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asia news Indian premium innerwear market growing at 40-50%

articles - Be Fashionable... - Fine Tuning Retail - Global Market for... - 2012 Olympics...

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April 2012 VOLUME 3 ISSUE 4

global news 33% of 1078 brands get zero on reporting social compliance

technical textile news

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FACE 2 FACE Mr. Alberto Paccanelli

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40

45

face2face Alberto Paccanelli, President, Euratex

young turk Jatin Gupta, Gupta Synthetics Ltd.

Technical textile article

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43

48

fashion talk Stuart Stockdale, Jaeger's Design Director

advertorial 75% growth planned for 2nd edition of London Garments Expo

FASHION TALK

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YOUNG TURK

market watch synopsis st

Stuart Stockdale

th

1 to 15 April

40

51

trade talk - Edwyn Rodrigues - Manoj Agarwalla

52

jatin gupta

upcoming trade fairs | April 2012 | 01


Asia NEWS Indian premium innerwear market growing at 40-50% The increasing purchasing power of people is pushing the demand for premium innerwear items in India by 40-50 percent per annum. To cater to the growing demand, manufacturers are launching new brands in their effort to grab a bigger share in the estimated Rs. 40 billion premium innerwear market in India. Mr. KB Agarwala, Managing Director of Rupa & Co., who is also the President of Hosiery Manufacturers' Association, told fibre2fashion, “The premium innerwear segment in India is growing at 40-50 percent each year.”

“As the purchasing power of the people is increasing, there is a good scope in the future for those who are in this segment. At present, many new brands are also entering in this category,” he opines. Airing similar views, Mr. Nischal Puri, CEO of Brandis India, says, “Next to apparels, people have started paying attention to accessories after spending on basic necessities, owing to rising salaries and retail becoming far more sophisticated.” Continuing further, he says, “It is because of a surplus disposable income that the innerwear category is finding a boom. Earlier, innerwear was considered just a functional garment. However, now with the consumer having reached a certain level where the basics are very well met, the premium innerwear market is witnessing a certain splurge of activity.”

“Secondly, the entry cost for premium innerwear garment is very less compared to a high-end denim jeans which costs Rs. 5000. The entrylevel cost for a brasserie is Rs. 350, for women's innerwear it is roughly around Rs. 90, and for men's innerwear it is Rs. 120. So, there is hardly any entry barrier, which makes it easier for a consumer to upgrade to better innerwear. That is where we are finding the middle market getting converted to premium and premium to super premium,” he adds. Estimating the size of premium innerwear market in India, Mr. Puri says, “The women's premium innerwear market is around Rs. 12.4 billion, which is around 15.9 percent of the total innerwear market. Men's premium segment also has a similar percentage share in total innerwear market. However, men's innerwear market is much bigger in terms of value than women's innerwear.” Both Brandis India and Rupa & Co. are witnessing good sales of their respective premium innerwear brands. Mr. Agarwala of Rupa & Co. reveals, “We offer premium innerwear products under the brand MacroMan. We are focusing more on this segment, as we see a huge potential and we are also getting a good response from our customers.” “We launched 2GO, a men's sportswear brand, a year back and it is doing decently well. And we wish to keep adding more product varieties in 2GO and Beyouty – the ladies' innerwear brand,” reveals Mr. Puri of Brandis India. | April 2012 | 03


Asia News Bangladesh textile units gain from sustainable practices Textile processing units of Bangladesh garment companies are adopting cleaner production (CP) practices, which is helping them save a lot of money as well as to become more competitive. Twelve apparel manufacturers, including the DBL Group, ABA Group, Fakir Knitwear, Multifabs, SF Fashion and Tarasima Apparels have introduced CP practices at their textile processing units. The 12 factories were provided technical assistance by the South Asia Enterprise Development Facility (SEDF), which is managed by the International Finance Corporation (IFC). After investing around US$ 210,000 on CP technologies, the twelve units have together saved about US$ 568,000 or more than 250 percent in the first year of introduction of environment-friendly production technologies.

