Apparel India | EAI 01 | Issue 06

EAI 01 ISSUE 06

100

Evergreen denim regains lost charm in newer avatars Sportwear, Streetwear emerging as genuing sectors APPAREL EXPORT PROMOTION COUNCIL MAGAZINE

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India Trend Fair Tokyo, Japan 19-21 Sep 2018

Have you booked your space yet

• More than 2500 professional visitors expected.

• Organised by Apparel Export Promotion Council and Japan India Industry Promotion Association.

• An exclusive Business Matching Event.

• An opportunity for exporters to showcase their products and supply capabilities.

• Special emphasis on Japanese fashion trends and requirements.

• Buyer profile-Manufacturers, Wholesalers, Trading Companies, Importers, Speciality Stores, Departmental stores, Volume and Online Retailers etc.

TO AVAIL EARLY BIRD DISCOUNT APPLY BEFORE MAY 21 2018 For further details, please contact: Mr. K S Bisht, Joint Director (Fairs & Exhibition) +91 124 2708156 (D), +91 9810527747, Fax : +91 124 2708004, Email : kbisht@aepcindia.com The Application form may be downloaded from our website www.aepcindia.com (Highlights Section)

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AppArel / Chairman’s Message

Dear Friends,

I

welcome Shri Raghvendra Singh, IAS our new Secretary Textiles who joined in August 2018. Shri Singh is an IAS officer of the 1983 batch of the West Bengal cadre. He comes at a time when the industry is witnessing some silver lining in the form of a favorable currency trend. Although it is too early to say that this will help the exports to take off, but it can be a breather for the industry on the down-slide for the last eleven months. I am happy to share that our interactions have been very positive and I am positive that the pending issues of industry will be taken up by him and under his leadership industry will regain its position of significance in national economy and global exports.

Another good news comes from the production data. The Index of industrial production for apparel , which is an indicator of the health of the overall apparel industry domestic and exports, has gone northwards in June 2018. The production data of June, 2018 has showed a growth for the first time after continuous decline for 13 months. Production growth, driven by demand side improvements augurs well for the export segment too.

The Council continues with its efforts to take up issues that need better understanding and awareness. After the AEO programme series , the Council had organised three seminars in association with Pantone LLC at Delhi, Bangalore & Mumbai. I am confident that the seminar would have been helpful for designers for making color-critical decisions.

The Council is keen to work with the industry for improving the product basket, the fashion component and help in overall value creation and enhancement.

In August we had two Export promotion events, the Magic Fair at Las Vegas and Apparel Textile Sourcing Canada in Toronto.

Reaching out to the Canadian market for the first time, Apparel Textile Sourcing Canada was an important step in creating platforms for improving our access to this market, where India presently has less than four percent share.

The Council plans to look at new and emerging markets each year for exploring export potential. However, the success will partly depend on our competitiveness. The industry is eagerly waiting for policy support to restore some of the lost competitiveness. The Council has been working hard for providing the data and analysis towards improving the RoSl rates, through a more comprehensive coverage of the embedded taxes. We are looking forward to the new rates at the earliest, so that the peak season orders can be booked at competitive rates. n

HKL Magu, Chairman, AEPC

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE

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EAI 01 ISSUE 06

C o n T e n T s

100

Evergreen denim regains lost charm in newer avatars

04 | the broadcast

India’s Ready-Made Garment (RMG) Export Update for FY (April-July) 201819

Sportwear, Streetwear emerging aS genuing SectorS APPAREL EXPORT PROMOTION COUNCIL MAGAZINE

05 | aepc activities | September 2018

AEPC welcomes new Secretary (Textiles) Shri Raghvendra Singh, IAS

06 | aepc events

Exporters’ meet on ECGC

CHAIRMAN AEPC Mr. HKL Magu CHAIRMAN EP Mr. Sudhir Sekhri ADVISOR AEPC Mrs. Chandrima Chatterjee PUBLISHER Apparel Export Promotion Council

30 | business

Pantone Seminar

11| tRade WaR

• India withholds imposing tariffs on US for now • Britain supports China’s trade war with the US • Indian products to gain from US tariff hike on Chinese imports

Flexibility needs to be the indian approach

Printing Press: VIBA Press Pvt. Ltd. C-66/3, Okhla Industrial Area, Phase-II New Delhi-110020 e-mail: info.vibappl@gmail.com

• Adidas on track to reach target • Reliance teams up with Arvind for Hub Excellence Partners

10 | aepc events

14 | tRade tReaties

Dehli Office: Salil Chawla, Business & Mktg: New Delhi - 110017, Mobile: +9193503 18639/ 95601 79633 e-mail: dfudelhi@yahoo.co.in

23 | bRand Retail

24 | coveR stoRy

• AEO Seminar, Noida • Sourcing at Magic, USA

India Time to seize the moment

Mumbai Office: 38/314, Unnat Nagar 4, Off M. G. Road, MHADA Colony, Goregaon (W), Mumbai - 400 062. Ph: 022 2875 5181 e-mail: dfuif@yahoo.co.in / dfu@rediffmail.com

• Asia Pacific delivers the most for Salvatore Ferragamo • New look for Burberry • Hugo Boss online stores see positive growth

08 | aepc events

12 | tRade conceRn

Editor-in Chief & Publisher & CEO Sanjay Chawla Director - Salil Chawla Managing Editor - Sujata Dutta Sachdeva VP-Corporate Communications Shraboni Mukherjee Assistant General Manager - Saqib Meer Editorial - Narayan Subramaniam Editorial Asst. - Ranjit Kaur Correspondent - Ajay Kumar Goswami, Prerna Sharma Graphic Designer - Sanjeev D. Sonavane Production & Admn. - Dhansukh Rathod, Dinesh Poojary

22 | bRand Retail

16 | tRade tReaties

• EU keen on FTA with India • India to liberalise trade norms with Lanka • Vietnam to build supply chain with India

17| tRade tReaties

• Now, US has second thoughts about TPP • EU may ally with Asean • United Kingdom may join TPP as a member

Evergreen denim regains lost charm in newer avatars • Indian garment exports to EU up ten per cent • Industry welcomes economic corridor • India loses share to Vietnam in China

31 | business

• South Korean FDI flows into Bangladesh • Indian companies manufacturing denim in Vietnam • Free trade agreements help Vietnam

32 | business

Sportwear, Streetwear emerging as genuing sectors

35 | tRends

• Fit is supreme for American denim buyers • Stunning women’s range from 7 For All Mankind • Cotton scores over synthetics among UK consumers

36 | tRends

Opulent designs, dash of colors in wool dominate winter wear

18| tRade tReaties

38 | eXpoRt

19 | soRucinG

39 | eXpoRt

• US, Europe to work towards eliminate tariffs • EU stonewalls the UK • Mexico and Canada hopeful of clinching NAFTA

Vietnam replaces China as sourcing hub

21 | souRcinG

• ASEAN brands look at sourcing from India • Bangladesh needs to redress imbalances in textiles sector • Ethiopia offers initiatives for investors

• China remains top apparel exporter to the US • India the biggest export destination for Bangladesh • Italy remains top apparel exporter from EU to the US • Knits dominate Turkey’s apparel exports • Cambodia’s apparel exports on the rise • Sri Lanka’s half yearly apparel exports up five per cent

40 | luXuRy

Luxe brands focusing on fast-paced production windows to thrive

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42 | Fast Fashion

Speeding up production process the new mantra for success

44 | Retail

New Age Retail Technology aid buying decisions

46 | sustainability

• Amfori and CII to support small companies • Levi’s takes green steps

47 | sustainability

• Burberry pilloried for destroying unsold stock • Going green in the widest sense

48 | sustainability

Understanding the environmental dangers of synthetic fibers boosts cotton use

50 | Tech Trends

Why 3D virtual prototyping isn’t a bad idea

53 | Tech Trends

• US printing market to grow at four per cent • Personal service and transparent values • Consumers want good, clean clothing

54 | events

Yarn Expo-Autumn and ITMA Asia + CITME to be held concurrently

56 | events

• Hong Kong to host Fashion Summit HK 2018 on circular economy • Melbourne to host Sourcing Expo in November • Munich’s Bluzezone denim show to a showcase parallel universe

57 | aepc event calendar

CALENDAR OF EVENTS - 2018

58 | NOTIFICATIONS 59 | GST Update

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE

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AppArel / the broadcast

India’s Ready-Made Garment (RMG) Export Update for FY (April-July) 2018-19 India’s RMG Exports RMG exports were to the tune of USD 1274.83 million in July 2018 with the decline of -0.56 per cent against the corresponding month of July 2017, which was USD 1281.95 million.

In rupee term export for the Month of July 2018 was Rs. 8757.23 cr. as against Rs. 8262.94 Cr. in July 2017 with the growth of 5.98 per cent.

India’s RMG export to World in the April-July of 2018-19 was to the tune of USD 5320.67 mn. which has decreased by -13.95 per cent compared to the same period of previous financial year. During April-July 2017-18, India’s apparel exports were to the tune of USD 6183.35 mn.

India’s RMG Export to World Month

FY 2017-18

FY 2018-19

MoM Growth of 2018-19 over 2017-18 (%)

In INR Crore In US$ Million In INR Crore In US$ Million INR US$

April

11272.24

1747.44

8859.67

1349.81

-21.4

-22.76

May

10342.55

1605.37

9040.63

1338.57

-12.59

-16.62

June

9979.57

1548.59

9202.63

1357.46

-7.79

-12.34

July

8262.94

1281.95

8757.23

1274.83

5.98

-0.56

April-July 39857.3 6183.35 35860.16 5320.67

-10.03 -13.95

Source: DGCI&S, Kolkata, 2018

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AppArel / AEPC Activities

AEPC welcomes new Secretary (Textiles) Shri Raghvendra Singh, IAS

S

hri HKL Magu, Chairman, AEPC and Dr. A Sakthivel, Vice Chairman, AEPC welcomes Shri Raghvendra Singh, IAS. Shri Raghvendra Singh, took over as the Secretary (Textiles), Ministry of Textiles, Government of India in August, 2018. A post Graduate in History from the University of Delhi, he is an IAS Officer of the 1983 Batch of the West Bengal cadre.

Shri HKL Magu, Chairman, AEPC and Dr. A Sakthivel, Vice Chairman, AEPC welcomes Secretary (Textiles) Shri Raghvendra Singh, IAS

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE

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AppArel / AEPC events

Exporters’ meet on ECGC

Shri HKL Magu, Chairman, AEPC interacting with exporters at Exporters Meet on ECGC

T

he Government of India has proposed several changes to strengthen the ECGC to give a fillip to the country’s exports and facilitate risk management associated with international trade.

In view of this, AEPC in association with ECGC had organized an Exporter Meet

at Apparel House, Gurgaon on 26 July, 2018 to discuss the schemes and products of ECGC to cover the Non-payment risk of the overseas exports.

Shri HKL Magu, Chairman, AEPC, was present in the exporters’ meet and the officials from ECGC were Shri Sanjeev Kumar Sahu, Asst. General Manager, ECGC and Shri Anadi Charan Roul, Branch Manager, ECGC. n

40 Participants participated at exporters meet on ECGC

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Apparel Accessories Textiles EXHIBIT AT AUSTRALIA’S DEDICATED SOURCING EXPO Event Feature

4000+ TRADE

Co located with

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20 - 22 NOVEMBER 2018 MELBOURNE CONVENTION & EXHIBITION CENTRE

REGISTER internationalsourcingexpo.com

Organised by: International Exhibition and Conference Group Contact: Julie Holt, Exhibition Director Email: julie@iecgroup.com.au • Tel: +61 449 148 886

1/197 Bay Street, Brighton, Victoria, Australia Tel: +61 3 9596 9205 • Email: info@iecgroup.com.au

Partners

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AppArel / AEPC events

AEO Seminar, Noida

A

pparel Export Promotion Council (AEPC) in association with Office of the Noida Customs Commissionerate had organized a seminar on Authorized Economic Operator (AEO) program at AEPC Noida Office on 25 July, 2018.

Shri.

Govind Krishna Dixit, Commissioner, Shri Nitesh, Srivastava, Additional Commissioner and Shri P S Saini, Assistant Commissioner were present from

(L to R) Shri P S Saini, Smt. Chandrima Chatterjee, Shri Nikhil Thukral, Shri. Govind Krishna Dixit, Commissioner, Shri Nitesh, Srivastava, CA Deepa Goyal

Office of the Noida Customs Commissionerate to brief the exporters about AEO program. While the presentation was given by CA Deepa Goyal, Consultant, M/s Jurisperitus Lex LLP. A total of 35 exporters attended the seminar in Noida.

AEPC as part of its initiative to create awareness and clarity about the Authorized Economic Operator Program among apparel exporters, had successfully concluded its AEO seminar series in the apparel clusters of Gurgaon, Mumbai, Bangalore, Jaipur, Ludhiana, Tirupur and Noida. n

Sourcing at Magic, USA

U

SA is India’s largest apparel market with import from India is worth USD 3864.5 mn. in 2017-18 with the share of 23.1%. Considering the size and potential of the US market AEPC had been successfully participating in Sourcing at Magic, USA since 2006. AEPC had participated in Sourcing at Magic, USA held during 12-15, August, 2018 with 60 exhibitors and 64 booths.

