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Studio Next the firm that deals with technology for cutting of garments showcased at the recent GTE held in New Delhi. Explaining his business and its relation with GTE Vishal Sher, MD, Studio Next says. “A garmenting fair has three major divisions: Cutting, sewing and finishing. We are into cutting automation which has a CAD system from Richpeace. We have a fully automatic spreader and cutting machines from Japan. We also have semi-automated cutting machines and spreader that provides cost effective solutions to the garment industry. We are manufacturers of semi-automated machines where the CAD system is from Richpeace.”
Happy with the number footfall at GTE, Sher says the key advantage of being in an expo like this is one gets a chance to showcase their products and technology to the industry as a whole and explain its cost effectiveness directly. “In the last 15 years, we have emerged as a leading player in this segment, supplying CAD/CAM solutions with a market share of 60 to 65 per cent in India.”
Sher goes on to explain CAD is like Tally, even a small manufacturer can use it. Studio Next sells around 15 CADs a month. Not troubled by competition, Sher says India is a big market and there is space for every player, “Besides, we have proved ourselves in the market. As an industry, we have reached a stage where China was seven eight years back. So things are improving. Online business is helping the industry grow and we see demand doubling in coming years.” He concludes.
As for their expansion plans, “We are focusing on domestic and international markets both. Domestic market is growing fast, small players are ready to accept technologies.”
Ramp Impex was incepted in 2005. It’s into testing instruments and serves many verticals. Textile has been Ramp Impex’s forte. “We have currently 17 partners worldwide including China, US, Europe, Taiwan and Japan. The company has a mix of Indian and imported portfolio which cannot be matched by any other company in the country,” says Puneet Rawal, Managing Director.
Rawal says they service customers as per their budget. The company has been diversifying and upgrading quality parameters, besides being a part of the global network, they are always updated in advance on the standards and protocols followed internationally. “The Indian market is small but promising. People now understand the importance of quality as it also contributes to productivity. Quality is an important parameter that enables one to sustain in the market. People also understand how easy it is to lose customers on the basis of quality issues. It adds to the cost factors, since margins have minimised and manufactures cannot afford any rejection in their products.”
On India as a garmenting hub Rawal feels we have enough skilled manpower. As far as testing is concerned, India is a hub for South Asia. But we are way behind China, the US and Europe in testing standards. “Adaptability to quality standards is still low. People still have a mind-set that testing and laboratory machines are a liability rather than an asset. Indians look more at investing in production, but the trend is changing considering the seriousness with which Europeans and other developed countries follow quality norms.”He says large industry houses are growing largely because they take testing solutions seriously. Today’s buyer is smart and any deviation from quality norms may lead to a company sinking without a trace.
However, awareness about quality products is gradually increasing. People are becoming brand conscious. It is because brands ensure quality and that is what the end consumer is looking for. Brands push apparel manufacturers and this is how the entire cycle in the garmenting sector is running.
Rawal says “The domestic market is huge. Change in perception is making Indian manufacturers push themselves to match global standards. However, on the export front, we are struggling. Countries like China, Vietnam and Cambodia are doing well. We need a lot of governmental support to grow exports.”
Ramp Impex has a tie up with 13 global brands. They have set up a new unit in Bawana Industrial area under the Make In India initiative. “As a company, we have grown and understood the technological aspects of our segment of operations which are at par with global players. We are also available in South Asia. We have been the first to put up a testing lab in Dubai,” he observes.
HCA is a 108-year-old company with expertise in sewing related issues in the garmenting sector. “We do spare parts, finishing and stitching. Currently, we have a tie up with 16 international companies. Business was growing steadily till GST was introduced. This caused a little disruption in operation, now all is back on track. We are hopeful post March things would improve further,” says Megha Anand Dudhoria, Director (Sales and Marketing).
Dudhoria says availability of skilled labour is an issue in India. Besides Indian laws are completely in favour of employees, further their work is also not productive. “It’s a Catch 22 situation. Infrastructure is another major issue that the Indian garmenting industry is facing. Duty drawback to exporters is an area where the government needs to get its act together,” opines Dudhoria.
HCA does a little production in India. “It is automation that does all the work. The market is changing, people are shifting to server motors, and looking for more productivity and also becoming more quality conscious.” Dudhoria is euphoric about GTE, “It is phenomenal as it has always been. We are happy to be here. The platform is helpful for buyers and sellers. Looking forward to more productive results post GTE.”
INL offers systems as Mohammed Nooruddin, Regional Manager says “Anything that has to do with fabrics. We have a computerised hanger systems, transportation and storage systems, as well as tracking systems. Our systems ensures efficiency in production. It is actually the streamlining of operations within the production unit which results in saving cost and time. We are based in Singapore, however, since 2003 we are present in the Indian market.”
