FW
"CMAI’s Apparel Index for Q4 Jan-Mar FY 2017-18 indicates a growth recovery at 2.88 points. All the three sized brands termed as Big brands (Mid, Large and Giant) together recorded a growth of 7.61 points. Amongst these, Giant brands, with an impressive growth at 10.00 points led the way. While mid and large brands too were not far behind with growth of 6.26 and 8.50 points. Small brands, however, at 0.75 points, seem to be struggling for growth, indicating the gravity of recession pushing down these smaller players, who are not in a good position to outsmart their business practices, just yet."
CMAI’s Apparel Index for Q4 Jan-Mar FY 2017-18 indicates a growth recovery at 2.88 points. All the three sized brands termed as Big brands (Mid, Large and Giant) together recorded a growth of 7.61 points. Amongst these, Giant brands, with an impressive growth at 10.00 points led the way. While mid and large brands too were not far behind with growth of 6.26 and 8.50 points. Small brands, however, at 0.75 points, seem to be struggling for growth, indicating the gravity of recession pushing down these smaller players, who are not in a good position to outsmart their business practices, just yet.
Commenting on scenario, Satyen Momaya, CEO, Celio, that is one of the Large brands avers, “Stronger GDP growth rates in the last quarter and the current fiscal year have translated into handsome growth for discretionary categories such as apparel”. Talking on the similar optimism underling their product line, Neha Shah, Marketing Head, Pepe Jeans India says, “The denim industry has witnessed a slow and gradual growth over the last few years. However Pepe Jeans has witnessed a steady growth in the last couple of years by expanding into online channels and omnichannel retailing.
A comparison between Small and Big Brands index value 0.75 and 7.61 respectively, indicates a very big gap in
the growth performance. The biggest gap is in Sales Turnover. Big Brands increased their Sales Turnover to 4.90 points, against insignificant growth of 0.12 points for Small Brands.
Increase in Sales Turnover
Sales turnover in Q4 reflected an index growth of 1.6 points. Nearly, 54 per cent brands reported an increase in sales this quarter. Giant and Large Brands, which grew at 14.3 per cent each. “The reason for an increase in our sales turnover was , we focused on increasing and streamlining our product line by categorizing production to increase productivity, explains Blazo’s owner Niyam.
Improvement in Sell Through
Nearly 54 per cent of the brands reported an improvement in their Sell Through in this quarter, while for 40 per cent brands the Sell Through remained the same, and around 6 per cent brands recorded a dip. In order to manage better growth and performance brands have been maneuvering their business, as Radhesh Kagzi, President, Creative Lifestyles Pvt. Ltd says, “We have reduced our quantities per style and done ISTs for goods. This has resulted in better Sell Through and reduced Inventory Holding/investment.
Inventory Holding: Inventory Holdings for almost 45 per cent
"As per latest Apparel Export Promotion Council (AEPC) figures, India’s apparel exports have dropped 17.78 per cent to reach $1.49 billion, with an overall dip of 3.83 per cent to $16.71 billion in 2017-18. At the same time, India’s overall goods exports increased 9.78 per cent to $302.4 billion in April-March 2017-18, but declined 0.6 per cent to $29.11 billion in March 2018. Commenting on the startling figures, HKL Magu, Chairman, AEPC, says the fall has been much more in the case of apparel exports. These figures clearly indicate apparel exports are not only stagnating but also heading towards a recession. Apparel manufacturing registered a decline for the tenth straight month in February."
As per latest Apparel Export Promotion Council (AEPC) figures, India’s apparel exports have dropped 17.78 per cent to reach $1.49 billion, with an overall dip of 3.83 per cent to $16.71 billion in 2017-18. At the same time, India’s overall goods exports increased 9.78 per cent to $302.4 billion in April-March 2017-18, but declined 0.6 per cent to $29.11 billion in March 2018. Commenting on the startling figures, HKL Magu, Chairman, AEPC, says the fall has been much more in the case of apparel exports. These figures clearly indicate apparel exports are not only stagnating but also heading towards a recession. Apparel manufacturing registered a decline for the tenth straight month in February. He revealed AEPC was working with policymakers for an early resolution of the sector’s problems, including working capital being stuck due to slow GST refund and reduction in drawback rates. The sector currently employs 12.9 million workers but due to the ongoing slide, several clusters have been impacted, Magu points out.