The fair was inaugurated by Mr.HKL Magu, Chairman, AEPC in presence of Mr.Lalit Thukral, Chairman-EAC, AEPC, Mr. Anil Verma, EC member, AEPC, Mr. Christopher, President, Sourcing at Magic, Mr. Bob Berg Sr. Director, Sourcing at Magic. n

Chairman, AEPC along with senior EC members and officials from Sourcing at Magic had inaugurated the India Pavilion, Sourcing at Magic, USA

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AppArel / AEPC events

Pantone Seminar

Pantone seminar at New Delhi

U

nder Export Promotion initiative, AEPC had organised three seminars in association with Pantone LLC on 25, 27 & 29 June, 2018 at Delhi, Bangalore and Mumbai.

Pantone LLC is the world-renowned authority on color and provider of color systems and latest technology for the selection and accurate communication of color across a variety of industries. The Pantone name is known worldwide as the standard language for color communication from designer to manufacturer to retailer to customer.

Pantone had connected with the apparel industry in seminars and provided recent developments in products, tools, new synthetic system.

Participants at Pantone seminar Bangalore

Participants at Pantone seminar Mumbai

Objective of the seminar • Present full End-to-End solution from Pantone • Gather momentum with Fashion, Home + Interior (FHI) Industry.

• Engage End users and Dealer Partners • New Synthetic system

Color is a pivotal element of the design process. Effective integration of color into product design and brand strategy can help better engagement with buyer, create more effective design strategies and build stronger brand and product equity in a marketplace.

A total of 270 participants participated in Pantone seminar 90 each in Delhi, Bangalore and Mumbai. n

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AppArel / TRADE WAR

India withholds imposing tariffs on US for now

I

ndia is likely to delay the imposition of retaliatory tariffs on US goods. Incensed by American refusal to exempt it from the new tariffs, India had decided in June to raise import tax on some US products from August 4. The US wants to reduce its trade deficit with India. The country’s US export growth consistently declined till May. It fell from a 21.49 per cent in January to 11.38 per cent in May. India’s share in the US’ total goods

Britain supports China’s trade war with the US

imports is two per cent and in services its five per cent. In contrast, the US’ share in India’s goods imports is five per cent and 15 per cent services imports. India is also hopeful of securing exemption on steel and aluminium tariffs, imposed earlier by the US against all trade partners.

Tariff hikes raise new trade barriers, make domestic manufacturing more attractive as the steep increase in customs duties make imports unaffordable. n

Indian products to gain from US tariff hike on Chinese imports

A

A

s China is looking for allies in its fight with the United States, Britain has come forward in support of Chinese companies and expressed its desire to a sign post-Brexit free trade deal with China. A trade pact with China would be a political win for Britain’s government but formal talks cannot begin until it officially leaves the EU next year. China has also appealed to other countries to support it in upholding free trade and the multilateral trading system, though European countries in particular have many of the same market access complaints as the United States.

Both China and the United States appeared to have avoided a full-scale trade war in May, with China agreeing to buy more US agriculture and energy products, but the deal collapsed and the two sides slapped import tariffs on their respective goods.

Washington has since threatened to set tariffs on an additional $450 billion worth of Chinese goods, and no formal negotiations between the two countries have taken place since early June. n

s per latest CII reports, the additional 25 per cent duties being levied by the US on imports worth $34 billion from China, would make certain Indian products more competitive in the US market. CII analysis shows, India should now focus on the US market for items like machinery, electrical equipment, vehicles and transport parts, chemicals, plastics and rubber products.

Top exports from India to the US covered in the list for which tariffs have been hiked include: pumps, parts of military aircraft, parts for electrodiagnostic apparatus, passenger vehicles of 1500-3000 cc, valve bodies and parts of taps.

Exports of these items stood at over $50 million in 2017 and can be increased with concerted efforts. Based on India’s current exports to the US in these categories, products such as intermediate parts for defence and aerospace sector, vehicles and auto parts, engineering goods, etc, have a higher potential for export. Countries such as Vietnam, Indonesia, Thailand and Malaysia have also increased their exports of these products to the US in recent years. n

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE

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AppArel / trade concern

India

Time to seize the moment

A

s India aims for 20 per cent yearly growth in exports over the next decade, Indian manufacturers need to develop a business strategy that can help the country to succeed in the US and European markets. In 2025, global trade in the textile and apparel market will cross $1.2 trillion. China has nearly 40 per cent share in global exports. However, in the past few years, the country is experiencing a downward trend in apparel exports and has vacated nearly $30 billion worth of space in global trade. Growth in global trade and China’s shrinking exports share present a lucrative opportunity for other countries with competitive manufacturing facilities. India can become one of the biggest gainers in the

changing landscape of global apparel trade. Drip Capital offers insights into some of the intriguing aspects that can make India a global textile destination.

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AppArel / trade concern

The prerequisites Today, fair trade has become a prerequisite to sustain globally. Fair trade advocates expect that everyone in the value should earn enough to fulfill basic household needs, regardless of volatile market prices. Environment sustainability is also a big concern and consumers in the West want products that are made judiciously.

Indian manufacturers can stand out by positioning themselves as practitioners of Fairtrade. Environmental stewardship and labour-friendly working conditions can become India’s USP. If India is to achieve close to 20 per cent yearly growth in apparel exports, manufacturers have to invest in skills training and process improvement to match global competitiveness.

In recent times, there has been increased focus on skill development but these initiatives need to scale up.If the Indian garment industry remains at same productivity levels, they would need 35 million more workers to fulfill the new demand, which is nearly impossible. The objective should be

to match the productivity levels of China in a few years, average output per hour and per machine output both in terms of quality and quantity. Indian policies make it difficult to import the fabric needed to produce winter or some specific garments. Locally, the textile industry is focused on cotton which leaves the exporters with no material to produce such products. This policy to protect the demand for local cotton producers is perhaps doing more than good. n

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AppArel / Trade Treaties

Flexibility needs to be the indian approach “The Regional Comprehensive Economic Partnership or RCEP is a giant trade deal that weaves India, the Association of Southeast Asian Nations (ASEAN), Oceania, China, Japan and Korea together.”

I

ndia is expected to arrive at a constructive decision soon, for consideration when ministers from the 16 RCEP countries meet in Singapore.

If Indian negotiators fail to achieve a consensus, the remaining 15 countries will have to move ahead without it.

India’s attitude is making it difficult to achieve a modest consensus on the Regional Comprehensive Economic Partnership or RCEP - a giant trade deal that weaves India, the Association of Southeast Asian Nations (ASEAN), Oceania, China, Japan

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AppArel / Trade Treaties

overcapacity and its ability to dump goods, India must show to the world that a regional trade agreement that prevents countries from bringing fair, transparent and temporary antidumping actions is in nobody’s interest.

and Korea together.

For many Indians though, this wouldn’t be much of a tragedy. India’s goods trade deficit with China was 60 per cent of its overall trade deficit. According to Indian policymakers, much of what’s being imported is sub-standard and susceptible to anti-dumping legislation. So far, 214 separate investigations have been opened against China for exporting substandard goods, which has worried policymakers about the effectiveness of the anti-dumping measures.

Provisions that raise hackles

Major departure needed

One problem India has is that the RCEP’s focus on reducing goods’ tariffs is not adequate and the deal needs to open services trade simultaneously. It also needs to accord greater freedom of movement to professionals who are a major source of foreign currency for India. The real constraints of trade growth are non-tariff barriers which make competing in the Chinese domestic market such a nightmare.

However, certain Indian sectors have panicked about competition. One of them is steel -- which is slowly recovering after years of pummeling thanks to Chinese overcapacity.

Dairy producers obsess about Australia and New Zealand.

Manufacturers worry about everyone.

The problem is that, at the moment, RCEP is the only proposed deal. India needs to arrive at a more positive, forwardlooking approach by the end of the month or it must abandon its ambition to infiltrate global supply chains. This could be disastrous as the country will shortly have the world’s largest workforce but a mere a 2 percent share of world trade.

Therefore, instead of being concerned about China’s

India has raised tariffs on 400 products over the past two years, which is a major departure from a generation-long trend towards greater openness. It has unilaterally scrapped investor protection treaties with almost 60 countries. Even the government’s choice of economic policy advisers reflects a new distrust of the world. The economists who shaped the Modi government’s initial years, though have been eased out.

As the country retreats from the turnpike of world trade to the dirt road of autarky, it will be poorer in both the medium- and longterm. Therefore if the government wants to reassure the world that India isn’t willing to put up with the dirt road, then it needs to find a way to be more positive about RCEP, is the opinion of many experts who are looking at RCEP. n

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AppArel / Trade treaties

EU keen on FTA with India

E

urope’s foreign trade association Amfori has said India and the European Union should focus on resolving differences over three crucial issues if they want to break the deadlock on long stalled free trade pact. Talks should initially focus on India’s demand for a liberal visa regime for its nurses, a relaxed geographical indications regime and duty cuts on its textile exports.

EU’s insistence on India committing to sustainability norms is one of the sticking points as Delhi is against the inclusion of non-trade issues such as environment and labour in its trade pacts. The EU now asks for trade and sustainability chapters in all its trade pacts and

India to liberalise trade norms with Lanka

I

ndia and Sri Lanka are widening the scope of free trade agreement they already have by including services and investments.

Economic ties between the two countries will be boosted by liberalising trade norms.

The free trade agreement was signed in 2000. India has a healthy trade surplus in goods with Sri Lanka. India exported goods worth $4.5 billion in 2017-18 and its imports were $773 million. Sri Lanka is India’s major trading partner in South Asia.

Sri Lanka is a garment making hub. A scenario where Sri Lanka sources from India and manufactures apparel and garments for the rest of the world could lead to a win-win situation for both countries. Both countries share a rich textile tradition.

Large Indian companies can encourage Sri Lankan companies to be part of their supply and value chains.

Sri Lanka is one of India’s largest trading partners in SAARC. India in turn is one of Sri Lanka’s largest trade partners globally. Sri Lanka is among the top ten countries which import cotton fabrics from India. n

that is among the five areas of contention between the two sides.

India exported merchandise worth $53.5 billion to the EU in 2017-18 while it imported $47.8 billion worth of goods from the trade bloc. Besides Brexit, the other cause of slow movement on the Bilateral Trade and Investment Agreement (BTIA) is the EU’s involvement in free trade agreements with other countries, including some in Asia such as the Philippines. The EU’s apprehension to sign a BTIA separate from the Bilateral Investment Treaty (BIT) with India has further added to the delay. n

Vietnam to build supply chain with India

C

ooperation between the garment and textile sector will be one of the priorities in Vietnam and India’s efforts to raise bilateral trade value. Both have prioritized development and cooperation with the aim of enhancing bilateral trade and building a supply chain for the textile sector.

In 2017, India’s apparel exports to Vietnam surged 44 per cent.

To enhance trade cooperation, India intends to export apparel fabrics worth one billion dollars to Vietnam. Despite being one of the five largest apparel exporters in the world, Vietnam also imports the highest amount of garments and textile materials in the world.

And India owns a strong fiber and yarn production industry that is able to produce almost all kinds of fabrics and supporting materials available in the market, making it one of the three largest textile products providers in the world. India is strong in producing and exporting textile products from synthetic yarn, being used widely in the global garment industry.

While Vietnam will gain from India with regard to latest technology, textile materials and products, India too can expand its market. Vietnam applauds the quality of Indian fabric. n

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AppArel / Trade treaties

Now, US has second thoughts about TPP

T

he US is looking at rejoining the Trans-Pacific Partnership (TPP). And the main aim is to counter China. The US intends to renegotiate the trade pact and sign revised free trade agreements with Japan, South Korea and Canada. TPP was proposed in 2010. As a multilateral trade framework outside the World Trade Organization, the TPP intends to further reduce tariff barriers and enhance unified market rules including intellectual property protection.

The trade pact was widely seen as a way to press China into further lowering tariffs, opening markets and complying with rules drafted by developed nations. However, the US decided to withdraw from the TPP in January this year. Also the United States and the European Union have agreed to avoid an all-out trade war and work towards zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.

EU may ally with Asean

S

outheast Asia and Europe are working towards a free trade pact. This is their way of fighting protectionism and the threat of global trade wars. The US is embroiled in a trade war with China and close allies including the European Union, imposing tit-for-tat tariffs on billions of dollars worth of

goods and heightening fears of economic pain that could spread worldwide.

The EU has assured Southeast Asian countries they can count on Europe as a free trade partner. The EU has been negotiating bilateral trade accords with several Asean states and hopes these will be the stepping stone towards a future region-toregion deal. There is concern over looming trade wars since a war has no winners.

