With apparel sourcing moving out of China, it's advantage India

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Futuristic apparels, an

unconventional approach

towards fabrics and designs

A relief to exporters as government extends MEIS rollback deadline

With apparel sourcing moving out of China, it’s advantage India

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I thank Union Minister for Finance & Corporate Affairs Smt Nirmala Si-taraman for reviewing the long pend-ing demands for tax reforms and hav-

ing lowered corporate tax rates to 22% for domestic companies and 15% for new do-mestic manufacturing companies and other fiscal reliefs. I am very positive that this will attract fresh investment in manufacturing and thereby provide a boost to the ‘Make-in-India’ initiative of the Government. The new rates are now comparable with those of competing countries.

AEPC had hosted a meeting with a del-egation of the American Chamber of Com-merce, Hong Kong, consisting of senior sourcing professionals of top international brands in textiles and apparel like VF Cor-poration, PVH, Carter’s, Ralph Lauren, GAP etc. which had visited Apparel House in September 2019. The discussions were aimed around ways of getting FDI and collaborations with these brands. Such en-gagements will be continued to ensure that India can leverage the vacuum being creat-ed by the ongoing US - China trade war.

The issue of surrendering the drawback on short realization of FOB due to bank charges had been raised by the council on various platforms. Now it has been clarified by customs that the duty drawback may be permitted on FoB value without deducting foreign bank charges. The government has taken one more step toward the ease of do-ing business and now online filing and issu-ance of preferential certificate of origin can be done through the common digital plat-form launched by DGFT.

As part the AEPC awareness initiative,

this month we had organized a seminar on Digital Transformation of the Apparel Industry to Meet Future Demands in line with Industry 4.0. We have also organized a session on understanding intellectual prop-erty right issues for the apparel industry, as there is growing recognition of the need to be protected and protect product designs, patterns and other elements that are part of intellectual property.

In our export promotion initiative we are organizing the India Apparel & Accessories Fair in Madrid, Spain, to reach the EU mar-ket. I wish all the very best to the partici-pants. We are also planning a high level del-egation to Colombia & Peru to explore the potential in the Latin American market. n

DeAr FrIeNDS,

HKL Magu, Chairman, AEPC

AppArel / Chairman Word

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | octobER 2019 / 1


Content & DesignDFU PublicationsNew DelhiEmail: [email protected]

Printing Press: VIBA Press Pvt. Ltd. C-66/3, Okhla Industrial Area, Phase-II New Delhi-110020 e-mail: [email protected]

CHAIRMAN AEPCMr. HKL Magu

CHAIRMAN EPMr. Sudhir Sekhri

ADVISOR AEPCMrs. Chandrima Chatterjee

PUBLISHERApparel Export Promotion CouncilApparel House, Sector-44,Institutional Area,Gurugram,HARYANA – 122003.Phone: 0124-2708000www.aepcindia.com

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EAI 02 ISSUE 02

Futuristic apparels, an

unconventional approach


A relief to exporters as government extends MEIS rollback deadline


2 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | APRiL 2019


C O N T E N T S

04 | The BROADCAST• RMG exports grow by 2.77%• Manufacturing of wearing apparels increases

by 15%

06| AEPC EVENTS• AEPC hosts meeting with American Chamber

of Commerce

08| AEPC ACTIVITIES• AEPC, IACC join Tamil Nadu delegation to

US, Dubai

10| AEPC EVENTS• AEPC organises seminar on digital

transformation in the industry

12| COVER STORY• With apparel sourcing moving out of China,

it’s advantage India

15| TRADE TREATIES• India’s FTAs with ASEAN, Japan and Korea

increase its trade deficit• Egypt signs agreement with Switzerland to

support textile and clothing sector• Philippines to sign FTA with the US

16| COLLECTIONS• As brands launch new menswear collections,

the era of men’s fashion arrives• UCB launches collection of eco-friendly

textiles and materials• Lee launches new collection• Isko to create new denim collection with low

impact materials• H&M partners with COS for a restored

collection• Reebok launches new sportswear range for

pregnant women• Wrangler launches two new collections

20| INSIGHTS• Popularity of outdoor apparels soars with new

designs and styles

22| RETAIL• Online retail helps identify trends, boost sales

24| BRAND RETAIL• Brands diversify offerings for a complete retail

experience• Banana Republic to boost apparel sizes• Primark to tap Central American countries• H&M sales rise by 8% in 2019 Q3• Old Navy to increase store count to 2,000• Inditex Q2 sales to rise by 8%

