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The decree limits cotton trading to specified collection points. Farmers are allowed to get the highest possible price through auctions, and the prices will be set according to international cotton prices and the comparative advantage of Egyptian cotton. The decree also links all the collection points electronically to ensure transparency, with a consideration for applying the new system through new collection points in some governorates as a pilot version to avoid any problems in the future.
Cotton production system will be improved and its uses diversified in the domestic industry. The new system is expected to restore the position of Egyptian cotton globally and maintain confidence in it. Egypt is keen on developing and supporting the textile sector as well as planting and selling Egyptian cotton. The country plans to restore the status of Egyptian cotton globally. Funds have been allocated to maximise the added value of Egyptian cotton as part of a plan to improve this sector. Between September and November 2018, Egyptian cotton exports increased 45.1 per cent compared to the same period of 2017.
Egyptian cotton is recognized as the most recognized luxury cotton brand in the USA and globally. People who are able to name a cotton brand cite Egyptian cotton.
The Clothing Manufacturers Association of India (CMAI) welcomes the changes made in the FDI rules under single brand retail. Local sourcing norms will be eased for FDI in single-brand retail sector.
CMAI says the eased FDI rules will provide greater flexibility to global fashion brands, improve the retail landscape of India, increase investments, and eventually employment in the country. However, CMAI is concerned that this could possibly affect garment manufacturing in the country. The eased rules will provide greater liberty to brands to source globally depending mainly on the cost competitiveness. This might result in brands’ limiting their sourcing requirement to only 30 per cent in blocks of five years from India, including sourcing for exports. CMAI feels in such a scenario, it is important that these sourcing clauses are closely monitored to ensure that sourcing from India is continuously increasing so as to be sync with the make in India drive. Currently, the FDI policy on single-brand retail trade provides for a 30 per cent local sourcing preferably from micro, small and medium enterprises, village and cottage industries, artisans and craftsmen where the FDI exceeds 51 per cent.
India’s FDI inflows in 2018-19 marked a six per cent growth over the previous year. The gains will be further consolidated in order to make India a more attractive FDI destination.
Apparel Textile Sourcing Canada (ATSC) was held August 19 to 21, 2019. This edition saw over 300 international supplier exhibits from 25 countries and Canada’s most comprehensive industry conference, featuring a leading roster of business and industry heavy hitters who shared their insights, market intelligence and fashion business-building inspiration. Thousands of representatives from the Canadian apparel and textile industry – from designers and brands, to retailers, e-commerce sellers, importers and buying offices – were out in full force at the show in search of trade policy updates, future market directions, and new opportunities for international trade and sustainable global sourcing. The show delivered more than 300 international supplier exhibits, representatives from 25 countries and Canada’s most comprehensive industry conference, featuring a leading roster of business and industry heavy hitters who shared their insights, market intelligence and fashion business-building inspiration. ATSC enables industry players to make international business connections, network and get educated on navigating the new realities of the world’s sourcing ecosystem without having to leave their home turf.
Speakers held forth on topics like working with alternative sourcing channels and overseas factories, to sustainable sourcing and business practices, to launching and building a successful brand. Other topics were how to successfully launch a fashion line, tips and tricks to drive website traffic and boost online sales, emerging technologies that change the way consumers interact with brands, strategies and tactics for e-commerce, new digital shopping channels, experiential retail, sustainable solutions, the critical role of social media in the world of fashion, how to successfully working with a manufacturer and best advice to cost merchandise for maximum sales success.
Ecuador wants to promote the use of corozo among Indian textile manufacturers. Corozo is a material grown in the Amazon and Ecuador is an exporter to the world, promoting its use as a sustainable clothing trend. Corozo is harvested naturally and used as a popular material for buttons and embellishments. Corozo is a 100 per cent natural product which is similar in consistency to a hard resin. It is often referred to as vegetable ivory. At a microscopic level, corozo is made up of very tightly wound organic fibers which give it excellent durability and scratch resistance. Its porous nature allows colors to penetrate deep into the surface which makes it an excellent material for dyeing. Corozo is also well known for its elegant natural grain, a unique pattern that, much like a fingerprint, ensures no two buttons are exactly alike.
Sustainable fashion and green clothing are driving consumer trends. The global fashion industry produces 20 per cent global water waste and ten per cent of global carbon emissions—more than all international flights and maritime shipping. Apart from returning to natural dyes, organic fabrics and traditional modes of manufacturing, the use of eco-friendly products for accessorizing and embellishments will go a long way in making fashion truly green and sustainable.
Researchers are using artificial intelligence (AI) to develop an innovative, environment-friendly processes to make adiponitrile (ADN)—the main precursor to nylon 6,6— to greatly improve the efficiency of organic electrosynthesis.
Miguel Modestino, a Professor of chemical and biomolecular engineering at New York University, and doctoral student Daniela Blanco tweaked how electrical current is delivered to catalytic electrodes and then applied artificial intelligence (AI) to further optimise the reaction. By doing so they achieved a 30 per cent improvement in ADN production
The findings in the Proceedings of the National Academy of Sciences could have major implications since the team targets one of the largest organic electrosynthesis processes in the chemical industry: the electrohydrodimerisation of acrylonitrile (AN) to ADN.
