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

4 / AppArel eXpOrT prOMOTION COUNCIl MAGAZINe | January 2019

Apparel_Jan_2019_Pages.indd 6 28/12/2018 9:32:53 PM AppArel / The BrOaDCasT

India’s Textile & Ready Made Garment (RMG) Update for Index for Industrial Production (IIP) for FY (April-September) 2018-19

INDeX oF INDUStrIAl proDUCtIoN manufacture of mom Growth rate manufacture of mom Growth textiles (In %) wearing apparel rate (In %) Month 2017-18 2018-19 2018-19/2017-18 2017-18 2018-19 2018-19/2017-18 April 116 114.2 -1.6 155.5 134.6 -13.4 May 116.7 116.1 -0.5 156.8 136.8 -12.8 June 116.4 115.5 -0.8 145.2 151.6 4.4 July 116.4 119.8 2.9 134.2 147.3 9.8 August 116 125.1 7.8 121.4 144.3 18.9 September 115.2 121.4 5.4 118.8 143.6 20.9 October 113.5 120.5 6.2 106.3 136.1 28.0 Total 115.7 119.9 3.6 134 142.1 6.0

Source: CSO, 2018 SUmmAry • Manufacturing of Textiles has shown a growth of 6.2% in October, 2018 and growth of 3.6% for the period of April-October, 2018-19 • Manufacturing of Wearing apparel has shown a growth of 28% in October, 2018 and growth of 6% for the period of April-October, 2018-19

AppArel eXpOrT prOMOTION COUNCIl MAGAZINe | January 2019 / 5

Apparel_Jan_2019_Pages.indd 7 28/12/2018 9:32:54 PM AppArel / AEPC events

AEPC joins NITI Ayog led High Level Delegation to Russia for 1st India-Russia Strategic Economic Dialogue

6 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019

Apparel_January_2019-1.indd 8 1/1/2019 2:40:03 PM AppArel / AEPC events Five roundtables sessions dedicated to Development of Transport Infrastructure and ITI Ayog had mounted a high level delegation Technologies, Development of to Russia for 1st India-Russia Strategic Agriculture and Agro-Processing Economic Dialogue which commenced in sectors, Support for Small St Petersburg on 25 November, 2018. The and Medium-sized Business dialogue was chaired by Dr. Rajiv Kumar, Vice (SME), Digital Transformation Chairman, NITI Aayog & Mr. Maxim Oreshkin, Minister for N and Frontier Technologies and Economic Development, Russia. Shri HKL Magu, Chairman, AEPC and Mr. J D Giri, Director, M/s Shahi Exports P. Ltd., Industrial Cooperation and Trade Faridabad were also the part of the delegation. Both countries have been organized have identified priorities for enhancing the economic and trade about exhibitions in each other’s’ territories. relation between India and Russia which are strengthening the To overcome customs related problems, basis for cooperation, infrastructure, investment and finance, Mutual Recognition Agreements will do the sectorial cooperation, new economy & sustainable development: custom certification. Five roundtables sessions dedicated to Development of Mr. J. D. Giri, mentioned about long Transport Infrastructure and Technologies, Development of business and trade relationship which India Agriculture and Agro-Processing sectors, Support for Small and Russia have had in the past which was and Medium-sized Business (SME), Digital Transformation pretty well in Soviet period but declined in and Frontier Technologies and Industrial Cooperation and the recent past which needs to be geared up Trade have been organized. again. He stated that reasons for low business In the round Table session on support for Small and are – information gap, logistic issues and Medium-sized Business (SME), Chairman, AEPC stated banking challenges. India follows complete that 80% supply to the apparel exports in India comes from ecosystem approach, has skilled manpower, SMEs. There was a time when Ludhiana depended largely on different institutes for training in SMEs sector, Russia for its supplies like woolen garments. So, there is a huge especially textile (National Institute of Fashion possibility of cooperation. There is no dearth of suppliers in technology, other textile institutions). India is India ranging from small to big suppliers who export worth already providing the supplies to top fashion more than US$ 1 billion also. Today all the fashion brands are brands of the world. Huge gap in Russian buying from India. There are 8800 members in AEPC who market in terms of color, fiber in textiles can be can take care of Russian market. He suggested to create one filled by India. He suggested to set up a target nodal agency, may be Importers Council from Russian side who of bilateral trade of US$ 1 billion by 2020 in will deal with the Exporters councils of India. He suggested textiles. This will stimulate the achievement that BSMs, seminars, market studies should be conducted for of the larger target of bilateral trade US$ identification of bottlenecks. Both the sides can be informed 30 billion by 2025. EAEU FTA should be expedited, logistics problems can be solved NITI Ayog had mounted a high level delegation by INSTC coming into reality. India can be a to Russia for 1st India-Russia Strategic good supplier in kid’s apparel section. Economic Dialogue which commenced in St AEPC also suggested that a counterpart Petersburg on 25 November, 2018. The dialogue of AEPC may be created by Russian was chaired by Dr. Rajiv Kumar, Vice Chairman, Federation for sourcing and close interactions, NITI Aayog & Mr. Maxim Oreshkin, Minister for North-South corridor to be expedited by Russia, making India member of EAEU Economic Development, Russia. Shri HKL Magu, FTA, dedicated desk in Indian Embassy Chairman, AEPC and Mr. J D Giri, Director, M/s for promoting apparel export from India & Shahi Exports P. Ltd., Faridabad were also the opening of offices of Russian retailers in part of the delegation India for sourcing.

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 / 7

Apparel_January_2019-1.indd 9 1/1/2019 2:40:03 PM Apparel India Magazine_210mm x 297mm

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Competitive pricing AEPC organises with low interest rates. seminar on Investment Opportunities in Haryana EPC organised a seminar on Investment by MK Sardana, General Manager, HEPC. Opportunities in Haryana at Apparel The session concluded with detailed information on key AHouse, Gurugram on November 29, incentives in policies like financial assistance, stamp duty, support 2018 in collaboration with Invest Haryana & skill development, support for common effluent treatment plant Haryana Enterprise and Promotion Centre (CETP), Internal and External development charges and financial (HEPC). The seminar included a presentation assistance for zero liquid discharge (ZLD) and investment on the Haryana Textile & Apparel policy 2018 opportunities in Haryana for apparel sector. n Apply now on Speak to our Export Finance Advisor www.dripcapital.com +91 99877 79334 8 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019

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Apparel_Jan_2019_Pages.indd 11 28/12/2018 9:32:59 PM AppArel / Business

India’s textiles, clothing market, including exports touched $164 bn: Study he annual ‘Market for Textiles clothing including exports increased to $146.63 billion in and Clothing (MTC)’: National 2016 and further to $164 billion in 2018. Aggregate demand THousehold Survey 2017 reveals, for textiles & clothing was 41.06 billion meter in 2016 which India’s overall market size for textiles and touched 45.32 billion meter in 2018, growing at a CAGR of

10 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019

Apparel_Jan_2019_Pages.indd 12 28/12/2018 9:33:02 PM AppArel / Business Power loom sector sees highest demand The mill/power loom sector contributed 33.97 billion meters (82.72 per cent) to the overall demand of textiles in 2016 compared to 31.85 billion meters in 2015. Similarly, the knitted sector contributed 4.94 billion meters to the total basket in 2016 as against 4.77 billion meters (12.39 per cent) in 2015. At the same time, the handloom sector contributed 5.24 per cent to the total demand for textiles in the household sector. Aggregate demand for handloom textiles is 2.15 billion meters in 2016 as compared to 1.91 billion meters in 2015. The aggregate demand for textiles by sector of manufacturing for 2018 for mill made/power loom, knitted/hosiery and handloom sector was 37.24 billion meter, 5.56 billion meter and 2.53 billion meter respectively.

Household sector growth highest The demand for household sector is a major contributor to overall growth with 53.39 percent share in the total market. While export of textile and clothing decreased 4.66 per cent, demand in household and non- household sector grew 2.82 and 1.51 per cent respectively during 2016.

5.34 per cent from 2011 to 2018. In value terms, demand touched Rs 6, 204.02 billion in 2018, with CAGR of 9.54 per cent between 2011- 2018. The per capita demand for textiles in 2016 was Rs 4,081.60 as compared to Rs 3836.13 in 2015. It touched Rs 4,762.90 in 2018. On the other hand, per capita demand for textile in quantity terms increased to 31.85 meter in 2016 and further to 34.58 m in 2018.

Cotton fibers most in demand Growth in household demand of textiles Aggregate demand for cotton fiber-based products, was has created an additional demand for 2,525 17.22 billion meter in 2016 and increased to 19.29 billion meter million meter of fabrics, which is an indication in 2018. Comparatively, demand for manmade fiber-based of the required capacity expansion in fabrics product was 23.34 billion meters in 2016 which increased to manufacturing in the country. Similarly, 25.46 billion meters by 2018. Similarly, aggregate demand for growing demand for newly emerged products pure silk and woolen fiber based product was 0.34 billion and like legging etc, provides an indication of the 0.16 billion meter respectively in 2016. It is expected to have change in preference pattern of consumers in touched 0.37 and 0.20 billion meter respectively in 2018. the country during the period. n

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 / 11

Apparel_Jan_2019_Pages.indd 13 28/12/2018 9:33:02 PM AppArel / Trade Treaties India wary of RCEP due to influx of cheap goods ndia has some reservations on the Regional Comprehensive Economic Partnership (RCEP) as the deal might deluge its market Iby cheap goods from the other members, particularly China. The annual year-on-year growth in Chinese imports was about 9 per cent in 2014, which soared to 20 per cent in 2018. The trade deficit with China constitutes more than 40 per cent of India’s aggregate trade deficit. In quantum terms, Chinese goods constitute about one-sixth of all imports into India. Countries in diverse stages of development, from Australia, China, Japan and India to the ten members of Asean, are part of the RCEP, besides South Korea and New Zealand. Once wrapped up, RCEP would foster the largest regional trading bloc, making up 25 per cent of global GDP, 30 per cent of world trade and 26 per cent of cross-country foreign direct investment flows the world over. A modern, comprehensive and mutually beneficial economic partnership agreement for an open trade and investment milieu in the Asia-Pacific region is the core objective of the Regional Comprehensive Economic Partnership. n Tariff hike not to India keen on trade with come into effect on UK post Brexit bout 800 Indian firms, that use UK as a getaway to enter the January 1, 2019 European Union (EU), plan to continue their ties post Brexit. he 25 per cent hike in tariffs that President AThe annual trade between both nations stands at $24 billion. Donald Trump had threatened on $200 India is reportedly keen on deals facilitating the export of software, Tbillion worth of Chinese goods will the movement of information technology and healthcare not come into effect on January 1 as was professionals, and offering a greater access for generic drugs and originally planned. Instead, the 10 per cent pharmaceutical firms. tariff will remain in place as the two countries India’s textile and garment sectors are also extremely keen on a begin negotiations that also trade pact. India’s trade rivals, Bangladesh, Cambodia, Vietnam address China’s alleged and Pakistan, receive the benefits of preferential agreements or forced technology transfers quotas in garments. Indian exports of garments to Europe attract a and cybercrimes. 9.6 per cent duty, making such products uncompetitive. The most recent set of India, in its bid to pave the way for a post-Brexit deal, will allow tariffs already affect clothing 100 per cent foreign direct investment in insurance brokerages. and accessories, including India is also keen on deals to ease the export of software as well handbags and wallets, while as the movement of IT and healthcare professionals. India’s textile the fourth set, which would and garment sectors are also extremely keen on a trade pact with hit $257 billion in goods, can the UK. These sectors are major forex earners, after software and hugely affect the footwear industry. Since gems and jewelry. n the levies encompass a wide variety of consumer products, retailers would have to raise prices to accommodate soaring import costs. A number of companies, including Steve Madden, are planning to relocate their factories from China, which could potentially disrupt their supply chains as well as affect shipping times and sourcing strategies. n