According to an IFC report on the benefits of CP practices, returns on investments may go up to 550 percent in the initial three years after adoption of sustainable technologies. The CP system involves use of improved technologies that reduce consumption of water, energy and other resources. It also results in decreased amounts of carbon emission and waste generation. Thus, it helps textile processing units to substantially cut-down on their costs. There are about 1,700 washing, dyeing and finishing factories in Bangladesh that discharge 56 million tons of toxic waste each year, which necessitates urgent action for introduction of environmentfriendly production practices in Bangladeshi textile manufacturing units, according to the IFC report. IFC stated that the 12 factories at which CP practices were introduced, saved about 6,200 million cu m of gas, 1.33 gigawatt-hour of electricity and 75,000 million cu m of water.

This has encouraged SEDF to partner with six more units to help them adopt CP practices at their units this year. “We have adopted the cleaner production practices with help from the IFC and we have been successful in setting up a model factory in Bangladesh. The CP practice is mainly about using fewer resources for production in order to reduce carbon emissions. It also involves decreasing the usage of water, energy, and other resources,” Mr. MA Jabbar, Managing Director of DBL Group, one of the firms to introduce the CP concept in beginning of 2011, told fibre2fashion. “Under the programme, we first identified what we were doing and its impact on the environment. Then we monitored and implemented techniques to reduce the impact. For example, we earlier used 120 litres of water for dyeing purposes, and now we are using 70 litres. So, we are now saving 50 litres of water,” he explains. “Overall, we have been able to reduce our consumption of gas by 18 percent, electricity by 13 percent, and water by 13 percent while increasing our production by 14 percent and reducing carbon emissions by 17 percent during January-September 2011 compared to corresponding months of 2010,” he reveals. “The decrease in usage of gas and electricity alone has resulted in savings of approximately US$ 195,000 for our company during the nine month period. If we add savings on water, compressed air, etc., the total savings will cross US$ 500,000 per year,” he adds. Elaborating further, he says, “We have all the data and now we are monitoring how much we are reducing on our usage. We will be targeting how much we save by the end of the current year. It requires a little investment as well as awareness both. But in this kind of investment you get assured returns.”

GS Caltex Yeosu Complex to be world's biggest PX facility Showa Shell Sekiyu K. K. (Chairman, Representative Director, Shigeya Kato), GS Caltex (Chairman & CEO, Dong-Soo Hur) and Taiyo Oil (President, Yutaka Oka) signed an MOU for new PX (Paraxylene) project at GS Caltex head office in Seoul, Korea. I n t h e M O U, t h e t h r e e companies agreed to cooperate in materializing the new PX project for capacity increase of an annual production from 1.35 million ton per year 04 | April 2012 |

to 2.35 million ton per year at the GS Caltex Yeosu Complex in Korea. By completion of this capacity increase, this plant becomes the world's largest plant at a single site.

PX is a basic raw material of polyester, which is used to make fibers and pet bottles. The demand of PX is expected to further rise in Asia, especially in China and India. Through the cooperation amongst the three companies, the competitiveness of the PX business from feed sourcing and production to marketing will be increased.


Asia News Cradle-to-cradle approach to cut environmental impact The cradle-to-cradle approach will help Taiwanese industries, including the textile sector to adopt sustainable production models, said a top ministry official. In the cradle-to cradle formula, the final goods are meant to be reused once their life-span is over, unlike in the cradle-to-grave approach, in which, the finished goods end up in a waste-bin at the end of their lifespan.

The cradle-to-cradle approach will promote safe and efficient use of resources, while at the same time, it will reduce environmental impact, the minister of Environmental Protection Administration (EPA) Stephen Shu-hung Shen, said. One Taiwanese-made synthetic textile fabric has been approved under the cradle-to-cradle approach by the Cradle to Cradle Products Innovation Institute based in Germany, the EPA said.

An alliance made up of NGO's, industries and government agencies will encourage and promote adoption of this concept, the minister added. The alliance is expected to organise workshops and seminars in Taiwan as part of the initiative to foster adoption of the approach.

Bangladesh trying to secure cotton supply from India other countries, as it significantly reduces the lead time and carrying costs. In normal circumstances, cotton traders are free to import any quantity they feel fit, but a ban prevents them from importing the commodity.