For the US, subsidies is an issue
The other negative news for Indian apparel industry is, as per latest reports, the US, which is one of the biggest
importers of Indian apparel and textiles, is all set to preempt apparel export subsidies after the US had challenged Indian export subsidy programs at the WTO. The US government is contemplating taking India to the World Trade Organisation forum for continued export subsidies in apparel and other sectors. As a counter measure, the Indian government plans to challenge the US contention at WTO, bearing in mind that if the decision of the world body goes against India, it would adversely impact India’s apparel and other key exports to the world. India’s apparel export to the world between April 2017 and January 2018 was $13,783.14 million. In 2010, India crossed the threshold in apparel and textiles sector by attaining a 3.25 per cent export slot in the global export market, reflecting India’s export competitiveness in the sector.
As per the provisions, once the threshold is crossed, the country gets an eight year reprieve to phase out subsidies. The extension is about to get over by the end of this year. According to WTO norms, subsidies can be non-actionable or prohibited as stipulated by the Subsidies and Countervailing Measures (SCM) agreement. Specifically, subsidies that are prohibited include the ones given to a firm or industry as in the case of apparel and textiles. The SEZ policy and the MEIS scheme which are applicable to the textiles and apparel industry come under this prohibited category. As per SCM norms, WTO member countries can take remedial action against India for such schemes and policies. In short, if India fails to curb the subsidies mentioned under the prohibited list to the apparel and textiles industry within the stipulated eight year period, member countries can refer the issue to the Dispute Settlement Board of the WTO. In this case, the US being the complainant, has the options of imposing countervailing duty on imports from India, which will result in Indian exporters losing competitiveness in the US textiles and apparel market. If that happens, the ultimate beneficiaries will be Bangladesh, Taiwan and Vietnam.
Trump Administration’s new Generalised System of Preferences (GSP) country eligibility assessment process outlined in October 2017, and GSP country eligibility petition imply for India, the GSP country eligibility review is based on concerns related to its compliance with the GSP market access criterion. India has implemented a wide array of trade barriers that create serious negative effects on the US commerce. The acceptance of these petitions and GSP self initiated review will result in one overall review of India’s compliance with the GSP market access criterion, the USTR statement said.
"Indonesia is ranked among the top ten largest textile producing countries. However, the nation is far away from threatening China's dominant position. Whereas China controls about 35 per cent of global textile markets, Indonesia controls only about 2 per cent. The Indonesian government targets to increase the nation’s value of exported textiles and garments to $75 billion by the year 2030, implying that this industry would contribute around 5 per cent to global exports. The recent TheInsiderStories data points out that Indonesia has cheaper labour than other textile producing countries."
Indonesia is ranked among the top ten largest textile producing countries. However, the nation is far away from threatening China's dominant position. Whereas China controls about 35 per cent of global textile markets, Indonesia controls only about 2 per cent. The Indonesian government targets to increase the nation’s value of exported textiles and garments to $75 billion by the year 2030, implying that this industry would contribute around 5 per cent to global exports. The recent TheInsiderStories data points out that Indonesia has cheaper labour than other textile producing countries. For example, Vietnam as one of its main competitors in ASEAN has the minimum wage at the average of $122-176, as compared to Indonesia at the range of $109-274. Notably so Indonesia’s textiles industry in the past had contributed significantly to Indonesia’s economy, representing 10.1 per cent of the total export.
Back in 2005, the textile industry, which employs around 1.2 million people in 4,500 factories, became the biggest net exporter with a surplus of around $7 billion. Previously in 2004, Indonesia was the biggest textile and clothing exporters in Southeast Asia. Globally, the country reached the ninth rank among the world’s leading clothing exporters and tenth among textiles exporters. But the recent reports trigger a bit of complexity and the challenging scenario for the Indonesian textile industry as the industry has remained uncompetitive due to its high dependency on imported raw materials, high costs of energy and logistics, and market access. As a matter of fact, during the last five years, the Indonesian textile industry has been declining, despite its increasing demand at the global market. During the textile bullish market in 2016, Indonesia’s textile market share only reached 1.8 per cent of the world textile market, which has slipped to 1.6 per cent today.