Asean, a 10-nation region of 650 million people with some of the world’s fastest growing emerging economies, has been keenly forging free trade pacts among its members and regional trading partners. The EU and Asean launched talks for a trade pact in 2007 but the EU opted out of the process two years later -- partly due to problems with the then-military ruled Myanmar. But both sides agreed to reboot trade ties last year with the possibility of an accord between the two regions. n

The EU also plans to buy more US liquefied natural gas and soybeans. Both sides will also iron out disputes on steel and aluminum exports. The US is likely to sign trade pacts with other trading partners, including Japan, South Korea, and Canada.

These agreements among developed nations would represent nearly 90 per cent of the global economy. In this way the US hopes to force China to make more concessions in lowering tariffs, reducing subsidies, opening up markets, and enhancing intellectual property rights protection. n

United Kingdom may join TPP as a member

T

he United Kingdom has expressed interest in joining the revamped TPP trade deal, even before the 11 nation agreement has been ratified. Now known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership it’s expected to come into force next year.

Japan and Mexico have ratified the treaty and it needs another four other signatories to ratify before starting off. The UK first wants to seek free trade deals with the United States, Australia and New Zealand. It then wants to go further and break new ground be part of the CPTPP. This covers markets across the world from Canada to Chile, Mexico to Vietnam. The agreement reduces 95 per cent of tariffs along with other barriers to trade.

The UK is seeking public feedback on the idea, wanting to prevent its isolation from the rest of the world after it exits the European Union.

South Korea is said to have contacted multiple members about joining, while Taiwan, eager to counter mainland China’s push for its own trade sphere, has shown interest as well. n

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US, Europe to work towards eliminate tariffs

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he US will work with the European Union on eliminating tariffs between the two regions.

Makers of blue jeans in the US have to pay an eight per cent duty to import Italian denim.

The cost of these goods, if duties were off, would be down significantly.

In 2017, the United States exported textiles and apparels worth $2.6 billion to the European Union while importing $5.5 in textiles and apparel from the EU. Eliminating tariffs would put US companies on par with countries such as South Korea, which already has a free trade agreement with the EU. Japan has signed a free trade agreement with the European Union. Mexico and the European Union have

EU stonewalls the UK

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K’s international trade secretary Liam Fox has put the chances of failure to reach a deal on Brexit at 60:40, blaming the EU’s stubborness for it. His comments come at a time when the deadline looms for Britain to exit the European Union on March 29, and amid growing fears that the deal will not be agreed in time. The minister stated he had previously thought the prospect of a nodeal were 50:50 but that has now increased -largely due to European bureaucrats harboring a “theological obsession” with EU rules, rather than “economic wellbeing.”

Meanwhile British Prime Minister Theresa May, whose blueprint for leaving Europe has come under fire from both Brexiteers and Remainers within her Conservative Party held talks with French President Emmanuel Macron. The negotiations come at a delicate time for May, who in recent months has seen a string of resignations in her party over her Brexit plans -- most notably between Brexit secretary David Davis and foreign secretary Boris Johnson. n

agreed in principle to an updated free trade agreement.

So, US manufacturers don’t want to be at a disadvantage.

In the meantime the US has spent months threatening or imposing tariffs on various imports from China, Canada and Mexico. Chinese and US textile and apparel organizations are concerned about the escalating trade tensions and have voiced their opposition to protectionism. Tariff increases are not just a tax on consumers but also bring uncertainty to the supply chain for brands. Top brands depend a lot on a stable global supply chain.n

Mexico and Canada hopeful of clinching NAFTA

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exican and Canadian officials are optimistic about clinching the NAFTA trade deal with the US in the next several months even amid sticking points on car production, an automatic expiration clause and President Donald Trump’s threats to impose tariffs on foreign vehicles.

The nations will try to work an agreement before the US mid-

term elections in early November. Some of these negotiations will result in meetings between the two nations. While the US has expressed a preference for bilateral deals, Mexico and Canada remain committed to a trilateral agreement.

Many of Trump’s senior economic advisers expect him to impose a 25 per cent tariff on about $200 billion in foreign-made automobiles later this year. Canada has termed this as absurd and expressed confidence that the US will follow common sense and refrain from imposing these tariffs. n

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Vietnam replaces China as sourcing hub

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or many US apparel companies, China has long been the only sourcing destination for raw materials. But not anymore as per the fifth annual benchmarking study released by the US Fashion Industry Association, Vietnam and other countries are fast replacing China as major sourcing hubs for the US. The prospect of a looming trade war is compelling US apparel companies to shift production away from China. Though, China still remains the top sourcing destination for the US apparel industry, the country now

accounts for only 11-30 per cent of companies’ total sourcing volume, compared to 30 per cent–50 per cent in the past.

Sourcing base gets diversified A major reason for this is the US’s protectionist trade policy, the industry’s top business challenge along with e-commerce competition and increasing production and sourcing costs.

Compared to 2017, the challenges of rising costs and the need for alternative sourcing destinations have become much more immediate. Almost 54 per cent respondents in the US Fashion Industry Association believe increasing production or sourcing cost to be one of their top five business challenges this year, compared to only 34 per cent in 2017.

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Vietnam, however, offer the most competitive pricing, even though this cost competitiveness is eroding. Furthermore, higher compliance risks associated with sourcing from South Asia give the US another competitive edge.

An overwhelming majority of this year’s respondents expect labor costs and raw material costs to increase. In the 2017 benchmarking study, only 73 per cent expected labor costs to increase. According to the report, wage levels started increasing in the later part of 2017 in almost all major sourcing destinations for US fashion companies, including Asia, Central America and Africa.

Concerns about compliance This year’s respondents also voiced concerns about social and environmental compliance, political unrest and insufficient resources for managing supply chain risks.

Almost 85 percent plan to devote more resources to manage sustainability and social compliance over the next couple years.

This is however not the case for larger companies who are more likely to have a diversified sourcing base. Over two thirds respondents reported they source from at least 11 different countries, and 26 per cent source from 20 different countries. In contrast, only half companies with fewer than 1,000 employees source from more than 10 different countries.

As for sourcing destinations, China, Vietnam, Indonesia, India, Bangladesh, Cambodia, Thailand, Philippines, Mexico and the US dominate the list of top 10 countries. Each of these sourcing destinations has its own strength and weaknesses.

Geographical proximity of sourcing domestically or from Mexico is a major factor for US companies. Bangladesh and

Majority of these companies can map their supply chains down to Tier-II suppliers.

Nevertheless, increased attention to supply chain sustainability suggests the apparel industry is continuously adjusting its sourcing strategy in response to social and business demands. The overall sourcing strategy for the US apparel industry is thus moving away from China, with more production shifted to Vietnam and Bangladesh. Cambodia and sub-Saharan Africa are also expected to play a bigger role. n

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ASEAN brands look at sourcing from India

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s per Ministry of Textiles, India possesses a great potential to become the next one stop sourcing destination for ASEAN brands and retailers. The country offers a number of competitive advantages including abundant amount of raw materials, trained man-power as well as the presence of entire textile value chain. Moreover, 100 per cent FDI is allowed in the textile segment under automatic route.

The government recently announced a special package for apparels and made-up sectors. The packages include labour law reforms, additional incentives under Amended Technology Upgradation Scheme, improved duty drawback coverage and relaxation of Section 80JJAA of Income Tax Act etc. Likewise, the rates under the Merchandise Exports from India Scheme (MEIS) have been enhanced from 2 per cent to 4 per cent for apparel and made-ups sector, active since November 2017.

Bangladesh needs to redress imbalances in textiles sector

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angladesh has emerged as a strong hot spot for apparel sourcing. The country’s readymade garment sector has enjoyed rapid expansion, reaching international buyers and contributing 83 per cent to the nation’s GDP. Bangladesh has 796 woven fabric manufacturers, of these 31 are denim mills and 22 are producing home textiles, with an annual capacity of some 3,850 million meters of fabric. The country is also home to 240 dyeing, printing, and finishing mills, producing another 3,170 million meters of fabric per annum.

However, demand from domestic manufacturers for woven apparel is currently far outstripping supply. So the country needs to develop its textile manufacturing capabilities.

Bangladesh has a limited supply of domestic cotton fibers, producing some 1,28,000 bales of cotton domestically but its importing in excess of seven million bales a year, and is reliant on the import of manmade fibers including polyester, viscose, and Tencel.

The readymade garment industry needs to redress the balance between imported woven fabrics and those domestically produced. With 60 per cent woven fabrics being imported, it means approximately 45 per cent of Bangladesh’s woven apparel production is facing lead-time pressure. Imported goods incur lead times of anything between 28 and 42 days. n

The government is also giving subsidised interest rate for pre and post shipment credit for the textile segment; and supporting exporters under Market Access Initiative (MAI) Scheme.

Products like fibre, yarn, and fabric are made feasible through schemes like Powertex for fabric segment, ATUFS for all segments except spinning and Scheme for Integrated Textile Parks (SITP) for all segments. n

Ethiopia offers initiatives for investors

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ajor global brands are now beginning to source from Ethiopia. And what has helped the country emerge as a sourcing destination is: rising wages in China, labor unrest and violence in Cambodia, and ineffective compliance with rules and regulations in various countries of South Asia. Also, Ethiopia has been making efforts to create favorable conditions in order to attract investors.

The textile and apparel sector in Ethiopia is centered around spinning, weaving, knitting, and finishing. Currently, the textile and apparel sector in Ethiopia employs 47,000 people. As per plans, the number of skilled workers will increase to 3,50,000 within the next five years in 12 industrial parks. Various incentives are being given to foreign investors and shareholders. This is expected to help the country in professionalising state-owned companies and bring in foreign currency.

Several major foreign companies have invested in the textile and clothing industry in Ethiopia.

In 2014, H&M began purchasing textiles and garments from Ethiopia. UK retailers Tesco, George and Primark also began sourcing from Ethiopia earlier that year. n

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Asia Pacific delivers the most for Salvatore Ferragamo

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or the half year Salvatore Ferragamo’s revenues were down 6.2 per cent at current exchange rates. Asia Pacific is confirmed the group’s top market in terms of revenues. The group has a total 677 point of sales, including 407 directly operated stores and 270 third party operated stores in the wholesale and travel retail channel as well as a presence in department stores and highlevel multi-brand specialty stores.

Gross profit decreased 7.7 per cent. Its incidence on revenues was down 110 basis points, moving to 64.1 per cent from 65.2 per cent, mainly due to the negative impact of currencies. Operating costs decreased, at current exchange rates, by 4.6 per cent.

Ebitda fell 14.5 per cent over the period, with an incidence on revenues of 17.3 per cent from 19 per cent. Ebit was down 18.5 per

New look for Burberry

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urberry has acquired a new logo that says & ‘Burberry London England’ in stark capital letters, replacing the softer, rounder font the company previously used.

The brand also adopted a new monogram print featuring interlocking T’s and B’s—for its founder, Thomas Burberry.

The graphics were designed in collaboration with the British art director and graphic designer Peter Saville, who last year revamped the Calvin Klein logo with Raf Simons. The logo and monogram print recently began appearing across all of Burberry’s channels and in a new advertising campaign.

The new logo was adopted after recent public outrage over Burberry reportedly burning unsold clothing stock worth €28 million.

The London-based brand, which joined Nike and H&M in an initiative to improve industry sustainability earlier this year, said the move was in an effort to protect against counterfeiters.

Many consumers had voiced their disapproval, and ThredUp, an apparel resale site, penned an open letter it released on Instagram. n

cent, with an incidence on revenues of 12.7 per cent from 14.6 per cent.

Italy-based Salvatore Ferragamo, is a world leader in luxury.

The group is active in the creation, production and sale of shoes, leather goods, apparel, silk products and other accessories, along with women’s and men’s fragrances. The group’s product offer also includes eyewear and watches. n

Hugo Boss online stores see positive growth

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erman luxe fashion brand Hugo Boss’ sales in the second quarter of fiscal 2018 went up six per cent. Sales from the group’s own online business soared 47 per cent. In the wholesale business, sales picked up significantly by 10 per cent. Ebitda before special items remained virtually unchanged compared to the prior-year period. Hugo Boss online store saw positive growth. Ebit was below the prior-year level, mainly due to the non-recurrence of other operating income recorded in the previous year. Following improved financial result, the decline in the group’s net income was lower as compared to Ebit.

Renovation of existing stores and the cross-channel integration and digitisation of the group’s own retail activities were the focus of investment activity in the second quarter. Overall, Hugo Boss recorded currency-adjusted sales growth of five per cent in the first six months of fiscal year 2018. Ebitda before special items was unchanged over previous year.

The group continues to expect currency-adjusted sales growth in the low to mid single-digit range. In addition, Ebitda before special items is expected to develop within a range of minus two to two per cent compared to the prior year. n

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Adidas on track to reach target

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didas’ Q2 revenues increased 12 per cent. While revenues in wholesale channel increased at a high-singledigit rate, direct-to-consumer sales rose at a double-digit rate with strong support from e-commerce, where revenues grew 26 per

cent in the quarter. Adidas remains firmly on track to achieve its set targets for the full year 2018 and long-term until 2020.

