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Nordstrom has been chosen favorite premium fashion retailer among shoppers. Nike takes top spot for footwear. Macy’s topped for e-commerce purchases. These are the results of an annual fashion retail study conducted by Market Force.
Kohl’s ranked first for its loyalty card program as well as for delivering high value for its prices. Lane Bryant, Nordstrom and Dillard’s were at the bottom of the list for high value for the price.
Best merchandise selection, atmosphere and checkout speeds went to Nordstrom. But Lane Bryant was the leader for the ability to create and look and for ease of finding items.
Customers are often assisted at Lane Bryant and Nordstrom and assisted the least at Kohl’s and Old Navy. Nearly 75 per cent of shoppers interact with their favorite fashion retailer online, a 103 per cent increase over the previous year. Despite the online growth, consumers are still hitting physical stores for fashion. According to the survey, 76 per cent have shopped at one of their favorite retailers’ physical stores at least once in the past 90 days, and 48 per cent shopped there at least three times.
Retailers spend good money to market, promote and advertise their brands to lure shoppers into their door, but if their front-line representatives are failing to engage customers and deliver on the brand promise and fundamental customer service basics, they could easily lose that sale to their competitor next door.
During the calendar year 2017, India’s share in home textile exports to the US remained stagnant YoY at 33 per cent. The country’s market share (in dollar terms) in cotton sheets increased 1ppt YoY to 50 per cent during the above mentioned period. India has been consistently gaining a 1ppt market share in cotton sheets each year since the above mentioned period.
Also in the period under review market share for towels fell 1ppt to 39 per cent, led by multi-year low market share (sub 35 per cent) reported for the past four months.
Cotton Association of India data shows the pink bollworm infestation in major cotton producing regions of India resulted in an increase in cotton prices since mid-Dec’17 (+5 per cent to R111/kg) and 2 per cent reduction in cotton crop estimate for 2017/18.
Further, appreciation of the rupee (6.4 per cent YoY during the calendar year 18’YTD) continues to remain an issue. In Dec’17, India’s cotton sheet market share (dollar terms) came in at 50 per cent, a fall of 1ppt YoY. The calendar year ‘16market share rose 1ppt YoY to 50 per cent. This is the 6th year in which India saw a 1ppt YoY increase in market share. During the same year, China’s market share fell 2ppt YoY to 20 per cent, while Pakistan’s share remained flat YoY at 16 per cent.
India’s share in the terry towels segment fell sharply by 8ppt YoY to 30 per cent in Dec’17. The calendar year ‘17 market share also recorded a fall of 1ppt to 39 per cent. In calendar year ‘17, China’s market share increased 1ppt YoY to 24 per cent, while Pakistan’s lost 1ppt YoY share to 21 per cent. India’s calendar year ‘17 exports of cotton sheets to the US (in dollar terms) increased 1.9 per cent YoY to $717mn (as against a 0.3 per cent decline in world cotton sheet exports to the US), led by a 2.9 per cent rise in volumes, partially offset by a 0.9 per cent decline in realisation.
‘High-Tex from Germany’ expo is set to present technical textiles, textile machines and textile-processing machines at Techtextil North America and Texprocess Americas from May 22 to 25, 2018. Around 66 companies from German textile, textile-machinery and garment-technology industries will make presentations. Exhibitors will get a chance to introduce their products and services in lectures, demonstrations and multi-media presentations at the ‘Plaza’.
Marc Lorch, Member of the Board of Zwissler Holding and Exhibitor President of the participating companies says, the USA is one of the most important export markets for German textile companies. For them as representatives of the German textile sector, the joint presentation within the framework of ´High-Tex from Germany´ is a great opportunity to cultivate existing contacts in the USA and to make new ones. With this exhibition, we are bringing our technologies to our customers in the USA.
At Kufner, trade visitors from the outdoor, fashion and sports industries will find insoles and, at Südwolle, technical yarns. Also in the field of functional apparel are the flame-resistant textiles by Pyrotex, which can also be found in the automobile and aviation sectors, in architecture and building, as well as in contract textiles. New developments in the nonwoven field will be shown by several exhibitors including Frenzelit, Polyvlies, Sandler, Smart Polymer and Tenowo.
The range of exhibits in the textile-machine segment and machines for processing technical textiles covers the entire textile manufacturing and processing chain. Expert International present CAD/CAM technologies. JBF Maschinenbau stands, inter alia, for textile machines for processing yarns, twine, ropes and ribbons.
Georg Sahm, Dietze and Schell Maschinenfabrik will show latest bobbin-winding machines while Dornier presents weaving technologies. Cutting machines will be shown by Schoen and Sandt Machinery. Exhibitors of high-performance sewing machines include RSG Automation Technics and Strobel Spezialmaschinen. Everything revolves around embroidery at ZSK Stickmaschinen.Machines for fixing, backing, scattering and ironing are core areas of expertise of Maschinenfabrik Herbert Meyer.
