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"Amid clouds of uncertainty, companies across the globe are facing challenges while operating businesses out of their own countries. Given this scenario, India is emerging a preferred destination for sourcing. Alessandro Lenzi, Administrator, Lebiz srl, recently came to India to explore factories for intimate apparels. He pointed out despite the economic crisis in Italy, his company is optimistic about further growth. This is the best time to explore new growth opportunities and to come back strongly post crisis, as early as possible."
Amid clouds of uncertainty, companies across the globe are facing challenges while operating businesses out of their own countries. Given this scenario, India is emerging a preferred destination for sourcing. Alessandro Lenzi, Administrator, Lebiz srl, recently came to India to explore factories for intimate apparels. He pointed out despite the economic crisis in Italy, his company is optimistic about further growth. This is the best time to explore new growth opportunities and to come back strongly post crisis, as early as possible.
The company has 26 stores in Bologna and they realised Italian consumers prefer Indian productsm hence, India is a hub they can’t ignore anymore. Initially the plan is to source 20,000 pieces per collection annually and with 4 to 5 collections a year. Some manufacturers are in touch with them. As of now, they are exploring prints. Other sourcing companies too are increasingly looking at India as their sourcing partner. Saudi Arabia’s Nama Arabia Apparels, (‘Blooming’ label) was working primarily out of China but now they are impressed with Indian manufacturers and rethinking options. Fawzi Alnahdi, CEO, Nama Arabia Apparels says around 95 per cent of their products, including underwear and outerwear, are out of China but now they would like to start working with casual womenswear that would appeal to women in Saudi Arabia.
Some buyers say they are working hard to ensure timely delivery from Indian exporters and insisting on focusing more on product development. Rayes Gimenez, Manager, Kuini Creation, Spain and Jaime Barba of 360 Streetwear, are upbeat about their sourcing tie-up. As Ada Kamara, Mykonos, Greece says, India is their biggest sourcing destination. They are looking for fresh collections and hope to make new contacts with exporters that will support their growth plans as they plan to become wholesalers and spread their wings.
For Sarabjit Singh E.E., Manager, Siba International, Denmark, any exporter who can offer innovative patterns will have an upper hand in winning contracts. Twinset S.P.A., from Italy has been sourcing from India for the last 15 years and their journey have been impressive. The company is represented by Preeti Walia in India. Around 70 per cent of products are sourced from India, while the remaining 30 per cent of basic/core lines are sourced from China. Hand embroidery is at the core of most of the products sourced from India.
Opening new horizons
Russia is a potential market for Indian exporters. As Valery Sidorenkov, Chief production officer and quality assurance, Modis, Moscow says he is working with six exporters in India. They are sourcing good volume of womenswear, menswear and kids wear from India. He says, garment exporters should have proper data and start analysing where they exactly are. Some key areas like good quality can make a company profitable. Strong quality management system and data assessment system will help reduce issues like extra procurement of material, amount of manpower invested on check, rechecks, reworks, so proper data would be the starting point.
Gurgaon-based Rania Trading, Gurgaon is as an authorised agency for UK companies Poundstretcher, the Pet Hut, Pound Store. It is mainly into home furnishing products and is now exploring garment also. Udit Gupta, Assistant Merchandiser, Rania Trading says they are planning to start with kids wear and will proceed accordingly. With such an expansive list of clients, it is challenging for the company to find good quality products with reasonable price but they are managing with their experience and expertise in the field.
For Q1 of 2018, Vietnam’s revenue from the export of textile and garment products increased 13.35 per cent over the same period last year. Export of garment products alone was up 12.49 per cent compared to the first quarter of 2017. Besides traditional garment and textile products, goods with a high value-addition such as fabrics, fiber, geo textiles, and textile and garment accessories have also grown well.
T-shirts, jackets, and shirts were among the top export products in the first two months of this year. Many companies have received orders until the end of the third quarter of 2018. Vietnam’s key export markets are: the US, member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU, the Republic of Korea, China, and Asean.
In the first quarter of this year Vietnam’s textile and garment exports to the US were up 13.2 per cent over the corresponding period in 2017, the highest pace of growth in the last three years. Textile and garment exports to CPTPP member countries grew at an average rate of eight per cent a year in the 2013-2017 period, accounting for about 15 per cent of Vietnam's total textile and garment export revenue.
ITMA, which takes place every four years since 1951, has strengthened its reputation as the world’s leading textile and garment technology exhibition. Exhibition space for its 18th edition to be held in Barcelona has been fully booked before deadline of April 6, 2018. As per CEMATEX, the European Committee of Textile Machinery Manufacturers, owner of the ITMA exhibition, over 1,500 companies from 45 countries have applied for ITMA 2019. The space booked already totals more than 110,000 sq. mt.
Fritz P Mayer, President CEMATEX says ITMA is the launch pad of choice for the latest technologies from around the world. Interest in ITMA 2019 is strong, and compared with previous editions it has received more applications at an earlier date. It will continue to welcome manufacturers who are launching new products, as they will help to make ITMA 2019 an even more vibrant sourcing platform for our visitors.