12 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019

Jan_shortstories.indd 1 28/12/2018 9:36:53 PM AppArel / Trade Treaties Tirupur to sign Indo-Pacific economic corridor treaty

irupur is planning to sign the Indo-Pacific economic corridor treaty which will open up traditional apparel markets. This Ttreaty will include 12 countries such as India, the US, Australia, Indonesia, Japan and New Zealand, on board. Under this treaty, each country will provide a conducive climate for trade exchanges for different members and investment to develop infrastructure. The US recently announced an investment worth $113 million for new infrastructure initiatives in the corridor. The corridor will group selected nations who will help others to develop their economies. If the partners are provided preferred status by other nations, it will be a win-win situation for both the sides. Especially in the apparel market, India could utilise the advantage, if the US, which has a traditional apparel market, provides a lower import tariff and a softer approach. Apparel already made big investments in countries exporters in India could get a huge help from the corridor. such as Bangladesh, Vietnam and Cambodia, Though the economic corridor is mainly mooted to counter the which are top competitors of India in the advantages of China, it will not affect the neighboring country apparel industry, the former may not feel the much, at least in the apparel market. Since Chinese firms have heat of the corridor. n

India’s proposal of bilateral FTAs with ASEAN, Japan trade in local currencies and Korea increases India’s trade deficit rejected by China s per a study published by think-tank Third hina has not accepted India’s proposal to carry out World Network, India’s three free trade bilateral trade in local currencies. India had suggested to Aagreements with the ASEAN, Japan and CChina trade in local currency in order to boost its exports South Korea have resulted in growing deficits in and tackle the widening trade deficit. merchandise trade. The government is at present India’s exports to China stood at only $13.4 billion while imports focused on how to make India’s free trade were $76.4 billion in 2018, leaving a trade deficit of $63 billion. agreements deliver more for all stakeholders and India has proposed trade in national currencies with some other has also employed three think-tanks to analyse countries, too, including Russia, Iran and Venezuela. New Delhi the on-going RCEP negotiations. has a trade deficit with these three countries too. After the initial spurt in middle of the Bilateral trade in domestic currencies will help India only in the previous decade, trade imbalances increased case of those countries with which it has a trade balance. There sizably after the three Comprehensive should be no trade imbalance with the country with which India Economic Partnership Agreements (CEPA) wants to do trade in the rupee. with the ASEAN, Japan and Korea came into It will not help in bridging the effect. Trade deficit with the three countries, deficit. which stood at $4.5 billion in 2004 and Indian industry and exporters $16.4 billion in 2010, shot up to $29.7 billion have time and again raised in 2015 before cooling down a bit to $26.6 the issue of increasing trade billion in 2016. deficit with China and have Available trends in both exports and sought greater market access imports point to a hollowing out of the for domestic goods in the manufacturing base, which has prompted the Chinese market. Recently, China permitted exports of rice and present government to initiate measures for sugar. But India wants to increase exports of several other items, the revival of the manufacturing sector. n including pharmaceuticals, engineering and services. n

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 / 13

Jan_shortstories.indd 2 28/12/2018 9:36:54 PM AppArel / SOURCING

India emerges strong sourcing destination for global buyers Italy’s Alessandro Lenzi, Administrator of Lebiz srl, he came to India to explore factories for intimate apparels. And he is not alone as many companies are now exploring India as they face challenges in their existing sourcing destinations, and as customers are pushing them for Indian products. For India, this is perhaps the best time to explore new growth opportunities.

India emerges strong sourcing option Lebiz srl has 26 stores in Bologna and they realised Italian consumers prefer Indian products hence, India is a hub they can’t ignore anymore. They plan to source 20,000 pieces per collection annually with four to five collections a year. Other sourcing companies too are looking at India. For example, ompanies across the globe are Saudi Arabia’s Nama Arabia Apparels, (‘Blooming’ label) was facing challenges while operating working primarily out of China but now they are impressed Cbusinesses within their own with Indian manufacturers and rethinking options. Fawzi countries. India therefore, is emerging the Alnahdi, CEO, Nama Arabia Apparels points out around 95 preferred sourcing destination for many. Take per cent of their products, including underwear and outerwear,

14 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019

Apparel_Jan_2019_Pages.indd 14 28/12/2018 9:33:03 PM AppArel / SOURCING in India. Around 70 per cent products are sourced from India, while the remaining 30 per cent basic/core lines are sourced from are sourced from China but now they are actively looking to China. Hand embroidery is at the core of start working with casual womens wear that would appeal to most of the products sourced from India. women in Saudi Arabia. Meanwhile, Russia is a potential market for Some buyers say they are working hard to ensure timely Indian exporters. As Valery Sidorenkov, Chief delivery from Indian exporters and insisting on focusing more Production Officer and quality assurance, on product development. Rayes Gimenez, Manager, Kuini Modis, Moscow points out they are working Creation, Spain and Jaime Barba of 360 Streetwear, are upbeat with six exporters in India and sourcing about their sourcing tie-up. And for Ada Kamara, Mykonos, good volume of women’s, men’s and kid’s Greece, India is the biggest sourcing destination. They are wear from India. He says, garment exporters looking for fresh collections and hope to make new contacts should have proper data and start analysing with exporters that will support their growth plans as they plan where they exactly are. Some key areas like to become wholesalers and spread their wings. good quality can make a company profitable. For Sarabjit Singh E.E., Manager, Siba International, Strong quality management system and data Denmark, any exporter who can offer innovative patterns can assessment system will help reduce issues like gain winning contracts. Twinset S.P.A., from Italy has been extra procurement of material, amount of sourcing from India for the last 15 years and their journey have manpower invested on check, rechecks, so been impressive. The company is represented by Preeti Walia proper data would be the starting point. n

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 / 15

Apparel_Jan_2019_Pages.indd 15 28/12/2018 9:33:03 PM AppArel / Export India’s apparel exports to Canada increase by 3% ndia’s exports to Canada have increased by 3 per cent year on year. However, its share in Canada’s Itextile and apparel imports has declined over the last five years. Apparel has a 50 per cent share in India’s textile and apparel exports to Canada. This is followed by home textiles and fabrics having a share of 50 per cent and eight per cent respectively. Apparel is the largest imported category by Canada, representing 66 per cent of total textile and apparel imports. This is followed by home textiles, fabrics and others with a share of 16 per cent, six per cent and five per cent respectively. China is the largest supplier to Canada, accounting for a 34 per cent share, followed by the US and Bangladesh with a share of 16 per cent and 8 per demand, Indian apparel manufacturers cent respectively. The top 10 suppliers account for 85 per cent need to undertake suitable investments on of textile and apparel imports by Canada. product innovation. Focus on technology Over the years, apparel production in Canada has fallen enhancement and manufacturing excellence while imports continue to increase. So India has a huge scope will act as a key mantra for raising the trade for expansion of apparel exports to Canada. To cater to this flow between the two countries. n India’s textiles and apparel exports India’s textiles and in November up 14 per cent ndia’s textile and apparel exports grew by 14 per cent in apparel exports to grow November. Textile exports jumped nine per cent and apparel at CAGR of 12.06% Iexports jumped 21 per cent. For the period between April and November, textile and apparel exports grew by seven per cent. ndia’s total exports of textiles and apparel The old duty drawback rate which was very attractive came to are expected to grow at a CAGR of 12.03 an end in September 2017. Because of this attractive scheme, Iper cent to reach $82 billion by 2021. The Indian exporters advanced their delivery schedules to avail of total textile and clothing exports, during April- the duty drawback scheme. Consequently, textile and apparel September 2018, stood at Rs 1.30 trillion exports skyrocketed in September 2017. Exports one year later ($18.56 billion). Ready-made garments in September 2018 declined sharply. From that level, however, exports were Rs 52,810.51 crore ($7.53 billion) exports are normalizing which is believed to continue in future as during the same time. Fiber exports from the well to end the current financial year flat. country in 2017-18 were valued at $2,481.90 Indian’s textile and apparel exports are destined for all million. During countries including China. April-September The recovery in the US 2018, fiber economy has given a exports stood boost to India’s textile and at Rs 8,429.05 apparel exports. Since the US crore ($1,201.06 economy is on a continuous million). growth path, India’s textile Total value and apparel export growth is of yarn, fabrics expected to continue. and made-ups India registered a growth exports of the of 5.37 per cent in textile and apparel exports in 2017. India’s country was $14.33 billion. During April- share in world trade in textile and clothing is estimated to be September 2018, the exports stood at Rs 4.95 per cent. With these exports, India is ranked second among 54,422.11 crore ($7.75 billion). n suppliers in the world. n

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Jan_shortstories.indd 3 1/1/2019 11:41:54 AM AppArel / Export Textile associations urge government to set up textile cluster in Ludhiana delegation of Knitwear and Apparel Exporters Organisation in Ludhiana recently sent an MoU to the chief minister A Captain Amarinder Singh apprising him of their problems. In the MoU, Harish Dua, President of the Association noted that Ludhiana needs a big international class textile cluster with availability of all essential services. An MSME unit cannot afford all kinds of machines and services like embroidery, printing, knitting, dyeing, and electronic computerised cutting. Therefore, it will be in the best interest Punjab government, which is already taking of exporters and manufacturers of garments that a cluster several steps to improve business environment be made in Ludhiana, where all these facilities — along with in the state, should also start initiatives to set the latest state -of -the -art machinery is made available at a up hostels for working women. The state subsidised cost to members of the cluster. government can also offer land free of cost Narinder Chugh, Executive Council member of Apparel Export for this purpose, besides constructing hostels Promotion Council emphasised the need to train and mobilise with aid from the Central government at the women’s workforce in the state, especially in Ludhiana. The earliest. n

Arvind to open third India to develop rating garment facility in Gujarat system for industrial parks rvind will open its third garment facility in Gujarat over the next ndia plans to develop a rating system for few weeks. The company already has two manufacturing industrial parks which is expected to raise Afacilities in the state. These facilities will add a capacity Icompetitiveness of industries and promote of three million garments a month and generate additional manufacturing. This system is being developed revenues of Rs 1,000 crores. They are aimed at strengthening based on four parameters: internal and external Arvind’s position in the global textile and garment market as infrastructure, connectivity, environment and an integrated fiber to fashion provider and solutions provider to safety management, and business support global retailers and brands. The facilities will also contribute to the services. The system could become a reference company’s foray into performance and functional wear (active database for prospective investors. wear) and synthetics. There are suggestions that the parks should At present only 10 per cent occupy a minimum of 1,000 acres, with of the fabrics Arvind produces infrastructure support in the form of readymade are converted into garments. factory sheds, warehouse, effluent collection The aim is to convert 50 treatment and disposal systems, incubation per cent of Arvind’s fabrics centers and testing labs, first aid centers, with into garments over the next express connectivity to seaports and airports. five years. Some 12,000 The Scheme for Integrated Textile Parks people are expected to be was launched in 2005 to encourage private employed in these facilities. investments and employment generation in the Arvind plans to invest Rs 500 textile sector. The primary objective of the SITP crores a year for the next four was to provide the industry with world class or five years with an aim to state-of-the-art infrastructure for setting up new double revenue from its textile business to Rs 12,000 crores. textile units. The Scheme for Integrated Textile Gujarat has been at the forefront of the textile value chain. The Parks was launched by merging two schemes, state’s progressive textile policy has seen Gujarat become the Apparel Parks for Exports Scheme and Textiles leader in cotton production, spinning and fabric production. The Center Infrastructure Development Scheme. n state is poised to become a large garmenting hub. n

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Jan_shortstories.indd 4 28/12/2018 9:36:55 PM AppArel / COver sTOrY

Government package for the MSME sector targets overall industry development the latest msme package announced by the government will surely boost the textile and apparel sector which has been facing trying times. medium and small players who make up a huge chunk of the sector will be big beneficiaries say experts and industry bodies he msme support and outreach 12 decisions, including a 59-minute loan portal for sanction of programme announced by Prime up to rs 1 crore for small and medium enterprises. it may be minister narendra modi has noted that over 75 per cent of india’s garment industry is in been welcomed by the textile and the msme sector and the 12 announcements covered in the Tapparel industry. The programme includes package would benefi t a large segment.