In 2017 Gucci’s turnover was up 41.9 per cent. Over the last three years, the company has been seeking to break the historical rules of the fashion industry, building its success on well-defined values and a corporate culture focused on people, creativity and innovation, empowering its teams at every level and encouraging them to challenge the status quo.
It is now seeking to evolve toward an even more agile structure, sustained by a corporate culture that permits it to anticipate market needs and matches the desires of its clients, while accelerating the decision-making process at every level of the organization.
The brand has decided to overhaul its management structure into four new areas that will better support the CEO. These are merchandising and global markets; indirect channels, outlet and travel retail; brand and customer engagement; and finally digital business and innovation.
The fashion house’s ultimate goal is to strengthen and deepen the brand’s relationship with its clients, establish and maintain a constant and personalized conversation across all channels and strengthen the emotional engagement with them while leveraging emerging technologies. Gucci has had strong sales in mainland China. Gucci has made its official China website into an e-commerce portal for Chinese consumers. The new site intertwines creative content marketing with online shopping, letting customers use Chinese payment systems like WeChat and Alipay.
Gap Inc. has announced Jeff Kirwan, President and CEO of the brand Gap will quit the company. Art Peck, CEO of Gap Inc. notes Jeff’s achievements, “Under Jeff’s leadership we made significant progress on the operating model of Gap brand. We are faster and more responsive than ever before, we radically improved quality and fit, and we centred the brand on the aesthetic that our customers love: Casual, optimistic and American. We have also seen the results of exceptional marketing and customer engagement reflected in increased traffic, improved sales and the strength of the digital business.
“While I am pleased with our progress in brand health and product quality, we have not achieved the operational excellence and accelerated profit growth that we know is possible at Gap brand. As we move into the brand’s next phase of development, Jeff and I agreed it was an appropriate time for a change in leadership,” he added.
A search is underway for a new president. In the interim, Brent Hyder, current Gap Inc. EVP, Global Talent and Sustainability will oversee the brand. Prior to his current role, Hyder served as Chief Operating Officer at Gap brand. He also served as Vice President and General Manager of Gap Japan K.K., leading all aspects of the Gap Inc. business in Japan.
FESPA has announced the launch of Print Make Wear, a new, interactive visitor feature designed to replicate a fast fashion factory. Print Make Wear will be free to attend for registered visitors to FESPA Global Print Expo 2018, which takes place at Messe Berlin, Germany, from 15-18 May 2018.
The feature, focused exclusively on fashion textiles, garments and printed accessories, takes the form of a live production environment highlighting every step in the screen and digital printing production process, from initial design to finished product. It will bring together collaborators from all areas of the printed fashion sector, including fashion brand owners, designers, garment printers and producers, to explore the latest production possibilities, exchange experiences and share knowledge in the interests of a more sustainable fashion value chain.
Demonstrating an integrated, end-to-end production environment, the Print Make Wear fast fashion factory will feature a screen-printing carousel, washing and drying equipment, digital direct-to-garment printing, cutting and sewing, and solutions for welding and embellishment. The following technology and materials brands are already confirmed participants in the feature: Premier Textiles, Magna Colours, Brother, Juki and Vastex. In addition, design and technology experts from the contributing exhibitors will be on hand.
Bangladesh government, in a bid to infuse accountability among buying houses in the export-oriented apparel industry, is set to frame a policy for their functioning. Last month, the commerce ministry prepared a draft and sent it to all stakeholders for approval. The draft asks buying houses to register with the Export Promotion Bureau and warns without registration, no buying house will be able to handover letters of credit on behalf of buyers to manufacturers.
Md. Abdur Rahim Khan, Deputy Chief at the commerce ministry's textile cell says this was a first draft and is aimed at expanding the export market by creating a favourable reputation for their sector. The move comes post a few cases of fraud by some buying houses. Last year, 26 Bangladeshi garment exporters became victims after two local garment buying houses, Vanguard and ASM Apparels, placed work orders on behalf of the ‘importer’ Y&X, saying the latter is owned by a Bangladeshi-born British citizen named Manjur Billah.
The duo offered higher prices on the condition that the raw materials have to be bought from select textile factories in China. The deception was noticed post the first batch of consignments was unclaimed for over one month at a UK port.
Currently, there is no policy on buying houses and there is no controlling authority for them, Md. noted. The final draft policy will be out in a month or two. Kazi Iftaquer Hossain, President, Bangladesh Garment Buying House Association, stresses that they have been demanding a policy for the last 10 years to bring in discipline in the sector.
Apart from BGBA, there are many buying houses operating in the country, totalling 1,500. A policy would play an instrumental role in resolving issues or disputes that occur among buyers, buying houses and exporters. As per the draft policy, buying houses and apparel manufacturers will have to carry out business based on contracts and send the copies of contracts to their respective organisations.