26| TRENDS• New design and color trends help create

smart and casual menswear

28| TRADE SHIFT• Secondhand fashion to experience

exponential growth in the next five years

30| BUSINESS• China’s H1 apparel and textile exports to the

US decline by 0.66%• US imports 22 % less fabrics from China• Fashion consumption in Europe slows down

• RMG manufactures shut down small and mid size factories

• Global licensed sports merchandise market grows by 4 per cent

• Textile and apparel exports in Ethiopia grow by 32 %

32| POLICY• A relief to exporters as government extends

MEIS rollback deadline

34| SECTOR FOCUS• Denim gets a new look with luxury features

and innovative silhouettes

36| FASHION OUTLOOK• Consumers revisit history with vintage fashion

36| TECH TRENDS• Futuristic apparels, an unconventional

approach towards fabrics and designs

40| MARKETS• A correct color palette ensures quick

delivery, improves product quality• Funding issues slow down plus-size market

growth

44| SUSTAINABILITY• Sustainability gains ground as brands adopt

a ‘no-waste’ policy• Louis Vuitton launches new initiatives to

control environmental damage• G-Star to reduce carbon emissions by 30%• Lyocell attracts worldwide attention as

green cellulose fiber• Sustainable fashion lags behind in France

and Italy• Global textile waste increases by 811 per

cent• Brands launch sustainability initiatives

48| AEPC EVENTS• AEPC organises seminar on Enabling

Competitiveness in Apparel Sector and launches Compendium for Good Management Practices

52| TRANSPARENCY• Growing awareness leads to increased

transparency in the fashion industry

54| EVENTS• Bangladesh Denim Expo to cover the entire

denim supply chain• Imprinted Sportswear Shows renamed as

Impressions Expo• Fifth edition of Global Change Award

receives over 14,000 entries• Morocco to host the Maroc sourcing trade

show in October• Performance Days to highlight new

sustainable materials• AEPC organises a session on Intellectual

Property Rights• 16th edition of Yarnex Fair 2019 concludes

57| NOTIFICATIONS53| GST UPDATE

• Centre announces new measures to boost exports

EAI 02 |ISSUE 2 | October 2019 | Pages 64

APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | OCTOBER 2019 / 3


Cumulative RMG exports from India during

April-August, 2019-20 grew by 2.77 per cent to

US$ 6795.46 million in dollar terms. However,

they declined by 2.44 per cent to of US$

1,260.37 million in August 2019 as against

US$ 1,291 million in August 2018.

In Rupee terms, cumulative RMG Exports

during April-August 2019-20 grew by 5.62 per

cent to Rs 47,365.45 crore. However in August

2019, these declined by 0.20 per cent to Rs.

8,966.98 crore as against Rs. 8,984.78 crore in

August 2018.

RMG exports grow by 2.77%

Source: DGCI&S, Kolkata, 2019

In INr Crore In US$ Million In INr Crore In US$ Million INr US$

FY 2018-19 FY 2019-20Month

April 8,859.67 1,349.81 9,786.03 1,409.53 10.46 4.42

May 9,040.63 1,338.57 10,661.45 1,528.02 17.93 14.15

June 9,202.63 1,357.46 8,560.93 1,232.87 -6.97 -9.18

July 8,756.04 1,274.65 9,390.06 1,364.67 7.24 7.06

August 8,984.78 1,291.91 8,966.98 1,260.37 -0.20 -2.44

Total 44,843.75 6,612.4 47,365.45 6,795.46 5.62 2.77

MoM growth of2019-20 over 2018-19 (%)