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Apparel_Jan_2019_Pages.indd 16 28/12/2018 9:33:04 PM AppArel / Cover Story Bank. GST-registered MSMEs will get 2 per cent interest rebate on incremental loan up to Rs 1 crore. Features of MSME programme Textile minister Smriti Irani also outlined The latest MSME Support & Outreach Programme that for the first time banking institutions have include is broad and covers many aspects of the industry. been directed to give in-principle approvals to Some salient features are: loans in 59 minutes. She urged the industry • GST-registered MSMEs will get 2 per cent rebate on an to avail benefits of the ATUF scheme, as incremental loan of up to Rs 1 crore. provided under the special package of Rs • Interest subvention increased on pre and post shipment 6,000 crore for the made-ups and garments credit for exports by MSMEs from 3 to 5 per cent. sector and assured that the ministry would • Rs 6,000 crore package for the technological upgradation in provide all support to the cotton textile sector MSMEs. 20,000 hubs and 100 tool rooms will be developed in increasing exports. around the country for this. In this milieu, the government’s move to • Mandatory sourcing by PSUs from MSMEs increased to 25 launch the portal to assess and sanction loans per cent from the previous limit of 20 per cent. of up to Rs 1 crore will help micro enterprises • Government companies to buy at least 3 per cent of their significantly, while TReDS can change the purchases from women entrepreneurs. game for small and medium enterprises by • It is now mandatory that all the companies with a turnover engendering their credit history, enabling of more than Rs 500 crore will have to join TReDS platform, tracking of receivables’ realisation — or, that is Trade Receivables e-Discounting System. So, MSMEs when and how dues from corporates were won’t face trouble in cash flow. received. Indeed the announcement has • MSMEs will have to file just one annual return on eight come as a huge relief for MSME sector with labour laws and 10 central rules. majority of them being in the informal sector • Environment clearance and ease of self-certification for they find it extremely difficult to raise funds MSME. as credit appraisal is a major challenge. • Changes in Companies Act and relief to MSMEs from legal complications. Export subsidies to boost growth F ast loan disposals to address credit The apparel industry saw a dip in exports woes from October to December 2017 – a fall of 39 Bank credit to micro and small enterprises (MSEs), especially per cent, 11 per cent and 8 per cent year-on- in manufacturing, has shown no signs of growth in the past two year, respectively. This was mostly attributed fiscal years. In fact, it actually declined for medium enterprises. to the Goods and Services Tax (GST), which For a long time, there has been a structural need to address rolled out in July, and discontinuance of funding and liquidity woes of the entire MSME landscape, certain export incentives. Therefore, from particularly working capital. seeking restoration of export incentives at CRISIL’s analysis of nearly 10,000 MSMEs shows average trade receivable is about 75 days — a significant stretch that forces Under new the package, a portal them to resort to high-cost debt to keep business running. As for has been launched through which credit flow from banks and non-banks, a marked improvement will take time because of enduring challenges they face. MSMEs can avail of loans up to Under new the package, a portal has been launched through Rs 1 crore. The portal will enable which MSMEs can avail of loans up to Rs 1 crore. The portal principal approval of loans up to will enable principal approval of loans up to Rs 1 crore for Rs 1 crore for MSMEs from Small MSMEs from Small Industries Development Bank of India Industries Development Bank (SIDBI) and five public sector banks viz: State Bank of India, of India (SIDBI) and five public Bank of Baroda, Punjab National Bank, Vijaya Bank and Indian sector banks

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 / 19

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pre-GST rates (7.5 per cent duty drawback on cotton apparel and 3.5 per cent return of state levies or ROSL) to exemption of 18 per cent taxes levied towards air freight charges under GST, industry body Apparel Export Promotion Council (AEPC) made around 8-10 demands. Addressing these demands, interest subvention on pre-shipment and post- shipment finance for exports by MSMEs has been increased from 3 to 5 per cent. These measures would provide much-needed support and encouragement to the MSME sector, which contributes significantly to textiles exports. Under the package, GST -- registered risk management post Global Financial Crisis. The LEI is a MSMEs would get 2 per cent interest rebate on 20-character unique identity code assigned to entities who are incremental loan up to Rs. 1 crore. parties to a financial transaction. The increased subsidy is applicable from November 2. Exporters can avail the subsidy Special apparel package to boost under the ‘Interest Equalisation Scheme on employment Pre and Post Shipment Rupee Export Credit’. The garment industry being the most labour-intensive The scheme (earlier called Interest Subvention segment of the manufacturing sector, complying with the Scheme) was announced by the government requirements under various labour laws is a major responsibility in November 2018 for all exports of MSME for the industry. and 416 tariff lines. The scheme covers mostly Textile Commissioner, the Ministry of Textiles had earlier labour intensive and employment generating stated the textiles and clothing industry had promised the sectors like processed agriculture/food items, government to bring an investment of Rs 800 billion along handicrafts, readymade garments, glass and with creation of employment opportunities for 10 million glassware, medical and scientific instruments, people within three years. Already two years have passed but and auto components/parts, among others. investment to the tunes of Rs 70 billion and employment of only 100,000 persons were achieved. To fulfil its promise given LEI code to improve to the government, the Textile Ministry announced a Rs 60 accuracy of financial data billion special apparel package in July 2017 and the garment As per a notification of the RBI and made ups industry should take advantage of the scheme. all participants, other than individuals, The package would complement the Amended Technology undertaking transactions in the markets Upgradation Fund Scheme, introduced in 2016, to provide regulated by it -- government securities capital subsidy for machinery at 15 per cent for garmenting and markets, money markets and non-derivative technical textiles segments with a cap of Rs 30 crore and at forex markets -- shall obtain Legal Entity 10 per cent for weaving, processing, jute, silk and handloom Identifier (LEI) codes. The RBI has given segments with a cap of Rs 20 crore. timelines for different types of participants to The present government had initiated some labour reforms comply with the directions. for the segment earlier under a special package. Strict regulation The LEI code has been conceived of as of visits by inspectors and stipulating returns under 8 labour a key measure to improve the quality and laws and 10 union regulations have to be filed now only on an accuracy of financial data systems for better annual basis, have taken this process ahead. n

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Apparel_Jan_2019_Pages.indd 18 28/12/2018 9:33:04 PM AppArel / Cotton CAB estimates decline in cotton yield from October 2018-September 2019 otton Advisory Board (CAB) headed by the Textile Commissioner in its first estimate released this week, Cforecasted cotton yield will decline to 501.47 kg per hectare (ha) for the cotton season October 2018–September 2019. As a result, average cotton output for the season is the lowest in three years. During the crop year 2016-17, the yield was reported at 459.2 kg per ha. With this, the 2018-19 cotton season is set to become the second slowest year in nearly a decade. The CAB estimates India’s cotton output at 36.1 million bales season. As a result, total acreage under the (1 bale = 170 kg) for 2018-19 compared with 37 million bales crop rose to 12.24 million ha from 10.83 in the previous year. The statistics collated by the CAB showed million ha in 2016-17. However, uneven Maharashtra as the least yielding cotton producing state in the distribution of monsoon rainfall in Gujarat — India with an average productivity (yield) of 334.3 kg per ha this deficient in cotton growing belts and surplus year compared to 343.48 kg last year. elsewhere — coupled with drought in major To capitalise on benefits, such as procurement at minimum cotton cultivating areas in Maharashtra such support price (MSP), offered by the government, farmers had as Marathwada, is set to pull down India’s brought additional area under this natural fibre last kharif sowing average yield this year. n India rejects US charge of Draught and uneven rail subsidising cotton beyond to pull down average WTO limits cotton yield in India ndia has rejected the US charge of subsidising cotton beyond rought and uneven rainfall in Gujarat the limits prescribed by the World Trade Organisation (WTO). and Maharashtra is likely to pull down IIt says the support provided is intended to ensure that poor Dthe average cotton yield in India. As per farmers do not resort to sales under distress. The country has been estimates from the Cotton Advisory Board, the using a consistent reporting approach since 1995 and uses a country is likely to produce 36 million bales robust methodology as compared to the US in its calculation of of cotton during the 2018-19 compared to 37 the support. million bales in the previous year. The US has accused India of After touching Rs 136 under-reporting the value of its per kg (Sankar-6 variety), minimum price support (MPS) for cotton prices have eased cotton. In its 2015-16 notification to Rs 124 per kg. On to the WTO, India reported Rs 1.2 the other hand, robust billion in MPS for cotton whereas demand for yarn both in the US estimated India’s support domestic and international at over Rs 504 billion. According markets has supported to the US these actual support yarn prices. A 35 per levels mean India is well in excess of its WTO spending limits on cent jump expected in yarn exports between cotton support, which is fixed at 10 per cent of the total value of April and October from a year ago and a 25 overall production. per cent growth in overall textile exports will Other countries that raised red flags over India’s support to bolster yarn prices in the near term. Stable the sugarcane sector include Guatemala, Thailand, Paraguay, demand and production would kick in benefits Brazil and the European Union. Questions have also been raised of operating leverage too. This should help regarding India’s decision to increase import duties on milk sustain operating margins n powder from 30 per cent to 40 per cent. n

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 / 21

Jan_shortstories.indd 5 28/12/2018 9:36:56 PM AppArel / OULOOK Textile & clothing industry needs to continue innovations to emerge strong

he global economy is in a fragile China’s textile and clothing exports have risen more than state, poised delicately between a fourfold since 2000, compared to stagnant exports from other Tslow recovery and second slide. top exporting countries. China’s capacity development is also Therefore, it is important to analyse the current peaking as more than 40 per cent of the world’s production of scenario, and jointly consider future strategies. clothing and textiles is done in China and India. Continuous global crisis, high oil prices and turmoil and political instability are huge Discontent among Chinese middle concerns for all businesses particularly textiles class as crisis leads to a dip in expenditure on textiles. Over the past few months, China’s middle class has been Interestingly even in such a scenario, noticeably critical of the government’s economic and sociopolitical

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China, South Korea, Indonesia, Turkey, India, Pakistan etc. As the Middle East economy is affected, textile business is also affected. Though improving oil prices are offering some relief, it take time as the economy has been adversely affected for last few years.

Innovation and research strengthen base Despite odds, textile industry has to policies, including the way the leadership has handled relations constantly innovate and research. It needs to with the US. Some suggest this middle-class discontent threatens constantly invest in quality control and new President Xi Jinping’s broader position and economic vision and opportunities such as defense textile, huge indicates that the US holds the advantage in ztrade dispute with requirement of camouflage fabrics as size of China. But the middle class’ views which are the foundation of armed forces is increasing all over the world. Chinese public opinion might be poised to turn in the Communist Similarly coated fabrics, industry textiles Party’s favor. Interdependency between emerging economies have become huge markets now. The textile and developed economies could thwart latent demand in major and apparel industry is buyer-driven and manufacturing centers, specifically in Southeast Asia. dominated by retailers, brands and sourcing companies. Retailers demand full-package India to remain strong production service from their suppliers, but they are centre reluctant to pay for additional services. It is In all this, India will continue to be a major textile production important in today‘s business environment to center catering to a huge domestic market. But imports from select customers who see you as partners. China, Bangladesh are causing disturbance in supply chain E-commerce platforms are turning out to however, government is taking corrective steps and a lot of be a big blessing as online sale is improving favorable initiatives are being taken by textiles ministry to eliminating middle man. Amazon, Flipkart, improve production synergies and textile business model. Snapdeal, Shopclues and many other small platforms are helping small manufacturers The Middle East a big consumer to produce high quality stuff. Current times Middle East continuous to be a big consumer of textiles based are tough but textile manufacturers have seen on imports, major exporting countries to Middle East include much harder times in the past. n

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Apparel_Jan_2019_Pages.indd 21 28/12/2018 9:33:06 PM AppArel / PRODUCT SECTOR

E-com to boost global knitwear market in future -commerce will give a huge boost to class population with higher discretionary income, and innovative global knitwear market from 2016 and advanced e-commerce technologies are driving demand for Eto 26, suggests a study. Online sale knitwear. Online knitwear sales are also increasing due to a rise of knitwear products has got a boost globally. in average revenue per user (ARPU) in e-commerce knitwear The global e-commerce business of fashion products compared to ARPU of offline knitwear product sale. and apparel is expected to increase from $408 The ARPU of e-commerce clothing market is expected to billion in 2017 to over $706 billion in 2022, increase from $270 in 2018 to $301 in 2022. Knitwear products rising at a CAGR of 11.6 per cent. are a major segment of the fashion industry. E-commerce in fashion industry in the US and Europe Ecom drives up market size are expected to expand at a CAGR of 8.8 per cent and 8.7 Online sales of knitwear products is per cent between 2017 and 2022 respectively; while in China, increasing due to growing penetration of e-commerce in fashion industry is expected to grow in double e-commerce in BRICS - Brazil, Russia, India, digits at a CAGR of 14.1 per cent between 2017 and 2022. China, and South Africa countries. Increasing Thus, rising penetration of e-commerce is boosting market size penetration of smartphones, a rise in middle for knitwear products across the world.