The exhibition will showcase an integrated textile and garment manufacturing value chain. Close to 65 per cent of the space has been booked. Besides machinery, exhibits will also include yarns, fibres and fabrics, and solutions for technical textiles and nonwovens, and garment making. Countries exhibiting at ITMA include Italy, Germany and Spain. Highlighting the positive market sentiments of textile machinery manufacturers from the rest of the world, applicants from Turkey, India and China take the top spots in terms of space applied.
With the participation of some 1,600 exhibitors ITMA 2019 is expected to feature a showcase of more than 115,000 sq. mt. ITMA 2019 will be held from June 20 to 26 at Fira de Barcelona, Gran Via venue. The exhibition, themed ‘Innovating the World of Textiles’, will showcase latest technologies and sustainable solutions for the entire textile and garment manufacturing value chain, as well as fibres, yarns and fabrics.
India’s garment exports for March have contracted by 0.7 per cent compared to a year ago. This slowdown is across all sectors, led by the gems and jewelry sector, whose exports fell sharply by 16.6 per cent from a year ago. Garment exports have now fallen behind Bangladesh’s and Vietnam’s in absolute dollar terms.
Vietnam’s garment export grew 10 per cent last year and is expected to continue at the same pace this year. Notably, Vietnam has now tapped newer markets like Russia and China, in addition to the US and the European Union.
India’s garment sector was affected first due to demonetisation. Due to last year’s cash disruption, orders were lost, and these can’t be regained easily from competitor countries. Second the delay in getting GST refunds and the burden of cost in locked capital. The delayed refund does not include the interest cost. Exports need to be urgently zero-rated. The overvalued exchange rate makes India’s exports relatively expensive. Then there is the continued unreliability of electricity and other infrastructure facilities. Small and medium enterprises need a common plug and play, seamless hard and soft infrastructure—whether it’s effluent treatment or inspection or logistics.
The combination of three integral segments of handicrafts sector home-textiles, houseware and furniture concluded at India Expo Centre & Mart, Greater Noida. The premium expo, saw 720 overseas buyers and their representatives and buying agents and retail buyers sourcing for their focused requirements from a diverse range of international products under one-roof showcased by more than 650 exhibitors.
A highly dedicated and product-segmented triple show Home Expo India was the culmination of Indian Houseware and Decoratives Show (IHDS), Indian furnishings, floorings and textiles show (IFFTEX) and Indian Furniture and Accessories Shows (IFAS) offered opportunities to the visitors to source their requirements under one roof.
One of the distinct features of the show was display of products from Northeastern region made out of cane and bamboo. Rakesh Kumar, Executive Director, EPCH stated the push is now on product-segmented specialized trade shows rather than trade shows covering all product categories after the development taking place in the international markets. So Home Expo India was initiated by EPCH in 2012 and this year it has entered its 7th edition.
EPCH is the nodal export promotion body for handicrafts in India and plays an important role as a catalyst between exporters, buyers and the government with the main objective of boosting handicrafts exports from the country and also projects India’s image in the global markets as a reliable supplier of handcrafted exquisite and quality products.
Guess has partnered Better Cotton Initiative (BCI). Since Guess uses cotton in many of its products, it is taking proper steps to source sustainable cotton in the supply chain, hence the need to joine The Better Cotton Initiative. The brand will source Better Cotton to help address its water use. Guess will make public its official goals for sustainable cotton sourcing later this year.
Global lifestyle brand Guess is famous for its iconic ad campaigns and trend setting denim. Better Cotton Initiative works with cotton farmers, helping them to use water efficiently and care for the environment, as well as promote higher standards of work, during cotton production.
By becoming a BCI retailer and brand member, Guess can commit to a more sustainable future for cotton production by investing in the initiative which, last year, reached and trained 1.6 million cotton farmers on more sustainable agricultural practices, such as efficient use of inputs (water, pesticides), increasing yields, and addressing gender equality and child labor issues.
About 64 per cent of water use occurs during raw material production, namely cotton. In 2017-18 financial year, Guess’ total operating income improved 37 per cent. In the same period, its operating margin grew from 2.9 per cent to 3.6 per cent.
Elevating each segment of the entire textile value chain, Gujarat is ready to host Farm to Fashion: Indian Textile Global Summit 2018. The three-day premiere summit being held from May 4-6, 2018 will provide a common platform for the entire value chain of textiles to deliberate and develop a vision for the industry for 2030.
The global summit being organised by Gujarat Chamber of Commerce and Industry (GCCI), aims to achieve the intangible aspects of quality communications within the textile industry players. The Farm to Fashion Summit 2018 will provide a great opportunity for networking of more than 150 exhibitors, over 1,000 delegates, government officials and various representatives of the textile industry from various parts of the country.
The textile event will develop a vision for the industry 2030 with key focus on issues faced by cotton farmers, women empowerment, youth employment opportunities and positioning of Indian textile industry as the pioneer in environment-friendly industry practices.
