeh Khodadoust, Dastchin Mina, Iran, associated with more than 100 stores, insisted that product is the key in deciding an order or even in

ndian exporters often say thatIday-by-day buyers’

expectationsfrom them are increasing and these expectations are hard to fulfil. Apparel Online questionedwholesalers/importers on what they are expecting from Indian vendors and how capable and willing are the exporters on these parameters. Most of the expectations of these very important India’s customers seem necessary and something which must be fulfilled.Product development and innovation in designs is one of the biggest expectations for any wholesaler/ importer from an Indian exporter, and they know that India has strength in cotton base only, but new designs and different value addition techniques are something everybody is looking for. “A lot of PD by companies is just about showing us what everyoneelse has produced. If I have the same style every season it doesn’t work; to blend a signature style and present it in a different way every season, doesn’t happen in India. Twice a year I come to India and I find that 95 per cent of the stuff is the same,” claims Joel Ratner, Executive Vice President of Sales, IDG, a private label manufacturer that caters to the US market for woven bottoms and

Wholesa lers / importers ’ expectat ions fr om Ind ian exporters

Theodore Aleksov, COO, Macedonia

Ralph Goodstone, Director, Le Cashmere, UK

Manijeh Khodadoust, Dastchin Mina, Iran

Kuldeep Singh of Mahadev S.A. DE C.V.

continuing to work with vendors, while price is a secondary consideration.“It is true that people want to buy more but at less price, but before that it is the look of the product which attracts the consumer into the store, so we follow the same principle,”said Manijeh whose priority is womenswear suitable to the Iranian market. Dora Popova, Proprietor Manager, Harmonia Ltd. Bulgaria (retailer/wholesaler) says that Indian exporters should think beyond summerwear also. No doubt, India has great designs, fabrics and patterns but sometimes exporters don’t put them together in a perfect way.To work in a given price point is another strong expectation of all buyers, though they accept that it is not always easy to fit into their price requirement, but theytoo are helpless, as global market conditions are depressed. Sourcing from Bangladesh and China, Ralph Goodstone, Director, Le Cashmere, UK, which caters mainly to 250 medium- to large-level retailers in UK admitted, “There are good suppliers in India having better productsand good quality, but still I need to negotiate on price.”Some of the wholesalers have individual but interesting expectation from Indian exporters and they happily want to be associatedwith such things. Ilze Ports, CEO, Wandering Sage Inc., California (wholesaler/retailer, owns 3 stores and a brand) sourcing handwork- based garments, is also interested in women empowerment which personally attracts her. “It is good if we can together help womenoperators/homeworkers through our business,” she said.Improvement on ways of communicating, like proper and prompt reply to queries was another area where these wholesalers/ importers expect better service, while some of the importers are of the opinion that Indian exporters should know more and more about business practices in the country they work with, it will help them to deliver better.However, some of the wholesalers are fully satisfied with their Indianvendors as Rafael Yarto, Commercial Director, Mexico sourcing garmentas well as fabric from India says, “Everything is okay, I don’t have more expectations or suggestions as such.”

n the present scenario whenI‘reshoring’,

‘nearshoring’,‘offshoring’ are the buzzwords, and it has become important for buyers to justify why they are sourcing from a particular destination, consolidation of vendors as well as exploring of new vendors is continuously going on. In the processes, wholesalers/ importers are facing many challenges when sourcing from Indian vendors; and though these clients of Indian exporters loudly appreciate the improvements being made by their

vendors, they admit that there is still a lot of scope for improvement. In conversation with Apparel Online, these buyers share their ‘pain’ areas, while some of the issues are routine, few are real irritants that need immediate redressal.Limitation of raw materials…Raw materials base is something which emerges as a strong challenge for wholesalers/importers and limits their sourcing activities. Some of the fabrics are not available in India, or they take

Tracey Farrington,MD, Bondi Beach Bag Co., Fiji

Sadrettin Coka,Asude (Armanda/Kroren), Turkey

Dora Popova, Proprietor Manager, Harmonia Ltd., Bulgaria

too much time to be procured, so some buyers prefer to work on ready or easily available fabrics. “I wish to shift some orders of hats which we are doing from China to India, but the country does not have many of the required raw materials, and I am forced to continue sourcing it from China,” says Tracey Farrington, MD, Bondi Beach Bag Co., Fiji – a wholesaler & importer of fashion apparel & accessories.“India is pulled back by its lack of good textiles and innovations in the textiles industry,” adds Joel Ratner, Executive

Vice President of Sales, IDG. I think that’s the biggest limitation. So, buyers like us have to utilize India in what it is good at – cotton, rayon, etc. products in these fabrics can be done competitively. It’s a global world, and you need to source the strength of each country.”Another buyer claimed that exporters are limited by raw materials even in products that they are strong in. “We are looking at partnerships for shawls and scarves as we already have some partnerships in Turkey and China; our priority is something different and special compared to other countries.

CHALLENGES FOR WHOLESALERS/IMPORTERSDespite improvement, much scope to gear up for Indian vendors

Roger Kohli,Creative Cute Options, US

Alison Otway,Marketing Vision sa, Panama

Natalie Centaine, Azure, Australia Paolo Zani, Art Director, Warli, Italy

From design perspective, India’s products are good and the variety is really interesting, but we fail to find what we want, especially when we consider the fabric base. Indian exporters are reluctant to workin different fabrics, as it involves too much of hard work at various levels,” states Sadrettin Coka, Asude (Armanda/Kroren), Turkey (Importer).Another exporter, Dora Popova, Proprietor Manager, Harmonia Ltd., Bulgaria who is sourcing for many formats: retailer/wholesaler/online

sales, strongly recommends, “Material which is being used by Indian exporters now needs to improve and the range also needs to be widened.”

Need to be more organized…Another challenge faced by such buyers, mostly because they work for small- and medium-level exporters, is the lack of process-driven systems.Most of the buyers agreed that Indian exporters need to be more focused and organized to give better attention to order execution. Speeding up things

is the need of the hour not only for delivery, but even for sampling also. “Ideal sampling time should be a maximum of 2 to 3 weeks, but some Indian exporters take double the time than this,” claims Natalie Centaine, Azure, Australia, adding that many orders are lost because of this. Azure is a design-based wholesale company, sourcing from India from the last 6 years. A common irritant so as to say for most wholesalers/importers is the fact that if they show interest in some design of an exporter, the company starts pushing for final orders. Paolo Zani, Art Director, Warli, Italy (a designer firm) says, “Exporters should not expect orders in two days, as we need time to develop our designs; by pushing for orders, we lose interest.”Lack of organized operations has also affected deadlines, which is again a major concern with many wholesalers/ importers. Sourcing from India since last 30 years, Roger Kohli, Creative Cute Options, US says, “I feel that even in these difficult times, exporters do not understand the importance of being responsive and timely delivery is still an issue. There is no dearth of business but it is all about delivery and price point.”

Quality challenges persist…It is more than clear that quality is not more than something that buyers will have to ask for or insist upon,as it is a mandatory requirement. Yet at the same time there are still plenty of quality challenges for the customers… Almost each and every buyer was of the opinion that quality issues are required to be addressed on priority basis. Often buyers say that quality of Indian products is notalways the best but is acceptable too; sometimes there are even issues in basic stitching also.

“India is pulled back by its lack of good textiles and innovations in the textiles industry. So, buyers like us have to utilize India in what it is good at – cotton, rayon, etc. products in these fabrics can be done competitively. It’s a global world, and you need to source the strength of each country.”– Joel Ratner, Executive Vice President of Sales, IDG

A challenge faced by buyers, mostly because they work for small- and medium- level exporters, is the lack of process-driven systems. Most of the buyers agreed thatIndian exporters need to be more focused and organized to give betterattention to order execution.

ESSENTIALS

WHOLESALERS/IMPORTERS

here are many buying houses/Tbuying agents in India

whoare working with wholesalers and importers. Some of them do have apprehensions and admit that on some point working with this segment is even difficult for buying houses.But they vehemently deny that compromises are made in quality, as suggested by some exporters.None of the buying house representatives acknowledged that wholesalers/importers ever accept any lacking on quality. Following all the standard parameters of quality, they said that third-party inspections are always conducted and there is nothing like value for money or that quality moves according to given price. At the end of the day product has to be sold by retailers and why would any retailer take chance on quality. Even the wholesalers sell the product under their own clothing line/ label, so he will also not take risk with his own clientele. In fact, buying agents claim that such exporters who compromise on quality are losing orders as wholesalers come to them only when there is no other option for him. Yes, price is always less when working with wholesalers/importers

but most of the time they have good order sizes, so it does not remain a very big issue. Buying agents also admitted that wholesalers never act strictly for their given delivery date and most of the time little margin is built in as wholesalers generally place their orders well in advance.On the issue of compliance, there is a twist, one of the buying houses representative adds, “I have noticed that wholesalers don’t ask for compliant factory even if heis sourcing for a reputed brand while if the same brand is sourcingdirectly from us, he is very particular about the compliances and proper documentation/certification of the same. In case of sourcing through wholesaler, these brands just ensure verbally that factories are fulfilling basic norms/law of the land.”There is strong opinion among exporters that working through buying houses with this segment adds more pressure on price as well as working norms. “I completely disagree that scenario becomes worse when any exporter works with wholesalers/ importers through buying houses.The value added by a buying house is worth the little extra that they pay

Alison Otway, Marketing Vision sa, Panama – sourcing from India since the last 14 years still faces quality issues. “Some suppliers are still lacking on quality control which is in fact very sad,” he says. Another buyer raises concern about the discrepancy in quality of samples and actual goods, as sometimes they are different. “My sales girls always ask me why there is invariably a difference between what we approve and what we get! Even in small lots, of say 300 pieces, the goods are not the same when compared to the sample,” bemoans Koki Veber, Director, Sariko, Slovenija (Central Europe). The company has 10 stores and has been sourcing from Indiafor more than two decades. She adds that though Indian exporters are fast improving their approach to global business and the situation is much better than a decade ago, still they need to be more professional, because ‘we also have a business to satisfy’. “Their production teams also have to be more efficient, and many times we feel that the follow-up on our order is not proper,” avers Koki.