Hence, Bangladesh is seriously pursuing the matter with the Indian Government and is looking forward to ink a cooperation agreement with the Indian Government to secure cotton supply for its spinning mills. BTC Chief said Bangladesh Government would start negotiations on the issue with Indian Textile Minister Anand Sharma, who is slated to visit Bangladesh on May 5, 2012. In order to ensure a regular cotton supply for domestic spinners, Bangladesh is looking at inking a deal with India, world's second largest cotton producer, for importing 1.5 million bales (1 bale=170kg) of cotton each year. Surpassing the Indian Government's estimated 8.4 million surplus bales of cotton, exports from India surged to around 9.5 million bales by February this year, which prompted the Indian Government to impose a ban on cotton exports on March 5, 2012, to secure adequate domestic supplies. As stated by the Bangladesh Tariff Commission (BTC) Chairman Mozibur Rahman, over the past few years, there has been a rise in Bangladesh's spinning industry's reliance on India for cotton, as spinners prefer importing the item from next-door neighbour rather than

BTC would prepare a draft for talks to persuade India to either remove the ban or allow export of 1.5 million bales of cotton per year to Bangladesh. However, it would be Bangladesh's private sector and not the Government that would be importing cotton from India. According to a United States Department of Agriculture report, Bangladesh's cotton consumption for the ongoing financial year is estimated to be about 3.5 million bales, about 5.5 percent less than its consumption last fiscal. This is attributable to a drop in imports and weaker demand from spinners. As per the report, Bangladesh's cotton consumption is expected to touch 3.6 million bales during the next fiscal.

| April 2012 | 05


Asia News Nakoda to invest Rs 19bn and double capacity Nakoda Ltd, a polyester filament yarn producer, plans to double

A similar amount will be paid

its polymerisation capacity to 280,000 tons a year with an

this year. The company has

investment of Rs 19.35 billion over three years.

Rs 1.35 billion from its GDR The company proposes to raise debt of Rs 15.50 billion through

proceeds which will be

term loans. The remaining investment amount will be funded

utilised for its expansion.

through internal accruals. The new capacity addition will be made to the company's existing plant at Surat in Gujarat.

Nakoda currently has a capacity to The project, when complete, Nakoda to supply the entire range of polyester yarns in the domestic and international markets. The company currently has a debt of Rs 3 billion and the loan repayment has already started last year with the first installment

produce PET (polyethylene

Mr BG Jain CMD, Nakoda Ltd

of Rs 450 million.

terephthalate) chips of 50,000 tons a year, POY (partially oriented yarn) of 30,000 tons and FDY (full draw

yarn) of 60,000 tons. It also has texturising facility of 30,000 tons.

Strong supply chain to boost Vietnam's garment sector Developing efficient supply chain is the key to raise competitiveness of

manufacturing, research and the support industry. Assembling of the

Vietnamese manufacturing industry, including textiles and garments,

finished goods meagerly contributes 5-10 percent in the value chain.

officials said at a seminar in HCM City.

Dang Phuong Dung, General Secretary of Vietnam Textile and Apparel Association (VITAS), said heavy

The urgent need to develop supply chain for Vietnam's manufacturing industry like textiles and apparels was underscored at a seminar organized by the Ministry of Industry and Trade (MoIT) and the Multilateral Trade Assistance Project III (EU-Vietnam MUTRAP III).

dependence on imported raw inputs is one of the reasons behind fragility of the textile and apparel manufacturing industry supply chain. Elucidating this, she said that hardly 10 percent of the raw inputs used by the Vietnamese textile and apparel manufacturing

Speaking at the seminar, MoIT's

industry

M u l t i l a t e r a l Tr a d e Po l i c y

domestically.

are

sourced

Department's Deputy Director General, Le Trieu Dung, said

For example, Vietnam presently

there is an urgent need to

consumes around 400,000 tons

upgrade the raw material supply chain to raise the value propositions of

of cotton per year, however, only 3,000 tons of this is supplied by the

key export sectors.

domestic supply chain, while the rest is imported.