In December 2016, at a seminar organised by the BGMEA ‘Taking Bangladesh Apparel Sector Forward’, the state minister for foreign affairs Shahriar Alam said, last fiscal, from July 2015 to June 2016, the country’s garments exports touched $28.09 billion whereas in the calendar year ending in December 2016, exports were $28.67 billion. To reach the target of $50 billion in 2021, the export rate needs to grow at a 12.25 per cent cumulative rate.
Past growth rates have been in double digits, but given the current international economic and trade environment, whether it is possible for Bangladesh to continue gain double-digit growth rates is doubtful. Asia-Pacific Trade and Investment Report 2016 notes, price growth of export goods of Bangladesh will fall in 2017 as against the current year, however, volumes will significantly increase.
At a recent conference at Harvard organised by ISDI, all stakeholders including representatives from buyers and labour unions unanimously felt the price of clothing has been falling in recent years. The downward pressure on price, from the demand side, has been two-fold: Consumers are now buying more high-end products and apparel and footwear sellers are losing consumer big bucks to healthcare, rent, home-related products, electronics and cars.
An additional reason for the lower price is that with greater prosperity, basic needs such as food and clothing have low price elasticity. The commerce minister Tofail Ahmed last month asked labour bodies to press buyers to raise RMG prices. Ahmed urged union leaders to connect with their counterparts in importing countries to use their influence on buyers and consumers. He said labour organisations of the RMG sector should tell buyers to raise product prices, which would help increase labour wages in the sector.
Readymade garments exporters have recently demanded higher cash incentives and devaluation of the Taka against the US dollar. To retain market share in the low-cost-and-high-efficient region, the path to profitability and export growth is increased efficiency, higher productivity and quality management.
The 11th edition of Retail Leadership summit kicked started in Mumbai on Tuesday. Day one saw the presence of industry stakeholders, brand custodians and key management professionals from across all categories who exchanged ideas and business insights while deliberating on various aspects of retail. B S Nagesh, Chairman, RAI gave the opening, He was also the moderator for the first panel discussion ‘Customer Centricity: Redefining Values and Valuations’ attended by the likes of Harish Bhatt, Brand Custodian, Tata Sons, Kishore Biyani, Group CEO, Future Group, Ramanathan Hariharan, Group Director and Board Member, Landmark Group and V Subramaniam, Managing Director, Reliance Retail. V Subramaniam also gave a special address.
In his opening address, Nagesh said the event is aimed at providing great experience to consumers with the help of best practices adopted by stakeholders. This can be possible by holding knowledge sharing programs such as Retail Leadership Summit. He appreciated the state and central governments for their contributions towards the growth of the industry.
V Subramaniam in his special address thanked Nagesh and Kumar Rajagopalan, CEO, RAI, for taking the initiative which brings all stakeholders and academia under one platform. He stressed on the need of taking a holistic approach for consumer satisfaction, be it product quality, service or entire value chain. He said, customer centricity is not a one-time act but an ongoing process and it helps in building a relationship between brand and its consumers. He also talked about omni-channel retail and its impact on the industry.
The panel discussion revolved around customer centricity and redefining retail. Kishore Biyani observed, India has a huge population and it will be an advantage if industry stakeholders know well how to make people spend money. Others speakers also shared their experiences and stressed on the need of having a consumer-centric approach for long term growth.
Various panel discussions on different aspects on retail took place through the day. These were: Innovations to Create the Customer Relevance, Keeping Retail Relevant: Evolving with the Consumer, Customer-Experience driven Transformation: Why retailers are changing their Customers, ‘How Digital will Power the Store of the Future etc.
The textile industry says around Rs 16 billion worth of payments to readymade garments alone, under the Remission of State Levies (ROSL) scheme, has not been cleared by the government.
The government had allocated Rs 4 billion in 2016-17. The original allocation under ROSL of Rs 15.55 billion for 2017-18 was enhanced to Rs 18.55 billion in the revised estimates. For the year 2018-19, the ROSL allocation in the Union Budget was Rs 21.64 billion. The amount allocated would not be sufficient for the requirements even at present. Besides, there has been a delay in payment; the ROSL amount was given to exporters only from March 2017 onwards.
The amount allocated might not be enough to serve the current requirements, so the government needs to increase the allocation and disburse funds as early as possible to help the industry come out of its present financial crunch, said the organisation.
The rebate of state levies shall be understood to comprise value-added tax (VAT) on fuel used in the transport of raw materials, finished goods and factory workers, and VAT on fuel used in generation of captive power, Mandi tax on purchase of cotton, duty on electricity used in manufacture as accumulated from stage of cotton and man-made Fibre (MMF) till garment or made-up stage, stamp duties on export documents and state GST on inputs used in the production of cotton, and embedded SGST in purchases from unregistered dealers.
The ROSL scheme was announced as part of a special package to the apparel sector, and, subsequently, made-ups were also included in the scheme. The scheme came into effect from September 20, 2016.