Other issues…Very surprisingly, some importers felt that Indian exporters are onlyinterested in bigger orders, which is an impediment to work here. “I am facing a challenge regarding small ordersas I need maximum 100 pieces of any style and for them I am ready to pay a price accordingly, because I know my order size is too small, but Indian exporters are not too enthusiastic forthis,” informs Karine Dupouy, Fashion Designer, Seychelles, who as of now is sourcing from Italy and Turkey and has its own small factory. She has five stores with own brand and specializes in resortwear.There is also an open talk that many of the wholesalers/importers are very reluctant to work with India, and those who do work here agree on this, though shying away from sharing thereasons. A buyer says, “I know of some fellow buyers who are reluctant to source from India, but reasons are not known to me.” One importer however did share that many such buyershave either had bad experiences working in India because of the lack of professionalism or prefer to work intheir comfort zone instead of exploring options, which takes a lot of timeand money.

BUYING HOUSES WORKING WITH WHOLESALERS/IMPORTERS BRINGING REGULAR BUSINESS TO THE COUNTRY

and how can they disregard the fact that they are getting orders sitting at home without putting much efforts, otherwise it costs them at least Rs. 2-3 lakh for one overseas trip to finalize an order. Most of the exporters never accept their mistakes,” says one of the buying house owners working majorly with wholesalers/importers. Even in the condition of order cancellation, wholesalers/importers are in better condition as they try to serve shipments/products to their other clients. If in a particular case any wholesaler/importer is forced to get an order at a very tight price, he tries to accommodate it by giving a better price on a further order.As far as opinion of buying houses on new vendors’ selection is concerned, they are of the opinion that wholesalers ask for new vendors only when more orders are there, or existing vendor base lacks resources for something specific that the wholesaler is looking for. Apart from this, innovation at various levels,including on washing and printing, do matter a lot for wholesalers/importers. How capable a factory is in terms of sourcing of fabric and allied material too matters a lot.

Take on PD…“We are working with 7 wholesalers/ importers of the US. Working with wholesalers/importers is a little more challenging than working with retailers directly, as they ask our inputs on many things right from fabric, PD and quality. While retailers usually give a tech-pack kind of work, so involvement at that level is far less.” – Jitendra Sodhi, CEO, India Buying Consultants, Gurgaon

Take on payment security and compliance needs…“Among the wholesalers, the NRI ones are most unreliable and apart from few established NRI wholesalers, most of them have least credibility about payments. They never issuean LC and it is hard to trace them; today they are in the market strongly, placing reasonable orders but all of a sudden disappear. There is no support by our law or any such platform to raise such issues.” – Rakesh Saigal, MD, Precision Design and Sourcing, Gurgaon

“We are working with wholesalers of US and Canada who further work with prestigious companies like Walmart, Woolworth, Truworths.We work with 30 per cent advance, as working with such buyers can be risky, as one never has a security of payment. I have noticed that day-by- day more and more wholesalers are asking about compliance and onemust accept that sooner or later, there is no survival without compliance.”– Anand, MD, Dean Textiles Buying Services, TirupurWorking with importers is no differentthan working withretailers…“I feel price is workable with wholesalers, as it is balanced by order size. Be it matters related to quality or lead time, wholesalers are equally ‘tight’ as retailers are. Same is true with the growing need of compliancewith them. More and less payments with them are also safe.” – Sameer Thapar, MD, Montrose Knitwear, Delhi

Secret ofsuccessful business with wholesalers/ importers –innovative product at competitiveprice

lready sourcing products worth overAUS $ 5.5 million from the

country, thecompany is exploring options to expand their market reach to more countries includingthe US. “We are putting in efforts to enter the US market. India, however, still has some distance to cover when compared to countries like Bangladesh, Sri Lanka, and Indonesia, especially with regard to labour and price,” averred Dr. Loganathan. He emphasized that in today’s scenario, the wholesalers and importers are looking for only price to win the competition in their markets. “Most of the buyers prefer to work with India rather than other competitive countries, but they expect the price of those countries in India. Also, implementation of technology is still in slow phase compared to many other competitors,” mentionsDr. Loganathan.For a buying house working with wholesalers/importers, emphasis on product inspection and ensuring deadlines are

Working with several wholesalers and importers across 3 European countries, Dr. G. Loganathan, Managing Director, The Imperial, Tirupur in an exclusive interaction with team Apparel Online, details the challenges, pluses and relevance of commitment in today’s business scenario, while sharing the enriching experience he has had working closely with wholesalers/importersand retailers.

26 Apparel Online India | FEBRUARY 16-28, 2017 | www.apparelresources.com

imperative. “Commitment is the key and nothing can substitute it,” believes Dr. Loganathan. While inspecting a product, in addition tomeeting all the required customers’ specifications, the appearance and look of the product are also key areas, as it is always the appearance of the product that first captivatesa buyer.With competition getting tougher among wholesalers and retailers worldwide, the gap between price and quality is increasing each day. “One of the key differences

Dr. G. Loganathan, Managing Director, The Imperial, Tirupur interacting with his customers

The variety of products offered by India in cotton is very wide

of working for retailers and with wholesalers/importers is that while the importers choose the price, when narrowing into a vendor,the retailers prefer working with standard factories. Hence, the importers would never think twice before changing factories if any factory quotes lower price,” states Dr. Loganathan. Building and, more importantly, maintaining a good relationship is key to doinggreat business, be it with retailers, wholesalers or exporters. “If there is anything that one really needs to invest in, it is relationships

● It is buyers’ market where the price is the predominant factor.

● Demand in high quality standards are escalating day by day.

● In the recent years, the gap between price and quality is increasing due to hectic competitionamong the wholesalers and retailers at importing countries.

● The buyers’ expectation with regard to product, technology, service is tremendous.

● Garment being a consumer product, everyone wants to fish in the ocean across the globe, making the competition for good bargaining and getting it at lower price, more confused.

● Most of the buyers prefer to work with India than any other competitive countries, but they expect the price of those countries in India.

● Candidly, buyers are not so comfortable with our productionbecause, implementing technology is still in slow phase in comparison to Bangladesh.

● Buyer feels our competitive markets are improving faster in terms of technologies, quality satisfaction and timely deliveries than Indian exporters.

● In today’s scenario, buyers are looking for only the PRICE to win the competition in their markets.

ESSENTIALS – A trait that surges forward any business,” reasons Dr. Loganathan. This is even more important in the case of wholesalers/importers as theyhave a very hands-on approach to business.One of the biggest pluses of working with wholesalers/ importers is that one always remains updated with international fashion as they ask for regular developments.However, the biggest challenge is that the wholesalers/importers are constantly on the lookout for new sourcing destinations, offering products at a cheaper price. “Indian exporters need to ensure optimum production to achievethe competitive price,” saidDr. Loganathan. If the exporters work on this shortcoming, the challenge of losing importers could be arrested.On a scale of 1-10, while determining the relevance of product, price, infrastructure, types of buyers/markets already working with, compliancesand lead times for any buyer, Dr. Loganathan was quick to give 10 to product. “Product is the one that finally sells,” saidDr. Loganathan. Infrastructure was rated 8. He also gave 8 to type of buyers/markets as there is now big competition among buyers too and they are always exploring new markets at less price. Compliance was rated7 and lead time, significantly 9.Although the role of the Government is improtant in supporting the industry, exporters too should upscale themselves– it’s time to wake up. “If the issues regarding labour and the failure to achieve optimum production are eliminated, then India could rule the market and be a force to reckon with in the years to come, especially with the huge talent that India has,” concluded Dr. Loganathan.

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WHOLESALERS/IMPORTERS

TEX-FILE

Minister's assurance to address issues of powerloom sectorSubsidy for solar plants installation underway

Indian dye industry to take the ‘green route'Department of Scientific and Industrial Research (DSIR) has granted Rs. 4 crore to Indian Institute of Technology Gandhinagar, to set up a Common Researchand Technology Development Hub (CRTDH) on Chemical Processes at its campus to help dye industry meet the pollution norms and take an environmentally safer growth path.The CRTDH will develop a Chemical Process Technology Lab alongwith a pilot plant facility which will demonstrate the process intensification, waste reduction and enhanced effluent treatment

technologies developed at the campus. The centre will also help MSMEs in the dye sector for research, training and testing of the raw materials and products to give them an advantage in the competitive market.

Union Textiles Minister Smriti Irani has assured the powerloom sector that their issues wouldbe addressed soon, though she expressed her inability to announce what she is having in store for them, as currentlyelections are taking place in a few states.Known for providing livelihood to millions of rural people across the country for centuries, the sector is a focus area for the ministry. While responding to a question raised in Rajya Sabha, the Upper House of Parliament,the Textiles Minister said that the matter has been discussed with

support in the form of buyer-seller meet, yarn banks and setting up of common facility centres.In the meanwhile, the Textiles Minister of Textiles has approved a new financial scheme to aid small powerloom units, hit hard due to frequent power cuts, for installation of solar photovoltaic (SPV) plants. “The funds requirement for the three years (2017-18, 2018-19 and 2019-20)would be Rs. 19.95 crore, covering 480 powerloom units in the country,” informed Smriti Irani.The subsidy is expected to make power cost economical for

Several faculties from chemical engineering, chemistry,biological and materials science and engineering departmentof the institute will be jointly working in the project. In addition, the institute will put

industry stakeholders, but Model Code of Conduct is refraining her from making any announcements on it. It may be mentioned here that the Government has already introduced multiple schemes to accelerate the development of the powerloom sector which include In-Situ Upgradation Schemefor plain powerlooms, Group Work-Shed Scheme to help in the construction of work-sheds, Group Insurance Scheme for social security, Integrated Skill Development Scheme (ISDS) forskill upgradation, and Integrated Scheme for Powerloom Sector Development (ISPSD) for extending

the looms and make the units self-sufficient on the power front while the Government can supply grid power to other industries. The decentralized powerloom sector, which has a share of nearly 55 per cent in the total clothes produced in the country, plays a vital role in the employment generation in the country. Currently, there are 25 lakh powerlooms among which only less than 2 lakhare technologically upgraded. The powerloom sector employs 65 lakh people, most among them have high input costs and reduced purchase of fabrics.

in about Rs. 2 crore to help the dye and dyestuff clusters in the Gujarat region to become more sustainable.Prof. Chinmay Ghoroi, Principal Investigator – Project, IITGN said, “The CRTDH will help

chemical industries to improve their existing chemical processes and waste treatment. The initiative will be helpful to the MSMEs in and around Gujarat who do not have proper lab and technical expertise.”