AppArel / the BroadCast

India’s rMg export to WorldIndia’s rMg export to World



Manufacturing of wearing apparels

increases by 15%

Source:CSO,2019

INdeX OF INdUSTrIAl prOdUCTION

Manufacture of MoM growth rate Manufacture of MoM growth textiles (In %) wearing apparel rate (In %)

SUMMArY• Manufacturing of Wearing Apparels increased by 15% to 167.2 in July 2019 as compared to

July, 2018.• Manufacturing of Wearing Apparels in the financial year Apr-July, 2019-20 increased by 14.5%

to 164.1 as compared to the financial year Apr-July, 2018-19• Textile manufacturing declined by 4.5 % in July 2019 to 114.7 as compared to July, 2018.• Textile manufacturing in the financial year Apr-July, 2019-20 declined by 0.8 % to 117.2 as

compared to the financial year Apr-July, 2018-19.

Month 2018-19 2019-20 2019-20/2018-19 2018-19 2019-20 2019-20/2018-19

April 116.2 115.9 -0.3 125.4 167.5 33.6

May 118.9 123.2 3.6 150.8 163.7 8.6

June 117.1 112.5 -3.9 151.6 161.7 6.7

July 120.1 114.7 -4.5 145.4 167.2 15.0

Total 118.1 117.2 -0.8 143.3 164.1 14.5


INdeX OF INdUSTrIAl prOdUCTION




AppArel / events

AEPC hosts meeting with American Chamber

of Commerce6 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | APRiL 2019

Shri HKL Magu, Chairman, AEPC and EC memebers during an interaction with a delegation of American Chamber of Commerce


AppArel / events


Recognising the need for engaging with the US after the US- China trade war, AEPC hosted a meeting with a delegation of American Chamber of Commerce, Hong

Kong on September 4, 2019 in Gurgaon.The delegation included senior sourcing profes-

sionals of top international brands in the textiles and apparel sector. Their discussions aimed at finding ways to procure FDI and form collabora-tions with these brands n

Shri HKL Magu, Chairman, AEPC with a delegation of American Chamber of Commerce


AppArel / aCtivities

8 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | octobER 2019

AEPC, IACC joinTamil Nadu delegation

to US, Dubai

Dr.A.Sakthivel, Vice Chairman, AePC and Chairman, Indo American Chamber of Commerce (IACC) joined the High Level State Government

trade delegation led by edappadi K. Palaniswamy, Chief Minister of Tamil Nadu to United State of America and Dubai from Sep 02-10, 2019

The Indo American Chamber of Commerce partnered with Tamil Nadu state in this industry delegation, Sakthivel also organised an Investors’ Meet and several other meetings of the investors in New York, San Francisco & Los Angeles with Palaniswamy.

A.Sakthivel along with the Chief Minister and other dignitaries visited the leading electrical vehicle

and solar panel manufacturing industry TeSLA in California, USA. They also met industrialists from various segments like waste water management, rO processing, clean energy, etc.

The delegation also met the industrialists in Dubai. This meeting was jointly organised by Business Leaders Forum and Indian embassy, UAe.

Dr.A.Sakthivel informed that the overall trip was very successful and the delegation received a rousing welcome in all three cities of the USA and also in Dubai. On the whole, it signed 41 new MOUs for a total amount of rs.9,000 crore which also helped it generate new employment for around 38.000 people. n

Dr A. Sakthivel , Vice Chairman , AEPC and Hon’ble Chief Minister of Tamil Nadu Edappadi K.Palanisamy during an interaction with investors in the Investors’ meet


AppArel / aCtivities


Dr A. Sakthivel , Vice Chairman , AEPC greets Hon’ble Chief Minister of Tamil Nadu Edappadi K. Palanisamy at Dubai.

Dr A. Sakthivel, AEPC Vice Chairman and Hon’ble Chief Minister of Tamil Nadu Edappadi K. Palanisamy along with various industry leaders and officials during the Investors’ Meet.

During a visit to Tesla, USA, Dr A. Sakthivel , Vice Chairman along with Hon’ble Chief Minister of Tamil Nadu Edappadi K.Palanisamy, Chief Secretary and other officials.