The Textile Summit will encompass content-rich conference with 17 technical sessions by global speakers, exhibition with focus on best of Indian fabrics, café corners, fashion show and industrial visit. Experts and scholars will offer information and unveil insights about latest research, trends, innovations, best practices along with the solutions to the challenges at hand.
Shailesh Patwari, President, GCCI says Gujarat is the largest cotton growing state, Gujarat has a better infrastructure than other states. Farm to Fashion is an initiative to fill this gap. Gujarat is growing cotton and we would like to complete this value chain from Farm to Fashion.
Cambodia is developing the silk sector. This would be done by growing mulberry trees, raising silkworms, equipping the labor force with skills to produce silk, reducing reliance on raw silk from foreign countries, and reducing rural poverty. Training and funds will be offered to develop Cambodian silk production. Cambodian silk will be promoted in domestic and international markets. In recent years, import of raw silk has decreased by about 35 per cent.
The silk sector in Cambodia has been down due to lack of labor as most workers have migrated to neighboring countries and some have shifted from this sector to the manufacturing and industry sector. Mulberry trees are now a rarity in Cambodia. Most were destroyed during the Khmer Rouge era.
From 2008 to 2013, the country’s cottage silk weaving industry imported 300 to 400 tons of raw silk from neighboring countries while local production was only a miniscule one metric tons a year to supply the production. The National Polytechnic Institute of Angkor will be the place for research, growing mulberry trees and raising silkworms. This center will be home for displaying modern Khmer silk to the world and boosting the silk sector in Cambodia.
"India’s apparel exports registered a 17.78 per cent decline in March 2018 against the same period last year reveals latest trade data. Indian RMG exports were to the tune of $1.49 billion (approx.) in March 2018 against the corresponding month of February 2017, which was $1.81 billion (approx.). In rupee term, export for the month of March 2018 was Rs 9,694.68 crore as against Rs 1,1946.37 crore in March 2017, a decline of 18.85 per cent. Talking about the decline, HKL Magu, Chairman, Apparel Export Promotion Council (AEPC) says, “The export figures for apparels for the period April-March 2017-18 has shown a drastic decline of 3.83 per cent and a steep decline of 17.78 per cent for the month of March 2018."
India’s apparel exports registered a 17.78 per cent decline in March 2018 against the same period last year reveals latest trade data. Indian RMG exports were to the tune of $1.49 billion (approx.) in March 2018 against the corresponding month of February 2017, which was $1.81 billion (approx.). In rupee term, export for the month of March 2018 was Rs 9,694.68 crore as against Rs 1,1946.37 crore in March 2017, a decline of 18.85 per cent.
Talking about the decline, HKL Magu, Chairman, Apparel Export Promotion Council (AEPC) says, “The export figures for apparels for the period April-March 2017-18 has shown a drastic decline of 3.83 per cent and a steep decline of 17.78 per cent for the month of March 2018. These figures clearly show that apparel exports are not only stagnating but are heading towards a recession. Apparel manufacturing has already registered a decline for the 10th straight month in February. These figures clearly indicate towards an ongoing shrinkage in the industry, which is a big cause of concern for us.” He goes on to explain, the sector presently employs 12.9 million workers but due to the ongoing slide, several clusters have been impacted. Though India is struggling with the problem of exports stagnation, countries like Bangladesh and Vietnam are recording consistent growth in apparel exports. “We would like the government to address the issue at the earliest,” he opines.
While India’s global RMG export from April to March 2017-18 was to the tune of $16.71 bn. (approx.), which has decreased by 3.83 per cent compared to the same period in previous fiscal. During April-March 2016-17, India’s apparel exports were around $17.38 bn. (approx.). AEPC has been engaging with policymakers for an early resolution of issues.
India’s RMG exports in numbers
RMG exports were to the tune of $1491 million in March 2018 a decline of -17.78 per cent against the corresponding month of March 2017, which was $1813.44 million. In rupee term, export for March 2018 was Rs 9,694.68 crore as against Rs 1,1946.37 crore in March 2017 a decline of -18.85 per cent. RMG export in April-March 2017-18 was to the tune of $16716.5 million, which has decreased by -3.83 per cent compared to the same period last year. During April-March 2016-17, India’s apparel exports were $17382.8 millionn.
West Africa’s first organic cotton gin is coming up in Burkina Faso. The gin, in Burkina Faso, is a collaboration between the USDA-funded RECOLTE project, CRS, UNPCB, and SOFITEX. US textile industry NGO, Textile Exchange, recently announced the launch of a Regional Organic Roundtable to help develop the organic cotton sector in West Africa. The discussion is part of a new collaboration with Catholic Relief Services (CRS) on a series of organic cotton focused activities in West Africa. These include a Market Opportunity Scoping Project (MOSP) and a documentary-style video showcasing the region’s organic cotton sector.
The launch of the organic roundtable will take place in Koudougou, about 100 km from Ouagadougou, during SICOT (Salon International du Coton et du Textile), September, 27-29 2018. The Regional OCRT will focus on organic cotton and bring together key stakeholders. At present, organic cotton is ginned six months later than conventional cotton, which delays the entire production chain and payment to producers, and in turn discourages timely organic cotton production and participation.