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BREAKING NEWSTo read the latest sustainability news, go tohttp://news.apparelresources.com/sustainability-news/

s per the organizers ofAHeimtextil, despite

snowfalland storm, on the first and last day of the event, it witnessed almost 70,000 visitors that is a little higher compared to last year (2016: 68,277). Similarly, this year there were 2,963 exhibitors from 67 countries as against 2,864 in 2016. One of the nearly 350 participants from India, Amber Home, Mumbai continuing its focus on sustainability, displayed a wide range of products made from sustainable dope dyed yarn (80 percent cotton and 20 per cent polyester). Its products were selected for display at the trend area of the show. The company has a goal of sustainingthe future with sustainable products by adding functionality to them with added special finishes, and make it hydrophilic and antimicrobial with fragrance added to it. The company’s inclusion in green directory with green leaf accreditation itself is proof of its achievements in this area. The company also created new themeof ‘denimology’ bringing denim philosophy into home textiles, adding to it batik and tie & dye effect using 3D concept, besides fragrance and antimicrobial finish.

According to Pranav Ghelani, Marketing Director, Sumangalam Exports, Mumbai, Heimtextil 2017 had a higher number of exhibitors but the same number of trade visitors as last year. “At the beginning of the fair, the Pakistan Government announced an additional 6 per cent subsidy for the textile made-ups sector. This enthused the Pakistani companies but added to the price pressures that Indian companies already face on account of zero duty imports in EU from Pakistan and Bangladesh. The volume, price-sensitive business has moved to Pakistan and Bangladesh. India is reliable in terms of deliveries and quality so in those terms wehave moved up the value chain,” said Pranav. Apart from having meetings with regular customers he made some good contacts in non-traditional markets of Eastern Europe, South America and Australia. “Presentation of good, trendy designs and value prices attracted customers to our booth,” he added.For some, the event proved much better than expected and they were quite happy. Riddhi Jain, Studio Medium, New Delhi informed, “The fair was very promising this year. We

met a couple of buyers interested in our products; most of them were store/ boutique owners. As the company participated for the first time in Heimtextil, we were enthusiastic,and the event turned out to be very promising.” The collection showcased by the company was called ‘re-’. It is an upcycled collection of home textiles made out of discarded cotton yarns.The colour palette included bold pastels inspired by the irregularities of natural textures. There were ranges of cushions, futons and wall arts.The fairs as a whole highlighted that there was no recovery in mostEuropean markets; weakened pound and uncertainty of the effects of Brexit have also negatively affected sentiments. Likewise, in USA with the new President focusing on “Make in America”, there are possibilities of higher duties on imports. This year isagain going to be challenging for Indian companies so it is important to develop markets other than Europe and USA. Interestingly, some Indian participants were of the opinion that they didn’tfind much issue with the enthusiasm of the buyers. “Buyers were looking for new things and price was not as big a consideration as many were making

As usual, January witnessed major home furnishing fairs, Heimtextil, Domotex and Maison & Objet wherein more than 700 exporters from India participated. Though their experience at these events was mixed on issue of buyers’ footfall, there was unanimity on the fact that Europe has still not shown any major recovery sign. Another point that stood out strongly was the increased focus of Indian companies on product development as most of the participants with whom Apparel Online talked presented collections with unique designs/blends in their products.

700 INDIAN EXPORTERS PARTICIPATE IN HEIMTEXTIL, DOMOTEX AND MAISON & OBJETEUROPE WILL TAKE TIME FOR STRONG DEMAND

‘Sleeping’ is emerging as a lifestyle andcombination of bed linen with accessories (lamps, baskets), andthis was highly appreciated at Heimtextil. Many innovations were seen in the bed segment like Mediflow from Hamburg, displayed an improved version of its water pillow capable of full adjustmentsfor firmness and supportive effect.

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Studio Medium, New Delhi

Studio Medium, New Delhi

it out to be,” said Riddhi Jain, adding, “We realized that now is the time when retailers are ready to experiment with new and bold collections as their main focus is on providing new productsto their buyers. They were also on the lookout for products that are sustainable for our surroundings andthis really fitted well with our upcycled collection, at Heimtextil this year.”For many exporters, the Heimtextil Trend Park was particularly very inspiring, taking them through the upcoming trends in technologyand textiles. As Germany is a very important country for Indian home furnishing exporters, EPCH organized

the participation of the stakeholders of the Narsapur Mega cluster and members in Heimtextil, through India pavilion with 15-member exporters.DOMOTEX 2017Organizers of DOMOTEX 2017 claimed that this dynamic event puts fresh wind in the sails of the global floor coverings industry with substantial growth in number of exhibitors and size of exhibition. It witnessed a total of 1,409 exhibitors from more than 60 countries, and out of them nearly 350 exhibitors were from India. As far as visitation is concerned, it was on a par

with the last comparable DOMOTEX, staged in 2015 with 43 per cent coming from EU countries. From the nearby Middle East, it was up by 9 per cent, while East and Central Asia increased by 16 per cent. More visitors came from the US and the UK, in particular. The latest trends revealed a strong focus on sustainability and natural-looking designs. There is strong demand for eco-friendly designer products, as well as for laminate and designer flooring with surfaces of such deceptively natural appearance that they can hardly be discerned from real wood.One of the Indian participantsRavi Chabbra, MD of Chhabra Home Concepts, Panipat shared his opinion, “Overall, the fair was okay and wemet 4-5 good buyers. Generally I think Europe is picking up the daily use or basic products, but not for exclusive or luxury kind of things.” The company offered regular range of bath mats at the event. Pradeep Singh, Director, Zoya Home, Panipat too had a similar view as he said, “Fair was mostly dominated by European visitors and business was almost the same as last year or even little less than that.” Floor covering in natural fibres like jute, hemp, wool was displayed by the company. Pradeep also added that exhibitors like him participated in such international events through Indian Government agencies/councils, which should make more effort to get proper locations so that more buyers can visit their stalls.

Maison & ObjetIn Maison & Objet, Paris there were almost 23 Indian participants like Shingora Home, Ludhiana; Kanodia Global, Delhi; Condor, Gurgaon and few designer brands. There were in total 2,871 exhibiting brands while more than 1,35,000 visitors visited the show. Amit Jain, MD, Shingora Textiles shared, “Fair was just okay; I would give it a 5 out of 10 as there were visitors but business was missing.Still Europe seems to be slow.” The company displayed its blankets which were made by cotton rather than wool. On the contrary, Anil Sharma, Senior Merchant of Noida-based Janavi shared, “For us the event was reasonably good and we are satisfied with it.” The company highlighted itsstrength in cashmere art in wide range of designs, while products included blankets and shawls.

Sustainability was as usual highlighted under the title ‘Sustainability, Mindset, Responsibility’.Participating for the first time at Heimtextil and dealing in organic homefurnishing products,Storyfabrics,a Switzerland- based company, sourcing home products from Indian company Rajlakshmi Cotton Mills, was happy with the fair. Martina Unternaehrer, Founder of the company said,“I met potential customers from Switzerland and with whom I couldn’t get a meeting back in Switzerland. Small companies like ours have to go to the big fairs to be taken seriously.”

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Amber Home, Mumbai Studio Medium, New Delhi

Sumangalam Exports, Mumbai

DIRECTIONS BY

The whirlwind brought about by the biannual menswear fashion weeks at New York and Paris, has recently settled, giving way to future trend predictions that would signal what the approaching season looks like.This season saw utility and comfort being given an edge of importance over avant-garde fashion. Loose tailoring and a fresh approach to the classic double-breasted jacket made a case for the men of the 21st century, who are more inclined towards experimentation and functionality going hand-in- hand. Gone are the days when the colder months summoned darker hues; this season designers go all out to incorporate bright pops of colour intotheir winter wardrobes and go big on details such as prints, patterns and surface textures.In this issue, FFT reveals key trends from the runways of New York and Paris for Fall/Winter 2017-18 as showcased by ready-to-wear designers and labels.

FALL / WINTER 2017-18

Key Menswear Trends From

NEW YORK & PARIS

BOMBER BACKLASHBomber jackets continue experiencing a surge, with every label offering its own version of the trend. Channelling in the rebellion borrowed from the ’50s culture adopted by the (then) youth, through military pieces like theMA-1 bomber, the trend has found a solid spot in the current times.Designers are shying away from embellished looks that stormed last year and are tilting towards newer versions that incorporate materials like satin, velvet and details evolving towards two-stone styles and patchwork.

DOUBLE-BREASTEDMenswear suiting trends have recently been resurfacing after a much ‘Vetements-hijacked’laidback year of oversized drama, overtaking the runways and streets. Enter this season, and we see a majestic army of double- breasted blazers and coats – boxy, structured, button detailed and submerged in semi-casual prints and textures. Layered over shirts, turtlenecks and sweaters, the double-breasted suits make a strong case for casual men’s staple for the season.