AePC recently organised a seminar on Digital Transformation of the Apparel Industry to Meet the Future Demands in Gurgaon. The seminar

was inaugurated by rakesh Vaid, Vice Chairman, ATDC. Its seminars focused on: • Dynamic demands of the future and how

adopting to Industry 4.0 would help in being

future ready.• Challenges faced by fashion and apparel indus-

try and how connected technologies would be an enabler in overcoming them.

• Customer Speak – How adopting to Industry 4.0 solutions has enabled the company to digitally transform its business by Kamlesh Katariya; MD, Peppermint Clothing, n

AEPC organises seminar on digital transformation

in the industry

Shri Rakesh Vaid, Vice Chairman, ATDC interacting with participants

Participants during the seminar

AppArel / events



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China is slowly falling out as a global fash-ion sourcing destination. In fact, around 200 companies, including many appar-el brands, are moving their production

out of the country. For example, US-based Xcel Brands clothing company, which sells clothing un-der brands like Isaac Mizrahi, Halston among oth-ers, used to manufacture 70 per cent of its clothes in China. Today, it produces only 20 per cent — a result of the company’s efforts to find faster, more flexible suppliers that can jump on fashion trends and turn out clothes in as little as six weeks.

A recent UBS evidence Lab survey of chief fi-nancial officers (CFOs) in China and North Asia including Japan, Korea and Taiwan revealed that many Asian manufacturers are planning to shift their production facilities out of China. The sur-vey polled 244 respondents across various industry groups. Almost 85 per cent of the respondents had received significant FDI enquiries and 87 per cent had received enquiries from Chinese manufactur-ers to collaborate in production. Of these, 71 per cent respondents represented companies with less than rs 5 billion in revenue.

AppArel / Cover story


• Around200companiesaremovingtheirsourcingoutofChina• Vietnam,IndonesiaandMalaysiaareemergingaspotentialalternativesourcingdestinations

• Indiatooemergingasastrongsourcingdestination• India-USFTAwillprovideUSandIndiabetteraccesstoeachother’smarkets• TheIndianapparelsectorneedstocreatelow-techemploymentgenerationopportunities



Indeed, India can emerge one of the most pre-ferred destinations for them to set up units. India’s low production costs and an absence of trade re-lated tensions, government policies attracting FDI etc, are fueling its popularity amongst many West-ern nations. Its less complicated environmental laws and highly skilled workforce have already led to its growing popularity as a preferred FDI desti-nation over the past two years. As per the survey, the sectors that are likely to benefit the most from this include: apparels, chemicals, industrials, and electronics sectors.

The global manufacturing landscape changesMany companies moving out of China are in fact

relocating parts of their production lines to South-east Asian countries or elsewhere. However, these companies plan to continue manufacturing in Chi-na for their Chinese and non-US markets.

This shift is resulting in the formation of a new global manufacturing landscape with the manufacturers leaving China getting divvied up amongst developing countries. Given their prox-imity to China, Southeast Asian countries includ-ing Vietnam, Indonesia and Malaysia are emerg-

ing as potential alternative sourcing destinations. A handful of firms have already shifted some of their production to these countries though many have been stifled by a dearth of specialised supply chains and labor shortages.

Of all these South Asian countries, Vietnam is emerging as a hot favorite as the country offers cheap labor. However, its 100-million population is small compared to China. Also, roads and ports are clogged. Similarly, supply chains are not as devel-oped as China. Besides Vietnam, another popular emerging sourcing destination is Mexico.

Low production cost and skilled workforce fuel India’s popularity

The current sourcing landscape presents a gold-en opportunity for India to become one of the most preferred destinations for apparel manufacturers. The country offers lower production costs along with a highly skilled workforce, which fuels its popularity as a preferred FDI destination. Its at-tractiveness as a preferred investment destination has increased significantly over the past three to four years mainly on account of its ease of doing business, financial penetration and policy focus.

The massive scale of its market gives India an edge over other countries. Besides, the country has sur-plus power and ports capacity. All these factors will help it to achieve a GDP growth of 8 per cent over the next five years. It will also lead to the creation of six million direct and indirect jobs per annum.