An improved supply chain would prove helpful during

Majority of the machines, chemicals and dyes used by Vietnamese

the Free Trade Agreement discussions to be held with the EU. Also, it would prove to be important for already existing FTAs with Korea, India, Japan, New Zealand and China.

textile and apparel industry are also imported, which gives rise to an ineffective supply chain. Also, there are lack of adequate linkages to facilitate distribution and retail network. Ms. Dung said high export turnover would fail to add much value, in the absence of an effective supply chain and hence she stressed on the

Around 90-95 percent of the value addition in the manufacturing sector

need for taking urgent steps to strengthen the raw material value chain

is done by the supply chain, which includes raw inputs, designs,

of Vietnamese textile and clothing industry.

06 | April 2012 |


Asia News Rieter to display all four spinning systems at ITMA Asia On its exhibition stand at the ITMA Asia + CITME 2012 (June 12th - 16th, 2012), Rieter will be demonstrating its competence across the entire spinning process and presenting all 4 end spinning systems live on the stand (Hall W2, Booth No. A10). For the upstream fiber and spinning plant preparation, Rieter now offers 1 000 mm cans throughout thereby ensuring higher efficiency and convenience in the spinning plant. Multimedia presentations will convey to visitors a striking impression of the advantages and features of the new Rieter E 80 combing flagship. The know-how relating to financing, spinning mill planning, use of the right technological elements, selection of the correct spinning process as well as many other factors is necessary to achieve success in the operation of a spinning plant. Rieter is presenting all this expertise at the ITMA Asia + CITME 2012.

Numerous highlights and innovations can be admired live on the Rieter exhibition stand.

® The G 32 ring spinning machine (operational) produces ring and

compact yarn – quality controlled by the ISM individual spindle sensor & the SPIDERweb mill monitoring system. ® Excellent rotor yarn with yarn-like piecers will be produced by the new fully-automatic R 60 rotor spinning machine (operational). ® The new double-sided J 20 air-jet spinning machine (operational) will be introduced for the first time to the Asian market. ® What the benefits and characteristics of the 4 spinning systems mean for downstream processing can be experienced by visitors in the Technology Corner. Here end products and fabric samples of the 4 Rieter yarns are available. ® The latest retrofits and high-quality original spare parts will be presented by Rieter's spare parts experts. The Exhibits: C 70 Card, E 80 Comber, 1 000 m Cans from the Card to the Comber, G 32 Ring Spinning Machine, R 60 Rotor Spinning Machine, J 20 Air-Jet Spinning Machine, Technology Corner, Spare Parts and Retrofits

Here a brief overview: ® Rieter provides the opportunity to see the new 1.5 m wide C 70 card

with the biggest active carding area. ® The new E 80 comber with unrivaled quality and production levels will

be introduced by Rieter with a multimedia presentation.

Rieter develops and manufactures machinery, systems and components for producing yarns from natural and manmade fibers and their blends. As a leading manufacturer, Rieter covers the entire spinning process and can therefore develop optimal solutions for customers

India's luxury market to grow three-fold by 2015 The luxury market in India is likely to grow three-fold by 2015, according to a recent report. The luxury market in India has witnessed a healthy growth of 20 percent and is estimated to have reached US$ 5.75 billion in 2010. Of these, luxury products have grown the fastest at 29 percent to reach a size of US$ 2.05 billion, well above expectations of 23 percent. While luxury services have grown at 22 percent to reach US$ 0.95 billion, luxury assets have grown at 13 percent to reach US$ 2.75 billion.

India's luxury market is projected to grow by three-fold to reach US$ 14.72 billion by 2015, according to AT Kearney's India Luxury Review 2011 report. Speaking to fibre2fashion, Mr. Abhay Gupta, founder, promoter and CEO of Luxury Connect, said, “Higher disposable income and education levels have further strengthened the willingness of Indians to spend on high-end luxury products. If the current economic conditions remain same, Indian luxury retail will see a great rise.”.