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Products, fabrics et al rev-up sales The study segments the global knitwear based on product and material types, application, consumer group and distribution channel. Products are classified as: innerwear, t-shirts & shirts, sweaters & jackets, sweatshirts & hoodies, shorts & trousers etc. Based on fabric, the market is classified into natural, synthetic, and blended. On the basis of application, the market is segmented into outerwear, innerwear, sportswear and others. Based on consumer group, the market is segmented into men, women, and kids. Further on the basis of distribution channel, the market is segmented into online and offline. The analysis of these segments is based on present and forecasted global demand for knitwear products and prevailing and future trends across North America, Europe, Asia Pacific, Middle East & Africa, and South America. material analysis of the knitwear industry. Top players in the market The report highlights major companies The report includes a SWOT (Strength, Weakness, operating in the global knitwear market Opportunity, and Threat) analysis of the market, Porter’s including Adidas, Gap, Gildan Activewear, Five Force analysis of the market, ecosystem analysis, key Hackett, Abercrombie & Fitch, Loro Piana macroeconomic indicators influencing the market and raw S.P.A., Marks & Spencer, Nike, among others. n

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An incredible transformation story Burberry’s early commitment to digital marketing, and willingness to try new and exciting marketing avenues, has undoubtedly positioned the company as the pre-eminent luxury brand on social media. The numbers speak for themselves – by the time CEO Angela Ahrendts left in mid-2014, share value had trebled since 2006 (to £7 billion), and Burberry enjoyed the greatest combined social followership of any luxury brand and that’s the power of social media we are talking about…

s a brand, Burberry can come Marketing history across as a contradiction in terms. At 21 years of age, Thomas Burberry, a former draper’s The company has historically apprentice, opened his first store in Basingstoke in 1856. After represented old-world British gaining a foothold in the local market, he made a name for charm,A elegance and refinement. Its use of himself in 1880, after introducing gabardine to the public, a timeless fabrics like tartan, and enduring styles waterproof yet breathable fabric perfect for the often inclement such as its signature trench coat, give the British weather. Burberry’s big break, however, came off the impression of a brand that is quite comfortable back of World War I. with its place in the market. But its recent The British war office requested the company to adapt one marketing efforts have been quite at odds with of its most popular lines, the officer coat, to cope with the its conservative and traditional reputation. challenges presented by the recently developed tactic of trench

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Apparel_Jan_2019_Pages.indd 24 28/12/2018 9:33:08 PM AppArel / Brand Retail Facebook and Twitter, and in the top 10 on Instagram. No mean feat when you’re competing with the likes of Chanel, Dior and Gucci; noted luxury brand superpowers. Burberry used Burberry has worked hard to create a uniform technology to look across all of their social platforms. The drive its digital content that they use across their accounts, strategy. It while similar, is subtly optimised to cater to collaborated with the strengths of each platform; using the tech companies, live streaming abilities of Facebook, saving streamed content artfully minimalist photos for Instagram, on Snapchat and and posting the material that will promote audience engagement on Twitter. maximised social media Facebooks feeds Facebook is Burberry’s most popular warfare. The design worked beautifully, and after supplying account, with over 17 million likes. This puts an incredible amount of uniforms to the armed forces, they them only marginally behind Louis Vuitton released it to the general public at the conclusion of the war, to (18 million) and Chanel (17 million) in terms huge success. The trench coat continues to be Burberry’s most of most followed luxury brands, and, up until iconic line, and biggest seller, to this day. recently, they very much owned top spot. Through the 20th century Burberry focussed on maintaining Burberry posts quite sparingly, averaging an this brand perception of elegance and refinement, employing update every 3-4 days. the likes of Audrey Hepburn, Humphrey Bogart and Ronald The content Burberry uses for Facebook is Reagan as brand ambassadors. essentially a highlight package of their Twitter Until late 90s, its place as one of the most iconic British feed. They save it for large announcements, fashion houses was without question. That changed with the or high production value videos. The arrival of the new millennium. An influx of counterfeit Burberry engagement is solid, with each post enjoying goods entered the market, and were a hit with chavs (lower class, a few thousand likes, although it must be said often welfare-dependent Brits) and football hooligans alike. that this communication is very much one Burberry’s current success can be traced back to 2006. A way – Burberry doesn’t appear to respond new CEO, Angela Ahrendts, was appointed, and her first move to – or even acknowledge – any of its fans’ was to remove the iconic Burberry check pattern from all but comments. This lack of engagement could be 10 per cent of the brand’s designs, to minimise the association the reason behind Burberry losing 1 million with hooliganism. She also announced that Burberry would aim fans over the course of the last year, and may to be the world’s first fully digital luxury company; an incredible be an area that could use some improvement. statement from a company so steeped in history and tradition. Insta imagics The Burberry Social Strategy Instagram provides Burberry with perhaps Over the last decade, Burberry has placed heavy focus on the brand’s most natural social network fit. digital marketing. Over 60 per cent of their marketing budget The simplicity of the minimalist platform is now spent on digital media, a percentage that comfortably ties in beautifully with the minimalism of outdoes every other luxury fashion brand. Over the years, their much of Burberry’s content, which results in social channels have become the centrepiece of this digital a very successful account. From 7.5 million strategy, with Facebook, Twitter and Instagram forming their followers, 50k+ likes and 100k+ video views main points of focus. isn’t an uncommon occurrence (this video, This focus has been generously rewarded, with Burberry for example, has 400k+ views). The content sitting in the top three most followed luxury brands on is beautifully created, with an almost even mix

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | January 2019 / 27

Apparel_Jan_2019_Pages.indd 25 28/12/2018 9:33:09 PM AppArel / Brand Retail Other social marketing efforts Burberry has always been comfortable on the leading edge of digital marketing, breaking ground where many other luxury of images and videos getting uploaded daily. brands feared to tread. They were one of the first major brands There is a strong focus on simple beauty, with to experiment with Snapchat, using it for nothing less than a the photos, and even videos, never too busy or seasonal product launch. They are currently one of the first complex. The healthy engagement numbers brands to use the new Messenger Codes – a new QR code type show that Burberry is doing Instagram as well portal for Facebook Messenger. as almost any fashion house out there. One of the company’s most successful social campaigns was initially not intended to spread to social networks at Twitter tweets all. Art of the Trench – a 2009 mini-site that collated Twitter is the most active of Burberry’s photos of customers wearing their Burberry trench coats social accounts, with an average of 5 posts – became so popular that the company expanded it to uploaded per day. With another 7 million Facebook, Instagram, Twitter and even Pinterest, using followers, Burberry is behind only Chanel hashtags such as #ArtoftheTrench and #AOTT to spread (12 million) in terms of luxury brand the word. This campaign kick started Burberry’s social Twitter audience size. While the ‘favourite’ strategy, adding millions of followers across a host of and ‘retweet’ numbers may appear to pale social accounts. in comparison to those that the Burberry Facebook and Instagram accounts enjoy, it The ultimate positioning needs to be remembered that a retweet on Burberry’s understanding of each social platform’s Twitter is extremely valuable, getting a host strengths, combined with their beautiful content and their of fresh eyes on the content. Burberry were digital innovativeness, firm them as the leading digital luxury also one of the first brands to make use of brand in the world. They are well on their way to fulfilling that Twitter’s ‘Buy Now’ function, back in 2014. promise made back in 2006. n

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Global fast-fashion chains growing aggressively

he arrival of fast-fashion brands such as H&M, Zara and Forever 21 has disrupted the specialty apparel sector as these fast-fashion Tplayers not only imitate runway fashions at affordable prices, but also beat other retailers in the market to the latest styles.

Making fashion affordable Fast-fashion chains, over the past decade, have grabbed huge market share in the apparel sector and grew aggressively, opening hundreds of stores. The companies boast of short production and distribution lead times

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Apparel_Jan_2019_Pages.indd 27 28/12/2018 9:33:10 PM AppArel / Retail like that. Online retailers have opened up a lot of options for consumers that didn’t exist before. Two factors are affecting fast fashion. These include: decline in demand many of these brands experienced aggressive growth for years and a slowdown is natural. At least two of the three big ones—Forever 21 and H&M—were due for a slowdown anyways. They were kind of reaching capacity in the marketplace. But that’s not to say that they couldn’t find new markets to exploit and get market share… But the two were at the forefront of growth early.” The second factor is the “encroachment of e-commerce and the rise of the off-price guys. Also, some fast-fashion concepts have been slow to get into online sales and are now which allows them to respond to market changes in a matter paying the price and trying to catch up. of just a few weeks. They are largely immune to the problems of the larger specialty apparel industry. However, lately they’ve Big players report mixed started to encounter certain roadblocks including increasing results competition, changing consumer shopping habits and more Swedish powerhouse H&M reported a intense competition from online players like Amazon and ASOS. dip in total sales by 4.0 per cent on a global Come what may there are certain things in this world that basis in 2017. Sales in the US fell by 6.0 per never change ditto for the consumers’ appetite for discounted cent. The retailer would close 170 stores while opening 390 new stores globally, and is dealing with $4.3 billion in unsold inventory. In the first half of 2018, H&M opened 10 net new stores in the United States. Los Angeles-based Forever 21 is rethinking the size of its stores and looking at downsizing locations. Their average store is 38,000 sq. ft. and the largest is around 162,000 sq. ft., according to the retailer’s website. Forever 21 is rolling out its 21Red concept that’s going into power and community centers. These stores are in the 10,000- to 12,000 sq.ft. range. Inditex said strong sales and investment in fashion apparel. These discounts allow people to buy high fashion technology for its online and physical stores at affordable prices. However there’s an increasing competition boosted net profit in the past fiscal 7.0 per in the fast-fashion industry, including pressure on existing US cent. The brand’s net profit for the 12 months chains because it’s become a huge international business. ending January 31, 2018, rose to $4.11 billion. It posted a 5.0 per cent increase in same-store Increasing competition sales globally for the quarter ending Aprils 30, As consumer appetite has been sustained and actually grown, 2018. Meanwhile, Spanish clothing retailer more and more players are coming into this space, which then Zara, revealed same-store sales growth for all obviously creates more competition for existing players and can regions in which it operates was positive, but sometimes affect revenue, expansion, profit margins and things didn’t disclose specific figures. n