The company’s gross margin increased 2.2 percentage points to 52.3 per cent. This development was driven by an improved pricing and channel mix, reflecting the company’s focus on the quality of its top-line growth. Royalty and commission income increased 10 per cent. Other operating expenses increased nine per cent. As a percentage of sales, other operating expenses were up 1.8 percentage points to 43 per cent. This increase was mainly driven by significantly higher marketing expenditure, which grew 14 per cent.

As percentage of sales, marketing expenditure increased 1.2 percentage points to 13.5 per cent. In addition, operating overhead costs increased seven per cent as a percentage of sales to 29.5 per cent as the company continues to invest into further improving the scalability of its business. Inventories declined six per cent. Operating working capital increased one per cent at the end of June 2018. n

Reliance teams up with Arvind for Hub Excellence Partners

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eliance Industries (RIL), as a part of RIL’s Hub Excellence Partners (HEP) Program, has partnered Arvind to manufacture co-branded R|Elan™ high performance fabrics . As a part of this partnership, Arvind will provide a high standard quality fabric and RIL will ensure timely delivery of R|Elan™ high-quality performance technologies to Arvind.

The co-branding effort re-affirms the

share of menswear and womenswear. RIL is also in the process of adopting a B-2-B-2-C approach under its Hub Excellence Programme (HEP) in which it is set to forge partnerships with textile manufacturers to provide technology for the manufacture of high performance fabrics under RElan. RIL has partnered 32 textile players that are equipped to produce New Age fabrics using R|Elan™ technologies. n

brand’s vision to offer aesthetically pleasing, technologically advanced and, sustainable products. The R|Elan™ co-branding exercise will bolster RIL’s foothold in Rs 225,000- 250,000 crore Indian apparel industry having almost equal

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Evergreen denim regains lost charm in newer avatars

Despite the growing market for athleisure, denim still holds its charm worldwide. Innovations is driving the industry while denim makers are playing around with new fabric blends, colors and fit to woo the New Age consumer.

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• Six out of 10 American consumers enjoy wearing denims.

• North America is the world’s largest denim market • The denim industry is considered to be one of the worst polluters of environment • Casual denim, over the last few years are replaced by more relaxed wear such as yoga pants and jeggings • Black denim, has caught the attention of everyone from the trucker jackets to dresses and regular five-pocket jeans

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ecent P&S Market Research, the global denim industry is valued at over $57 billion, and is likely to grow at over 6 per cent annually till 2023.

Growth is driven mainly by innovative approach and advanced status of manufacturers and buyers who strive to offer denims that accentuate a buyer’s appearance without negatively impacting the environment.

However, in the past two years, with growing preference for athleisure, jeans, the world’s most famous attire is witnessing lackluster growth. But what can bring zing back is products innovation. In a report, ‘Spotlight on Jeans:

Denim Bounces Back’, Lorna Hennelly, fashion & beauty analyst, Euromonitor, says demand for leggings is slowing, giving rise to a rebound in rigid, retro-style denim. The resurgence in demand is driven by millennials and grows in line with the industry-wide revival of ’90s-style fashion and nostalgic Americana, after over a decade of ultrastretch skinny jeans saturating the market. In an effort to compete against athleisure, jeans manufacturers are innovating and adapting to evolving consumer needs.

On similar lines, a Cotton Incorporated Lifestyle Monitor Survey points out in the US, almost six out of 10 consumers (59 per cent) ‘love or enjoy’ wearing denim.

Nearly two thirds (61 per cent) say they wear denim jeans or shorts at least three times a week. American women are even more likely than men to wear denim (63 per cent versus 57 per cent). In fact, the P&S study shows; North America is the world’s largest denim market, contributing more than 30 per cent revenue to global market in 2016.

What drives denim’s growth A Statista research shows, denim sales are encouraged by expanding urban population, increasing white-collar employees, changing perceptions of ‘executive wear’ and resulting acceptance of jeans as business as well as casual attire among men. Monitor Research reveals on an average, US men and women own six pairs of jeans. In contrast, consumers in Colombia own nine pairs; followed by Mexico (eight pairs); Germany (seven pairs), Italy and Turkey (both six pairs); Great Britain and Thailand (both five pairs); China (four pairs); and Japan and India (three pairs).

P&S Intelligence highlights, jeans, the largest contributor to global denim market, are expected to drive future sales as well.

Jeans are available in numerous styles, such as: skinny, stretch, ultra-low-rise, mid- and high-rise denims, boyfriend, straight/cigarette jeans, flared, wide-legged, capri, cropped, and cuffed jeans, providing buyers with multiple options to choose from.

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latest iterations of high-tech equipment to improve products and processes. In future, the country plans to go green by using more eco-friendly materials like organic and BCI cotton, adopt cleaner dyeing technologies and opt for technical denim that does more while using less.

China

Quality over style When it comes to buying denim, consumers across the world focus on a good quality of pair of jeans so that it can be worn in public also. According to latest findings of the Global Monitor, around 48 per cent consumers wear denims to run errands, 35 per cent wear them to work, 33 per cent to go out for dinner, 28 per cent to be counted amongst the stylish or fashionable while 27 per cent wear them to look and feel good.

The Global Lifestyle Monitor Survey further reveals that amongst all countries Colombia, with 82 per cent, has the highest affinity for denim. This is followed by Germany (81 per cent), Turkey (72per cent), Mexico (71 per cent), and Great Britain (68 per cent). The number of people, who love or enjoy wearing denim in India and China too, has grown significantly from 22 per cent to 53 per cent in India and from 39 per cent to 65 per cent in China, between 2003 and 2018.

With denim being a staple in everybody’s wardrobe globally, manufacturing is dominated by a few countries. In fact, some countries have emerged in the forefront of global denim manufacturing. Some of them are:

China, last year, exported denim apparel worth $922 million to the US, nearly 2 per cent less than what it shipped in 2016, yet the country still accounts for more than 25 per cent of overall US denim imports. Guangdong-based Foshan Season Textile and Garment has developed ‘Ecology Denim’ collection, which includes pre- and post-consumer recycled cotton/poly.

As the Chinese government will continue to execute the strict environment protection, only those good mills that have strong R&D, a high-quality control system and the ability to control costs will survive.

Mexico Known for its high-quality fabrics and speed of shipping its products to the US, Mexico contributed $793 million worth of denim apparel to the US last year. The country makes up nearly 22 per cent of overall US denim imports with nearly 40 per

Bangladesh Focusing on sustainability, Bangladesh invests heavily in machinery, employing the

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Fact File • Colombia, with 82 per cent, has the highest affinity for denim • Mexico contributed $793 million worth of denim apparel to the US last year • The fourth largest supplier of denim to the United States, Pakistan in 2017 shipped roughly $214 worth of denim apparel to the US • Italy supplied denim apparel worth $18 million in 2017 • The denim industry, currently valued at over $57 billion, is likely to grow at an annual rate of over 6 percent till 2023.

overall US denim imports. Alberto Candiani, a denim expert who runs leading Italian mill Candiani Denim, revealed that ‘Clean denim’, in terms of both look and content, is the latest development in denim from Italy. It focuses more on sustainable fibers, eco dyes and finishing. Taste, creativity, innovation, a finer aesthetic and hand feel are a few attributes that separate the Italian denim industry from others.

Pakistan The fourth largest supplier of denim to the United States, Pakistan in 2017 shipped roughly $214 worth of denim apparel to the US, a nearly 20 per cent jump over what it

cent of men’s and boy’s jeans in the US coming from Mexico. A report released by the United States Department of Agriculture last year suggests, Mexico is the 7th largest exporter of denim worldwide for the past 15 years.

Mexican manufacturers use eco-friendly blends like Tencel al and Repreve recycled polyester with moisture management properties. They emphasize on developing performance stretch denim with CoolMax, ToughMax, DualFx and bi-stretch denim with 360-degree comfort. In terms of finishing, they focus on foam coating, ozone finishing, overdyeing, digital printing, and waterless and low energy laundry applications.

Italy Italy supplied denim apparels worth $18 million in 2017, gaining a position in the top 20 list of those supplying denim to the US. The country accounts for just half a per cent of

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shipped in 2016. Henry Wong, DirectorProduct Development & Marketing, North America at Pakistan’s Artistic Fabric & Garment Industries (AFGI) points out suppliers in Pakistan is investing in innovation and sustainability. AFGI is turning to old materials to make new ones, rather than depleting more of the world’s resources sticking solely to virgin inputs. The company recently added a post-consumer waste tearing plant to its facilities, allowing it to transform old jeans into new fabrics entirely in house, which reduced wastes. Many European retailers are sourcing from Pakistan to take full advantage of the speed, flexibility, and quality many producers here offer.

New trends in denim Performance wear, a fashion trend currently making headlines, has attracted the attention of luxury players from Ermenegildo Zegna to Patagonia and Wrangler who are now investing in this premium category.

Aamir Akhtar, CEO, Denims, Arvind recently unveiled the company’s new denim collection that displayed new ways of dyeing as well

as products like their Boomerang 360 Denim, which offer extreme stretch and highrecovery capabilities.

When it comes to demand, the concept of gender is undergoing a sea change. The belief that body-hugging jeans are for women and men prefer loose fits, is being completely reversed, as women are opting for straight fits like, boyfriend jeans and rugged overalls, and men opt for lean fits. In terms of styles, high waists and tapered hems are the major upcoming trends. Casual denim, in the last few years, has been replaced by a more relaxed wear such as yoga pants and jeggings. People prefer to buy latest fabric technology such as five-pocket trousers in extra stretch materials and trendier style variations. The industry is innovating denim with renewed focus. Designers are developing clothes with added properties to create ‘technical’ denim. The younger generations are adopting the garment with a whole new identity, while the older ones are giving it a much-needed fillip with new styles and designs.

Sustainability the buzz word in denim The denim industry is considered to be one of the worst polluters of environment; the biggest culprit being the fresh water used to produce a pair of simple jeans. To overcome this, innovative solutions such as dry ice cleaning and ozone washing etc, are being used. Industry leaders are innovating with sustainable dyeing and washing solutions like ikat, ozone wash and indigo to develop eco-conscious processes.

The main reason behind the huge popularity of upcycled

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denim is its ability to survive the worst wear and tear.

Manufacturers therefore, are creating hybrid weaves besides mixing up different washes in the same garment for modern looking cuts. Two-tone denim and blends with fibers like elastane and lyocell are dominating majorly.

An Indian touch A great Indian value addition on denim, embroidery focusing on the themes of travel and escapism is likely to thrive in future also. Inspiration for these weaving patterns comes from global cultures, especially, the Middle East and antique African cultures. Patchwork that takes a dig at heirlooms and kitschy all-over paisleys or bandana in all-over prints can be used with simpler denims to create balanced jackets and statements tops. Designers can also work on contrast stitching on dark tint denims for simple but trend-embedded jeans.

Most denim apparels comes from worn out, old-world look.

Customers today are shying away from overpowering washes and raw appeal of pure denim. A hint of preppy but mostly just plain silhouette denim focus is coming to the fore.

Black denim’s growing charm Black denim, over the past few seasons, has caught the attention of everyone from trucker jackets to dresses and regular five-pocket jeans. Consumers today desire denim that does not lose its shine and color even after multiple washes, providing that benefit of a lasting product. SuperCharged Noir collection

strives to provide exactly this. The collection, launched by Artistic Milliners, in partnership with Invista’s Cordura brand and Lenzing Tencel, addresses the need for long-lasting black color while at the same time reflecting on other trends such as softness and sustainability that the consumers look for today.

The new SuperCharged Noir denim collection, created by implementing the latest in smart and sustainable fiber technologies, is inspired by five components, via its 5S technology: stay-true color, enhanced strength, engineered soft comfort, sustainable innovation and performance stretch. The fabrics are designed to stand up to the challenges of an active lifestyle to combine durability and flexible comfort. The makers of this collection have added a new dimension in stay true color and enhanced strength and abrasion resistance by incorporating the latest state-of-the-art Invista Nylon 6.6 Black SDN Fibre technology. The SuperCharged Noir collection aims to reach both “fashion” and “workwear” brands, as well as kidswear designers, who are looking for a durable, comfortable and responsible denim product for their customers. n

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Indian garment exports to EU up ten per cent

he European Union increased its imports of women’s garments by 16.30 per cent volume-wise from January to April 2018

period. EU imported 72.43 million kg of garments worth € 363.31 million from across the world, a 3.26 per cent surge in value-terms.

UVR in the first four months of 2017 was € 26.59 per kg of women’s garments whereas in the same period this year it registered a remarkable fall of € 24.58 per kg of women’s garments. The fall in unit prices boosted the growth in the segment.

India exported € 269.16 million worth of garments to the EU marking a 10.40 per cent growth on yearly basis, while shipment in volume-terms went up 12.08 per cent during the period.