The country has lost this opportunity to Bangladesh and Vietnam, as its market share is far below Vietnam at 5 per cent and Bangladesh at 7 per cent. Last
year, Indonesia only managed to realise total textiles exports at $12.53 billion, far lower than Vietnam which managed to reach at the total $30 billion. Such figures reflect that cheap labour alone can’t do wonders to attract investments, the country needs to brace up on aspects too to win over global trust.
Factors restricting growth
The country needs to work on four factors, which include energy cost. Electricity tariff in Indonesia is more expensive than Vietnam and Bangladesh. Indonesia’s electricity tariff is about $0.12 per kWh, much higher than Vietnam and Bangladesh which is only $0.7 and $0.5, respectively. Secondly, Indonesia is still dependent on imports of textile raw materials, so it cannot get cheap raw materials. The high dependence on imports has also made Indonesian textile industry highly susceptible to the changes in the global economy. Indonesia currently imported almost 100 per cent of cotton as Indonesia’s cotton production is only 4 per cent of the total demand. Indonesia imports more cotton from America, Brazil, and Australia.
The textile industry in Indonesia is also hampered by high logistics cost, which is the highest in Southeast Asia. Logistics cost including transport, warehousing, and inventory in Indonesia has so far accounted for 24 per cent of the country’s GDP. The country’s logistics cost-to-GDP ratio is far higher than those of neighbouring countries, including Thailand and Malaysia where the ratio reached 15 per cent and 13 per cent, respectively. Indonesia is also poorly scored in the World Bank’s 2016 Logistics Performance Index (LPI), as it got the 63rd rank out of 163 countries. Indonesia’s logistics infrastructure, international shipment, and logistics competence are elements scored the least.
Lastly, Indonesian textile exports are also hampered by market access. When exporting to the European Union, Indonesian products are still subject to import duty in the range of 11 per cent. Meanwhile, Indonesia’s competitors, namely Vietnam, Bangladesh, Thailand, and Ethiopia, enjoyed 0 per cent of import duty from EU. If Indonesia wants a greater foreign access, it needs to work on these four major factors to remain competitive and win global textile contracts.
The sixth edition of Copenhagen Fashion Summit 2018, held from May 15 -16, 2018, in Denmark, launched a new component, Innovation Forum - an exhibition space for sustainable solutions to address the urgent need to support and accelerate the decision-making process for fashion businesses.
The summit was attended by over 1,300 visitors from over 50 countries. It hosted around 50 exhibitors including some of the most noteworthy sustainable solution providers to the fashion industry, such as ISKOTM, I:CO, Piñatex, Econyl, and Sustainable Angle, etc.
Organised by Global Fashion Agenda, the summit comprised roundtables, conversations, and business meetings, and a panel discussion featuring the Strategic Partners of Global Fashion Agenda: Kering, H&M, Target, Li & Fung.
Sustainable Apparel Coalition addressed the issue of why sustainability should be a leadership priority and also discussed some of the recommendations from the recently released Pulse of the Fashion Industry 2018 report.
Fespa will be held in Spain, March 24 to 27, 2020.
After three successive years in Germany, the event is moving back to a southern European host city in 2020. Madrid was a clear favorite among exhibitors and visitors for a Fespa event.
The profile of Fespa as the leading European exhibition for textile printing continues to increase. Vendors offered new textile printing solutions. The aim is to move the Fespa global print expo to an annual cycle and make every event a comprehensive showcase of all processes and products.
Fespa covers screen, digital and textile printing. It includes printed interior décor applications. Printers and sign makers attend the event. It brings together a buoyant specialty printing community. Visitors can have access to a comprehensive line-up of suppliers of technology, materials for printing and sign-making, consumables and accessories. It will be co-located with European Sign Expo.
The expo is a forum for meeting customers face-to-face, making concrete sales and developing business pipelines.
The Spanish capital is the third largest city in the European Union.
European Sign Expo is Europe’s leading exhibition for non-printed signage and visual communications. Visitors can experience the latest products and innovations on display from dedicated signage exhibitors and Fespa exhibitors.
Model Zara Peerzada is the official spokesperson for Mango in Pakistan. Recently, she was asked to do the brand’s first ever cover and fashion shoot in Pakistan.
Mango has been her go-to store for long and it’s become a real collaboration. International brands are now choosing to work with Pakistani talent. Mahira Khan is with L’Oreal, Ayesha Omar with Maybelline and now it’s Zara Peerzada for Mango.