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Apparel_Jan_2019_Pages.indd 28 28/12/2018 9:33:11 PM AppArel / Brand Retail Siegle+Gale names Uniqlo as the world’s simplest fashion brand niqlo has been named the world’s simplest fashion brand by Siegel+Gale. UThe brand was ranked on the basis of its philosophy of simplicity, quality and longevity, which resonates around the world. Siegel+Gale ranks companies for delivering on their promise of simple, clear, and intuitive experiences. Topping the overall ranking was Netflix, followed by German discount supermarket Aldi, then Google, Lidl and Carrefour. Siegel+Gale’s study reaffirms an increasing demand for transparent, direct, simple experiences that make peoples’ lives ranked in the 94th place. easier. The simplest global brands have outperformed the average British retailer Marks &Spencer was ranked of the major indexes by 679 per cent since 2009. The top 77th, followed by department store chain performers in the study operate in crowded, highly competitive Debenhams at 85, while sportswear brand marketplaces. Their ability to consistently deliver their brands with Under Armour was 87th, and Topshop was simple, compelling experiences sets them apart. n UK probes retailing strategies of apparel brands/etailers ourcing practices of UK clothing retailers Boohoo, Asos and Missguided are being Sprobed on charges of below-legal wages and unethical working conditions. Online clothing retailers in the UK such as Primark, H&M, and Zara get 21 per cent of their stock from China, 14 per cent from Bangladesh and India and 12 per cent from Vietnam. All these four e-tailers have manufacturing facilities in the UK. Missguided has reduced its presence in Leicester, after recognising its inability to

satisfactorily audit the factories it was using. Having started this year working with 35 manufacturers at 80 different sites, the company now sources from 12 suppliers at 20 factories. There have been allegations Boohoo underpays workers and promotes unsustainable and non-environmental consumer buying patterns. In the meantime, retailers in the UK like John Lewis, Marks &Spencer and Next have agreed to support moves to stop modern slavery in the textile trade. Global fashion brands have increased the overall social and environmental transparency of their sourcing practices by just five per cent since last year. While many have taken widely publicised steps in recent years to ensure the safe working conditions and living wages of their workers, a lot remains to be done. n

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Jan_shortstories.indd 6 28/12/2018 9:36:58 PM AppArel / Brand Retail Zara expands outerwear collection ara has expanded its outerwear Zara is the signature collection. Although the brand brand of the Spanish group Zhad already launched some Inditex. Earlier this month, outdoor clothing pieces in previous Zara launched its online seasons, including anoraks, jackets store in 106 new markets, and children’s clothing, the chain bringing the total number is strengthening its presence in of countries where it the segment with the launch of operates an e-commerce a dedicated outerwear capsule channel to 155. Currently, collection. the chain has a physical Called TRF Recycled, the presence in 96 markets and collection reiterates the brand’s is progressing towards its commitment to sustainability goal of selling all its brands with pieces made from recycled online worldwide by 2020. polyester derived from plastic bottles. Meanwhile, the words ‘Please Zara also has the best conversion rate in the Recycle; are printed on belts and hoods to remind consumers Spanish online fashion sector. Its conversion of the line’s sustainability message.The collection includes silver rate is 12 per cent, which is more than its puffer jackets, puffer coats, joggers, technical backpacks and competitors Asos (nine per cent) or Massimo chunky trainers, and waterproof, two-in-one parkas. Dutti (nine per cent). n Inditex to retail 118 million Espirit to overhaul garments in 20182 company’s operations sprit’s new CEO Anders Kristiansen plans to overhaul the clothing company Eover three years with job cuts and store closures. He plans to close stores, streamline the administration and simplify the product ranges. The restructuring will take two to three years and cost around 1.5 to nditex is on path to achieve its target to retail 118 million 1.7 billion Hongkong garments across all brands under its Join Life label collection in dollars, or €168 I2018, which flags best practices in the choice of raw materials million to €190 million. and production processes. Inditex broadened its sustainable Kristiansen plans to boost sales of basic production as it published another set of stellar trading figures garments like sweatshirts, jeans and T-shirts for the first nine months of 2018. They showed that net sales at to make Esprit less dependent on fashion the business increased by 3 per cent on a year-on-year basis to trends. In addition, the product range will be €18.4bn in first nine months, up 7n per cent in local currencies. reduced by 20 to 30 percent by next June to Besides Net sales mark a record for the nine-month period cut design and production costs. ending October 31. Sales growth was accompanied by gross Esprit, like its peers Gerry Weber, Tom Tailor margin expansion of 60 basis points to 58 per cent. Net profit also and Hugo Boss, has been expanding its retail hit a new nine-month record, climbing four per cent to €2.4bn. Like- network in recent years. Kristiansen wants to for-like sales in the second half of 2018 to the end of November shut unprofitable stores but that can’t be done grew three per cent, following a good start to the season, an overnight because the company is locked into extraordinarily warm September and five per cent like-for-like sales rental contracts. n growth in October/ Novemberg Copenhagen and Milan. n

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Jan_shortstories.indd 7 28/12/2018 9:36:59 PM AppArel / Brand Retail Guess expects positive results for FY2018-19 ccording to Herrero, Guess expects positive results in all regions, and Aprofitability across all business segments for the remainder of the fiscal year, which ends Feb. 2, 2019. During the third quarter ended Nov. 3, the company recorded a net loss of $13.4 million compared to $2.9 million for the third quarter. Its GAAP per-share earnings were 17 cents, compared to 4 cents for the prior year. Analysts expected 16 cents per share. The company estimates that currency had a negative impact on diluted earnings per share of 2 cents for the quarter. The company’s revenue during the period was $605 million, beating analyst estimates of $603 million. Same-store sales in the Americas rose by 3 per cent, beating analyst estimates of 2.1 per cent. The fashion retailer has been violated European competition rules. It is likely to reach an cooperating with a European Commission agreement that is expected to result in a fine ranging from investigation into whether the company $42.4 million to $46.6 million. n Gap to close underperforming stores ap will close a part of its 775 brand specialty stores globally, due to underperformance. GDetails on the locations and sequencing of the upcoming closures are yet to come, but the specifics should come as part of the forecast for FY2019. The brand will continue to grow its e-commerce business, which makes up roughly 20 percent of revenue, and the more than 500 Gap outlet stores that account for about 30 percent of total Gap Global revenue. The other 50 percent of revenue for Gap stores

all comes from the ailing specialty store segment of Gap Global and there is a wide variance in profitability among the group.The company’s sales declined 7 per cent in Q3 and earnings per share guidance for FY2018 narrowed to $2.55 to $2.60 from the previous guidance of $2.55 to $2.70. Meanwhile, sales were up 4 percent at Old Navy and up 2 percent at Banana Republic. n

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Jan_shortstories.indd 8 28/12/2018 9:37:01 PM AppArel / Trends

‘Not the US, more people elsewhere, own denim’ illed with themes and variations an average of nine pairs of blue jeans, the highest in the survey. that will help create $130 billion This is followed by Mexico, with more than seven pairs per sales by 2021, the blue jean is an person. Germany comes in third for ownership with 6.84 pairs American original with a global per person. Turkey and Thailand come in fourth and fifth, with Fappeal. Consumers, around the world, own an average of 6.10 and 5.12 pairs per person, respectively. an average of 5.4 pairs of blue jeans. It would therefore be natural to expect United States Frequency of wear corresponds to to own the highest per capita in blue jeans, total number owned given its seasonal temperatures and the fact The number of days per week global consumers wear their that it is its birthplace. The truth however, jeans is equal to 60 percent of the total number of pairs they is that denim enjoys the greatest ownership own, on average. Germany, for example, owns 6.84 pairs of and frequency of wear in warmer and more jeans and wears them 3.24 times per week. Notable exceptions humid climates. Cambodian consumers own to this corollary are Great Britain and Italy. British own 4.66

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Apparel_Jan_2019_Pages.indd 30 28/12/2018 9:33:12 PM AppArel / Trends as a purchase driver, with 63 percent claiming that they would pay more for a pair of jeans that were made predominantly from cotton, pairs of jeans and wear them 3.74 days per week; Italians own but with some stretch. 5.93 pairs and wear them 4.04 days per week. Almost 67 percent of US respondents Around 35 percent of the total respondents cite denim claimed the inclusion of performance features as ideal for work, particularly in Mexico (48.5 percent), Italy would influence their decision to buy a pair of (45.5 percent) and Turkey (41 percent). For a dinner out, jeans jeans. For example, 40 percent of US respondents ranked highly among respondents from Germany (52 percent), said they would pay more for denim that could Colombia (42.7 percent) and Thailand (41.3 percent). repel water. This has been achieved already Most Americans (87 percent) would pay more for a pair through the STORM Denim™ technology, of jeans that fit them ‘perfectly.’ While engineering a pair of a textile chemical finish. Forty-eight percent jeans with a universally perfect fit may prove elusive, comfort of US respondents cited moisture wicking emerged in the survey as a key denim purchase driver for 97 as a desirable denim feature that they would percent of Americans. Since authentic denim is 100 percent or be willing to pay more to have. Again, textile predominantly cotton, there is a comfort component built-in. finishing chemistries such as the TransDRY™ technology offer this without compromising the Preference for cotton fabric authenticity of cotton denim. Cotton is the key to the continuing popularity of the Blue jeans seem as popular as ever with denim category. Perhaps buoyed by a general consumer trend global consumers and, interestingly, are very towards authenticity, more than three-quarters of American popular in warmer climates such as Colombia respondents (76 percent) cited cotton content as important and Mexico. While closet space allocations in to their decision to buy a particular pair of jeans. Around 84 Asian markets may hamper ownership totals, percent of American respondents cited stretch in their denim the enthusiasm for denim is high. n

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Apparel_Jan_2019_Pages.indd 31 28/12/2018 9:33:12 PM AppArel / Trends

Streetwear finding immense traction globally orecasting firm Trendalytics a branding tool for both brands and individuals. According to has reported the evolution of the firm, as digital natives with significant spending power, the streetwear from its start as a millennial and Gen Z consumers have played an integral part 1970’s California social movement in driving the growth of streetwear. The hunt continues for Fdefined by the laidback surf style of the most Instagrammable products, and consumers looking for Shawn Stussy, the founder of Stüssy, into a unique and exclusive items are willing to pay. mainstream global category estimated to be valued at $309 billion. That evolution has A global phenomenon been fuelled by influencers—be it celebrities, Today, streetwear has become the urban uniform for people athletes or the masterminds behind hype in New York, Tokyo, London and more. A new breed of cities machine brands like Ronnie Kith and Virgil are emerging which is lifting the growth of streetwear globally. Abloh and the prevalence of social media as These are Kazakhstan, Iceland, South Korea, etc. Kazakhstan,

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companies are quite fast in producing fakes by painting jean jackets, scribbling on white sneakers and making spoofs of popular logos. Iceland has all the vintage look and feel. Classic skate brands like Thrasher and Stüassy are paired with retro furry jackets and sweaters. In Nigeria, streetwear is a blend of Western fashion like jeans, T-shirts and Vans, and native elements like brightly colored and patterned cotton textiles. In South Korea and Mexico, they have punk and rock undertones. Combat boots, leather jackets and piercings make up streetwear in Korea, while Mexico skews toward goth pieces, logo T-shirts and hats. Meanwhile, streetwear in the United Arab Emirates reflects hip-hop’s affinity for luxury brands. The report named side bags, snapbacks and colored sunglasses as key items.