Bangladesh, which was lagging behind India in exports to EU in the same period last year, surpassed this year to ship 11.09 million kg of garments among the 28-nations bloc, growing 29.84 per cent. On the other hand, its values jumped 14.17 per cent and Bangladesh exported €152.90 million worth of dresses to EU in the review period. n

Industry welcomes economic corridor

India loses share to Vietnam in China

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he Tirupur knitwear cluster is looking to the Indo-Pacific economic corridor as it would open up traditional apparel markets abroad. The Indo-Pacific economic corridor is a treaty likely to have 12 countries, including India, the US, Australia, Indonesia, Japan and New Zealand, on board. Under the treaty, each country is expected to provide a conducive climate for trade exchanges for other members and investment to develop infrastructure.

Especially in the apparel market, India could utilise the advantage, if the US, which has a traditional apparel market, has a lower import tariff and a softer approach. Apparel exporters in India could get a huge boost from the corridor. The corridor will provide a platform for a select group of nations and help others develop their economies. If the partners are provided preferred status, it will be a win-win situation for both sides.

Though the economic corridor has been mainly mooted to counter China, it will not affect China much, at least not in the apparel market. Since Chinese firms have already made big investments in countries such as Bangladesh, Vietnam and Cambodia, which are top competitors of India in the apparel industry, China may not feel the heat of the corridor. n

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ndia’s trade deficit with China is a matter of concern as it has been increasing over the years. From 2010-11 to 2013-14, India was a net exporter of textile and apparel products to China. However, after that India’s trade deficit with China started widening.

Among the few items where India is more competitive than China is cotton based textiles like yarn, fabric and made-ups.

However, competing countries such as Vietnam, Indonesia, Pakistan and Cambodia enjoy duty free access to the Chinese market while Indian products carry 3.5 per cent, 10 per cent and 14 per cent duty on yarn, fabric and made-ups respectively.

India is a market leader in cotton yarn but lost almost 50 per cent of its market to Vietnam over the last three years, creating excess capacity in the system.

India’s cotton yarn exports to China have decreased 53 per cent from 2013 to 2017 while Vietnam’s exports of cotton yarn to China have increased by 88 per cent during the same period. Moreover the profit margins in cotton textile industry are thin, in single digits. Therefore, the industry is sensitive to even small changes. If a level playing field is given to India, like its competitors, it can double its exports plus reduce its trade deficit with China. n

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South Korean FDI flows into Bangladesh

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oreign direct investment in Bangladesh’s textile and apparel sector rose 15.70 per cent in 2017 compared to 2016. South Korea was the largest investor in the country’s textile sector, followed by Hong Kong and the United Kingdom.

Since the garment sector is growing fast, foreign investors choose the Bangladesh as an investment destination for textiles.

Availability of workforce at a reasonable rate, duty-free market access to major export destinations, preferential location in the heart of the Asia-Pacific region and policy support are catalysts to attract FDI. The Bangladesh Investment Development Authority is a onestop service. The digitized system has made the process easy, pushing up foreign investment in the textile sector. Bangladesh has to import a huge amount of woven fabrics to meet local demand. Foreign investment in the textile sector will help

Indian companies manufacturing denim in Vietnam

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ietnam is emerging as a denim fabric manufacturing center.

Indian fabric investors are showing interest as they search for potential suppliers of denim fabric. Denim accounts for 20 per cent of Vietnam textile sector’s export revenue.

Although the sector is facing bottlenecks in supply chain, denim fabric production is a strong point of local producers with a localisation ratio of about 60 per cent, spurred by heavy investments in production lines and technologies.

The impressive growth of Vietnamese garments and textiles in recent years has persuaded the choosiest customers worldwide, including Indian firms. The Vietnamese garment and textile sector with its enhanced production capacities is a magnet for foreign investors. Indian companies are looking to collaborate with Vietnamese partners to produce denim fabric. Many are planning to move their plants from China as more benefits are expected when having production facilities in Vietnam, including larger order volumes and skillful workers.

Currently, India has invested $814 million in 176 projects in Vietnam, ranking 28 out of 126 countries and territories having investment in the country. Last year, India’s garment and textile exports to Vietnam increased 44 per cent year on year. n

Bangladesh build a strong backward linkage for the woven sector.

Bangladesh produces mostly basic clothing items. Foreign investment is especially valuable in high tech-fabric manufacturing and technologybased garment manufacturing to make value-added products. FDI in the textile and apparel industry will help in the production of high-quality fabrics as foreign investors have expertise in this area. n

Free trade agreements help Vietnam

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he Chairman of Vietnam Textile and Apparel Association, Vu DucGaing says, free trade agreements, particularly the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), are attracting big investments to Vietnam’s garment-textile industry. In the first six months of 2018, Vietnam attracted $2.8 billion foreign direct investment (FDI) in garmenttextile, bringing the total FDI in the sector to nearly $17.5 billion.

The country also witnessed the launch of several large-scale projects including a German-invested sheep wool yarn spinning plant in the Central Highlands city of Da Lat and an US-invested yarn production plant in the southern province of Dong Nai. Many Vietnamese firms also invested in material production projects. Besides, CPTPP and EVFTA have changed the structure of export markets of Vietnamese garment-textile products in recent years. n

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Sportwear, Streetwear emerging as genuing sectors

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UK Sportswear Market 20172022 report predicts 8.7 per cent growth this year, on top of estimated UK sportswear sales of £2.5 billion in 2017. And the sector is changing swiftly to cater to ever-evolving consumer demand as the market matures. A GlobalData’s study reflects a sector focussed on lifestyle, the latest developments in the market chime with growing wellness trend and increasingly mindful consumer decisions of younger shoppers. As with fashion in general, activewear shoppers and brands are turning their attention to sustainable design in a big way.

As Nick Paulson-Ellis, Founder, The Sports Edit, points out it’s sustainability in

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an innovative way with no compromise for consumer. There used to be an eco-friendly, sustainability angle within yoga wear that compromised performance. Now, it is about having no compromise on fashion, performance or function – and still being sustainable. Ellis says, recycled, sustainable materials both in clothing and active wear accessories (such as yoga mats or water bottles) are a focus, noting in particular legging brand Teeki’s recycled plastic leggings and Adidas’ Parley for the Oceans range, which uses recycled ocean plastics across its clothing and footwear designs.

For brands and retailers looking to set themselves apart, sustainable and ethical credentials can provide the much-needed point of differentiation. Olivia Mcguire, Head of Design, at London-based Jilla Active feels, sustainability is really important to customers. There’s so much competition and it’s difficult

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to stand out. Jilla Active believes, there is a big focus on sustainable fabrics and ethical practices. Consumer definitely wants to know more about what they are wearing.

look great out and about but still function really well. Ivy Park is keen to push the performance elements of the range. It is not just about casual collection any more.

Big is beautiful

The rise of seam-free activewear has been a recent shift as it evolves a more multifunctional approach. Seamless is super comfortable as the fabric is really soft.

Stretch factor is important too. As Camille Roegiers de Silva, Co-founder, Fashercise says there have always been certain brands that specialise in seamless, but now many other brands are introducing it into the mix. It is

Lately, many retailers have been witnessing a surge towards plus size and that’s precisely the reason they are expanding their size range, moving beyond XS to L. As Roegiers de Silva says, in the past brands that offered plus-size were not necessarily the most fashionable. Fashercise launched a dedicated ‘Curve’ section on its website in January, offering brands such as Day Won, Rainbeau and Ivy Park in a wide range of sizes.

Emily Gordon-Smith, Head of fashion, Stylus argues change is ‘long overdue’. Inclusive sizing is going to be bigger and bigger in times to come. A couple of standout players who are doing extended sizing in active wear are Nike and Asos. For autumn ’18, Asos expects to see inclusive skiwear, maternity yoga pieces, as well as a full range of low-, medium- and high-

super-flattering, it offers compression. It’s is probably one of the biggest trends.

Streetwear is increasingly seeping into mainstream fashion with the merger of fashion and function, as bold logos and colors appear across collections. For activewear brand Ivy Park, streetwear meets sportswear with a performance element. Products that

impact (exercise) bras that cover Asos Curve and fuller bust.

With growing expanse, smaller labels are fast emerging in this segment to cater to niche demands and big-name brands shift to reflect and accommodate evolving consumers’ lifestyles, both in terms of practicality and ideals. Increasing sustainability and diversity are the highlights of the collection and athleisure is leading the way as brands aim to keep their competitive edge for demanding consumers. n

Streetwear goes mainstream

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Fit is supreme for American denim buyers

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ecent research by ‘YouGov Omnibu’ indicates 46 per cent US consumers prefer comfort over style and cost when buying a pair of jeans. Around 56 per cent Americans have at least one pair of jeans that no longer fit. While one in 10 consumers reported having just one pair of non-fitting jeans in their closet, 17 per cent reported owning two pairs that don’t fit. And, 8 per cent said they have six or more pairs of

jeans in their closet that don’t fit them.

As per the study, around 46 per cent women, despite services like personal shopping and fit guides and wider availability of brands with inclusive sizing, do not know their size when they step into a store. As against this, only 24 per cent men do not know their sizes.

Of the women surveyed, 63 per cent are not confident about finding the right size when shopping at an online retailer for the first time, compared to 43 per cent men. Around 81 per cent Americans are “very” or “somewhat” confident that they will know the clothing size that will fit them best from somewhere they’ve shopped before. n

Stunning women’s range from 7 For All Mankind

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remium denim brand, 7 For All Mankind has launched Luxe Vintage collection, a range of women’s denim that combines high rigidity with comfort and wearability of stretch jeans. The ’90s-inspired collection offers women authenticlooking feel good denim.

This is achieved through a unique fabrication consisting of 82 per cent cotton, 13 per cent modal, 4 per cent elaterell-p and 1 per cent spandex.

The Luxe Vintage collection includes four styles—a cropped flare, a straight, an ankle skinny and a pencil cut—in three washes. The Flora is an authentic light shade of blue, the Muse is a rich medium blue shade, and the Femme is a striking dark shade of blue.

The collection is priced between $189 to $199. The brand will further expand the collection for spring ’19. n

Cotton scores over synthetics among UK consumers

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research by Cotton USA’s Global Lifestyle Monitor reveals, man-made fibers are falling out of favor as more UK consumers are opting for natural fabrics.

A survey conducted by Ipsos Public Affair on behalf of Cotton Council International revealed that out of 1,002 British people aged 15 to 54, almost 28 per cent refused to buy polyester, 17 per cent eschewed synthetic acrylics and 2 per cent gave rayon and viscose an equally wide berth.

Additionally, 45 per cent shoppers revealed their willingness to pay more for clothing derived from natural fibers such as US cotton versus only 4 per cent opted for synthetics. Around 65 per cent respondents insisted that natural fibres were comfortable, 57 per cent perceived them to be of better quality while 34 per cent believed them to be more durable than their synthetic counterparts.

Consumers also associated cotton with eco-friendliness with 79 per cent respondents saying cotton was the safest fiber for the environment, and 69 per cent hailing it as the most sustainable fabric. n

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Opulent designs, dash of colors in wool dominate winter wear

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he recent edition of Milano Unica Winter 2019-20 offered a sneak peek into opulent designs combined with a strong focus on sustainability. Sustainability was the theme of the opening symposium and panel discussion at Milano Unica. The green imperative was emphasized by Ercole Botto Poala, President, Milano Unica, in his opening remarks.

The trade show highlighted a vibrant dash of colours including reds, browns and golds. Classic suitings got a fresh look with bright blue and fabrics were also cozy and tactile with brushed surfaces. Designs, whether in weave or in prints, sported bright elements comprised of unusual combinations of tones and frequently large-scale oversize decoration, whether checks, slubs or shadow designs. This decoration is due in part to a revival of the large-scale canvas, such as the long great coat and the continuing popularity of the tailored jacket for men, who are wearing it in different, more casual ways.

Going back to origins Wool collections derived inspiration from provenance or origins, which gave scope for using interesting wool for example, the coarser British breeds such as Wensley dales in a variety of

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undyed shades, or curly fleece of ancient breed Escorial from New Zealand and Australia, in fabrics by Yorkshire mills Wm Halstead and John Foster. The fascination for items with a history continues so woolen country tweeds, worsted classic pinstripe suits and soft, classy fabrics like flannels and sophisticated twists came to the fore. The understated classic worsted Merino suitings of Italian and British classic mills had small areas of bright yarn or shadowy patterns introduced, making them look new and interesting. Herringbones were writ large, houndstooths were boldly contrasted, black on grey for instance, and overcoatings were brushed and patterns blurred.

Strong demand for wool Opulent, rather theatrical looks, including metallic effects were displayed in the MU trend area mixing fabrics and different traditions. Gold decoration and embellishment in satin and silks were placed alongside slubby, thick woollen and worsteds and bouclé fabrics for women’s wear, including examples from Japanese mills. Winter shirting included printed wool jersey.

Digitally printed wool jackets, e.g. Prince of Wales check designs, might be worn with jeans, as garments find a new role with another generation.