Investment boost and realignment of tariffs To achieve this, brands and retailers need to

spruce up investments in factories and work with



Vietnam, Indonesia and Malaysia are emerging as potential alternative sourcing destinations. A handful of firms have already shifted some of their production to these countries though many have been stifled by a dearth of specialised supply chains and labor shortages.


their Indian partners. Also, the makers of India’s foreign trade policy need to renegotiate tariffs on apparel exports with the EU and the US to tackle the emergent economic slowdown in the country.

Over the years, Indian apparel exports have sur-vived largely due to export incentives. While these incentives have proved partially useful, they have not helped Indian apparel manufacturers compete on price with their competitors. The government introduced the rebate of Central Taxes and Levies (roSCTL) in March 2019. However, the policy can-not be termed as an incentive as it mainly reim-burses the embedded State and Central taxes that cannot be claimed as input tax credits under GST.

Need for India-US FTA for better market access

The US-India Strategic and Partnership Forum’s (USISPF) recently recommended the signing of a free trade agreement between India and the US. This FTA will provide both the countries a better access to each other’s market besides restraining China from dumping their goods here. A delegation of 18 members of the American Chamber of Com-merce in Hong Kong comprising sourcing heads of

large apparel and footwear brands such as Carter’s Inc, ralph Lauren Asia Pacific Ltd, Gap Inc., PVH Corp. (that owns brands such as Calvin Klein, Tommy Hilfiger and Arrow), and other large ap-parel sourcing companies—had recently met tex-tile minister Smriti Irani, highlighting the need for signing an FTA.

Need to create low-tech mass employment opportunities

While China was able to cope with the loss of ap-parel industry jobs, due to its manufacturing prow-ess in other areas, it is not the same for India. The employment ratios in apparels are far more attrac-tive than in agriculture or automobiles, which are often considered flagship economic indicators.

With low tech job-seekers rising, and manufac-turing in general not providing enough opportuni-ties, the apparel sector is emerging somewhat as a White Knight.

The sector mainly focuses on adding sewing ma-chines which generate proportionate employment. However, the policy environment for the apparel industry is not conducive in a competitive inter-national political economy. The government, there-fore, needs to provide the necessary support to the apparel sector which would positively impact the economy. It needs to create low tech mass--employ-ment generation opportunities. It also needs to help the sector get more and more orders despite competition from other countries which have a tar-iff advantage. Policies like these will fuel economic activity at the bottom of the pyramid. n


India’s attractiveness as a preferred investment destination has increased significantly over the past three to four years mainly on account of its ease of doing business, financial penetration and policy focus.



APPAREL / TRADE TREATIES

hollowing out of the manufacturing base, which has prompted the present government to initiate measures for the revival of the manufacturing sector. n

Egypt has signed a cooperation agreement with Switzerland to provide technical and fi nancial support for the Egyptian textile and clothing sector

by applying the GTEX international programme with a total fund of SwF 1.5 million (about $1.5 million). The agreement will help in developing ties between the two countries besides enhancing their economic, fi nancial, and technical cooperation. In addition, it will help in implementing Egypt’s

strategy to boost the competitiveness of industrial sectors. The main objectives of the agreement, which will be in force

until December 31, 2021, are to create more job opportunities, improve income levels for workers in the sector, and increase the added value of products and services, as well as increase exports in both new and traditional markets.

The GTEX programme is being implemented in Egypt, Morocco, Tunisia, Kyrgyzstan, and Tajikistan, and is funded and supported by the Swedish government, while the Egyptian government is providing 10 percent of the total fund. n

India’s FTAs with ASEAN, Japan and Korea increase its trade deficit

Egypt signs agreement with Switzerland to support textile and clothing sector

As a recent study published by think-tank Third World Network reveals, India’s three free trade agreements with the ASEAN, Japan and South

Korea are increasing its defi cits in merchandise trade. The government is trying to make these FTAs deliver more for all stakeholders. For this, it has employed three think-tanks to analyse the on-going RCEP negotiations.