Social media and influencers In such a burgeoning growth, social media has a major role to play. Instead of relying on endorsed posts, important streetwear labels like Vetements, Bape and Palace Skateboards saw the most engagement from their own brand postings, Trendalytics said. The report highlighted that streetwear brands like Fear of God and Undefeated received nearly four-times the social actions per mentioned post than Adidas for the last year. While millennial celebrities like Zayn Malik, The Weeknd and AnselElgort have the highest total social post engagement from their popularity to appeal to the affluent, their branded posts, Trendalytics said top influencers gaining pro-consignment consumer. In appealing social buzz include surfers Laura Enever and Kelly Slater, each to millennials who came of age during the capturing more than 10-times the engagement per mentioned Great Recession, luxury is able to channel the post than Kanye West. appeal of appreciation, which they had already mastered with handbags, to sneakers. n L uxury marrying streetwear Trendalytics stated that ’80s artist Jean-Michel Basquiat was known for combining high and low aesthetics by pairing streetwear and thrift store finds with formal wear, a style that still inspires streetwear influencers like Jay-Z and Kanye West. Meanwhile, Japanese artist Takashi Murakami has a developed new fan bases through his long-running and colorful collaborations with Louis Vuitton and subsequent artwork collaborations with artists like Kanye West and Kid Cudi. The artist is also working with streetwear labels like Billionaire Boys Club. The impact of streetwear on luxury cannot be understated and that influence is poised to grow as the spending power of streetwear-loving millennials surpasses older generations. Luxury brands are prepping up for this shift by attracting young designers with streetwear roots. Sneakers have become the new ‘It’ bag and brands are leveraging

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Apparel_Jan_2019_Pages.indd 33 28/12/2018 9:33:14 PM AppArel / Trend Great prospects for global sports brands in China hina offers great prospects for sports brands. Adidas has more than 11,000 retail outlets across China. It is also Cexpanding operations with 1,000 new store openings a year in the country. The brand registered a year-on-year sales growth of 29 per cent in 2017 in China. Its sales grew by 26 per cent on an annual basis in the third quarter this year. Decathlon, a France- based sporting goods and equipment retailer, had 267 stores in China by the end of 2017. This rapid growth of overseas sports brands in China has been spurred by increased spending on sporting goods, whether sportswear and active wear, fitness facilities or products like protein powers for body builders. Consumers are spending more and more on sports products as they pursue more outdoor hobbies like diving, kayaking and paragliding. They are buying outdoor gear like clothes, shoes, professional watches, socks and so forth. due to the country’s economic downward Overseas sports brands are flourishing at a time when many other pressure, fiercer competition from domestic overseas brands are facing a tough time with Chinese consumers, brands, and tough global trade environment. n

Denim on an upswing Rise of jeans as streetwear in the US creates new opportunities enim is on the upswing in the US. for women’s denim brand DRetailers are starting he rise of street wear has invited to rebuild their denim new opportunities for women’s assortments. The global Tdenim brands to experiment jeans market is growing at outside the confines of the skinny a CAGR of 0.8 per cent from 2018. Brands that are consumers’ jean. The trend has created a shift favorite are Levi’s, Lee, Wrangler, Gap, Old Navy and so on. in women’s silhouettes. A wider and Denim jeans are more square aesthetic is now leading. a cornerstone of the Layering has become more playful American wardrobe and and innovative, with a mixing up of an important cotton weights and lengths. product accounting for Denim jackets, coats, shirts, vests, almost one-fifth of all cotton skirts and dresses are giving off that clothing at retail. Although nonchalant street wear aesthetic mostly known as a fashion thanks to the casual feel of the fabric. garment, they are still worn Street wear also has pushed a less as protective garments by gender-defined aesthetic. some individuals in the US, Street garments have cross-appeal, such as cattle ranch workers with women shopping from menswear and motorcycle riders, due lines and some brands catering to this to their high durability as compared to other common fabrics. with unisex lines. Across genders, Denim jeans are purchased for durability, longevity, and versatility there has been a general loosening because consumers find greater value in a product they know of silhouette, with wider fit jeans, puffed-out will last longer and fit better; therefore price is not the main factor jackets and longer-line top. From drop crotch in the denim jeans purchase decision, unlike other clothing. This to baggy denim, voluminous denim shapes positioning ensures that denim jeans will continue to have a place are already in stores. n on store shelves and in consumers’ closets. n

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Jan_shortstories.indd 9 28/12/2018 9:37:02 PM AppArel / Tech Trends Brooks Brothers collaborate with ORS to launch AI-based retail program rooks Brothers has collaborated with ORS to introduce an end-to-end AI-based retail program. The program will help Bthe US apparel brand aims to stay fresh and relevant in a constantly changing industry. The brand will use the platform’s algorithm and AI to get insights throughout its value chain which will help the label to enhance and modify decision making for the betterment of the business. The partnership will boost the retailer’s Buy Anything, sales opportunities. Get it Anywhere (BAGA) platform that performs the fulfilment The apparel retailer has also launched a across its outlets in the US. cloud-based platform for a hassle-free omni With the help of ORS, Brooks Brothers will be able to form channel shopping experience. Brooks Brothers an extremely sensitive and responsive digital supply chain to currently operates 280 stores in the US and control stock in real-time and to modify work end-to-end. It is a over 700 worldwide, featuring high-end, disruptive solution for automated omnichannel fulfilment to help classic family fashion, well-suited to both men the label build a better customer experience and maximize and women.n LVMH sets up Retail Lab to Levi’s to expand speed up digital transformation customisation program uxury brand LVMH has set up Retail Lab- an internal organisation to speed up its own digital transformation. The Lorganisation will help the labels owned by Bernard Arnault’s group develop innovative solutions in the digital and retail field. The Lab is designed to help the group’s labels, whether in the fashion, wine-making, cosmetics, watch-making or selective distribution sector, in their digital and retail transformation. The project commenced a year ago, when the group hired Gautier Pigasse to set up, launch and manage the LVMH Retail Lab. Pigasse is a digital marketing and customer experience expert, and has worked with several brands and major consumer evi’s plans to expand its product and media groups, notably in the luxury sector, on their customisation program next year multi-channel strategies. Lwhere consumers can follow The project manager will bolster this project by sourcing and Aldridge’s lead and get their denims testing new technologies.n customised. The brand will install a laser machine, developed by Spanish company Jeanologia, in one of its stores in the U.S. Online and in stores, consumers will use a similar app to personalise their jeans. Levi’s is yet to finalise the cost for customisation of their jeans. Besides beating fast fashion at their own game, customisation delivers what people need when they want it, and giving them the freedom to express their creativity. n

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Micro-textile model promises a new dawn for the industry T-shirt manufacturing factory exposed during all cycles of this model, be it speed to market, proved to be the torchbearer for value of stock, or consumer relevance. Also, the market uses digital printing technology and extended financial credit lines which leads to reduced yields DTG (direct to garment) printing and offers a meager return on investment. As a result, profits thatA facilitated customised manufacturing. grow slightly; stock grows in line with profits, until the time is Today, multiple textile technologies offer a reached when all of the profit is in the stock. sustainable option to conventional production. They rationalise workflow besides offering Providing a way forward the client “just in time” manufacturing. The The Digital Textile Revolution including developments in traditional textile model is risky as both the CAD/CAM, augmented reality software, online workflow, laser manufacturer and retailer are unreasonably cutting, and digital textile printing are providing a way forward

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Apparel_Jan_2019_Pages.indd 34 28/12/2018 9:33:14 PM AppArel / Tech Trends buys and pays for their product before the item is produced. The model is capable of producing and delivering in 24 hours through n the speed of image processing, computerised workflow, digital printing and cutting and with computerised sewing (as an option) then dispatch, This business model was first used by direct to garment (DTG) printers, who would deliver a sale within 24 hours of receiving the payment. The producer was able to cater to its consumers demands by creating and approving artwork, sending it to print, then packing and dispatching the blank t-shirts within the timeframe expected by the customer. The model has grown to encompass and attract many other sectors, with athleisure, swimwear and fashion taking up the opportunity to rationalise their production systems. that is not only risk free but also consumes fewer resources. The online e-commerce tool in this model The micro-factory model of “Sell, Produce, Deliver,” uses all the visual space of the selling website and not “Produce, Sell, Deliver” is driven by an online sales to make an extended offer in terms of presence, alongside AR and AI software. The client selects product, color, size and design. When online orders are received, they immediately go into a computerised workflow, where the artwork is completed, the customer contacted and, upon approval, the production is initiated, all within a matter of minutes.

Adaptability with efficiency and profitability The micro-factory produces textiles by using digital textile printing. The machinery is a fraction of the size of traditional machinery and also smaller in dimension. It consumes lesser heat, light, water and power than the traditional textile manufacturing model. The micro-factory model is infinitely adaptive. A huge online range can be serviced efficiently and profitably, without enormous warehouses, without the risk of clearances, and without the uneconomic use of scarce cash reserves. It’s no wonder then, that the model is hailed as a new dawn for textiles, with its efficiency and profitability bringing manufacturing back to a more local base and offering jobs for workers in the country of origin. n

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Apparel_Jan_2019_Pages.indd 35 28/12/2018 9:33:15 PM AppArel / FAST FASHION Fast Fashion industry needs to take positive eco steps

ashion is responsible for 92 million The fashion industry is also the second biggest consumer tons of solid waste dumped in of water, producing 20 per cent of wastewater while also Flandfills each year. There are an generating more greenhouse gas emissions than all international estimated two billion new consumers waiting flights and maritime shipping combined. to buy the latest trends. The average number The equivalent of one garbage truck of textiles is wasted of clothing collections in Europe more than every second. Around one lakh marine animals are killed each doubled between 2000 and 2011. year by plastic waste, including microfibers.

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Need to take onus down, and unfair working environments in It’s up to apparel brands to take responsibility for the waste the clothing industry. they’re creating. Brands need to address head-on the chemicals, No-waste economy must be applied to use of textiles waste and synthetic fabrics that don’t break fashion, just as it is in the food industry. There is a need for action at each stage of the supply chain, starting with sustainable sourcing of fabrics, through to design, exploration of possible alternatives to distribution, and recovery and recycling of clothing. Poorer, developing countries need to be included in sustainable manufacturing models so they can produce clothing locally and more sustainably. n

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Apparel_Jan_2019_Pages.indd 37 28/12/2018 9:33:17 PM AppArel / SUSTAINABILITY

SAC’s Higg Materials Tool aids designers in assessing environmental impact he Sustainable Apparel Coalition apparel, footwear, and textile industry to assess the environmental (SAC) has announced an update to impact of materials used in global manufacturing. With the most Tthe Higg Materials Sustainability recent update, businesses around the world can more effectively Index (Higg MSI), a tool that enables the assess the environmental impact of materials as they design more

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Apparel_Jan_2019_Pages.indd 38 28/12/2018 9:33:17 PM AppArel / SUSTAINABILITY and textile industry, this can help companies design products that will attract and retain key consumers, who increasingly demand sustainable products. The SAC, a global industry coalition that is knowledge of greater transparency in how standardising social and environmental sustainability performance their clothes and shoes are made. Using measurement, is constantly improving and expanding the Higg more sustainable materials will reduce the MSI. Higg MSI users are encouraged to contribute material data environmental impact of global manufacturing to the tool’s growing library of materials. Once data is submitted, and help businesses stay relevant in today’s it is reviewed and verified and scored by third-party experts. marketplace of increasingly aware consumers. The Higg MSI originated at Nike A reliable tool about a decade ago. In seeing the benefit The Higg MSI, the industry’s most trusted tool for accurately global collaboration would bring ongoing measuring and scoring a material’s environmental impact, now development and industry-wide use of the features 80 base materials, including cotton, polyester, and silk. Higg MSI, Nike contributed the tool to When blended, these account for the majority of all materials the SAC in 2012. Now one of the six tools the industry currently uses. The update includes a new feature comprising the Higg Index, the Higg MSI is that enables suppliers to share sustainability performance considered the leading materials assessment information about their materials with brands and retailers. Such tool for the industry. “The Higg MSI has upstream communication promotes greater transparency and helped us make better choices to reduce improved sustainability performance within the industry. Jason our product footprint by providing critical Kibbey, CEO, SAC says, “With the opportunity to play a key role insight and transparency into materials and in determining a product’s sustainability performance, being a processing decisions,” points out Joël Mertens, designer today is really exciting. With the Higg MSI, product material technologies integrity engineer, MEC designers can access an incredible amount of information, and then use it to significantly reduce environmental impacts of materials production.”