Mango launched in Pakistan in 2013 and has done well for the market since then. The brand serves customers in almost 2,500 cities globally and 108 countries, Pakistan being one of them.
Mango is a Spanish clothing design and manufacturing brand for women. The Mango concept arises from the interrelation between a quality product with a distinctive design and a coherent and unified brand image. The brand dresses the young, modern and urban woman for her daily needs. The target group is urban women aged between 18 and 40.
The brand also has a line targeting Muslim customers. The collection will include casual clothes such as jackets, kaftans, leggings, tunics and oversized shirts, in addition to festive outfits including long dresses, midi skirts in fantasy fabrics and double-layer body wraps.
The 91st Textile Institute World Conference (TIWF) will be held from July 23-26, 2018 at the University of Leeds, UK.
The conference will focus on the theme of integrating design with sustainable technology.
The event will be sponsored by James Heal, XIROS, Taylor & Francis Group, etc, while Bangladesh Textile Today will be the media partner.
The conference will be encompass Advanced Fibers and Materials Manufacture, Biomaterials, Business, CAD/CAE Technology, Circularity and New Business Models, Clothing, Coloration and Finishing, Comfort Science, Composites, Costume, Craft, Design, Economy & Supply Chain Management, Fashion, Fiber and Fabric Functionalisation, Floor covering, Footwear, Industry, Household/Interiors, Innovative Fabric Structures/Products, Leather, Modeling & Simulation, Nanotechnology, Printing, Retailing & Branding, Smart Textiles, Sustainability, Technical Textiles, Testing and Materials Analysis, Textile Machinery, Textile Manufacturing – Knitting, Nonwovens and Weaving, Textile Recycling, Textile Cultural Heritage Science, Textile Education, Yarn Structures and Spinning.
To ensure that Indian exports are globally competitive, a research by Amitendu Palit, Institute of South Asian Studies, National University of Singapore, looks at approaches that would align with the ongoing coastal economic development strategy, Sagarmala, and with the State’s strategy, which seeks to fully utilise the potential of having India’s longest coastline.
One of these approaches would be to upgrade one of Andhra Pradesh’s ports with state-of-the-art facilities that significantly enhance its maritime trade capacity — and, at the same time, ‘backward’ linking of the port with the hinterland, to enable fast movement of cargo and a reduction in logistics costs.This would increase the port capacity by 20 million tonne a year, substantially increasing revenue over the coming decades, worth Rs 1,695 crore.
The main costs in the project include new and upgraded facilities: like a container freight station, expanded berths and more dredging, along with land acquisition and expanding highways around the port. The fixed costs including substantial operating costs over the 20-year period come to Rs 1,985 crore.
According to a McKinsey survey report conducted with Women’s Wear Daily, top fashion companies today are using data analytics and consumer insights to develop concepts and plan lines.
These companies can deliver a product to market in less than six to eight weeks. They have adopted a more sophisticated model based on understanding what the consumer wants. This model allows them to incorporate what has been selling and respond quickly to what is generating early sales.
As companies often complain that they are stuffed with data but starved for insights, they can analyse consumer research where they can explore what topics are trending on major search engines and track the search rankings on peers’ websites.
Retailers can use advanced visual recognition tools to identify styles and colors trending on social-media sites. Aggregate product ratings by attribute, price, and style—either from the merchant’s own site or from retailers’ sites—can provide insight into what is trending with a specific type of consumer.
New testing from Oeko-Tex helps companies throughout the global supply chain easily test their organic cotton products for GMOs (genetically modified organisms), a molecular-level indicator of whether or not cotton products actually meet a fundamental definition of organic.
Consumers expect the organic products they buy to be genuine and verifiable as such. Manufacturers have to be confident that organic cotton products are not contaminated with non-organic cotton.
Today, about 70 per cent of cotton globally is genetically altered. For example, some forms of cotton have been engineered to be herbicide-resistant. Others have been infused with an insecticide to kill pests like boll weevils.
New GMO testing gives manufacturers and marketers the confidence that their organic cotton products meet regulatory and consumer expectations with regards to GMOs as well as the independent, traceable documentation to prove it.
To qualify as organic and to be marketed as such, cotton must meet a comprehensive list of criteria governing the cultivation, processing, and segregation.
