Package for Overall Industry Development
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EAI 01 ISSUE 10 100 BURBERRY: An incredible transformation story India emerges strong sourcing destination for global buyers MSME package for overall industry development APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 Apparel_Jan_2019_Pages.indd 1 28/12/2018 9:32:47 PM Apparel_Jan_2019_Pages.indd 2 28/12/2018 9:32:49 PM APPAREL / Chairman’s MESSAGE DEAR FRIENDS, n behalf of AEPC and entire garment fraternity I wish all of you a Happy New Year. I think we have a very good reason to Owelcome 2019, since the garment exports have finally picked up in the last quarter of 2018. I am very optimistic that this positive outlook will continue in 2019. 2019 holds opportunities for better market access in US, given the US- China Trade war. I look forward to a new policy framework under way, which will be shaping our next Trade policy, in the lines of WTO compliances. AEPC has already shared a detailed alternate scheme in this regard. Several logistic and infrastructural changes are underway, towards greater ease of doing business. I look forward to their concretisation and impact on ground in 2019. I also look forward to a renewed Drawback and RoSL scheme that takes into consideration the post GST taxes that are still getting added to our met Ambassadors of each country, Apparel production costs.. Buyers, Chamber of Commerce. The With regard to the new All Industry meetings of the delegation were fruitful and Rates of Duty Drawback announced in Dec we are expecting boost in trade with these 2018, AEPC was expecting higher drawback countries. rates for apparel industry. For many of the Friends, lets welcome 2019 with important product categories of garment some new thought and resolutions – let’s like cotton garments, MMF garment, Blend introspect on how to reposition India as a garments etc, the rates announced are lower leading apparel supplier. India is fast losing than those recommended by AEPC through out to its competitors because of scales and the cost datas. We are taking up the matter productivity issues. The Council is looking at with relevant authorities. all possible interventions for benchmarking Towards market diversification, I would our competitiveness to the best. I look like to share that a high level delegation forward to your suggestions on this for visited Czech Republic, Slovenia and Croatia shaping our next year’s action plan. to explore the smaller market of European Union to enhance the trade. The delegation Happy 2019! n HKL Magu, Chairman, AEPC APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2018 / 1 Apparel_Jan_2019_Pages.indd 3 1/1/2019 11:45:25 AM CONTENTS EAI 01 ISSUE 10 100 BURBERRY: An incredible transformation story India emerges 04 | The BROADCAST 21| COTTON strong sourcing India’s Ready-Made Garment • CAB estimates decline in destination for (RMG) Export Update for FY cotton yield from October global buyers (April-November) 2018-19 2018-September 2019 • India rejects US charge of 05 | The BROADCAST subsidising cotton beyond MSME India’s Textile & Ready Made WTO limits package for overall industry Garment (RMG) Update for • Draught and uneven rail to Index for Industrial Production pull down average cotton development (IIP) for FY (April-September) yield in India APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 2018-19 22 | OULOOK 06 | AEPC EVENTS Textile & clothing industry needs CHAIRMAN AEPC to continue innovations to Plenary session of the Mr. HKL Magu emerge strong First India-Russia Strategic CHAIRMAN EP Economic Dialogue 24 | PRODUCT SECTOR Mr. Sudhir Sekhri E-com to boost global knitwear 08 | AEPC EVENTS market in future AEPC organises seminar on ADVISOR AEPC 26 | BRAND RETAIL Investment Opportunities in Mrs. Chandrima Chatterjee An incredible transformation Haryana story PUBLISHER Apparel Export Promotion Council 10| BUSINESS 29 | RETAIL India’s textiles, clothing Global fast-fashion chains market, including exports growing aggressively touched $164 bn: Study 31| BRAND RETAIL 12| TRADE TREATIES • Siegle+Gale names Uniqlo • India wary of RCEP due to as the world’s simplest fashion influx of cheap goods brand • Tariff hike not to come into • UK probes retailing strategies effect on January 1, 2019 of apparel brands/etailers • India keen on trade with UK post Brexit 32| BRAND RETAIL • Zara expands outerwear 13| TRADE TREATIES collection • Tirupur to sign Indo-Pacific • Inditex to retail 118 million Editor-in Chief & Publisher & CEO - economic corridor treaty garments in 20182 Sanjay Chawla • India’s proposal of bilateral • Espirit to overhaul company’s trade in local currencies operations Director - Salil Chawla rejected