POPPIN’ BRIGHTDesigners decided to add a little colour boost to the dark and gloomy winter months, by presenting collections that included surprisingly brightpops of colour in coats, jackets, knittted sweaters, trousersand pretty much all else. Shades of bright orange and yellow dominated the runways rendering the colours ‘cool’ for the new age man.

CHECKING INWe are sensing a major trend here – with the classic Prince of Wales check and plaids making an appearance, show after show, and piece after piece – checks take a definite seat in the front row for the Fall/Winter 2017-18 season. Layered under jackets or worn freely as prints on trousersor scarves, checks have too many options up for grabs this season.

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FUR-TASTICTaking a cue from the top trending styles of thewomenswear segment pertaining to last year, designers decidedly introduced details in the formof colourful furry patches over jackets, hoodies, gloves as well as shoes – apart from classic (faux) fur, mink and shearling coats. Feathered versions of (faux) fur, over wide lapels seemed to have gained a collective approval from the menswear bandwagon this season.

POWER PUFFComfort and utility-based outerwear is taking centre- stage this season with designers focusing on performanceas much as style. In contrast to the previously trendingslimmer silhouettes, voluminous silhouettes playing on proportion, shapes, lengths (cropped seems to be a favourite) and colour, found their way onto hi-tech materials. What grabbed our attention though, were the magical pairing of padded jackets with equally padded trousers to go along with them.

S‘LOGO’NThe slogans running through Lanvin, Sankuanz, Raf Simons and Ami channelled in a teen spirit voiceing ongoing contemporary politics and socio-political conditions around the world.It seemed like every designer needed to get something off their chest. Keeping the words simple and somewhat arbitrary is their way of addressing the issues at hand. Alternatively, the millennium inspired logo-revival continues to gain momentum as LV, Supreme and Dior stamp their garments with pun-induced identities.

PINSTRIPESVertical stripes – in all their glory, have emerged victorious this season. The bolder and much vibrant stripes from Spring/ Summer 2017, have given way to the more mellowed down, menswear classics – pinstripes in varying widths and contrasting colours. Sharply tailored or slouchy and oversized – the striped suit print has made a definitive comeback.

FUR-TASTIC PINSTRIPES

S‘LOGO’N POWER PUFF

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Louis Vuitton

Hugo Boss Balenciaga

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Dior Uri-Minkoff

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The fabrics and prints always form the bare bones of every season’s underlying mood and silhouette. The coming Fall/Winter season will see another wave of reimagining the nostalgic shapes of bygone eras. However, the difference this time is that it is not just about remembrance but taking comfort in the memories and trying to escape from the chaos of the present.

Therefore, fabrics like wool, corduroy and suede that are the ones most in demand instantly signal a calm and luxe coziness, but that does not mean luxury is out; rather the opulence of the past is what everyone is craving for and that is evident in the comeback of fabrics like fur, fleece, corduroy and velvet.

Prints are also seeing a similar set of references where we see modern application of retro motifs and plentiful checks as well as strong stripes. Designers are constantly looking at abstract/expressionist artworks to express themselves and wherever art is not enough; they are using capitalized slogans in clear words to get their ideas across the board.

From Furs to FloralsT r e n d s F / W 2 0 1 7 - 1 8

1 FAUX FURNothing says old school elegance like lavish faux furs making a strong case for the maximalist trend that Gucci started with their fur slippers. Fur is everywhere this season from smaller accent pieceslike stoles and collar details to heavy coats like the Vetements F/W 2017-18 opening look.Some designers are embracing the trend in all its boldness,using animal prints and multicolours to channel all the jazz while others are keeping it clean with jacket linings and wrap-ups. Fur is an

F ABRIC TRENDS

undeniable crowd favourite making its appearances on the street style scene just as much as the runway.2 CORDUROY & SUEDESay hello to a fabric that is the workwear brother to velvet and has been doing its own rounds on the runways of late. Though we cannot discard velvet as a hit fabric but looking ahead, we predict corduroy as the next big throwback to the ’70s.The construction details in corduroy make it durable but soft and lustrous;

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a perfect match for trousers, casual suiting and even overcoats. A similar material that retains the softness factor and emits a beautiful yet understated sheen is suede and serves as the perfect alternative to velvet in outerwear.

3 CABLE KNITSWhen puffer jackets were the most experimental piece of the season, how can we not expect to see more ski outfits getting an update? Ski garments have been making their waves and seemingly, the by-product is the return of chunky cable knitsweaters making a strong case for ‘bigger is better’.While some designers are embracing heavy knitwear and making large sweaters in brighter colours, others are sticking to classic shades but creating more interest through intense knitting styles.4 SILK SATINYou can never talk about luxurious fabrics and forget about thepower of silk. Being a fabric this

versatile, silk is never really out of fashion but this season it is present in all its visibility through the soft glistening satin weaves.As the market for innerwear has increased, thanks to its new acceptance as outerwear, so has the demand for satins.Silk satin is coming in everything from delicate slip dresses to bomber jackets, suiting and of course, the floor length gowns that were spotted everywhere this award season.5 WARM IN WOOLSoft wools have their own place in winter fashion and designers are looking at ways to let the wools take centre stage with tweeds this time. Reminiscent of the grand English countryside, tweed is easily the wool on our mind. Going beyond the obvious, wool is not just coats but is being used everywhere from dresses to twin-sets and suiting pieces.Apart from the usual favourites, cashmere is also having its big moment because of its recognition as an investment worthy fabric rather than something that is merely fashionable.

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INDUSTRY SPEAKS“Camouflage is definitely a big-big hit and we’re doing it in different colours like grey, green and brown. Apart from winter favourites like berries, burgundy and grey is a very big colour this season and so is khaki green. We are working with a lot of structure play this time in terms of heavy weight oxfords, waffle and honeycomb knits. There are no stripes in the works but checks are the printsof the season. A lot of inspiration is coming from the dandy look, so many heritage line references are visible with buffalo, tartan, shadow checksas well as many windowpane checks. Fabrics like velvet, corduroy and un-cut corduroy are looking sensational. We are not doing much fur but polar fleece linings and sheepskins are certainly happening.”

Meenakshi Patra, Pearl Global“We definitely think heavy is a big trend in knitwear this season. We are using a lot of 4 gauge and 2.5 gauge for knitting sweaters. Hand knitting is also in demand as well as fancy yarns. Though the knit is much thicker; we are using very earthy colours like brown and greens.”

Sumit Khanna,Khanna Knitwears & Exports

“We have noticed that there is a huge surge in demand for textures. Therefore, we are using fabrics like corduroy and fleece. Apart from fleece, we are also using fur for linings in outerwear. Wool is also in demand. We are using checks in collar details and horizontal stripes on the front for T-shirt brands like Polo and Bugatti.”

Amit Agarwala, Genus Apparels“We are not working on geometrics but more on variations in stripes and florals this season. Stripes are getting broader for Winter 2017 and they are in contrasting colours for both womenswear and kids’ collections. In terms of fabric, there is a lot of texture in demand and we are achieving that with crocheted laces, poly-taffeta and heavy georgettes. There is a lot of shine as well in the collections as we are using plenty of satins and scuba fabrics.”

Amit Kedia, Chimera Threadkraft

PRINT TRENDS

crazy textile prints in colours that were never anything less than the brightest hue on the wheel. However, designers are reimagining the same lozenges and eclectic florals in less hideous ways that will work for the modern aesthetic while

1 CHECKS ARE WINNINGGingham is going strong on both the Indian and international runways and can be seen in supersized to miniscule sizes and in an array of colours everywhere. Plaid is another check that is competing in this race, a pattern that is significantly inspiredfrom the ’80s era suiting styles; it was spotted in multiple winter collections.As a season focusing more on the strong lines, you cannot end the list without mentioning the print that every designer is using for coats and jackets – the Prince of Wales check.

2 STANDOUT STRIPESStripes are having its biggest moment of all time, wherein we are seeing more variation in striping than any other prints. The trend here is not just of bold awning stripes but also the crispness of pinstripes, which is always stealing the show.The use of stripes in flee flowing silhouettes is creating a new balance and imbuing a sense of power in clothing. However, they are not just endowing strong lines to designs anymore but the bright colour palettes and contrasts are giving it a more animated look as well.3 EXPLOSIVE CAMOUFLAGEMaybe it is an answer to all the unrest and ongoing violence that doesn’t seem to stop or another hunt for protection but military references have been coming from left, right and centre in fashion.Ironically, the most prominent

retaining a hint of the past like a secret.What was once the quintessential dad sweater pattern – argyleis now the most hip style staple coveted by all the ‘It girls’ in fashion and is finding its place on a wide range on silhouettes.

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of which is camouflage prints, which is blasting the runways and is present on everything from T-shirts, outerwear toflirty co-ordinates.Designers are experimenting with different colour combinationsand mixing other patterns with it to make this disguise of a print, stand out.4 ABSTRACT ARTFashion and art have always shared a gallant relationship and for good reason; who does not want to look like a walking piece of art?This season is all about expressing your feelings on the surface and it is only fitting to make use of abstract artists to accomplish that. Designers are using everything from paint drippings to randomized line drawings, sometimes as small details but mostly going for the full blast with dollops of colours as if someone dropped buckets of paint over their fabric inventory.5 RETRO FLORAOne of the most iconic things from the ’70s and ’80s were the

FASHION RESOURCE

Layered over buttoned- up shirts, paired with suits or worn over utilitarian dresses, bralettes were seen being paired with anything and everything this season. Details like ruching and ruffle trims cropped up at Miu Miu and Altuzarra (who also introduced printed styles) whereas Alexander McQueen decided togo all racy by adding studded details and embellishments atop their bralettes which they layered over sheer dresses. Fur, vinyl andsheer were other favourite fabrics that made acase for this obvious trend. Victoria Beckham played with velvetwhile Céline introduced crochet versions over shirts. Giambattista Valli weaved a dreamy story

around soft laces and Miuccia Prada went all out with ostrich feathers signalling a bold and ardent return of the bralette this season.