After the initial spurt in middle of the previous decade, trade imbalances increased sizably after the three Comprehensive Economic Partnership Agreements (CEPA) with the ASEAN, Japan and Korea came into effect. Trade defi cit with the three countries, which stood at $4.5 billion in 2004 and $16.4 billion in 2010, shot up to $29.7 billion in 2015 before cooling down a bit to $26.6 billion in 2016.The three CEPAs not only resulted in rising imports but also a progressive slowdown of exports.

Available trends in both exports and imports point to a

Philippines to sign FTA with the US

The Philippines is eager to sign a free trade agreement with the US. The country

hopes that this will provide it with preferential treatment and better market access for its exports.

In the meantime Philippines is maximizing its trade privilege with the US under the Generalised System of Preferences. The GSP allows the Philippines to export a total of 5,057 products, or nearly half of the 10,600 US tariff lines, to the US at zero or reduced tariffs. However, the Philippines could lose this preferential treatment once it has been classified as an upper middle-income economy by the World Bank. The government is targeting to develop the Philippines into an upper middle-income economy by 2022. Therefore, the country could lose its GSP status that year.

Trade in goods between the Philippines and the US last year improved 7.16 percent. This makes the US the country’s third-largest trading partner next to China and Japan. Further, exports to the US grew 10.04 per cent, making it the country’s top export destination. Electronic products account for bulk of shipments. Aside from this, top exports to the United States include manufactured items, apparel and clothing, ignition wiring sets, machinery and transport equipment and coconut oil. n


Apparel_shortstories.indd 1 9/30/2019 3:59:41 PM

As several women’s wear designers are entering the menswear fold, the era for men’s fashion has finally arrived. In September 2018, designer Prabal

Gurung launched his first men’s collection after nearly a decade in business. A month later, Mary-Kate and Ashley Olsen’s the row launched their own collections of menswear. French ready-to-wear and leather luxury goods brand Celine launched its first menswear collection in January 2019.

Growing demand spurs growthWomenswear designers and brands are

increasingly expanding into the menswear domain as the demand for men’s clothing is increasing. Male celebs are increasingly engaging with stylists for their red carpet looks, further propelling the popularity of men’s fashion. Stylist IIaria Urbinati and Samantha McMillen are elevating menswear to the standards of global pop culture. Their client list includes reputed names like Dwayne

AppArel / ColleCtions

As brands launch new menswear collections, the

era of men’s fashion arrives



‘The rock’ Johnson, Donald Glover, Chris evans, Bradley Cooper ryan Gosling, Chris Rock and Chris Hemsworth.

This growing demand has encouraged many women’swear designers to launch new designs and styles in the market. Two such designers who are making a mark in menswear include are: Marco de Vincenzo and GherardoFelloni. Vincenzo entered menswear in February 2019, while Felloni, the creative director at Maison Roger Vivier, released the first men’s shoe in the house’s 70-plus year history in 2019. Innovative features of social media platforms like IG fit pics feature on instagram have also helped to increase the popularity of menswear.

Practicality drives men’s fashion

As men’s fashion is evolving, so is its business. From the-not so-stable popularity of streetwear to luxury brands released limited amounts of their collections on a regular basis; the popularity of menswear shows no signs of slowing down. As predicted by euromonitor International, menswear is likely to outpace women’swear in growth by 2022.

Designers are also tapping into the practicality element of men’s fashion. Designer Kim Jones is introducing the saddle bag for men. A lot of other brands are launching crossbody bags for men. These are evolved fanny packs that are worn crossbody style.

Though brands need to remember that the core of their operations is womenwear, they should also tap this growing arena of men’s fashion with new launches. n

AppArel / ColleCtions



APPAREL / COLLECTIONS

can be paired with rainbow-striped knit top and striped color-sheer hosiery for her and multi-colored pockets on white garments for him.