Nooruddin believes GTE is a platform with a lot of possibilities for business point. “Since a long time we have been participating in fairs all across the world and have seen GTE is about responsive customers and feedback. These are two key aspects of GTE. The third is, reach the expo has given us a wide reach in terms of new clients and territories. Footfall are constantly increasing and this brings in quality customers every year.”
He feels the Indian market has not been explored well. The country holds a huge potential in the textile and garmenting sector. The huge population is an asset for garmenting sector. “We see countries like Bangladesh and Ethiopia doing extremely well in garmenting, though they lack in resources. So it depends on strategy. Technology can play a big role if adopted well,” he opines.
As for future plans, INL is targeting pan India spread. “I am positive about the country, as far as garmenting is concerned. We are available in all countries that manufacture garments. We are present in neighbouring countries but have a decently strong base in the Northern and Eastern India.”
Hong Kong Trade Development Council (HKTDC), the international marketing arm for Hong Kong-based manufacturers, traders and service providers, released the results of its annual Centrestage Survey recently.
The Council’s report said that the women’s wear segment will continue to dominate the global fashion market in 2018.
HKTDC survey covered more than 200 buyers and 70+ exhibitors from Hong Kong, the Chinese mainland and other regions. The aim of the survey was to get an overview of the current market prospects, new product trends and the latest e-tailing developments.
In the survey, women’s wear attracted the highest level of ‘likes’ from both buyers and exhibitors (66 per cent and 82 per cent), casual wear garnered second place (23 per cent and 3 per cent).
If one looks at markets, Hong Kong has the greatest 2018 growth potential as noted by around 90 per cent of the respondents in their traditional markets followed by South Korea and Taiwan, the report stated.
The fashion brand-promotion survey noted a positive sales performance in 2018. 75 per cent of respondents held the view that Mainland China would emerge as the most promising emerging market in 2018 followed by Eastern Europe (43 per cent), followed by the ASEAN countries (43 per cent).
58 per cent of buyers saw no change in the retail price of their products in 2018, while 39 per cent hope for an increase in retail price. In terms of FOB selling price, 70 per cent of exhibitors said they expect to see a status quo in 2018, while 17 per cent of respondents predicted an increase. 13 per cent expect to see a decrease in the overall FOB selling price.
Discussing sourcing prices and production costs, those covered (buyers, exhibitors) under the survey had varied opinions. 55 per cent of the buyers expect an increase, 44 per cent anticipate no change while 1 per cent expects to see a price decline. On exhibitor’s side, 21 per cent of respondents expect production cost increase, while 79 per cent predicted either a fall or no change.
Sustainability and innovation were the buzz words at this year's International Woolmark Prize (IWP) held in Florence, Italy, recently, in conjunction with Pitti Uomo, the world's biggest trade show for men's fashion. With the finals beamed live around the world it provided the perfect platform to reinforce wool's superior attributes in satisfying expectations and requirements for both.
IWP, which seeks to identify emerging design talent through a capsule collection of garments utilising Australian Merino wool is judged in six regions, Asia; Australia and New Zealand; British Isles; Indian subcontinent and Middle East; Europe and USA. One finalist from each region is selected in the categories: menswear and womenswear and for the first time this year the 12 successful designers also had the opportunity to vie for an inaugural innovation award.
All 12 finalists focused on sustainability in their presentations, not just in throw away terms as something the judges might want to hear but as something central to the core of how they live their lives based on a genuine belief in its importance. Australian judge, fashion buyer and founder of retail and online fashion outlet Parlour X, Eva Galambos, says it was interesting to see each finalist mention sustainability without any prompting.
More than 65 designers from more than 60 countries took part in this year's awards.
Chinese market regulators say over 20 batches of luxury clothing, including those of big brands such as Giorgio Armani, Givenchy, Burberry, Marc Jacobs and Vivienne Westwood have failed quality tests. The Shanghai Industrial and Commercial Administrative Bureau reported 23 batches, or 18 per cent of the 130 batches that were tested, failed the pH index, poor colour fastness, unmatched fibre content and pilling tests.
Seven batches failed the test for poor colour fastness. A batch of Burberry knitted garments failed to deliver on colour fastness to alkali perspiration, while another batch of Marc Jacobs dresses was found to be substandard for wet rubbing colour fastness and acid and alkali perspiration colour fastness, the Shanghai Bureau said.
A batch of Vivienne Westwood women's coats failed the test in terms of colour fastness to water, acid and alkali perspiration as well as fibre content, the Bureau added. Colour fastness is a compulsory standard of clothing in China and dye in clothing with poor colour fastness can bleed on to human skin — which is harmful. Almost 18 batches were found to have unmatched fibre content types, or amount, as against what was marked on their labels.