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dsRiccardo Tisci exits GivenchyThe LVMH-owned couture house Givenchy has bid goodbye toits Creative Director, Riccardo Tisci after his contract ended on January 31. The designer, who had been at the creative helm of Givenchy for 12 glorious years, is responsible for completely rejuvenating the house and bringing it back to life. Owing tohis departure, the collection shown at Paris Couture Week in January will be his last for the French house and they will not be presenting at the next Paris Fashion Week. Apart from creating the much celebrated haute couture collections for Givenchy, Tisci earned creditfor his strong friendships in the industry with the likes of Madonna, Beyoncé and Kanye West. There are strong rumours that he will now join his long-time friend and muse Donatella Versace at her namesake label.

Neiman Marcus tries plus size in storesIn the middle of dwindling sales, Neiman Marcus has decided to tap into a previously less exploredsegment of plus size clothing. After having experienced overwhelming response from selling larger sizes online over the last 2 years, the retailer has realized the propitious demand and is testing out the same through five of its outlets opening shortly. Frank Crisci, VP of Merchandising at Neiman Marcus Last Call said, “There is a lot of product out there but a curated assortment of Tahari, Lafayette 148, Eileen Fisher etc. is harderto find.” The company plans to promote the new venture by calling it “curvy chic”, connecting it with Women’s Day and are expecting this foray to bode well for sales.

In a bid to lure an elder audience, A&F is introducing a new in store concept that looks immediately mature and polished. Designed by MJ Sagan Architecture, the new look has a boutiquefeel with a striking entrance resembling a runway with 40 mannequins lined up at the front signalling a clear shift towards personal styling. The

store looks warm, inviting and inclusive opening its doors to the old teenage consumers as well as a fresher customer base. With the unconventional fitting rooms that look like suites and more space for movement, the brand is moving towards a seemingly luxurious and high-end appeal. The first store to witness this evolution will be in Ohio and is only the first of the seven that will be opening up for business within this year.

Abercrombie & Fitch reinvents store strategy

INDUSTRY WIRE

Three start-up units in apparel export arena; niche products their success route

planning to expand team in future. Despite all odds, the company expects to see 25 per cent growth this year and also in the future, from exports.Not only in Delhi-NCR, this ‘tide of budding apparel entrepreneurs’ can be seen in Kolkata as well… Just a year old into apparel export business, Tanushree and Pradipta Basu, Founders/Designers and Directors of Shorshe Clothing feel proud in being called – the limited-edition brand. All the products of this company are handwoven/khadi (sourced from Bihar and West Bengal) but are very modern in design. “With focus on sustainability, we use vegetable dyes…, and when it comes to fashion, our silhouettes are very western,” mentioned Tanushree, who prefers small orders from buyers. As top brands are coming up with sustainable clothing lines, both are enthusiastic about future opportunities in the segment. The FOB prices of the company start from US $ 10 and goes up to US$ 100. The firm that has shipped orders to the US recently, also participated for the first time in the just concluded IIGF in the Capital.

confidence,” says Tushar who is using in-house cutting, stitching, sublimation facilities to produce 20,000 pieces per month. Average FOB of the company’s product is around US $ 6.Mehjabeen Ansari, who has designated herself as a Creative Director of Mehjabeen, Noida and rightly so because her strength is designing, started garment manufacturing, three yearsago. Although Mehjabeen and Mohammad Imran, Head – Sales & Marketing of the company have extensive experience of the fabric industry, it is their passion for fashion which brought them into garmenting. The focus is primarily on Bohemian fashion, a product in great demand in South America and some parts of Europe. Even though the markets are not respondingtoo positively, how they continued to grow, is a strategy. “We produce selective designs and that is why we are never out of business. Our designs are very rare in the market, so buyers have to come to us for that,” said Imran, who started with one buyer and now has 10 buyers. Mehjabeen, who creates her own mood-boards and handles PD, is

n a time when established IndianIapparel exporters are

findingit difficult to survive because of the near recessionary market, few young companies are not only entering into apparel export market, but are growing too. All these companies have a niche focus, participate at international sourcing fairs and are also exploring new customers fromacross the world for further growth.Meet Tushar Sharma, an IIT Delhi pass-out… Rather than exploring engineering, he forayed into designer fitness apparels and value- added yoga wear. Tushar, the CEO of Yogue Activewear (Noida), initiated this company two years ago… “We tried to add fashion elements to a normal ‘boring’ sports clothing. My enthusiasm for fitness brought me into apparel sectorand interest in manufacturing and pushed me to start my ownfactory,” he said. Apart from having its own brand and manufacturing for overseas labels, the companyis also exporting 30 per cent of its production to the US andEuropean markets. “Things are more and more clear to us now and repeat orders are boosting our

Tushar Sharma, CEO (R) with his colleague JS Kohli of Yogue Activewear

Mehjabeen Ansari, Creative Director (L) and Mohammad Imran, Head Sales & Marketing, Mehjabeen

Tanushree (L) and Pradipta Basu, Founders/Designers and Directors of Shorshe Clothing

Silver Spark Apparel’s new factory in Ethiopia to start in MayMen’s suits specialist Silver Spark Apparel (a subsidiary of Raymond) is expecting to start its new unit in Awasa, Ethiopia in May 2017. As per schedule, the factory which was to start in April has now been pushed back by a month. The company, with turnover of almostRs. 450 crore in current fiscal, is working on this project for last 1½ years and is expecting to grow by 150 per cent in next 2 to 3 years with the support of this new factory.Prashant Jain, DGM – Marketing & Merchandising of the company toldApparel Online, “Few issues were there, but slowly we are overcoming that, and in May we will commence production.

Prashant Jain, DGM – Marketing & Merchandising, Silver Spark Apparel

Initially the capacity of the factory will be 4,000 suits per day.” Having the privilege of duty-free access, Ethiopia is today the attraction for apparel manufacturers. Low-cost labour availability is another advantage of this country; also local Government is giving some relaxations. The company is also being provided land on long-lease by the Ethiopian Government, besides electricity at a price which is one-third compared to India.Known for quality suits, Silver Spark Apparel was set up in 2003 for manufacturing suits and formal trousers.

INDUSTRY LIVE

o promote textiles andTapparels industry further in

thenorth-east states of India, Ministry of Textiles (MoT) and Ministryof Development of North Eastern Region (Ministry of DoNER) organized 1st North East Investors’ Summit in Shillong. The event, inaugurated by Union Textiles Minister Smriti Irani, witnessed over 80 buyers and leaders of textiles industry. About 20 MoUs between various companies of export promotion councils, and associations took place. These MoUs focused on promoting collaboration in the textilessector in each of these states in the north-east Region and also on developing and promoting North Eastern Region (NER) handicrafts, handlooms, agro textiles & geo- textiles in these areas.Arvind Ltd. and Connect Studio (Nagaland) will work to operationalize apparel centres.Apparel Export Promotion Council (AEPC), Creative Garments (Meghalaya), Fabric Plus would facilitate handholding and monitoring in technical design, production, marketing and export-

20 MoUs signed to promote textile and apparel industry in North Eastern Region

Smriti Irani with other ministers during the summit

related matters and enhance production & exports of garments from apparel centres. Arvind Ltd. has an MoU with Pinnacle Skills (Nagaland) and Elam Industries (Arunachal Pradesh) and will support for technical design and production in apparel centres.Similarly, the Clothing Manufacturers Association of India (CMAI) and Sneha Textiles from Tripura – to facilitate handholding and mentoring by Arvind Ltd. – agreed upon areas to operationalize the apparel centres. Harilloom Naga, Nagaland, Shopper’s Stop and EPCH in a joint venture took an initiative to increase the export of handicrafts by providing training, design and trend inputs platform for marketing in India as well as overseas markets. Carpet Export Promotion Council (CEPC) also has an MoU with local carpet exporters; the National Institute of Design (NID) and The Ahmedabad Textile Industry’s Research Association (ATIRA) also have MoUs.Besides the above, The Synthetic & Art Silk Mills’ Research Association (SASMIRA) also has an MoU with

Krishi Vigyan Kendra (KVK) for increasing the acceptability of agro textiles. The MoT alone has sanctioned projects worth more than Rs. 1,040 crore for the NER. Recognizing wide scope for silk sector in NER, the Government of India will support sericulture in the region with infusion ofRs. 820 crore. The Textiles Minister also launched India Handmade Bazaar Portal which will provide direct market access facility to handloom weavers and handicraft artisans, and announced that the master craftsmen from NER will teach at various NIFT centres across the country.The summit was also attended by Dr. Arvind Panagariya, Vice Chairman, NITI Aayog; Dr. Mukul Sangma, CM of Meghalaya;Dr. Jitendra Singh, Union Minister of State (I/C), DoNER; Kiren Rijiju, Union Minister of State for Home Affairs; Ministers and their representatives from alleight North Eastern States (Assam, Arunachal Pradesh, Mizoram, Meghalaya, Manipur, Nagaland, Sikkim and Tripura), besides investors across the country.

AEPC has initiated cluster development programmes for improving supply side of Indian exportbasket. It was decided to start this through development of the Metiabruz garment cluster which has over 5 lakh small manufacturers and a production capacity similar to Tirupur.

