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The Confederation of Indian Textile Industry (CITI), the leading apex industry associations of the textile & clothing industry in India, is launching an innovation contest ‘Innotex 2018’ to create an innovation ecosystem in textiles and clothing. The contest will cover areas of design, method, cost, process and product in any sector from ginning to garment. Only Indian nationals living in India or abroad either individually or in a group of four can participate. Further, innovations older than April 1, 2017 will not be eligible and the last date for submitting the entries is September 20, 2018.
The final round of the contest will be held on November 27-28, 2018 at Vigyan Bhawan, New Delhi along with CITI Global Textiles Conclave 2018. Apart from cash prizes, winners will be rewarded with recognition on a credible platform and a market for the product.
Burberry will stop the practice of destroying unsaleable products, with immediate effect. The company will also no longer use real fur. Its Riccardo Tisci’s debut collection to be launched later this month will not have any real fur and the business will phase out existing real fur products.
Burberry formed a five year responsibility agency last year, which covers the entire footprint of its operations and also extends to the communities around it. The brand became a core partner of the Make Fashion Circular Initiative convened by the Ellen McArthur Foundation in May 2018. In the past year, it has created a unique partnership with sustainable luxury company Elvis & Kresse to transform 120 tonne of leather offcuts into new products over the next five years.
With growing economic prosperity, Asean consumers are spending more on fashion and lifestyle items. A Euromonitor International survey reveals, the region’s consumer expenditure on clothing and footwear amounted to $ 51.2 billion in 2017. Over the next five years, it is expected to grow on an average 7.3 per cent annually to reach $ 72.7 billion in 2022. According to HKTDC’s ASEAN Middle-income Consumer Survey, more than half respondents in Jakarta, Kuala Lumpur, and Bangkok are expected to spend more on fashion items in next two years. The distribution of fashion spending was: business attire (28 per cent), casual wear (26 per cent), shoes (22 per cent), accessories (12 per cent), travel goods and handbags (8 per cent), and spectacles (4 per cent).
Fashion distribution channels
Concept stores, department stores and multi-brand stores are dominant distribution channels for fashion in Asean. Aside from
bricks-and-mortar retailers, e-commerce has quickly become an independent force in the fashion industry as well.
Concept stores:
Concept stores sell well-curated products matching that store’s special theme. They constantly seek unique items to add corresponding accessory labels to their product offerings.
Department Stores:
Department stores are an important fashion distribution channel in Malaysia. Major department store chains, such as Parkson and Metrojaya, continue to upgrade their product portfolios to include a wider selection of brands attractive to middle- and high-income consumers. In Thailand, Central Group has Central Department Store, Robinson Department Store and Zen, as well as managing Marks & Spencer and MUJI. The Mall Group operates The Mall department stores, Siam Paragon, The Emporium, and The EmQuartier.
Online Platforms
With just three per cent, e-commerce penetration in the Asean countries it is still only 3 per cent of total retail sales. The Asean fashion ecommerce market includes classified sites (Mudah and OLX), C2C (Tarad, Tokopedia, Bukalapak, Shopee), B2C (Lazada, Zalora, MatahariMall) and brands’ own sites (H&M and Adidas). Retailers like Central Group and MAP Group, have also embraced e-tailing by creating their own online platforms.
Making inroads into the market
Luxury groups such as Louis Vuitton, Christian Dior, Chanel, Prada, and many more, usually enter the Asean market by opening self-owned flagship stores to ensure a total control of brand image. Sportswear brands, such as Nike or Adidas, mostly expand by means of franchising. Fast fashion brands, such as H&M, Zara, and Uniqlo open branded retail shops in major cities across Asean.
Upcoming fashion designers can also approach department stores with their portfolio or propose a joint promotion event, such as a trunk show. Large brands can choose to participate in large-scale iconic fashion shows in the region, such as the Bangkok International Fashion Fair and Kuala Lumpur Fashion Week. Smaller brands can showcase their collections in private fashion events organised by fashionista and public relations consultants. Partnering with a retailer to host a trunk show is another alternative.
Social media has become an essential tool for marketing, public relations, and customer service. Brands need to make sure that their social media content is timely, engaging, and relevant to their target market. They can also hire Influencers to gain immediate access to the right customers.
IMG Reliance has launched a fashion portal called Voice of Fashion. This will bring fashion news and trends to customers. The editorial viewpoints will be gender equal, inclusive and sensitive with an unbiased view of people and the world and thus as its microcosm the fashion and design industry.
Voice of Fashion aims to be a one stop platform for a representative overview of fashion-creation, curation and consumption and hopes to track and lead fashion conversations in India. While the initiative is not yet a full-blown fashion e-commerce platform for shoppers, Reliance may venture into the world of e-commerce via fashion.
With the Voice of Fashion application, users have access to fashion journalism via their mobile devices. In fact, the app has been designed specifically for mobile device users. The app introduces imaginative stories, profiles visionary stylists, talented designers, arts, handlooms, craftsmen, covering the latest trends in the world of fashion.
Users will be able to download it free of charge from the iTunes App Store. Users can share photos and news stories while receiving alerts regarding news in the world of fashion. Currently, almost half of apparel purchases are influenced by the mobile, and by 2022, almost two out of three apparel purchases, and more than 70 per cent of accessory purchases, will be influenced by the mobile.
Narinder Kumar and Ram Krishan have been re-elected president and chairman of Garments Machinery Manufacturers and Suppliers Association (GMMSA), Ludhiana, respectively. A prominent association of Ludhiana, GMMSA works for the growth of textile and apparel industry of Punjab. The election for the term 2018-20 was held under the supervision of the city’s leading apparel manufacturers including presiding officer Ajit Lakra, President, Ludhiana Knitters Association and observers Harbhajan Singh, Oster Group and Narinder Miglani, Knitwear Club.