Despite rising wool prices, exhibitors reported strong demand for the fiber, since pries of other raw materials were also increasing, some at an erratic rate. The advent of technical wool made a big impact. Reda Active and Zegna’s technical lines have raised the fiber’s profile further. The intrinsic value and added performance quality of wool is promoted in various ways across the board with various qualities of thermo-regulation, crease resistance, breathability, and waterproofing for use in the travel

suit. This year, the trend for bigger, longer coats and interesting semi-formal jackets is serviced by heavy weight cloth, double-face, multiple-ply wool, bonded fabrics, and unlined versions in substantial hairy and coarser fabrics opening new areas. n

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China remains top apparel exporter to the US

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hina’s June apparel exports to the US fell 0.83 per cent in volume terms. But the country is still the top supplier to the US. Vietnam, the number two apparel supplier to the US, saw apparel shipments rise 6.6 per cent in value and 2.6 per cent in volume.

Among other major suppliers, apparel imports

India the biggest export destination for Bangladesh

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he Bangladesh Garment Manufacturers and Exporters Association (BGMEA) sees India as the biggest export destinations for the country’s apparel sector. The current export volume of readymade garments is $279 million but BGMEA expects it to grow to $1 billion in future. Bangladesh is the second largest RMG exporter globally and sourcing of raw materials from India for its RMG industry provides a win-win situation to both countries.

BGMEA imports most of its cotton, dyes, chemicals and other auxiliary items from India to produce garments.

Since India is the second largest producer of manmade fibers and filamentbased textiles, Bangladesh is a big potential market for it. Around 60 per cent of the total world trade in textile and clothing is done “Intra Asia” and is bound to increase in coming years owing to expansion in installed capacities and requirement of fiber to apparel amongst the Asian countries. n

from Bangladesh rose 9.9 per cent in value while unit volume was up 1.2 per cent. Cambodia’s shipments increased 8.4 per cent in value and up 4.5 per cent in volume.

Among the top 10 apparel and textile suppliers that posted year-on-year decline in import volume, India’s shipments to the US dropped 3.2 per cent, Mexico’s dipped one per cent and Indonesia’s shipments decreased 11.2 per cent. Among the top ten countries which recorded volume increase in apparel exports to the US were South Korea with a 26 per cent hike, Vietnam with a 6.3 per cent increase and Cambodia with a 5.6 per cent gain. Other countries in the group posting increases were Pakistan up 2.7 per cent, Bangladesh up 0.5 per cent and Canada with a 0.2 per cent growth.

US exports of apparel and textiles rose 4.33 per cent in value, with growth in key destinations such as Mexico, Canada, El Salvador, the Dominican Republic, Nicaragua and Guatemala. n

Italy remains top apparel exporter from EU to the US

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rom January to June 2018, the EU’s exports of textile and clothing products grew 15.12 per cent year on year. Of all textile and clothing products, earnings from readymade garments were up 16.26 per cent while earnings from other textile products were up 14 per cent.

Italy was the top exporter from the EU to the US. Italy’s earnings from exports of readymade garments to the US were up 19.18 per cent year on year.

The country had a 50 per cent share in total US imports from the EU. Italy clearly got advantage of its luxury fashion products which drew US buyers’ attention all through the period. Italy’s earnings from other textile products in the US market such as yarns, fabrics and fiber were up 16.77 per cent.

Portugal’s earnings from readymade garment exports to the US grew 22.80 per cent on a year on basis. France’s earnings from the US noted a double-digit surge of 14.67 per cent year on year. Earnings for Romania, an underrated export source, from apparel exports to the US registered a 14 per cent yearly growth.

If the US and Europe agree on eliminating tariffs between the two regions, imports from the EU would attract no duties, making European apparels cheaper for US buyers. n

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Knits dominate Turkey’s apparel exports

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or the first six months of 2018, Turkey’s apparel and clothing exports went up 7.7 per cent. The share of apparel and clothing exports in the country’s overall exports stood at 10.8 per cent. The share was 11.1 per cent for the first half of 2015, 12.3 per cent for the first half of 2016 and 10.7 per cent for the first half of 2017.

Turkey exports ready-to-wear apparel mostly to Germany, Spain and the UK followed by the Netherlands and France.

For the first six months, the country’s apparel exports to Germany rose 7.2 per cent while exports to Spain rose 26.8 per cent. Turkey’s exports to the UK, increased 1.9 per cent.

Knitted garments were the most exported product group, increasing by 6.3 per cent.

Woven apparel goods and accessories were the second most exported product group that saw an increase of 9.7 per cent. Exports of readymade goods, including home textile products, surged 7.6 per cent.

During the first six months, unit prices for knitted apparel products fell 0.5 per cent from what they were in the first six months of 2017. Woven apparel unit prices increased 6.7 per cent. n

Cambodia’s apparel exports on the rise

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ambodia’s exports of garment and footwear products grew 9.3 per cent in the first half of the year. Textile shipments to the EU grew 10.66 per cent while those to the US rose by 10.73 per cent. These two markets jointly account for 72 per cent of Cambodia’s total exports.

Exports to Canada expanded more than nine per cent while shipments to the rest of the world grew by 10.10 per cent. The country’s economic growth for the year is placed at seven per cent, backed by a strong performance of the garment, tourism and construction sectors. From a macroeconomic perspective, the country is strong, with garments being one of the main contributors to national growth.

The EU is Cambodia’s top export destination, accounting for 40 per cent of all exports. These have risen sharply in recent years, increasing 227 per cent between 2011 and 2016.

Cambodia now is second among all EBA beneficiaries in terms of trade volume. Export growth was achieved despite recent warnings from the European Union and the US that they would annul Cambodia’s preferential trade status if the human rights situation in the country fails to improve. n

Sri Lanka’s half yearly apparel exports up five per cent

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ri Lanka’s July apparel exports grew 12.1 per cent. Exports to the EU increased 16.35 per cent; and to the US 7.8 per cent. Exports to other countries increased 12.7 per cent. Half yearly exports were up five per cent.

Sri Lanka expects apparel exports to the EU to grow above 10 per cent in 2018.

New clients are switching from East Asian destinations to Sri Lanka because of US-China trade war fears. The US is the biggest buyer of Sri Lankan apparel, growing 3.8 per cent. Exports to the EU are a close second, growing 7.8 per cent.

The trade dispute between the US and China is helping Sri Lankan apparel exports to the US. However, there are concerns about the European markets due to the weather conditions. Some manufacturers in Sri Lanka are still engaged in manufacturing basic apparel despite the country’s gaining the GSP Plus concession last year. What the industry is also doing is upgrading itself to the next level by focusing on high tech and designer apparel. n

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Luxe brands focusing on fast-paced production windows to thrive

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iming to reach customers faster to grab bigger market share, global luxe brands like Gucci, Ralph Lauren, Coach, Helmut Lang, Burberry and Rag & Bone, are increasing their flexibility and fastracking production windows.

Karin Tracy, Head-fashion, luxury and beauty industries, Facebook feels speed is everything now. For luxury brands, whoever is the fastest will have a competitive advantage. They need to step out of their comfort zone, think about how to move fast and work towards it.

A study by Alvanon says, fast-moving trends have been brought in by brands like Zara, which releases new items four to five times faster than a traditional retail brands. To grasp the change, luxury brands have opted for various strategies with some chucking the traditional fashion calendar and moving over to seenow-buy-now concept. As Caitlin Aylward, Director,Research L2, says to really perform like Zara, or go with an immediate fashion calendar, luxe brands will have to consider an overhaul.

Vertically integrated supply chains Aiming to speed up the rate at which new capsule collections can be released Kering has announced the launch of Gucci Art

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Lab. This will be a 35,000 sq. ft. space in Italy specialising in manufacturing leather goods and shoes, and source its own sustainable materials to bring the Gucci supply chain closer to home. Jean-Marc Duplaix, CFO, Kering, says this is a step toward internalisation of production, especially leather goods. Over time, there will be better control over product development, sampling and material development.

The same strategy was implemented by labels like Burberry and Tommy Hilfiger because of which they were able to shift their production schedules to an in-season model in a short span of time. Vertically integrated supply chains offer brands flexibility that other brands don’t have, particularly on a smaller scale.

Software does the job In order to spruce up production process, companies must leverage technology tools like 3D design, automation and robotics that will also help in reducing turnaround time in the supply chain. Ed Gribbins, President, Alvanon, says luxury brands could all do a better job of adapting technology to aid the production process. There are brands that are just now starting to test 3D product development software, and that’s going to change the way all retailers go to market, eventually. Kate Twist, the Chief Digital Officer of Xcel Brands elaborated they are working on identifying new technologies that can impact all areas of business.

Faster decision making Gribbins says, internal decisiveness is probably the single biggest challenge in terms of speed to market. Luxury has been nimble at making decisions than, say, department stores or specialty retailers, which have been on an 18-month cycle. That doesn’t work anymore.

Processing customer data and using that feedback to aid in faster decision making is also a cause of concern for luxury brands. Since many still make the majority of sales through wholesale channels like boutiques and department stores, there’s a degree of separation between customer feedback and the brand. Gribbins opined that data is the hardest because brands don’t own the customer, in many cases, and if they don’t connect as directly to the end user, they struggle to get that data.

Moreover, millennials, as a group, don’t seem to value brands in the same respect that their parents might have. Therefore, luxury retail needs to get a much closer and tighter understanding of the customer, including the ones buying, what’s being bought and how they want to interact with you. Then they can react. n

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Speeding up production process the new mantra for success

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roducing clothes in a span of six weeks was a distant dream a few years ago. Thanks to fast fashion, this has become a reality today. As, Spencer Fung, CEO, Li & Fung points out in the last couple of years, people have started realising they have to speed up.

One reason being consumer want speed today and if brabds/ manufacturers don’t match up, they will be left behind. Now US retailers are matching up to the fast-fashion prowess of European competitors such as Inditex SA and H&M. These companies are known for pioneering the fast fashion model

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by taking flexibility to extreme, via airlifted merchandise, small order sizes and an accelerated design process.

Junking the traditional model With consumers moving from one fashion trend to another faster than ever, US retailers are collectively being pushed to get away from traditional model, which values low costs above all else. Gap Inc., for example, uses a technique called fabric platforming, where it holds a large amount of material and designs specifically for those textiles. This has allowed it to slash lead times by about a third to 11 weeks or less. American Eagle Outfitters has sped delivery times by moving some production into the Western Hemisphere, despite wages that are generally higher than those in Asia. Similarly, Kohl’s adopts all of the above moves and also runs smaller test orders, which can be ramped up quickly if demand is brisk.

Other retailers have invested significant time in cutting costs by moving production to Asia and placing massive orders for merchandise. Now, they aren’t in the best position to enact broad changes to their supply chain as footfalls at physical stores decline and US consumers spend less of their income on apparels.

Given this changing scenario, Kohl’s is being watched closely as companies are contemplating whether the extra investment will actually pay off. Kohl’s says, it has indeed unlocked the secret. Last quarter, brands that are part of the company’s speed initiative outperformed comparable products by about 2.5 percentage points. While fast-turnaround products made up 40 per cent of orders in 2017.Wilson, whose company is located in Syracuse, New York, also makes clothing for retailers like American Eagle and J.C. Penney, says the typical Kohl’s order is now for

80,000 shirts, instead of 500,000. This helps prevent buildup of unpopular merchandise and markdowns if a particular product fails to resonate with shoppers.

Moving at turbo speed Moving towards fast fashion isn’t simple either because most US retailers depend on suppliers, while a company like Zara is vertically integrated, which allows it to have more control from start to finish. Li & Fung, a 20-year partner of Kohl’s, is in the middle of a three-year plan to cut lead times by half and digitise its global supply chain for apparel.

Fung says whether customers want speed or not, they had to move faster as a company because they see the whole world moving faster. Fung has sped up its preproduction with 3-D digital designs replacing physical samples, a process that can take six months now done in a few days. n

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New Age Retail Technology aid buying decisions

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esigners offering trendy clothes every season may not be enough anymore. In the millennium it’s the tech edge that will help fashion retailers win over consumers. At a recent conference, Tommy Hilfiger reflected on the importance of technology. In fact, they were the first to do a chatbot with Facebook (Messenger) and believe in Snap:Shop (an app that lets consumers instantly shop items from the moment models hit the runway). In recent advancements, Hilfiger has a digital showroom that has no garments but allows buyers to view a big screen from the comfort of their home. They can make their apparel, shoe and accessory selections on the screen, put them in different store doors and choose their floor plan, in a couple of clicks, they have the entire

season mapped out.

Data confers an advantage Nancy Johnson, Founder, President & CEO, Optimyze, points out multiple forms of technology are essential to stay competitive

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in today’s fashion business. Whether it’s through marketing, or stores, or information they are capturing at their point of sale, all these are allowing companies to create a competitive advantage by using big data. Nesli Danisman, Founder, Angora Group explains new RFID hangers that move from the sales floor to checkout to track what individual customers are buying, allowing stores to sculpt future tailored marketing for each shopper.