TO ADVERTISEContact Rani Mahendru+91-11-47390000 (512)rani@apparelresources.com

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he State Government ofTHaryana (India) has

drafted anew textile policy with an aim to create 50,000 new jobs and attract investments of up to Rs. 5,000 crore to become a textile manufacturing hub. The policy is packed with fiscal incentives and provisions for better infrastructure; establishment of textile parks; and facilitiesfor skill development of textile workers in the state. However, if the incentives are measuredagainst other State Governments (mostly new states eager to set up apparel manufacturing in the region to generate employment), then the incentives fall short. Yet,the advantage that Haryana enjoys over a developed infrastructurein garmenting and a very strong supply chain base, is something which new states getting into garmenting will struggle to provide, and may actually work in Haryana’s favour. This sector already provides employmentto about one million people, and readymade garments worth US$ 2 billion is exported from the state annually.According to an official, the draft policy proposes capital subsidy of 10 per cent for the eligible new projects of all textile enterprises across the state. It also eyes atpositioning Haryana as a preferred destination for global textile majors and boosting textile exports by a Compound Annual Growth Rate (CAGR) of 20 per cent during 2017. Also, as the state is one of the leading cotton producers in the country, the policy has been framed with an eye on the cotton belt ofthe region.Under the policy, Haryana State Industrial and Infrastructure Development Corporations (HSIIDC) will provide industrial

Haryana Government's Draft Textile Policy falls short of what other states are offering to set up industry

plots for a lease of 33 years with5 per cent increase in annual lease limit. Panchayat land will alsobe made available on lease for industrial development. The State Government will also facilitate setting up a textile park at Hansi in Hisar district. The park shall house weaving, seizing and garmenting enterprises to augment the already strong existing infrastructure for ginning and spinning.The enterprises that will enable new technologies at their units will get monetary assistance of up to 50 per cent of the cost from recognized national institutes, along with electricity exemptions from the Haryana Government. In line with the PM’s visions for the khadi industry, the Government plans to facilitate retail space at nominal rates. Locations such as famous tourist spots, places with heavy footfall such as airportsand retail hubs are proposed to be explored for such opportunities. The draft policy has been put in public domain and suggestions invited from stakeholders up to28 February 2017, which would be factored in while giving it a final shape.

The advantage that Haryana enjoys over a developed infrastructure in garmenting and a very strong supplychain base, is something which new states getting into garmenting will struggle to provide, and may actually work in Haryana’s favour.

Incentives Haryana (established garment hub)

State developing garmenting hub

Interest subsidy

6% per annum 7% per annum or 50% of the interest rate, whichever is lower on total loan

Capital investment subsidy

10% 20%

INR 36,000 per year INR 60,000 perfor SC/women year per workerand INR 30,000 for for 7 years for

Employment general category SC/ST/womengeneration for 5 years… it is INR 72,000…subsidy Ceiling of INR 50 additional INR 1,000

lakh (if 50% of per person towardsworkers are from ESI & EPF for 5 yearsHaryana)

Quality certifications

Nil Assistance of 50% of the total expenditure to a maximum limit of INR 10 lakh forobtaining quality certification

Electricity duty

100% exemptionfor 10 years

100% exemption for 5 years plus reimbursement of 50% of power tariff for 5 years

Skill Development

Maximum INR 10,000 per trainee

Maximum INR 13,000 per trainee

Ease of doing business

No mention Special provision for ease of doing business

Incentives in new Haryana textile policy vs. incentives offered by another state looking to establish garment industry in the region

INDIA CANVAS

An AO investigation…

WHY JAIPUR EXPORTERSARE STRUGGLING TO EVEN

REACH RS. 100 CRORE-MARK?

ome years ago, one well-knownSJaipur-based exporter

having3 factories, approached Tesco, H&M and few other such top brands/ stores to work with his factories. The factories were even certified but afterall this, the top brands refused to work with this Jaipur exporter without specifying the reason, even thoughthe rates offered by the exporter were impressively less from those being offered by exporters in Delhi-NCR. Not the one to be disheartened, the exporter then approached top Indian buying houses and assured them that he will get at least 4-5 big exporters in the loop, as the buying office clearly said that they did not wish to come to Jaipur to work with a single supplier, but even then the buying houses refused by saying that it would add to their expenses…!The fact that buyers are not taking the initiative to explore Jaipur, preferring to remain in the comfort

zone of the NCR, which is close to the city, is one of the biggestreasons that not even one apparel/ made-ups exporter of Jaipur is doing annual business of Rs. 100 crore. The city which has 200 good apparel and home furnishing export firms has only 5 to 7 companies which are doing turnover of Rs. 50 crore or above. Apparel Online approached both top and small exporters of Jaipur to find outtheir views on how the city can expand and companies would be able to touch the magical figure of Rs. 100 crore.Suresh Agarwal, MD, Aman Exports – doing annual business of more than Rs. 50 crore and equally strong in exports as well as domestic market – insisted that whatever export orders Jaipur has got so far is totally through importers. “Weare still waiting for big department stores or top brands like Zara,

Mango, Walmart, H&M, Tesco.Whatever orders Jaipur has, were given by importers and who are getting ‘eliminated’ by the day.”So, what is the solution? He adds,“The only solution is to bring the big stores to Jaipur; for this

everyonehas to work collectively, be it

ourCouncils, Associations or the StateGovernment.” Agarwal rightlypoints out that Jaipur exporters are ready to give products at lower price compared with any other hubs as they have advantages of less overheads and lower minimum wages. He does not agree with the opinion of fellow exporters that there are no orders in the market and even sentiments are low. “Few of my Delhi-based friends, who arealso into garment exports, don’t have time and are quite busy with orders from US and Europe,” says Agarwal. But he does agree that Japan, Brazil, South Africa and Russia, which

High Street Fashions, Jaipur– known for its socks (diabetic socks, flight socks), wrist bands & head bands,knee support, elbow support, among other products, is the only company in the city exporting such products to well-known global brands and doing very good business.

ESSENTIALS

Suresh Agarwal, MD, Aman Exports Dalpat Lodha, Director, Lodha Impex Rajeev Dewan, MD, Ma’am Arts

Mohammed Arif, Director, Kagzi Exports

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were the core markets for Jaipur are not in good shape due to various reasons.Recently, honoured by AEPC for maximum export to Japan, Dalpat Lodha, Director of Lodha Impex (turnover of Rs. 90 crore from Jaipur operations) endorses the view that buyers prefer not to place bulk orders in Jaipur. But he is positive that as soon as markets will pick up, Jaipur-based companies will have more orders. Ironically,exporters admit that not many in the city are interested in bulk orders.One reason for this is the kind ofmargins that Jaipur exporters enjoy,which are far better than whatmost of the other hubs have. Theattitude of most of the exporters isto make more money by less workor more profit in less orders, ratherthan doing volume business which gives such magical numbers, butnot necessarily the profitability. But now as the situation is changing and one doesn’t get so much orders, at bigger margins, so the industry is struggling.Another veteran of Jaipur, Rajeev Dewan, MD of Ma’am Arts,adds that in Jaipur exporters after attaining a certain level getcontented, as they have grown from the grassroot level with 3-4 machines and personally been involved inall aspects of the business, so the burn-out rate is higher. Many a times this also results in lack of initiation of technical and professional help, which has hampered growth. Vivek Khandelwal, Director, Pattern

India argues,

“How many factories

in Jaipur have IE Department oreven IE staff. We need to think andwork in this direction.”

Even in caseof companies that do want to

hire, retaining pass-outs from leading institutes, is difficult.In consent with all the above- mentioned reasons for current

condition of Jaipur, Mohammed Arif, Director, Kagzi Exports adds thatraw material sourcing right fromfabric to accessory is another hurdleto achieve bigger growth. “We

needat least 7-10 days to develop a sample

while in Delhi the same is possible

in 24 hours. It really matters.” Onthe issue of top brands not coming to the city, he says, “all of us have to be aggressive in our approach to catch them.”Jaipur’s products are more suitedfor boutique stores, as theycan give more value but not thevolume. The city is not makingany basic product or product ofmass manufacturing like shirts

or trousers. But exporters arehopeful that such products will be produced in the future as few companies are expanding their capacities. The industry believesthat even if one company shows the way, others will follow it. Arjun Singh Shekhawat, Director, RainbowTexfab says, “Fellow exporters needto work more on quality as day-by-day buyers’ quality parameters arebecoming higher. And one of themain reasons to lose on quality is thedependency on job-work, right from

the stitching to value addition.”Many factors that are not in the hands of exporters have also affected the potential growth of the city. Ashish Ahuja of AhujaOverseas says, “There is not enoughair connectivity that can bring thebuyers directly to Jaipur, similarlylogistics is also a hurdle. The citydoesn’t have big dyeing or printingmills.” However, Agarwal and fewother exporters stress that it is only the lack of sufficient orders which hampers business, all other things are secondary. “If any exporter gets orders, all other issues, like lackof trained professionals, and raw material availability gets solved anyhow,” he concludes.

“Our city started with traditional strengths like tie & dye, hand block and most of the exporters are still limitedto this, rather than mass production or exploring different product categories. Not only Jaipur, but the whole of Rajasthan does not have very heavy or big industry. Lack of Government support is also a big factor. Rajasthan has carpet, handicrafts, and furniture units which come under the cottage industry, so its beginning was slow.Being a tourist city, it is costly too; the land price is high and the state is lacking in aggressive policies like those of Jharkhand or Odisha. The city doesn’t have a cluster with allnecessary facilities like dyeing, washing, etc. The hub also misses a strong political will, which is required for such development; it is hard to get the job done in Jaipur.”– Ravi Poddar, President,GEAR (Garment Exporters Association of Rajasthan)An exceptional case is Bella Casa Fashion & Retail Limited, the only company doing Rs. 100+ crore from Jaipur and that too mainly working with domestic market and made-ups. Harish Kumar Gupta, Chairman of the company has some good suggestionsfor the industry. He says, “Exporters have to take risk and do lot of experiments.Printing techniques too need to change here; we have done men’s shirts for few brands, so this city can manufacture anything. People here are very content and don’t want to take headaches.They tell the buyer that we have this, if you want, you are welcome, otherwise bye-bye. This attitude needs to change. I assure the industry that if they will apply latest technology, they will definitely get benefited and grow.”

EXPORT STATISTICS

Apparel imports by US conclude with negative trend in 2016J a n u a r y - D e c e m b e r 2 0 1 6 2017 is shaping up to be another uncertain year for clothing industry and its supply chain for the US as Trump factor is still playing crucial role in clothing imports. US is officially out of the TPP; Border Adjustment Tax may be adopted, resulting in hike in retail prices. Federal Reserve’s monetary policy as well as more complicated trade decisions by the new Trump administration might trigger the trade uncertainties in the country.