Assessing process Applying trusted metrics, the Higg MSI assesses a material’s environmental performance and scores the results. Calculations account for energy, water, chemistry, and additional impacts (Mountain Equipment Co-op). used in material production, giving designers greater insight in Sean Cady, VP-Global Responsible creating more sustainable apparel. For the apparel, footwear, Sourcing, VF Corp said, “Across VF Corp and our brands, we integrate material sustainability metrics into design decisions. The Higg MSI provides an objective, comparable metric, which informs our material choices and allows us to meet consumer expectation and brand promises.” The SAC’s global members have demonstrated the apparel, footwear, and textile industry already trusts the science- backed data the Higg MSI offers. Kibbey adds, “Other industries have approached us about how they could use the Higg MSI, making us realize there is an opportunity to expand the tool’s application in the coming months.” n

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Apparel_Jan_2019_Pages.indd 39 28/12/2018 9:33:18 PM AppArel / Sustainability Textile Exchange ranks H&M Group as the world’s biggest user of sustainable materials extile Exchange, in biggest user of organic cotton. IKEA is the its yearly Preferred biggest user of recycled cotton. Inditex is the TFiber Materials second largest user of lyocell and the fourth Market Report, has largest user of preferred manmade cellulosics). ranked H&M Group Target is the third largest user of recycled as the world’s biggest polyester and the fifth largest user of preferred user of sustainable down. The North Face is the second largest user cotton and man-made of preferred down. cellulosic materials (e.g. lyocell, among others). The group aims All these companies are committed to scale to use only recycled or other sustainably sourced materials by their global value chains of preferred fiber and 2030. With its yearly and steady increased use of recycled or benchmark their progress against the industry. other sustainably sourced materials, the group not only pushes They have also made significant investments the demand for widely used materials such as organic cotton, in developing the supply chain needed to but also influences the scalability of new sustainable materials. achieve the necessary measures of scale in Nike tops the list of recycled polyester users. C&A is the world’s preferred fiber production. n

C&A launches first Cradle to Lacoste bans the use of Cradle certified Gold denim jeans mohair in its collection &A has launched the world’s first Cradle to Cradle certified acoste has decided to ban the use of Gold denim jeans. This science-based quality certification mohair from its collection after PETA Cacknowledges continuous improvement and innovation LAsia’s investigation of the industry of products and processes. The release of C&A’s jeans comes revealed abuse and exploitation of angora on the heels of the first ever Cradle to Cradle certified Gold, fully goats, material. Lacoste joins compostable T-shirt collection an ever-growing list of brands/ launched in 2017. The denim retailers including ASOS, jeans provide an example of Marks & Spencer, John Lewis, ways to collaborate within the H&M, and, most recently, industry to split the materials Notonthehighstreet – that have into biological and technical made this compassionate move. nutrients to create a closed- To date, over 330 brands have loop system of design. committed to a ban, proving The challenge to create a that cruelty to animals is not in garment having the same fashion. Famous for its crocodile performance as traditional logo and boasting 1,200 models but in either 100 shops and 10,600 outlets spread across per cent technical or 100 120 countries, Lacoste had also previously per cent biological way to committed to angora and fur bans. allow them to return to their PETA’s first-of-its-kind video exposé respective cycles at the end of angora goat farms in South Africa, the of use. Another option, which world’s top mohair producer, has pulled back was adopted for the jeans, the curtain on the violent industry, showing was to separate their components so that the biological and workers dragging, roughly handling, throwing technical nutrients can return to their respective cycles. around, mutilating, and even cutting the All the components in the jeans could be easily separated throats of fully conscious goats, some of which enabledthe biological and technical nutrients to return to whom cried out. n their respective cycles. n

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Jan_shortstories.indd 11 28/12/2018 9:37:03 PM AppArel / Sustainability Inditex launches outwear capsule collection nditex, the parent Earlier this month, Zara forayed into over company of the 100 new markets, as it expanded its online ISpanish apparel and presence, bringing the total number of accessories retailer countries where it operates an e-commerce Zara has expanded channel to 155. At present, the chain operates its outwear range by launching outwear capsule collection.The new collection named; ‘TRF Recycled’ portrays its commitment towards a sustainable future. The collection is curated using recycled polyester taken from plastic bottles. In line with the group’s pricing scheme, the collection is marketed at an affordable range for up to £ 160. A silver puffer jacket is sold at £ 95.99, while a puffer coat is placed at £ 119. The sustainable via brick-and-mortar retail in 96 markets and is line also offers joggers, a technical backpack and chunky trainers. progressing towards the group goal of selling A waterproof, two-in-one parka in the collection is priced at £ 159. all of its brands online globally by 2020. n

UK survey the issue of mass Chanel removes Python waste in the fashion industry skin bags from website ccording to a survey in the UK, most consumers aged 18 hanel removed Python skin bags to 35 never wear the0 garments that they purchase. This from its website recently as it banned Ahighlights the growing issue of mass waste in the fashion Cthe use of exotic animal pelts in its industry due to the new generation’s insatiable appetite for the collections. Although the brand still sells latest trends. secondhand bags on online resale sites. These These consumers have no interest in quality, long lasting clothing, handbags reportedly sell for up to $10,300. instead preferring to buy cheaper clothes that only last one season. Animal rights groups Twelve per cent consumers choose to throw clothes away rather welcomed the move, than recycling them, with only 60 per cent of those who do recycle with People for the Ethical Treatment of Animals (PETA) hailing Chanel as giving a lead to other luxury brands. Although top fashion brands have been under heavy pressure to renounce fur, with Gucci, Armani, Versace and John Galliano all deciding to go fur free, Chanel’s decision to stop using saying they buy second clothes – highlighting a peculiar gap in the exotic skins came as a big surprise.Animal buying and disposal habits of fashion customers. rights campaigns against the use of crocodile In general consumers like the idea of wearing sustainable and snake skin products have not got the clothing but would not pay more than a certain amount for a same traction with the public as similar sustainable garment. Recycling is not only good for the consumer crusades against fur, with some luxury brands who can purchase clothes more affordably but also massively even investing in reptile farms so they can reduces the environmental impact of clothes and lessens the guarantee that skins are sourced ethically. n personal fashion footprint. n

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(L to R), Dr. A Sakthivel, Vice Chairman, AEPC, Dr. K.S. Palanisamy, I.A.S., District Collector, Tirupur, Beneficiary (Center), Shri. Bandla Srinivas, I.A.S., Joint Secretary and Prabhari Officer Ministry of MSME, Shri. M.M.Chiniwar, GM, Canara Bank MSME review meeting organized at Tirupur anara Bank, under the Chairmanship meeting. The meeting also sanctioned MSME loan approvals/ of Dr. K.S. Palanisamy, I.A.S., District cheque. Collector, Tirupur in presence of C Dr. A Sakthivel, Vice Chairman, AEPC complimented Shri. BandlaSrinivas, I.A.S., Joint Secretary and District Collector and Canara Bank for putting their strenuous Prabhari Officer Ministry of MSME, Govt. efforts and wished all the beneficiaries to use the loan money of India, Dr.A.Sakthivel, Vice Chairman, for the growth of their business. He has also informed that the AEPC and M.M.Chiniwar, GM, Canara Bank, Council has opened a Help Desk for this cause to support/ officials from the bank, state and central govt. facilitate the trade members. Around 125 applicants have been departments, associations, entrepreneurs, registered with the Council, out of which nearly 25 per cent garment exporters etc., were also present at the applications have got in principle approval for their loans. n

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A group photograph session with speaker at the Open House session on updated FTP organized at Bangalore AEPC organises Open House Session on Updated FTP in Bengaluru EPC organised Open House session on Updated Lakshmikumaran & Sridharan. The Open Foreign Trade Policy with ADGFT in Bengaluru on House was moderated by G. Shivadas, Sr. ADecember 6, 2018. Counsel, High Court of Karnataka The session on Updated Foreign Trade Policy was The open house session was highly inaugurated by JV Patil, ITS, Addl. Director General of Foreign interactive and thought-provoking since most Trade. IT was followed by a session on Issues and Challenges of the participants interacted well with the in Foreign Trade Policy by Siddharth Bhatt S, Jt. Partner, speakers throughout the program. n

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Participants at Seminar on Digital Trade Banking Solutions, at Apparel House, Gurugram AEPC organises seminar on Digital Trade Banking Solutions EPC organised a seminar on Digital Trade Banking and advisory solutions on EDPMS/IDPMS, Solutions at Apparel House, Gurugram on packing credit facilities and export bills ANovember 29, 2018 in collaboration with ICICI discounting, simplification and transparency Bank. The seminar covered areas of digital solutions for trade of e-BRC issuance by Naveen Gupta, Zonal transactions (Paperless trade transactions), regulatory updates Head, ICICI Bank n

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Revolutionising the clothing re-commerce market, some players take lead s re-commerce, when particularly projected to grow by 15 per cent annually over the next five years. executed by partners, unleases a The country offers tremendous opportunities in secondhand low-risk, high-reward market for clothing sales, with branding making a margin on selling the same goods, and offers a straightforward garment multiple times while maintaining its quality control. pathA into a more circular business model, Four companies are catalysing the secondary apparel retail clothing brands are increasingly turning to markets in India… re-commerce partners to tap into secondary markets. As thredUp’s 2018 Resale Report ThredUp indicates, the secondary retail apparel market The company offers customers the opportunity to either in India, currently valued at $20 billion, is receive cash or store credit in exchange for their clothes. Its new

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Apparel_Jan_2019_Pages.indd 43 28/12/2018 9:33:25 PM AppArel / MARKETS marketplace under their own names, without investing in a new website and warehouse or straying from their core competencies. These brands encourage customers to return used goods in exchange for store credit. These goods are then repaired and refurbished by Yerdle enabling apparel companies to sell them again under their own brands in their own online stores, complete with warranties, customer service and return policies.

The Renewal Workshop This is a fully outsourced re-commerce service which manages the reverse logistics, repair, cleaning, quality assurance and resale of used clothing to companies such as the North Face, prAna and Icebreaker. To avail this service, apparel brands pay a processing program UPcycle offers an additional 15 per cent in value if fee at a rate comparable to apparel waste sellers select payment in the form of a partner brand’s gift card. management and can sell “renewed” clothing If a brand agrees to drive traffic to its online thrift store and pay in their stores or on the Renewal Workshop’s the 15 per cent bonus to sellers, it can drive sales to returning website under a revenue-sharing agreement. customers without even touching the used clothing. ThredUP manages apparel intake, pricing, marketing, selling and shipping. The RealReal The program has been initiated with only one brand partner; An online consignment store that targets the sustainable apparel company Reformation. But ThredUP the luxury resale market, this was set up in a will announce its second partner soon. The company plans to founding partnership with Stella McCartney. form 10 new partnerships next year. Aiming to be the first $1 billion circular- economy company, this store offers its sellers Yerdle Recommerce that consign pieces from it a $100 Stella This company offers a white label service to its apparel McCartney gift card. Similar to thredUP’s retailers — including Eileen Fisher, Patagonia and REI — approach, a financial incentive drives sales which enables brands to develop an online re-commerce back to the company, while also giving apparel a second life. RealReal recently launched an online “sustainability calculator” to quantify its impact. An initial calculation found that the 2.5 million women’s clothing items consigned to the RealReal since 2012 have offset the equivalent of 65 million car miles worth of greenhouse gases and energy. So far, only a handful of companies are embracing re-commerce. Many fear that by making refurbished versions of their products available, they’ll curb sales of new ones. Whether brands will embrace re-commerce at scale, or if this trend quickly goes out of style, only time will tell. n

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Global Textiles Conclave 2018 highlights key industry initiatives and plans ice President of India, M. Venkaiah Naidu, inaugurated Global Textiles Conclave 2018 on November 27, 2018, in New Delhi.V The Union Minister of Textiles, Smriti Zubin Irani also graced the occasion as guest of honour and delivered the keynote address in the inaugural session.

Focus on skill development and technology upgradation Speaking at the session, Venkaiah Naidu stated that innovations and transformations should be focus area for textiles and apparel sector. He advised the industry to focus on backward and forward integration, value addition and diversifying products. He also

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Apparel_Jan_2019_Pages.indd 45 28/12/2018 9:33:26 PM AppArel / EVENT organisation will collate the data of Indian textile retail market by collaborating with office of the Textile Commissioner. To establish the size of Indian market, the government is also going to conduct a Size India survey.