Anthony Bruce, CEO, Applied Predictive Technologies, refers to how his firm helps retailers and brands test and learn about any new retail action on a small scale, before doing a full rollout. Prior to putting in new fixtures or rolling out new products or changing operating hours, their philosophy is to try it first. That includes mannequins that expand into multiple sizes to adjust in a much more customised way.

Tailored responses do the trick

more tailored communications with consumers. He explained how data drawn from a test run could prove to be successful.

Johnson says, other applications are also helping put a new spin on customer experience. Companies are working with augmented reality, like AR mirrors that allow you to walk into a fit room and see different things on your body. For instance, Zara was meeting the tech challenge with its new pop-up store in London. Tabea Soriano Hughes, Managing Partner, Futuremade opines consumers can place online orders, and make returns and exchanges. Associates have big iPads to help with selection. The retail space isn’t for store inventory, it’s more for larger fitting rooms and interactive mirrors. If you try on one item, the mirror shows other recommendations in suitable sizes and colours. Customers can check out through the Zara app, with their smartphones or with self-checkout. Delivery can be same- or next-day. Similarly, LVMH has bought shape-shifting

According to Cotton Incorporated Lifestyle Monitor Survey, just over half of all consumers (54 per cent) say they love or enjoy clothes shopping. Seven of 10 purchases are planned, with shoppers buying clothes 19.2 times per year instore and 8.4 times online.

Monitor data shows two of five consumers (43 per cent) would be interested in apparel brands and retailers using virtual reality to enhance their shopping experience either online or in a physical store. This percentage increases with younger consumers.

For most consumers (75 per cent), fit is the top factor when making an apparel purchasing decision. That goes for whether people are slow to change styles (38 per cent) or consider themselves fashionistas (36 per cent). Experts say retailers should be more specific to take advantage of patterns of success. Those that invest in tailored and targeted responses are the ones that are going to not just survive but thrive. n

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Amfori and CII to support small companies

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mfori and the Confederation of Indian Industry (CII) will cooperate in sustainability and open trade. They will jointly support members as they endeavor to improve sustainability in their supply chains. They will also work together to foster a policy environment that increases trade and economic ties between India and the European Union.

The two organisations will establish regular communications mechanism on trade policy questions and develop joint programs and actions to benefit their members. Amfori and

CII will develop specific programs to increase collaboration across a broad spectrum of international trade issues.

Under the agreement, small and medium-sized companies will receive specific support by both organisations to unleash new opportunities in the global economy. CII and Amfori will also encourage their respective members to seek membership in, and access to, the services provided by the other association.

The Confederation of Indian Industry works to create and sustain an environment conducive for industry growth, partnering industry and government alike through advisory and consultative processes. Amfori is a leading global business association for open and sustainable trade. It brings together over 2,300 retailers, importers, brands and national associations. The work enables organisations to enhance human prosperity, use natural resources responsibly and drive open trade globally. n

Levi’s takes green steps

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evi’s plans to reduce 40 per cent of greenhouse gas emissions in its supply chain by 2025.

The denim giant has been applauded for setting a new standard on climate commitments in the apparel industry. The announcement will allow Levi’s to quickly reduce its carbon footprint in its entire supply chain, including its overseas factories, with adequate commitments that will help the company meet or beat the reduction standards laid out in the UN Paris Agreement on climate change. By reducing air pollution around its factories and helping slow climate change, this move from Levi’s will also literally save lives.

Levi’s had previously pledged to reduce emissions by 25 per cent and use 20 per cent renewable energy by 2020 — but those goals were for its direct operations only. Levi’s direct operations account for a mere one per cent of its total climate pollution, with the remaining 99 per cent of its climate pollution in its supply chain. n

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Burberry pilloried for destroying unsold stock

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urberry has come under fire for burning unsold clothing and beauty products worth millions of dollars in order to protect its brand and maintain exclusivity. Many on social media have criticized the company for wastefully destroying clothing instead of putting it on sale or donating it to charitable causes. The British brand was advised not to waste perfectly good clothes.

The fashion industry is in the center of an environmental crisis and is said to cause ten per cent of global carbon emissions. However, Burberry says the energy that was released from burning the clothing was captured, making it environmentally friendly. The brand says it has careful processes in place to minimize

the amount of excess stock it produces and that on occasions, when disposal of products is necessary, it is done in a responsible manner and that Burberry continues to seek ways to reduce and revalue waste.

Designer Riccardo Tisci was recently appointed the new chief creative officer of the brand, and will debut his first runway collection for Burberry during September’s London Fashion Week. Over the past 16 years, Burberry has enjoyed strong growth and evolved into one of the most valuable luxury brands in the world. n

Going green in the widest sense

S

ri Lanka is South Asia’s pioneer in ethical fashion. For the Lankan apparel industry, sustainability is a much more complex ideology than simply increasing the number of green plants. It is an approach that converges social, environmental, and economic strategies where people, planet, and profit are all equally important.

Over the last decades, the Sri Lankan apparel industry ensured its growth through sustainability; firstly, through better working

Today, the Sri Lankan apparel industry seeks to find solutions at the global level to address problems of material circularity and work-life integration. The overall long-term strategy is to drive towards zero impact on all aspects. Buildings and infrastructure play a big role but they are a part of the bigger strategy.

Female workers have long been celebrated and encouraged by the country’s apparel industry. Most companies believe that strengthening women is as good as strengthening a family unit and therefore the entire society. The country has been working on developing its own sustainability index for factories that overcome the weaknesses of most traditional assessment systems. n

conditions, then engaging professionalism with business and empowering people at all levels.

Environmental sustainability move kicked off around 12 years ago with the implementation of green building standards and energy efficiency drive.

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Understanding the environmental dangers of synthetic fibers boosts cotton use

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ruce Atherley, Executive Director, Cotton Council International (CCI) recently said disposable, fast fashion has made a big contribution to the rise of synthetic, manmade fibers that are cheap to manufacture,

though not easily recycled, leaving a damaging footprint on the environment. Unfortunately, scientific research also suggests that clothes made from synthetic fibers, such as polyester and acrylic, may damage the environment throughout their usage, by releasing hundreds of thousands of tiny synthetic particles in every wash.

The good news is increased level of awareness of this unsustainable product lifecycle has created a desire among brands, retailers and consumers to return to higher quality garments that are less damaging and retain their value for longer. Owing to this, there has been a greater demand for natural fibers, such as US cotton. In fact, US cotton exports are estimated to reach 15 million bales in the 2017/18 marketing year, which is greater than the February US Department of Agriculture (USDA) estimate of 14.5 million bales. US

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cotton export sales have also been very strong with early sales surpassing recent crop years.

Cotton dominates all the way Atherley says, the strong performance of US cotton is supported by the industry proactively adopting and implementing sourcing practices that put quality and responsibility at the heart of development. In 2017, the entire US cotton industry approved industry policy and established a Cotton USA Sustainability Task Force with the purpose of setting national goals for measurable continual improvements in key areas of environmental stewardship, farm productivity and resource efficiency such as land, water, air, input and energy use.

The US cotton industry is setting goals aimed at building on the strong environmental gains cotton producers successfully achieved over the past 30 years. The specific goals to be achieved by 2025 are: reducing the amount of land needed to produce a pound of cotton fiber by 13 per cent; reducing soil loss by 50 per cent, balance with new soil formation; increasing water use efficiency (more fiber per gallon) by 18 per cent; reducing

greenhouse gas emissions by 39 per cent; increasing soil carbon in fields by 30 per cent; and reducing energy to produce seed cotton and ginned lint by 15 per cent.

Research commissioned by Cotton Incorporated in the US, UK, India, Germany, Italy, Mexico and China in May 2017 revealed consumers responded favourably to the idea that cotton could wick moisture better than synthetics. Some 61 per cent participants said ‘new and innovative cotton products can now be made to evaporate sweat more quickly, making them a

superior choice in athletic wear’. This clearly shows consumers are ready and willing to hear new ideas in technology, fashion and blends.

As a leading sustainable organisation, Cotton USA believes by continuing to educate, connect and inform everyone in the supply chain about the potential of natural fibers, it can help to build a more environmentally friendly and sustainable industry. n

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AppArel / Tech Trends

Why 3D virtual prototyping isn’t a bad idea

A

lthough many fashion and apparel companies have adopted tools, such as Adobe Creative Suite and PDM systems within their product development process, the implementation of 3D virtual prototyping tools have been met with resistance. The reasons vary from company to company but they must be addressed as the immense number of physical samples that are produced and shipped across the globe during the product development process, necessitates new, sustainable practices based in innovative tools.

3D virtual prototyping for apparel design and product development offers the

opportunity for fashion and apparel companies to streamline their current process. Moreover, it provides a means of communication centered around a single, digital asset that can be used by all departments, vendors, and manufacturers. Even with these benefits, there are common points of resistance that exist in the fashion and apparel industry that hinder the adoption of 3D virtual prototyping:

Exploding myths While 3D modeling is standard practice within creative departments in automotive, aerospace, architecture, and industrial design, 3D modeling is stereotyped as a tool specifically for computer-generated imagery. It is frequently associated with video games and animated films, inciting negative reactions when proposed as a tool for the fashion industry.

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Yet, if we examine the evolution of 3D modeling, specifically 3D cloth simulation, garments in recent video games and animated films are intricate, drape dynamically, and animated characters wear multiple outfits made of different materials throughout an entire film. Even in films with human actors where 3D garments are used, it is difficult to tell when the garment is real or digital. 3D cloth simulation has come a long way over the past decade, and when paired with the right hardware, accurate virtual representations of designs can be achieved within a matter of minutes.

3D is not a gimmick. Even though 3D cloth simulation is used by other industries, when this technology incorporates features that can translate a virtual prototype into physical reality, designs can be clearly communicated, the number of physical samples per style can be greatly reduced, and more time can be spent on designing better, more creative products for your consumers.

Reliable in visualizing designs Considering 3D virtual prototyping often elicits negative feelings from those involved in product development and design. It is a technology that challenges their current day-to-

day process, and the change that comes with adopting this type of innovative technology can be extremely daunting.

This fear or resistance is rooted in a lack of trust in 3D technology — believing it cannot be applied to visualise a variety of garment categories, fabrics, or design details.

In addition, new technology is generally applied towards the end of a product’s lifecycle. It is now common to experience retail environments where augmented reality and virtual try-on mirrors are being used. This ultimately overshadows the benefits of 3D technology and how it can innovate the entire process, beginning with the design phase.

Indeed 3D garment simulation has improved tremendously and is reliable in visualizing designs before a physical prototype is made. The technology has reached a tipping point where the virtual expression of various garment categories, design details, and fabrics is no longer limited. It can be used to create highly realistic images that can extend to marketing and e-commerce.

However, rolling out 3D virtual

prototyping does not have to be an abrupt, sudden end-to-end change. Focusing on a few garment categories or styles can be a great way to prove that 3D works for your company. This can be achieved by working with a technology partner to complete a proof of concept, or with existing vendors and manufacturers to pilot a new 3D process around a small, but specific number of styles.

The most important thing is to start in the early stages of apparel design and product development and grow the 3D ecosystem from there. Many manufacturers have already adopted 3D virtual prototyping tools as well, and they can play a key role in easing your company into a product development process that includes 3D.

Proper work allocation The fast-pace of the fashion calendar

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coupled with the demand for shorter lead times makes it difficult to set aside time to incorporate new technology. The work hours of those involved in product development process are spent chasing samples, attending multiple fit sessions for numerous styles, and constantly updating flat sketches and tech packs.

Although many have come to understand that 3D can drastically change the way they work, the current state of the product development process makes it difficult for them to dedicate even a fraction of their work hours to learning and applying 3D. There are a few options available that have been put into practice by companies to address this issue. Certain companies have opted to establish teams that specifically create 3D garments, as well as investigate other technologies that will improve the overall product development process. Academic institutions are also a great resource for new talent, and many schools are beginning to

incorporate 3D solutions into their design courses.

Another option would be to find the right people within the company who are open to 3D, reassign some of their tasks, and provide the time and space for them to develop their skills in 3D, within a manageable timeframe.

Resistance to implementing 3D virtual prototyping exists within the fashion and apparel industry, but many companies are adopting 3D and reaping benefits. They utilise 3D garments generated from 3D virtual prototyping tools to increase speed to market and obtain valuable consumer data analytics. Sample accuracy has increased with their network of vendors and interdepartmental communication has improved.

Ultimately, 3D is a tool that serves to innovate how design is communicated across all stages of a product’s lifecycle — a clear visual representation of silhouette, drape, and design. n

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US printing market to grow at four per cent

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S specialty printing consumables market is expected to grow at 4.4 per cent CAGR from 2016 to 2024. Increased adoption of 3D printing technology across a number of applications has allowed the most prominent manufacturers of specialty printing consumables in the US to hold sway in the highly competitive market.