Ladies dresses note positive trend for US in volume termsThe growth of ladies dresses import by the US has noted a surge in volume by 7.85%, though the value of imports in the category saw downward trend by (-) 0.24% as against the same period last year.

T-shirts export from India falls in value termsWhile the decline in value of exports by India to the US in the mentioned category was (-) 0.16%, volume saw a surging trend by 2.19%. Overall, the US registered decline in both value {(-) 4.29%} and volume {(-) 0.55%} in the import during the review period.

1

2

Global Apparel Imports by the US: Jan.-Dec. 2016

Total Decrease in Volume

1.06%Total Decrease in Value

[The information has been extractedfrom US custom site and further analyzed.]

5.23%Percentage Decrease in UVR

4.15%(Average UVR in review period was US $ 3.00 as against US $

3.13 inthe same period last year)

Change in Value

Cotton7.84%MMF1.93%

Wool11.28%Silk & Veg

2.65%

Change in Volume

Cotton3.86%MMF1.42%

Wool10.04%Silk & Veg

0.14%

Total apparel exports to the US by 6 major manufacturing destinations – Jan.-Dec. ’16(Qty & Value in M2 & US mn $)

Jan.-Dec. 2015 Jan.-Dec. 2016 % ChangeType of Apparel

Qty Value Qty Value Qty Value

Cotton 12245.05 41475.88 11771.99 38224.046 -3.86 -7.84

Wool 213.84 3699.61 192.363 3282.211 -10.04 -11.28

MMF 14446.85 38740.24 14652.29 37991.745 1.42 -1.93

Silk & Veg 309.91 1248.94 310.352 1215.831 0.14 -2.65

Total 27215.65 85164.67 26927.00 80713.83 -1.06 -5.23

Jan.-Dec. 2015 Jan.-Dec. 2016 % ChangeCountries

Qty Value Qty Value Qty Value

India 1023.55 3665.40 1044.238 3640.269 2.02 -0.69

Bangladesh 1869.94 5401.45 1862.265 5305.668 -0.41 -1.77

China 11385.72 30540.94 11174.81 27922.015 -1.85 -8.58

Pakistan 590.97 1433.39 534.705 1262.393 -9.52 -11.93

Sri Lanka 484.12 2037.45 470.993 1967.302 -2.71 -3.44

Vietnam 3135.56 10563.85 3352.373 10807.961 6.91 2.31

Total global apparel imports by the US – Jan.-Dec. ’16 (Qty & Value in M2 & US mn $)

Trousers, a growing category for Bangladesh for its exports to USBangladesh registered growth year-on-year, in value terms by 0.79%, while quantity too saw an increase by 1.81% in its export of trousers to the US.

Foundation garments export records massive growth for VietnamVietnam noted stellar surge in its export of foundation garments to the US both in value and volume terms. Value increased by 181.03% whereas, volumes were up by 158.16%.

Legwear import by US tumbles both in value and volumeLegwear was not a delightful import by the US as the country noted downfall in volume by (-) 6.04%, whereas value decreased by (-) 10.19%.

Ladies blouses import by US registers growthDuring the review period, the US noted surge to its import of ladies blouses. While increment of 2.60% was recorded in value, the volumes rose by 5.54%.

Exports of babies wear continue to grow for IndiaBabies wear exports from India grew both in value and volume. The country registered increase in value by 4.67% while volumes were up by 16.46% year-on-year.

China’s export to US sees downfall in sweaters categoryThe country has registered negative growth in the segment. There has been a downturn in both value and volume. Though the value decrement was (-) 19.03%, volumes were down by (-) 14.87%, compared with the same period last year.

3

4

5

6

7

8Item-wise quantity increase/decrease in apparel imports by the US: Jan.-Dec. 2016 (Qty. in doz, legwear in dpr, babies wear in kg)

Item-wise value increase/decrease in apparel imports by the US: Jan.-Dec. 2016 (Value in US mn $)

APPAREL TYPETotal Imports by US

Exports to US

China India Bangladesh Vietnam

2015 2016 % Change 2015 2016 % Change 2015 2016 % Change 2015 2016 % Change 2015 2016 % Change

Babies Wear 123,955,518

113,954,876

-8.07 60,485,685 54,839,888 -9.33 6,891,355 8,025,435 16.46 13,104,590 11,089,893 -15.37 10,053,813 9,394,530 -6.56

Foundation Garments

57,649,566 56,974,367 -1.17 33,892,455 32,134,885 -5.19 1,540,258 1,708,898 10.95 3,175,353 3,612,674 13.77 1,036,197 2,674,996 158.16

Jackets & Blazers 49,211,753 46,985,824 -4.52 18,749,984 18,324,668 -2.27 662,692 662,741 0.01 2,568,266 2,336,907 -9.01 8,099,797 7,680,354 -5.18Ladies Blouses 52,840,754 55,769,282 5.54 21,461,124 22,979,284 7.07 8,132,320 8,223,359 1.12 2,248,325 3,185,632 41.69 7,541,510 7,890,521 4.63Ladies Dresses 54,679,217 58,970,606 7.85 27,055,766 28,475,025 5.25 4,045,850 4,259,919 5.29 1,186,044 1,730,791 45.93 8,985,112 10,378,623 15.51Ladies Skirts 17,266,455 14,797,417 -14.30 6,886,821 5,706,041 -17.15 846,002 671,463 -20.63 1,040,468 1,060,454 1.92 2,821,188 3,269,791 15.90Legwear 353,523,70

3332,161,87

3-6.04 206,550,92

3206,471,93

1-0.04 3,178,940 2,771,342 -12.82 177,543 73,553 -58.57 2,125,924 2,768,282 30.22

Men's Shirts 43,250,968 42,776,378 -1.10 9,546,080 8,953,568 -6.21 2,869,591 3,133,962 9.21 12,376,823 12,356,714 -0.16 4,218,925 4,590,698 8.81Nightwear 52,968,855 52,158,025 -1.53 32,079,382 31,679,078 -1.25 3,041,352 3,127,445 2.83 1,985,391 1,790,650 -9.81 4,157,698 4,871,086 17.16Suits / Ensembles 14,108,164 12,318,920 -12.68 6,725,731 6,038,673 -10.22 498,759 564,761 13.23 371,638 242,817 -34.66 2,474,848 2,143,085 -13.41Sweaters 20,767,998 18,104,829 -12.82 17,374,989 14,791,621 -14.87 105,950 49,148 -53.61 1,233,540 1,147,951 -6.94 369,288 375,022 1.55Trousers 290,468,24

2285,610,88

2-1.67 85,173,086 81,980,955 -3.75 5,047,525 5,064,488 0.34 41,873,717 42,630,774 1.81 41,574,101 45,077,470 8.43

T-Shirts 563,450,215

560,365,769

-0.55 107,002,959

104,398,229

-2.43 22,543,541 23,037,628

2.19 22,107,903 20,789,044 -5.97 73,603,644 75,893,418 3.11

Undergarments 271,152,875

264,092,295

-2.60 51,491,681 50,619,944 -1.69 17,943,735 17,760,329

-1.02 28,375,435 25,418,008 -10.42 43,582,354 46,344,639 6.34

APPAREL TYPETotal Imports by US

Exports to US

China India Bangladesh Vietnam

2015 2016 % Change 2015 2016 % Change 2015 2016 % Change 2015 2016 % Change 2015 2016 % Change

Babies Wear 2,554.83 2,314.22 -9.42 1,195.60 1,065.56 -10.88 158.10 165.48 4.67 239.56 204.83 -14.50 226.07 211.32 -6.52Foundation Garments

2,601.86 2,580.10 -0.84 1,272.41 1,202.14 -5.52 107.94 126.50 17.20 72.11 77.04 6.83 53.55 150.48 181.03

Jackets & Blazers 7,600.18 6,834.56 -10.07 3,607.24 3,200.34 -11.28 102.70 91.19 -11.21 390.79 329.18 -15.77 1,423.38 1311.79 -7.84Ladies Blouses 3,573.83 3,666.73 2.60 1,385.71 1,384.97 -0.05 614.69 615.54 0.14 126.17 176.83 40.15 399.73 424.06 6.09Ladies Dresses 4,929.74 4,917.89 -0.24 2,411.15 2,289.49 -5.05 366.23 392.39 7.14 50.62 65.83 30.04 673.30 699.51 3.89Ladies Skirts 1,087.09 914.55 -15.87 394.64 326.50 -17.27 67.21 54.12 -19.48 40.22 42.88 6.61 180.14 174.99 -2.86Legwear 2,180.70 1,958.47 -10.19 1,220.12 1,137.57 -6.77 17.27 18.23 5.53 0.99 0.70 -29.51 12.68 14.77 16.50Men's Shirts 3,687.53 3,496.98 -5.17 856.06 777.51 -9.18 247.24 244.17 -1.24 738.59 711.58 -3.66 340.00 368.77 8.46Nightwear 2,387.44 2,270.76 -4.89 1,435.12 1,346.06 -6.21 100.20 109.80 9.58 61.00 55.67 -8.73 225.27 230.57 2.36Suits / Ensembles 1,358.16 1,215.08 -10.53 312.42 291.16 -6.80 74.51 61.64 -17.27 24.87 17.36 -30.19 167.56 167.42 -0.08Sweaters 2,225.28 1,850.91 -16.82 1,835.23 1,485.94 -19.03 38.60 28.70 -25.64 48.86 44.13 -9.68 29.10 21.88 -24.80Trousers 18,731.42 17,869.03 -4.60 4,962.08 4,517.70 -8.96 381.91 363.00 -4.95 2,367.00 2,385.65 0.79 2,499.36 2669.57 6.81T-Shirts 21,414.71 20,496.37 -4.29 5,111.96 4621.182 -9.60 919.009 917.56 -0.16 619.59 584.35 -5.69 3,146.44 3167.82 0.68Undergarments 3,990.92 3,845.93 -3.63 808.49 794.30 -1.76 317.38 302.09 -4.82 311.21 285.86 -8.14 562.76 549.54 -2.35

Canada Apparel ImportsJ a n u a r y - D e c e m b e r 2 0 1 6

Canadian economy is under threat as Trump decides to end TPP agreementEven though holiday season was around, Canada still did not see any positive turnaround in clothing import in the month of December. The year 2017 is also projected to be uncertain as far as import of clothing is concerned because of Trump’s decision of not proceeding with the TPP that will have significant impact on trade issues resulting in the skyrocketed retail prices within the country. Hence, Canada is evaluating whether it wants to pursue specific bilateral trade agreements or work more closely with another regional trading block, led by China.