by China Managing Editor - Sujata Dutta Sachdeva • FTAs with ASEAN, Japan 33| BRAND RETAIL VP-Corporate Communications and Korea increases India’s • Guess expects positive results Shraboni Mukherjee trade deficit for FY2018-19 Assistant General Manager - Saqib Meer • Gap to close Editorial - Narayan Subramaniam 14 | SOURCING underperforming stores Editorial Asst. - Ranjit Kaur India emerges strong sourcing 34 | TRENDS destination for global buyers Correspondent - Ajay Kumar Goswami, ‘Not the US, more people Special Contribution Editorial - Ajanta Ganguly 16| EXPORT elsewhere, own denim’ Supported By - Abdul Hussain, Sumit Masand • India’s apparel exports to 36 | TRENDS ART DIRECTOR - Sanjeev D. Sonavane Canada increase by 3% Streetwear finding immense Production & Admn. - Dhansukh Rathod, • India exports 54 per cent traction globally Dinesh Poojary more apparels in October • India’s textiles and apparel 38| TREND Mumbai Offi ce: 38/314, Unnat Nagar 4, exports to grow at CAGR of • Great prospects for global Off M. G. Road, MHADA Colony, Goregaon (W), 12.06% sports brands in China Mumbai - 400 062. Ph: 022 2875 5181 • Denim on an upswing in the e-mail: [email protected] / [email protected] 17| EXPORT US • Textile associations urge • Rise of jeans as streetwear government to set up creates new opportunities for Dehli Offi ce: Salil Chawla, Business & Mktg: New Delhi textile cluster in Ludhiana women’s denim brand - 110017, Mobile: +9193503 18639/ • Arvind to open third 95601 79633 e-mail: [email protected] garment facility in Gujarat 39| TECH TRENDS • India to develop rating • Brooks Brothers collaborate Printing Press: VIBA Press Pvt. Ltd. C-66/3, Okhla system for industrial parks with ORS to launch AI-based Industrial Area, Phase-II retail program New Delhi-110020 18| COVER STORY • LVMH sets up Retail e-mail: [email protected] Government package for the Lab to speed up digital MSME sector targets overall transformation industry development • Levi’s to expand customisation program 2 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 Apparel_Jan_2019_Pages.indd 4 28/12/2018 11:03:04 PM 40 | TECH TRENDS Micro-textile model promises a new dawn for the industry 42 | FAST FASHION Fast Fashion industry needs to take positive eco steps 44 | FAST FASHION SAC’s Higg Materials Tool aids designers in assessing environmental impact 46| SUSTAINABILITY • Textile Exchange ranks H&M Group as the world’s biggest user of sustainable materials • C&A launches first Cradle to Cradle certified Gold denim jeans • Lacoste bans the use of mohair in its collection 47| SUSTAINABILITY • Inditex launches outwear capsule collection • UK survey the issue of mass waste in the fashion industry • Chanel removes Python skin bags from website 48 | AEPC EVENTS MSME review meeting organized at Tirupur 49 | AEPC EVENTS AEPC organises Open House Session on Updated FTP in Bengaluru 50 | AEPC EVENTS AEPC organises seminar on Digital Trade Banking Solutions 51 | MARKETS Revolutionising the clothing re-commerce market, some players take lead 53 | EVENT Global Textiles Conclave 2018 highlights key industry initiatives and plans 55 | EVENT Weaves 2018: Emerges as a platform for Indian weavers to showcase globally 56 | EVENT CII organises 10th edition of TEXCON 57 | GST UPDATE 58 | MINISTRY NOTIFICATIONS 59 | AEPC NOTIFICATIONS 60 | AEPC EVENT CALENDAR CALENDAR OF EVENTS - 2019 APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 / 3 Apparel_Jan_2019_Pages.indd 5 28/12/2018 11:03:04 PM APPAREL / THE BROADCAST India’s Ready-Made Garment (RMG) Export Update for FY (April-November) 2018-19 India’s RMG Exports RMG exports were to the tune of USD 1129.02 million in November 2018 with the growth of 8.98 per cent against the corresponding month of November 2017, which was USD 1036.01 million. In rupee term export for the Month of November 2018 was `8112.46 cr. as against ` 8327.42 cr. as against `6719.85 Cr. in November 2017 with the growth of 20.72 per cent. India’s RMG export to World in the April-November of 2018-19 was to the tune of USD 9976.14 mn. which has decreased by -9.70 per cent compared to the same period of previous fi nancial year. During April-November 2017-18, India’s apparel exports were to the tune of USD 11047.52 mn. India’s rmG export to World MoM Growth of FY 2017-18 FY 2018-19 Month 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 -21.40 -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 August 8552.24 1336.95 8986.67 1292.18 5.08 -3.35 September 10704.85 1661.19 7967.69 1103.32 -25.57 -33.58 October 5401.86 830.02 8327.42 1130.95 54.16 36.26 November 6719.85 1036.01 8112.46 1129.02 20.72 8.98 April-November 71236.10 11047.52 69254.40 9976.14 -2.78 -9.70 Source: DGCI&S, Kolkata, 2018