Despite shrinking demand from conventional applications that rely more on digitized copies of documents that previously needed printing, companies are expected to benefit from the thriving 3D printing applications.

Leading companies have already increased their focus on the area and are developing new

Personal service and transparent values

T

ukatech is known throughout the apparel industry for its personal customer service and transparent value models.

Its machines for lingerie, denim and universal fabric cutting are available in custom widths and heights. These machines are designed to give the ultimate performance at the lowest running cost. Though cutting productivity is at least 20 per cent higher than other models on the market, the energy cost is 50 per cent to 70 per cent lower, which is a great benefit for users in countries where energy cost is a major consideration.

Other features include the highest productivity per hour cutting denim with zero buffer, as well as a cut path optimizer that results in 2.2 per cent to 3.6 per cent fabric savings compared to other cutting machines and helps to increase productivity. The eco-power vacuum system guarantees considerable power savings at only 5.5kw, the lowest in comparable industry cutting machines.

The new fabric cutting machines were first installed in Pakistan at Combined Fabrics, the largest supplier of knit garments to Levi’s.

Before installation, the cutting room had 90 people cutting 50,000 units in a day.

On the first day of installation, 14 people were able to cut the same number of units and within weeks the same configuration increased productivity to between 65,000 and 75,000 units a day. n

product varieties to tap the rising set of growth opportunities that the trend is offering. The office and professional segment is presently the dominant contributor to the US specialty printing consumables market due to the extensive use of specialty printing in the office and professional space. The construction and introduction of new office spaces in the country is expected to further drive market growth in this sector.

The toner segment, which accounted for the dominant share of the overall market in 2015, is expected to be the largest segment in the US specialty printing consumables market over the forecast period. n

Consumers want good, clean clothing

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ashion consumers are becoming increasingly aware of the environmental and ethical conditions that their garments are produced in. They refuse to buy shady and shoddy crap even though these may be available at dirt cheap rates. A striking example of this is the plummeting sales reported by fast fashion labels and shutting down of her clothing line by Ivanka Trump.

H&M too reported an enormous drop in sales and, as of last March, $4.3 billion of unsold inventory.

Zara’s parent company Inditex is also seeing sluggish sales this year, driving its shares to a three-year low, while Forever 21 reported a $40 million loss at the end of 2017.

New and old fashion businesses alike are now focusing on creating transparent supply chains, or at least the impression of them.

It is standard practice to talk about factory conditions, environmental stewardship, textile production methods, etc. in the FAQ section of fashion websites. There is a growing distaste among mainstream consumers for unethical fashion. The source of clothing now matters more than ever before and brands are questioning the source from where their raw materials are procured from. n

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Yarn Expo-Autumn and ITMA Asia + CITME to be held concurrently

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he scale and importance of China International Import Expo (CIIE) – an initiative launched by Chinese President Xi Jinping at a Belt & Road Forum in 2017 and hosted by the country’s Ministry of Commerce – has necessitated the renovation of three halls at the National Exhibition and Convention Center for two months starting

early September. The unavailability of the full fairground has led to the shifting of Yarn Expo Autumn two weeks later to October 15-17. Therefore, this year, Yarn Expo Autumn will not be held at the same time as Intertextile Shanghai Apparel Fabrics-Autumn edition rather it will take place concurrently with the biennial ITMA Asia + CITME which runs for two extra days until October 19.

Opportunities to meet buyers “The unavailability of halls was unforeseen but upon notice from the fairground, we assessed all possible alternatives for hosting the fair. While it is unfortunate that for this edition, it will not be taking place concurrently with Intertextile Shanghai Apparel Fabrics, we are confident that the same strong business results can still be achieved alongside ITMA ASIA + CITME.

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With over 1,600 textile machinery manufacturers and some 100,000 trade buyers from different textile sectors taking part in ITMA ASIA + CITME, Yarn Expo exhibitors will have abundant opportunities to meet buyers of apparel fabrics and home textiles as well as garment manufacturers,” informed Wendy Wen, senior general manager, Messe Frankfurt (HK) Ltd. Yarn Expo Autumn is Asia’s leading trade platform for the yarn and fibre industry, with quality suppliers from around the world showcasing natural and blended yarns including cotton, wool, flax, and man-made fibres and yarns, as well as specialty products including elastic, fancy and blended yarns. Last year’s Autumn Edition attracted 493 exhibitors from 13 countries and regions, and 17,185 trade buyers from 84 countries and regions.

The fair is organised by Messe Frankfurt (HK) Ltd and the SubCouncil of Textile Industry, CCPIT. n

The unavailability of halls was unforeseen but upon notice from the fairground, we assessed all possible alternatives for hosting the fair. While it is unfortunate that for this edition, it will not be taking place concurrently with Intertextile Shanghai Apparel Fabrics, we are confident that the same strong business results can still be achieved alongside ITMA ASIA + CITME. With over 1,600 textile machinery manufacturers and some 100,000 trade buyers from different textile sectors taking part in ITMA ASIA + CITME, Yarn Expo exhibitors will have abundant opportunities to meet buyers of apparel fabrics and home textiles as well as garment manufacturers

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Hong Kong to host Fashion Summit HK 2018 on circular economy

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ashion Summit HK 2018, set to be Asia’s largest sustainable fashion conference, will focus on the theme ‘Circular Economy’.

It will provide a platform to exchange insights, connect companies with different perspectives in order to catalyse industry collaboration and raise public understanding on the role of global fashion industry in sustainable development.

Besides hundreds of attendees, the second installment of the annual summit will host over 50 international policymakers, fashion leaders and representatives from academic and nonprofit organisations who will discuss sustainable fashion through a variety of platforms including roundtables, keynote speeches, and panel discussions.

The summit is being organised collectively by seven organisations including: Clothing

Melbourne to host Sourcing Expo in November

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ourcing Expo will be held at the Melbourne Convention & Exhibition Centre, Australia from November 20 to 22. It will host nearly 700 textile, apparel and footwear manufacturers and agents from 16 countries. The expo is recognized as a unique sourcing event for members of Australia’s fashion and it’s also a fantastic networking event that gives locals an opportunity to rub shoulders with global leaders in the industry.

This year’s show will feature a wider range of clothing and footwear than previous years. The show will offer fashion buyers and designers the full spectrum of product and service offerings from off-the-shelf clothing to made-to-order pieces, fabrics and functional textiles. It will attract sourcing managers for Australia’s large fashion retailers, niche fashion brands, online outlets and designers.

Exhibitors will be drawn from India, China, Bangladesh, Pakistan, Hong Kong, Fiji, Indonesia, Vietnam, South Africa, Taiwan, Turkey, Australia, South Korea, Malaysia and Singapore. n

Industry Training Authority; the Office of the Honourable Felix Chung Kwok-pan, member of the Legislative Council (Textile and Garment Sector); Hong Kong Design Institute; The Hong Kong Research Institute of Textiles and Apparel; Redress; Sustainable Fashion Business Consortium; and WWF-HK. Speakers include industry stalwarts like: Jill Dumain of Bluesign Technologies, Christina Raab from the ZDHC (Zero Discharge of Hazardous Chemicals), Katrin Ley of Fashion for Good and cofounder of Fashion Revolution Orsola de Castro. n

Munich’s Bluzezone denim show to a showcase parallel universe

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unich Fabric Start’s Bluezone will be held on September 4 to 5 at the Munich MOC and Zenith center. The show will reinforce denim’s sense of community and discovery.

This edition will be the largest yet with more than 100 international brands in the denim and sportswear categories showcasing latest fabric developments.

The show’s overriding theme is: Perpetuum Blue, which reflects how the denim industry is in a state of constant motion. Through trend displays, workshops and presentations, Bluezone will bring to life how parallel universes like high fashion and non-fashion are developing in the denim sector.

New exhibitors at the already soldout show include: Desert Studio, Pizarro Wiser, Hyosung Creora and Imatex. Fashion label Atelier & Repair will also present a collection in partnership with Candiani and Lenzing. Italian denim mill Berto will present its Pianeta fabric development made with upcycled production scraps.

Pakistan-based mills will showcase sustainable products.

Rantex will introduce an eco-color concept, while Soorty will bring its Zero Waste Water collection. And Naveena will present its flexible performance technology, Wraptech.

For the first time, the outdoor area around Bluezone will be used as an additional exhibition space. The street festivalinspired space, called the Blue Yard, will offer a blend of old and new, showcasing a mix of vintage showrooms and exhibits that revolve around new technologies. n

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AppArel / aepc event calendar

CALENDAR OF EVENTS -

1

05-08 Sept., 2018, Hong Kong

2

2018

17-20 September, 2018, France

Texworld/ Apparelsourcing

CENTRESTAGE Hong Kong

3

19-21 September, 2018, JAPAN

4

27-29 September, 2018, China

India Trend Fair at Tokyo

5

Intertextile Shanghai

6

3-4 October, 2018, SPAIN

9-10 October, 2018, Netherland

IAF World Fashion Convention Maastricht

Buyer Seller Meet in Madrid

7

16-18 October, 2018, Taiwan

8

20-22 November, 2018, AUSTRALIA

TITAS Taiwan Taipai

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APPAREL / noTiFiCaTions

Ministry Notifications Subject : Amendment in Para 2.47 and Para 3.05 of Chapter-3 of FTP 20152020

D

GFT in its notification no. 22/2015-20 dated 26 July, 2018 has amended in para 2.47 of the FTP 2015-20 that exports through a registered courier service is permitted. The value limit of such exports through courier service and post shall be Rs. 5,00,000 per consignment.

In the amendment of para 3.05 of the FTP 2015-20 states that exports of goods through courier or foreign post office, FOB value of Rs. 5,00,000 per consignment shall be entitled for rewards under MEIS. If the value of exports is more than Rs. 5,00,000 then MEIS rewards shall be calculated on the basis of FOB value of Rs. 5,00,000 only.

For Full notification: http://dgft.gov.in/sites/default/files/ Notification%20No.%2022%20dt.%2026.07.2018%20English.pdf

Subject : Acceptance of installation certificate under EPCG Scheme by the RAs, wherein installation certificate is submitted beyond 18 months, without penalty

D

GFT in its Public Notice No. 30 /2015-20 dated 14 August, 2018 has stated that to facilitate the ease of doing business, it has been decided to permit the RAs to accept the installation certificate without insisting for penalty in respect of authorization issued upto 31.03.2015 as long as the installation has happened within 18 months from the date of import, provided the EPCG authorization is not under any investigation/ adjudicated by RA/ customs authority/ any other investigative agency. This relaxation will be available upto 31.03.2019. There will not be any refund of the penalty already paid.

For Full notification: http://dgft.gov.in/sites/default/files/ PUBLIC%20NOTICE%2030%20english.pdf

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APPAREL / GsT UPDATE

Subject: Last date for filing GSTR-6 extended CBIC in its notification no. Notification No. 30/2018 – Central Tax dated 30th July, 2018 has stated that the last date for filing GSTR-6 by Input Service Distributors for the months from July,2017 to August, 2018 has been extended up to 30-09-2018.

For Full Notification: http://www.cbic.gov.in/resources// htdocs-cbec/gst/Notification-30-2018-central_tax-English. pdf;jsessionid=93C6D8F102B3AC00FC7A1C43C99C114E

Subject: Seeks to prescribe the due dates for furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of more than Rs. 1.5 crores for the months from July, 2018 to March, 2019 CBIC in its Notification No. 32 /2018 – Central Tax and Notification No. 33/2018 – Central Tax dated 10th August, 2018 has stated that the Commissioner, on the recommendations of the Council, hereby extends the time limit for furnishing the details of outward supplies in FORM GSTR-1 of the Central Goods and Services Tax Rules, 2017, by such class of registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year, for each of the months from July, 2018 to March, 2019 till the eleventh day of the month succeeding such month.

For Full Notification: http://www.cbic.gov.in/resources//htdocs-cbec/gst/ Notification-32-2018-central_tax-English.pdf http://www.cbic.gov.in/resources//htdocs-cbec/ gst/Notification-33-2018-central_tax-English. pdf;jsessionid=9A77A1D0FB33CA7728B8C161A4F4A565

Subject: Seeks to prescribe the due dates for filing FORM GSTR-3B for the months from July, 2018 to March, 2019 CBIC in its notification no. 34/2018-Central Tax dated 10-08-2018 states that the Commissioner, on the recommendations of the Council, hereby specifies that the return in FORM GSTR-3B of the said rules for each of the months from July, 2018 to March, 2019 shall be furnished electronically through the common portal, on or before the twentieth day of the month succeeding such month.

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DISCOVER THE FASHION MARKET OF SPAIN! UNCOVER YOUR F UT URE MARKET GROW TH!

Join us for the

Buyer-Seller Meet Madrid, Spain

3-4 October, 2018

For further details, please contact: Mr. K S Bisht, Joint Director (Fairs & Exhibition) +91 124 2708156 (D), +91 9810527747, Fax : +91 124 2708004, kbisht@aepcindia.com The Application form may be downloaded from our website www.aepcindia.com (Highlights Section)

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