2.48%While the knitted segment saw decline of (-) 2.47%, the woven segment registerednegative growth of (-) 2.49% in value terms.

Canada Imports

Sri Lanka Exports5.97%

While the country saw hike in knitted category by 3.45%, in woven segment it registered a boost of 9.83%.

B’Desh Exports3.63%

Exports in woven category increased by 4.01% in value, while exports in knitted garments also surged by 3.14%.

1.46%In knitted segment country registered a surge in its exports to Canada. While value of exports was up 1.00% in knittedsegment, in woven also there was a gain of 1.80%.

Indian Exports 0.13%

The country registered decline in knitted garments by (-) 1.74% in value, though in woven segment value of exports gained 2.14%.

Vietnam Exports

Cambodia’s exports to US down by 7% in 2016, while Myanmar registers huge rise of 145%The uncertainties after Trump taking over as US President, rising exports from Vietnam and emergence of new market, Myanmar resulted in 7 per cent decline in Cambodia’s total exports to the United States to US $ 2.8 billion in 2016 compared to more than US $ 3 billion in 2015. However, the US’ withdrawal from TPP has given a ray of hope to Cambodia.The TPP would have eliminated most tariffs in the garment sector and the country would have lost to Vietnam. In the meanwhile, Myanmar has emerged as the “dark horse” in garment trade as it has come out strong with an aggressive and concrete master plan. According to the Myanmar Garment Manufacturers Association (MGMA), the Myanmar apparel industry operating under the cut-make-pack system exported more than US $ 1 billion worth of clothing in 2016 as against US $ 408 million in 2015, noting a massive increase of 145%.

Trad

e U

pdat

e

8.25%In the knitted garments segment, the country registered declining trend of (-) 8.33%, while the woven garments also saw a negative growth of (-) 8.17%.

China Exports0.41%

In woven category, there was a rise of 12.77% in value, though knitted segment exports registered a drop of (-) 11.07%.

Pakistan Exports

Freudenberg exhibits new sustainable paddingInnovative technical textiles manufacturer Freudenberg Performance Materials Apparel exhibited the new comfortemp® fibreball padding at the ISPO Munich 2017. Developed in partnership with Napapijri (part of apparel firm VF Corporation), the comfortemp® fibreball material is a padding made of small interconnected fibreballs. According to the company, its heat insulation is comparable to thatof ‘down’, and its breathability is twice as high as that of conventional padding. Napapijri will be marketing comfortemp®fibreball Technology under its own name: Thermo-Fibre® technology.It may be mentioned here that most of these paddings are produced sustainably. The Group is one of the largest recyclers of polyester bottles throughout Europe. 50 per cent of the fibres that the companydeploys are from recycled polyester.

In the sports sector, it does not just depend on the feel and the grip. Technical performance, rapid development and implementation– along with specific demands on the product – play a much greater role. “This is where Freudenberg Performance Materials Apparelis well positioned as part of the Freudenberg Group because we have the opportunity to generate innovations throughout the Group. Far beyond what a conventional lining and textile producer can achieve,” said Ulrich Scherbel, General Manager – Global Apparel Division, Freudenberg.Invista’s Cordura bags 51 awardsInvista’s Cordura brand has been honoured with 51 awards across six key textile categories in its 50th anniversary year at ISPO Textrends, part of ISPO Munich.The ‘Soft Equipment’ category features performance products for tents, backpacks, sleeping bags, shoes and more, with 19 Cordura

A&E launches new reflective industrial sewing thread

American & Efird (A&E), a global leader in industrial sewing thread manufacturing, has announced the official launch of a new product in reflective innovation, Anefil™ Reflector having polyester fibre type.A&E’s Anefil™ Reflector is an industrial sewing thread designed and engineered for reflective visibility. Ideal for creating a decorative, reflective seam in cover- stitch and over-edge stitch applications, Anefil™ Reflector can be used in a wide variety of apparel categories including, activewear, workwear, safety apparel, swimwear, denim and footwear.“A&E’s spirit of innovation continues with this new reflective product, Anefil™ Reflector,” said Mark Hatton, Vice President (Americas), A&E. adding, “Offered in a Tex 120 size, the new thread has twisted multi-filament thread construction. This product is a versatile, decorative sewing thread and a valuable addition to the reflective market.”Unveiling the features of Anefil™ Reflector, A&E states this thread reflects light back to the light source, thus ensuring the maximum visibility in low light situations. In addition, this adds another layer of functionalityin sewing that has traditionally only incorporated reflective tape. Hence, Anefil™ Reflector provides maximum luminescence and durability while maintaining aesthetic appearance. It’s worth mentioning here that through its global network, A&E’s products are manufactured in 23 countries, distributed in 50 and sold in over 100 countries worldwide.

ISPO Munich 2017I n t r o d u c e s m a n y i n n o v a t i o n s

The 2017 edition of the world’s largest sports trade show ISPO Munich concluded successfully in Germany recently with an increase of 6 per cent in visitors’ footfall in comparison to last year. The event attracted more than 85,000 visitors this year from 120 countries as against 81,368 at the 2016edition. This noticeable surge in the number of visitors was from Italy, Russia, UK, China and US. Many innovations were on display that made the event a trendsetter for the sports and activewear segment.

The show noted 97 per cent positive response fromthe participants. Also, the industry’s optimistic approach was clearly visibleat the four-day show. On the exhibitors front, 3 per cent in rise in display was seen witha total of 2,732 participants who showcased their latest products, technologies and innovations at the fair.

RESOURCE CENTRE

fter being at the helm of Esprit, India for almost 5 years,AFarah Ahmed, Head of Sourcing said goodbye to the

company.Zahid Abed, her counterpart in Bangladesh, has in the meanwhile taken up her responsibilities, but it is not confirmed whether Zahid will manage both countries or is handling India office temporarily. Reliable sources informed Apparel Online that Farah left the company for personal reasons. As of now she has not joined anywhere. Graduate from Aligarh Muslim University and having an Executive Program from ISB, Hyderabad, Farah has worked with Triburg for almost 10 years followed by a 7 years’ stint with Monsoon Accessories/Urban Craft India.Zahid Abed has been working with Esprit from last two years and prior to that he spent 7 years as V-P at Li & Fung Bangladesh Ltd. Currently, Esprit is sourcing about 29 per cent from Bangladesh (almost same compared to China) and 7 per cent from India (on fourth number); Vietnam is contributing more than 8 per cent to global sourcing.BCBG shuts 120 stores; Group may go for bankruptcy proceedingsBCBG brand, associated with California-based BCBG Max Azria Group Inc. is closing down its 120 stores (mostly in the US). These stores either are unprofitable or have untenable lease agreements and will be shut after conducting closing store sales over the next eight to 10 weeks. The company is reducing its physical retail footprint after being negatively impacted by growth in online sales at its rivals. Media reports suggest that the group is preparing for a possible bankruptcy filing as it looksto restructure its debt. The Group has more than 570 boutiques globally (including more than 175 in the US alone).

Eyes & Ears

Farah Ahmed leaves Esprit; Zahid Abed takes charge

One of the stores of BCBG

Farah Ahmed Zahid Abed

fabrics recognized in this category including Cordura TPX fabric by Chang Ho, Cordura Lite, Ballistic, Classic and HP fabrics and Cordura AFT knits. The fabricsin ‘Street Sports’ category range from denim with new performance levels to lighter functional fabrics and finishes with a fashionable edge. 10Cordura fabrics were chosen as winners in this category, including Cordura Combat Wool Denim from Artistic Milliners, technical performance, comfort- driven Cordura denims from Kipas, Turkey and long-lasting Cordura 4ever fleece by Yoonia.The ‘Outer layer’ category features lightweight but ultra-resistant woven fabrics that can provide protection against the elements, which includes winners such as ultra-lightweight Cordura Naturalle fabrics all under 80 gsm from Yoonia, LeeJo and One Chang mills in Korea and Cordura CombatWool suiting fabrics from Italian specialist Marlane.Another category ‘Base layer’ featuring next-to-skin fabrics for technical underwear, with pre-shaping, support, thermal or moisture managementperformance, Cordura 4ever knit

fabrics from Yoonia were honoured in this category with Best Product and three additional recognitions. Also selected was a Cordura Combat Wool knit fabric. ‘Second layer’ category features fleeces, lightweight protective fabrics and performance linings usable for maximum thermal characteristics. Cordura 4ever wool flannel shirting by Chia Her was among the category winners. The sixth category ‘Membranes & Coatings’ features technical membranes.Cordura Naturalle fabrics by One Chang and Yoonia and Cordura Nyco fabrics from Samtex were recognized in this category.“We are pleased to see how our valuable authorized mills are being recognized for their dedicationto creating long-lasting, durable Cordura fabrics, and we are truly humbled to receive a record- breaking 51 awards in our 50th year. We believe the future of innovation is collaboration, and as we celebrate this major milestone in our brand’s history, we are dedicated to developing the next generation of durable solutions together,” said Cindy McNaull, Global Cordura Brand and Marketing Director, Invista.

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