Analyzing the lukewarm response to the Indian Government's decision to allow 100 FDI in single-brand retail, he says, “The latest opening up of 100 percent FDI clearance in single-brand retail was expected to prompt more brands to enter the lucrative Indian luxury market. However, the primary reason for lukewarm response seems to be the 30 percent sourcing clause, wherein the brand needs to source 30 percent of their products from Indian SMEs. Majority of foreign brands eyeing Indian luxury market as a retail hub, are not even sourcing from India for their global requirements.” Commenting on future prospects for luxury retail market in India, he says, “It certainly looks promising. There are a lot of brands eyeing Indian shores and it will boil down to further product specific specialization. Luxury Connect is in talks with 10-12 luxury brands with a long-term vision for India.” “There is a lot of scope for improvement in strategising the brand entry and how it should sustain the incredible Indian market. There have been many instances of luxury brands closing down in India. One of the reasons for closing down has been poor location planning, resulting into low footfalls leading to poor bottom lines. Joint ventures have also gone sour in the past as the sales personnel of Indian partners have been unable to understand the luxury brand's DNA and consequently failing to pass on the brand's DNA to Indian clientele. In spite of such reasons hampering the growth, luxury retail in India has witnessed 20 percent growth. So, the full potential is yet to be unleashed,” he mentions. | April 2012 | 07


Asia News Splash celebrates biggest fashion party in Dubai Celebrating 10 successful season's of the Splash Fashion Show, the

Featuring many sights and attractions including music & entertainment,

brand hosted the region's biggest open air fashion party, the 'Splash

quick bites, fashion kiosks, funky photo-booths, quirky lip tattoos, the

Fashion Paradise'. A destination where only Fashion ruled, the shows

zones kept the consumers regaled. From coast to coast, the destination

were attended by 16,000 people including students, customers and

offered the adventurous dresser a chance to experience style the way it

bevy of media and VIP's.

was meant to be and went home with some stylish souvenirs.

Brimming with glitz, glamour and gloss, 65 models walked down the 40

Changing the line-up of shows this season; Splash hosted 2 shows with

meters long Splash catwalk, which was ruled by the Tropical.

close to 6000 lucky visitors attending the Under 21 show and 10,000

The collection presented was a mix of contemporary and traditional

was followed by the late night consumer and VIP show and the Paradise

attending the late night show. The Under 21, a pre-party sundown show fashion statements that created a contrasting medley but still gelled

after party which was headlined by celebrated DJs like Kennedy and

beautifully on the ramp. Held at Al Badiya Golf Course, Dubai Festival

Danny Neville.

City, the Splash Fashion Paradise was a place where styles never clashed and people

Replete with unique

were seen living side by

attractions but with a

side in perfect peace

firm focus on fashion,

and harmony.

the aptly named Splash Fashion Paradise was a

Speaking on the

P a r a d i s e o f v i g o r,

concept of Splash

enthusiasm

and

Fashion Paradise, Raza

freshness for fashion

Beig, CEO, Splash &

enthusiasts. The arena

ICONIC, said, “The year

was replete with LED

2012 is all about New

screens

Beginnings at Splash

interesting videos from

playing

and with our 10th show

UMM, Lee Cooper, Elle,

we decided to transport

Being Human the

people into a travel

international brands

destination that was

under the Splash

surrounded by cool

portfolio.

blues, tropical sunshine and the serenity of life. We created the Splash SS'12 fashion

Interesting props like a wishing well and a speaking tree added to the

extravaganza as a platform for consumers to experience new trends,

fun, while consumers indulged in activities like portfolio shots at the

tread unexplored fashion territory and immerse in cultural chic and

ICONIC booth wearing quirky accessories, wall climbing at Kappa,

discover the language of fashion.�

rodeo bulls at Lee Cooper, won vouchers and gifts at various kiosks and finally relaxed at the Elle lounge. Splash Fashion Paradise was a

Tropical Luxe was the theme for the evening, where

destination, where 12 Spanish dancers regaled the audiences along

guests arrived dressed in the choicest and coolest of

with human angels and stilt walkers.

trends and looks.

The SS'12 collection presented on the runway drew inspiration from the world Aqua Mania, Out of the Blues, Survivor and Soul Searcher.