Designer duo Abu Jani and Sandeep Khosla will launch a new bridal collection at the fourth edition of The Wedding Junction Show in Mumbai. The designer duo will showcase five ensembles from their latest collection. The collection - Asal Bride proves to be dream ensemble as it plays with the classics and infuses them with new life. It offers an entire spectrum of silhouettes and embroideries in these diverse ranges, from the most understated like Bakhiya and Resham mirror in skin and neutral tones and the shimmering play of Raj Mahal to the deep glamour of architectural mirror in jewel tones.
Abu Jani Sandeep Khosla was founded in 1986 and specialises in occasion, bridal, and traditional wear. The brand has two stores in Mumbai and one in Delhi as well as the same for their ASAL line and a Gulabo store in Goa.
"The government has relaxed FDI rules for foreign single brand retailers. It has also permitted 100 per cent FDI under the automatic route in contract manufacturing and coal mining and a 26 per cent FDI in digital media. Also, the government has expanded the definition of mandatory 30 per cent domestic sourcing norm for single brand retailers. This will enable global retailers to start their online operations, waiving previous condition of setting up a mandatory brick-and-mortar store."
The government has relaxed FDI rules for foreign single brand retailers. It has also permitted 100 per cent FDI under the automatic route in contract manufacturing and coal mining and a 26 per cent FDI in digital media. Also, the government has expanded the definition of mandatory 30 per cent domestic sourcing norm for single brand retailers. This will enable global retailers to start their online operations, waiving previous condition of setting up a mandatory brick-and-mortar store. It will also allow companies such as IKEA, H&M, Uniqlo and Puma to expand their footprint in India and bolster the ‘Make in India’ initiative.
While the present policy mandates that a single-brand retail company, that has more than 51 per cent FDI in India, has to source 30 per cent of its raw materials locally, the changed norms will allow it to include exports as well.
New sourcing norms to benefit apparel companies
Companies such as Ikea and H&M began sourcing from India much before they set up domestic operations. But
under existing rules, they did not get credit for what they had been buying from Indian entities. So, if a company was sourcing goods worth $100 million before entering the single-brand retail segment and it went up to $110 million in the first year, only the incremental purchases of $10 million were counted towards fulfilling the sourcing requirement. The new rules will allow the company to treat the entire $110 million as the value of goods sourced from India. This will prove to be big opportunity for apparel companies, where Indian factories have strong capabilities.
The government has also decided to include global sourcing by the single brand retailers for adjusting their 30 per cent mandatory local sourcing norm. Terming this move encouraging, Swedish furniture giant Ikea hopes it would enhance the ease of doing business in India.
Online stores to attract overseas investments
As per the new rules, single brand retailers can open online stores before setting up physical stores in the country. Experts say, this move will help new entrants. Swedish fashion retailer Hennes & Mauritz (H&M) has welcomed the government's decision, saying it will help attract investment from global companies and would allow single brand retailers to meet local sourcing norms besides giving them time to build their brick-and-mortar presence in parallel.
Filip Miermans has been appointed the head of Corporate Communications & Investor Relations at Lenzing AG. In his capacity, he will report directly to Stefan Doboczky, Chief Executive Officer of Lenzing. Miermans will succeed Waltraud Kaserer, who will continue to support Lenzing in the future in the field of public affairs.
Miermans has specialised knowledge and longstanding experience in communications and marketing. Before joining the Lenzing Group, he served as Head of Marketing & Corporate Communications for the Lower Austrian mechanical engineering company Lisec Austria GmbH since the year 2013.
Prior to that, he held management positions in marketing and communications at Miba AG, Heradesign (Knauf Insulation) and the Plansee subsidiary Ceratizit.
Dates for the next edition of Apparel Sourcing Week (ASW’20) have been announced. The event will be held from February 21-22, 2020 at Grand Sheraton in Bengarulu.
ASW ’20 will host around 150 manufacturers from India, Bangladesh, Vietnam, Sri Lanka, Myanmar and China. It will also include the luxury manufacturers from these destinations that are producing high value apparel, in addition to mass producers of fashion.
Apparel Sourcing Week 2019 was a hit for all the stakeholders that were a part of the ASW family- be it an exhibitor, a buyer, a collaborator, a sponsor, or even a simple visitor - as it introduced the concept of India’s very own sourcing platform that enabled the south-east Asian countries to cater to the needs of the rapidly growing Indian retail market. Carving a niche for itself, ASW became a networking channel for different industry players, triggering the need for such an event on an even higher scale.
The condition of handloom weavers in Andhra Pradesh is worsening. The Andhra Pradesh State Handloom Weavers Cooperative Society is yet to release their dues. The society is yet to release Rs 12 crores in arrears to around 50 primary weavers’ co-operative societies that are present in East Godavari. Lack of funds is not the only issue weavers are faced with. Imposition of GST has forced some weavers’ societies to resort to making school uniforms with polyester made out of power looms.
Andhra Pradesh boasts of 80 per cent of the country’s handlooms, most of which are in East Godavari, Krishna and Kadapa districts. There are 1.40 lakh looms in Andhra Pradesh, but the number of weavers far outnumbers the looms in the country or the state.
Meanwhile India’s power loom weavers and business owners want the current GST rate for power loom trading to be retained at five per cent. They say any change would negatively affect their business. Instead the power loom sector hopes for more assistance and a stable tax rate. Many power loom manufacturers are small-scale businesses. Weaving units have also asked for release of funds under the Technological Upgradation Fund Scheme and say delay in release of these funds could hamper their expansion plans, which are meant at generating thousands of jobs.