Kumar and Krishan both assured members that no stone will be left unturned for the betterment of the association and the industry on the whole. Both of them also appreciated the efforts to hold the 3rd edition of the GMMSA Expo in February 2018 and vowed to organise the 4th edition of the event on a grandeur scale from January 25-28, 2019 at Ludhiana.
India has some reservations about joining the Regional Comprehensive Economic Partnership (RCEP). The main objection is it would bring India into a free trade relationship with China and worsen the already large trade deficit India has with China. India also wants a slower and graduated elimination of tariffs in order to safeguard the interests of Indian domestic industry.
RCEP is a trans-Asia mega trade agreement which comprises the 10 Asean countries and their six summit partners India, China, Japan, South Korea, Australia and New Zealand. Other developing countries in the RCEP, with economies much smaller than India’s, are willing to risk competition with China but India is not. One reason is that the Indian economy is not as competitive as they are. Lack of competitiveness is due to several factors but transaction costs of exports are as much as ten per cent of export value.
The average cost per container for Indian exports is more than double the rate in China. It takes 17 days on an average to deliver exports from India. For China it is five days. Exports will become even less competitive if India stays out of RCEP since members will enjoy preferential access. The question now is: Weather India is ready to take the plunge and commit itself to regional economic integration or if the risks to India’s economy are significant enough to warrant it to opt out.
Riri, based in Switzerland, makes zippers and buttons for the high-fashion, outdoor and denim markets. The collection is characterized by sophisticated and eclectic colors made of enigmatic violets and carefully reinforced reds disrupted by flashes of acid green and blue, but also by natural materials, evocative paints and original and innovative shapes.
Historical and elegant die-cast zinc zippers are back. The use of paints on pullers makes for an illusionary art where the borders between being and appearing are fuzzy. The painting with rubber effect, both shiny and matte, is complemented by processing with a velvet, leather and rust touch effect. Alongside historical and elegant zippers with zinc teeth die-cast directly on the tape are zippers with acetal resin teeth made with an injection process and spiral zippers ideal for apparel and leather goods.
Natural materials like olive wood, leather and real horn decorate buttons and pullers. The metal zip appears in three galvanic finishings, amber gold, clear gold and deep-colored aged gold. The Eloxal Monocolore is the traditional lightweight zip with aluminium teeth which can be colored using a new anodizing process which results in a bright and uniform color. Riri’s pullers are actual sliders characterised by a unique and refined design.
Turkey’s currency has lost almost 50 per cent of its value over 12-months. For Turkish apparel and textile exporters, there are short term benefits to a devalued currency. Apparel exports from Turkey increased 7.4 per cent in the first seven months of 2018. A similar increase, perhaps even greater, can be expected in the next half year.
The problem for exporters in Turkey is raw materials. Most mills source raw materials from international markets in denominations of euros or dollars. With raw materials making up more than half of fabric costs, the challenges for mill owners are obvious. Many mills will be locked in fixed price term contracts in Turkish lira, yet with raw material costs effectively increasing 30 per cent, their bottomlines are being affected as they absorb cost increases internally.
Turkish companies have borrowed heavily to benefit from a rapid growth in the construction industry. Now they will have to struggle to pay back loans as borrowing costs rise to 18 per cent a year. Inflation is also at dangerously high levels. Inflation goes hand in hand with a weakened currency, and is currently running at 18 per cent in Turkey. This can be stopped only by rising interest rates.
As wages in China continue to rise, global brands and retailers are looking for other countries to produce their products cheaply. In the era of fast fashion and a highly competitive marketplace, managing production costs is a key ingredient of success.
Wages in countries like Vietnam, Bangladesh, Myanmar and Ethiopia are low, and workers are compelled to put in long hours, often in unsafe conditions. Rarely do employees have the right to organize. Despite these and other chronic problems, the globalization of the world’s economy in places like Myanmar typically has had a salutary effect. The hundreds of millions of new jobs that a globalized economy has generated have contributed to a dramatic reduction of global poverty. More than 60 per cent of East Asians were living in extreme poverty in 1990. Today, that number has fallen to less than five per cent.
Women in Myanmar, for instance, get an opportunity at building a livelihood and the movement toward a sustainable garment industry is gaining momentum. To boost infrastructure investment, Myanmar is looking to kickstart a number of projects with China, its largest investor. China is also Myanmar’s largest trading partner, making up one-third of its total trade volume.
Synthetic textile manufacturers in India hope to see a turnaround. In a major relief for domestic synthetic textile producers, the rupee has depreciated over 11 per cent so far this calendar year. There was a 47 per cent increase in imports of readymade garments made out of manmade fiber between April and July this year compared to the same period last year. Import of manmade staple fibers, yarn, fabrics and made-ups jumped y 26 per cent for the four month period ending July 2018 compared to the same period last year.
Synthetic textile manufacturers are hoping imports of readymade garments slow on the rupee depreciation. While rising crude oil prices have made the inputs of synthetic textiles costlier, the rupee depreciation will make import prices worthy and exports profitable.
The major part of this rupee fall was seen post-April. However, export orders booked after April will start getting executed now. Hence its impact would be seen partly in the September quarter and fully in the December quarter. Thus, India’s exports of synthetic textiles are set to revive in the September quarter. India’s exports of synthetic textiles and raw materials declined in some categories while others remained flat during the April–July 2018 period.