The show was by 4 distinct fashion episodes. The finale for the evening

Presenting a world of the choicest of trends coupled with the chicest of

was a stealer as Mrs. Renuka Jagtiani, Founder of Splash and Vice-

shapes that are classic yet bold and edgy, vivid prints, colours and

Chairperson of Landmark Group along with Raza Beig, CEO, Splash &

designs, the well-researched Splash collection will be in stores starting

ICONIC walked the ramp amidst a display of fireworks.

now till July, 2012.

Exploring the world of Splash Fashion Paradise where fashion ruled and

Headquartered in Dubai, Splash is Middle East's largest fashion retailer

everyone dressed by the laws of the land, this destination was a haven

and part of the Landmark Group, one of the biggest retail

for consumers who were treated to an experience of new trends and a

conglomerates in the Middle East and India. Founded in 1993 as a

host of fun fashionable activities. Sectioned into East & West village, the

single brand store in Sharjah, Splash has grown to over 140 stores and

areas were replete with interactive zones each themed differently.

50 brand stores across 11 countries.

08 | April 2012 |


Asia News Fibre2fashion to launch ‘Machinery Year Book’ Fibre2fashion – one of the biggest global B2B textile, garment and fashion websites and with over one million worldwide visitors is launching an impact feature – 'Machinery Year Book'. As is well-known, the Asian region is emerging as global hub for textile and apparel production, among which, India, Bangladesh, China, Pakistan, Vietnam, Sri Lanka, Indonesia, etc are notable entities.

All these initiatives are expected to open a plethora of opportunities for those in the worldwide textile, garment and allied machinery and equipment sector. In order that global textile and allied machinery and equipment producers may directly target stakeholders in these various textile and clothing manufacturing hubs, fibre2fashion is launching the 'Machinery Year Book'. The impact feature would contain information pertaining to new technology, innovation, industry articles, white papers and case studies across the entire textile value-chain. Alongside, experts from the industry would also be presenting their viewpoints.

Thanks to the most successful Indian government industrial initiative – ‘Technology Upgradation Fund Scheme', sales of textile machinery and equipment are zooming. India has also expressed its intent to extend TUFS into the 12th Five-Year-Plan (2012-17).

Through the impact feature – fibre2fashion provides an opportunity for the global textile machinery manufacturers to showcase their technology and in the process target their core industry consumers across the globe.

Indonesia too has a textile industry specific technology upgradation scheme, while Pakistan too is mulling to introduce a same type of scheme. Major apparel exporting countries like Bangladesh and Vietnam are also planning to strengthen their backward linkages.

The Machinery Year Book would be made available in a downloadable e-format as well as a hard copy. Fibre2fashion will also circulate the 'Machinery Year Book' to about 5,000 decision makers across the textile industry value-chain.

Fibre2fashion launches platform for used textile machinery Fibre2fashion – one of the biggest B2B global portals in the textile and apparel industry vertical is pleased to announce the launch of 'Liquidation & M&A, a marketplace for used textile machinery liquidation, plant sale and mergers and acquisitions. This marketplace for pre-owned textile machinery will provide full support and services to the global textile and apparel sector to buy & sell used machinery and entire plants in any part of the world.

‘Liquidation & M&A’ works closely with banks, financial institutions, assets liquidation companies and other agencies to realize their dues by liquidating their non-performing textile related assets (NPAs). The fibre2fashion team of experts provides services pertaining to -

– Buying or selling of used textile machinery. Single machine or entire production plant or complete facility with land, building etc. in India or any country of the world.

–Appraisal & evaluation of assets as per the current market rate by experts.

–Relocation of an entire spinning unit/plant in any country with dismantling, packing, transportation, assembling, reinstallation facilities. Apart from this, fibre2fashion provides exclusive online and offline marketing services for selling and buying used textile machinery through online banners, mailers to target audience, print media and other customized services. Key benefits of using the marketplace are - fibre2fashion will try & ensure that client will get the best market price for their assets which they opt to sale. Similarly, buyer can get best options to procure machinery at most competitive rate. Other benefits include cost efficiency of our 24x7 services. Considering that fibre2fashion has the largest global visitor base among worldwide textile portals, (around one million global visitors per month) it assures maximum reach to a targeted audience among all the leading and largest players in the global textile and clothing industry. | April 2012 | 09


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