The label of a batch of Giorgio Armani coats indicated a content of 93 per cent cashmere and 7 per cent of mulberry silk, while tests by the bureau found they actually contain 80.3 percent of cashmere, with the rest mulberry silk and wool, bureau officials noted. The bureau reported three batches failed for pilling, an important index indicating fabric quality, included a batch of MaxMara knitted sweaters and a batch of Etro women's garments. A batch of Burberry cashmere sweaters failed for both pilling and fiber content.
Two batches of clothing, namely a batch of Patrizia Pepe skirts and that of Gegina T-shirts, failed pH index tests — substandard pH index in clothing can cause skin allergies. The bureau has demanded that these brands stop selling substandard items and clear their stocks. They should also rectify and protect consumer rights.
The textile and textile product industry (TPT) is one of the main drivers of Indonesia’s exports. The government provides an incentive of corporate income tax by 30 per cent for 6 years or 5 per cent annually. This incentive is needed for the domestic TPT industry to be competitive. Anne Patricia Sutanto, VP, Director of PT Pan Brothers Tbk (PBRX) says the tax incentive is like a breath of fresh air for this sector, however, the government must be serious in implementing these rules.
As an export-oriented textile industry player, it asks for a government reference effort with all competitor countries so that all government policies related to the textile industry can be competitive. The government should also look at the dynamics in the global textile industry to take advantage of opportunities in future because this sector is stable and can be one of the pillars of Indonesia's development efforts.
Sutanto says what is important to them is the seriousness of the government in negotiation FTA with the EU, Canada, Mexico and Asian countries as a whole. In addition, the government must also build a vocational school for textile industry equipped with industry-based curriculum facilities. Although the conditions are not yet ideal, PBRX set a growth target at 12 to 15 per cent this year.
Bhima Yudhistira Adhinegara, Economist of the Institute for Development of Economics and Finance (INDEF) says the regulation is timely. The reason for global textile demand is currently recovering and this year TPT exports are good prospects, so it can be a stimulus for production. The current fiscal incentives are needed to encourage investment in the textile sector, especially investments in the opening of new factories or the reversal of old textile machinery that has been less productive.
The mega business event for textile and textile engineering sector, the 2nd global textile technology and engineering show GTTES 2019 will be held from February 1 to 3, 2019 in Mumbai. The GTTES is a growth catalyst and optimum business platform with numerous business leads, new customers offering best sourcing solution to India’s surging demand for textile machinery.
India is one of the world’s largest producers of textiles and thus one of the biggest market for textile machinery as well. The size of Indian textile and apparel industry is expected to reach $223 billion by 2021. This is a clear indication of the size of the market opportunity awaiting exhibitors at GTTES 2019. India and its neighbouring countries are main contributors to the increased demand of textile machinery and this expo is an opportunity to translate this demand to supply.
India is one of the few countries in world which has production at every level of textile manufacturing viz. fibre manufacturing, spinning, weaving, knitting, processing and garmenting. The most significant change in Indian textiles industry has been the advent of manmade fibres (MMF). Except spinning, majority of the textile and apparel machinery demand of India is being catered by imports. Weaving sector needs an additional around 82,000 looms. The capacity of knitting segment would need to be scaled up with an addition of 24,000 knitting machines by 2020.
Processing capacity will also need to increase its present capacity, with additional 30,500 million. Additional sewing machines would be required in garment sector by 2020 to cater to the high export and domestic demand for apparel in India. The size of the textile machinery demand and the market opportunity is $75 billion. GTTES 2019 offers sourcing solution to this market in India by focusing on weaving, knitting, printing, garmenting, embroidery and technical textiles.
Reports indicate that the Federal government is all set to announce another package for the textile sector. The Ministry of Commerce and Textile has twice briefed Prime Minister Shahid Khaqan Abbasi on this issue, following which, around seven proposals have been finalised.
The package would be related to cost of doing business as the textile sector was determined to get relief in electricity and gas rates. It has been proposed that electricity rate for the textile segment should fall to Rs 1.45 per unit — presently the rate is around Rs 11 per unit. The prices of regasified liquefied natural gas (RLNG) for the textile sector is expected to fall to Rs 300 MMBTU as against the current gas tariff of Rs 1001 per MMBTU.
The Commerce Ministry has also proposed that the government pay Rs 35 billion sales tax refunds and around Rs 17 billion customs duty drawbacks to the textile sector.
The textile policy liabilities have touched Rs 15 billion, it has been suggested that the government should also address this issue. Further, it has also been proposed that the government should implement a zero rating on packaging material.
Besides, it has been purposed that turnover limit of income tax of the power loom sector should fall from 1 million to 0.5 million. The government had announced Rs 180 billion trade enhancement package in January last year, of which Rs 160 billion was set aside for the textile industry, however, the Ministry of Finance has so far released Rs 16 billion under the prime minister textile package. Officials at the Ministry of Commerce say that exports of the country have registered an upward trend in the first six month following this package.