A pat on their backs Naidu conferred the Lifetime Achievement Award to Suresh Kotak, Chairman, Kotak & Co. And also gave away Pioneering Awards to Shekhar Agarwal, Vice Chairman, RSWM Ltd., P. Nataraj, Managing Director, KPR Mill Ltd., Neeraj Jain, Joint Managing Director, Vardhman Textiles Ltd. And Sanjay Jayavarthanavelu, Chairman & Managing Director, LMW Ltd. Global Textiles Conclave 2018 was organized as part of Diamond Jubilee celebrations of Confederation of Indian Textile Industry- CITI .

A warding excellence and innovation Suresh Prabhu, Minister of Commerce & Industry and Civil Aviation, gave away Innotex 2018 Awards to the top three Winners for doing excellent work in their fields. R. Pothiraj received the first prize for his innovation on stated that the industry should consolidate MSME sector by ‘32 per cent reduction in energy consumption establishing Hubs and Spoke model of cluster development in running airjet looms.’ Dhivagar bagged the facilities, give major thrust to skill development, upgrade second prize and technology and adopt Industry 4.0. The industry also needs Raj Kumar got third prize for their to adopt lean manufacturing systems to remain globally innovations in “Zero Defect of Spandex Miss competitive. Plating in Knitted Fabric” and “Computerised Vertical Embroidery Machine”, respectively. Key initiatives and schemes for industry development Support for industry Naidu also highlighted the various initiatives taken by concerns and export the Indian Government such as establishing textile parks, promotion technology upgradation through TUFS, etc., scheme for The minister advised the industry integrated textile parks which have fuelled the growth of the stakeholders to have brainstorming sessions textile industry of India. on the current challenges and opportunities Irani highlighted initiatives like Silk Samagra, Samarth prevailing in the global T&C Sector and introduced by the Government to support Indian textile value prepare a roadmap for the future of the chain. She appreciated the industry captains for supporting the Indian textile sector. He assured them of government by adopting GST reforms and urged them to tap his government’s willingness to address the the huge potential in technical textiles which has been identified genuine concerns of the industry and support as a sunrise sector. She also stated the national sample survey export promotion. n

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Weaves 2018: Emerges as a platform for Indian weavers to showcase globally eaves, South India’s premier revenues of over Rs 800 crore. The theme of the event was textile fair, hosted 250 Global Connect for Weaving’. It attracted about 1,000 business stalls spread over 20,000 visitors and over 250 exhibitors representing the textile industry sq. mt. pavilion, acted as a ranging from fabrics to weaving machines. gatewayW to the textile industry for the weavers The event was inaugurated by Dr. A. Sakthivel, Vice-Chairman, and providing them with an opportunity Apparel Export Promotion Council and Regional Chairman, to showcase their products and connect Federation of Indian Export Organisations (FIEO), who noted with global customers. The event, held that the state accounted for 60 per cent of yarn and fabric exports, from December 5 to 8, 2018 at Texvalley, and 85 per cent of knitwear exports. It provides 40 lakh jobs per Erode, Tamil Nadu, facilitated partnership year, 60 per cent of which are held by women employees. The between Indian and international buyers state this year registered a 15 per cent decline in its exports. with manufacturers and traders of this region. Weaves was held in partnership with Single point of textile sourcing Confederation of Indian Industry (CII), at Texvalley is an integrated textile market, first of its kind in Texvalley, largest wholesale textile market in South India. It is an initiative by the government of India with the heart of Erode. the support of the government of Tamil Nadu to help weavers in this cluster elevate to the next level. The market represents the Weaves generates Rs 800 southern states textile activities, which has grown in terms of crore revenue value, volume and variety over the decades. It houses domestic The buyer-seller meet Weaves generated textile zone and export zone with a complete eco-system of

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business ethics, compliance and certifi cations. It has thus become It houses the domestic textile and the export a single point of textile sourcing for domestic and global market. zones, with a complete eco-system of business ethics, compliance and certifi cations. elevating Weavers to tHe next level A coffee table book titled “Titans of Texvalley, an integrated textile market, in South India Textiles” featuring 28 successful entrepreneurs represents the southern states textile activities, which has in the textile sector was also released at the grown in terms of value, volume and variety over the decades. event. n CII organises 10th edition of TEXCON

onfederation of Indian Industry (CII) in partnership success and created a platform for the with Ministry of Textiles organised the 10th edition stakeholders to deliberate and work on the Cof TEXCON 2018 during December 13-14, 2018. growth and development of the Textile The event, over the past 9 years, has witnessed overwhelming Industry in India. n

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Apparel_Jan_2019_Pages.indd 48 1/1/2019 11:48:44 AM AppArel / gsT UPDaTe

Step by step process of Refund of unutilized Input Tax Credit (ITC) under GST

Accumulation of Input Tax Credit happens when the required to be given to the applicant in case the tax paid on inputs is more than the output tax liability supply is zero rated supply or also in the case of or the same is accumulated due to zero rated supply accumulation of Credit. under letter of undertaking or bond. The CGST Act, Steps to get refund of accumulated ITC or refund on 2017 visualized this situation and prescribe refund account of export without payment of tax: of tax in the situation mentioned in section 54 of the act read with section 16 of the IGST Act and 1. File online refund application in form RFD-01A Rule 96A of the CGST Rules, 2017. The assessee on the common portal along with statement-3. is entitled for the refund in case of zero rated 2. Mention turnover of Zero-Related supplies and supply of goods or services made without payment Adjusted Total Turnover for the period refund is of tax and refund is also given in case credit has sought for and the net ITC. The turnover should accumulated due to higher amount of tax on input pertain to the period of refund only. and lower amount of tax on output supply. Of course 3. System will auto calculate the eligible refund the refunds are subject to restrictions made in the amount and post it the last column of table. proviso of section 54 of CGST Act, 2017, they are as follows: 4. After submitting application form system will generate proof of debit (ARN – Acknowledgment Provided further that no refund of unutilized input Receipt Number) tax credit shall be allowed in cases where the goods exported out of India are subjected to export duty. 5. All necessary documents in support of refund application (GSTR-3B, GSTR-1 return, Provided also that no refund of input tax credit shall Statement-3, GSTR-2A etc) manually submitted be allowed, if the supplier of goods or services or to the jurisdictional offi cer. both avails of drawback in respect of central tax or claims refund of the integrated tax paid on such 6. If the jurisdictional offi cer has found that refund supplies. application is acceptable then they will issue a refund order. Section 54 of CGST Act, 2017 itself prescribes documents, procedures and time limit for getting 7. After issuance of refund order the concern the refund of ITC. The time limit prescribed is 60 authority will transfer the refund amount to the days from the date of application and the same is bank account mentioned in the application form. n

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Ministry Notifi cations

Sub.: Regarding Registered Exporter System (REX) DGFT in its Public Notice No. 53/2015-20 dated 30 November, 2018 has amended that, the competent local authorities would undertake post veri cation of self- certi ed Certi cate of Origin based on the request of the importers/customs agencies of the importing country. Agencies may also charge TA & DA as per government rates, separately from the unit.

For Full Noti cation: http://dg .gov.in/sites/default/ les/ PN-53-dt-30.11.18%28E%29.pdf

Subject: Availability of Speed Post-dispatch particulars in MEIS module DGFT in its Trade Notice No. 38/2018 dated 3 December, 2018 has stated that For trade facilitation and furthering lease of doing business’, a system driven automated approval of MEIS claims is in operation from 13.09.2018, the details of which are available in Trade Notice 30 dated 11.09.2018. A new feature is being added, with immediate e ect, so that exporters can track the MEIS speed post- dispatch made by the Regional Authorities.

For Exporter -  e exporters need to log in DGFT website MEIS ECOM module -7Query -7 Dispatch details -7and Select File No.

For Full Notifi cation: http://dgft.gov.in/sites/default/fi les/TRADE%20NOTICE%2038.pdf

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Apparel_Jan_2019_Pages.indd 50 28/12/2018 9:33:44 PM AppArel / aepc Notifications Invites applications for issuance of 5% Duty Free Import of trimmings & embellishments under EPC Scheme available for Readymade Garment exporter. Applications are invited from all members of Apparel Export Promotion Council to avail the benefit of duty free import of embellishments used in manufacturing of Readymade Garments under 5% Export Performance Scheme as per Government notification no.06 /2018-Customs dated 02.02.2018. The list of eligible items is appended below.

Sl. No. in the Table appended to ITEM relevant Customs Notification 288 Lining and Interlining Materials 311 (a) Fasteners including buttons & snap fasteners, zip fasteners including zippers in roll, sliders/ pullers & end stoppers, and parts thereof (b) lnlay Cards (c) Shoulder Pads (d) Buckles (e) Eyelets (f) Hooks and eyes (g) Rivets (h) Collar stays, collar patties, butterfly and other garment stays including plastic stays (i) Fusible and non-fusible embroidery, motifs or prints (j) Laces (k) Badges including Embroidered badges (l) Embroidery threads (m) Sewing Thread (n) Stones (Other than precious & semi-precious) (o) Sequin (p) Tape, Elastic tape & hook (tape of width not exceeding 75 mm (q) Velcro tape (r) Cord & cord stopper (s) Toggles (t) Poly wadding Materials (u) Stud (v) Elastic cloth and elastic band (w) Quilted wadding materials (x) Beads for embroidery (y) Sample fabric of total length upto 1000 metre imported during one financial year (z) Printed Bags (za) Knitted Ribs (zb) Anti-theft devices like labels, tags & sensors (zc) Bobbin Elastic (zd) Textile Flowers (ze) Water soluble lining, poly pouch, high density sticker, heat transfer sticker (zf) Anglets on draw strings-hooded jacket (zg) Bra cup, bust cup, moulded cups for bra and metal underwire for bra (zh) Hook and bar, extra button covers-plain, ribbons, waist bands, shooter pin, O Ring, thermo strips and metal clip (zi) Pin bullets for packing, plastic tag bullets, metal tabs, bows, ring & slider and rings

You are requested to avail benefit of this scheme. For full Circular visit - http://www.aepcindia.com/sites/default/files/pdfs/EPC%20CIRCULAR%202018-2019_new_0.pdf

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CALENDAR OF EVENTS - 2019 1February, 2019, USA 2March, 2019, Uruguay & Chile

Sourcing Buyer Seller at Magic, Meet at Las Vegas, Uruguay & USA Chile 3July, 2019, HONG KONG 4July, 2019, JAPAN

Hong Kong India Trend Fashion Fair (ITF) at Week at Tokyo, Japan Hong Kong 5August, 2019, USA 6September, 2019, France

Sourcing WHO’s at Magic, Next, Paris Las Vegas, – France USA 7October, 2019, SPAIN 8November, 2019, AUSTRALIa India Apparel & Acces- International sories fair Sourcing Expo at Madrid, Australia Spain

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Apparel_Jan_2019_Pages.indd 52 28/12/2018 9:33:48 PM Apparel_Jan_2019_Pages.indd 53 28/12/2018 9:33:48 PM BOOK YOUR SPACE

4-7 Febuary 2019 Las Vegas Convention Centre, 3150 Paradise Road, 89109 Las Vegas, Nevada, USA

This one-of-a Kind Convergence of Fashion’s Global Supply Chain connects Established and Emerging Brands to an unparalleled network of Manufacturers, Materials, Technology, Logistic Solutions & Talent

Contact for further details : Mr. K S Bisht, Jt. Director (Fairs & Exhibition) Apparel Export Promotion Council Apparel House, Institutional Area, Sector - 44, Gurgaon-122003, Haryana, (India) Tel: +91 124 2708156(D), 2708000-003, Fax: +91 1242708004, Mobile: +91 9810527747, Email : [email protected] The Application form may be downloaded from our website www.aepcindia.com (Highlights Section) Limited Stalls available on First Come First Serve Basis

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