These clothes are based on the theme of water. They include neoprene rompers, tops and mini-dresses with oversized plastic zippers. The collection also offers preppy outfi ts in clashing patterns of pink and green and a garden club series of striped embroidered eyelet layered with fl orals. It also offers footwear including platform sandals inspired by surfboards and sneakers with fl orals or streaks of color. n

Isko plans to create a denim collection with low-impact materials and responsible fi nishing techniques. For this, the brand has collaborated with Miles Johnson, Former

Creative Director of Patagonia. The collection has 34 pieces. It utilises a mix of reused

and recycled materials. The reused cotton comes from Isko’s own production. It is then blended with recycled polyester derived from PET bottles. The creative concept incorporates responsible design principles, including minimal washing, removable trims made of eco-metal, natural-based buttons and labels, green bar tacks and embroidered rivets. For the designs, Johnson referenced function-fi rst garments from the outdoor category, like a puffer coat, pop-over shirt, cargo jeans and quilted vest. Garments were adorned with environmentally themed patches of mountains, aquatic life and slogans.

The project is a marriage of Johnson’s twin areas of expertise: denim and sustainability. Over the course of 14 years, he has held several leadership positions at major denim brands like Levi Strauss. He was senior creative director of product design and development at Patagonia, where he oversaw the work of all designers in the technical and sportswear categories. n

UCB launches collection of eco-friendly textiles and materials

Isko to create new denim collection with low impact materials

United Colors of Benetton (UCB) has launched a new collection made of experimental and ecological

materials. The collection includes a trench coat

made out of paper and recycled fi bers and impermeable to rain. It also includes a papery cropped top paired with a white skirt that bears a devilish silhouette in the same material is another. Other pieces of the collection include a handkerchief skirt featuring a stylized postcard print on the front that can be worn with a fl owing silhouette, or tied in the front or back for a straight look in two different prints. A check denim kilt with multi-color pleated inserts

Lee launches new collection

US-based apparel brand Lee has launched a new collection to celebrate the female figure. The collection-known as Shape

Illusions leverages the power of perception and best-in-class design. It uses strategically placed seams, shading and contouring to lift, lengthen, conceal and contour. It pairs the latest in design innovation and laser shading

with Lee’s ability to craft apparel for the female body.

Each piece of the collection is designed with a 360° approach: precisely shaded and contoured using patterns created by nano laser technology and constructed with

strategic seams, pocket placement, and draping fabrics. Shape Illusions has been patterned on a size 14 form. Every stitch in each top and bottom was evaluated to ensure it complemented the female shape. Women were asked to wear and test the line.

Based in the US, Lee is known for its work wear and timeless style. The launch of Shape Illusions demonstrates the brand’s commitment to harnessing innovative technology to create products that feature trend-setting design and unsurpassed quality for all ages. n

18 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | OCTOBER 2019


APPAREL / COLLECTIONS

will also be displayed publicly in the stores where the collection will be so n

Reebok has developed a sportswear line for pregnant women. The line includes: leggings and tank tops made in highly elastic materials. For example, the

lux maternity tights feature an extra nylon band to ensure the belly is well supported, while the seamless maternity tank

top has no seams in an effort to ensure maximum comfort. The line’s color palette includes black, navy blue and pink. The collection aims at helping future mothers feel strong and self-assured in all their endeavors, whether in the gym or in everyday life.

Reebok, based in the US, is a sports apparel and equipment group owned by Adidas. Last spring, Reebok introduced women’s clothes sizes from 1X to 3X, corresponding to Europe size 46 to 54.

Maternity wear has become trendy, stylish, form-fi tting,

and designed to highlight a woman’s curves during pregnancy. The Asia-Pacifi c region is showing the strongest growth. Finding decent maternity wear is a challenge. As well as a perceived lack of glamour, many brands are reluctant to give headspace to maternity ranges, knowing that most women won’t spend much on clothes they will only wear briefl y. But savvy brands are creating investment pieces designed to live long beyond pregnancy – and be worn by people who are not pregnant at all. n

H&M partners with COS for a restored collection

Reebok launches new sportswear range for pregnant women

H&M’s Laboratory project and COS have partnered with The Renewal Workshop to launch a ‘fi rst of its kind’ collection, consisting of former unsellable

clothing that has been mended and brought back to the assortment. The pieces of this collection have been sourced from the COS supply chain or returned by customers and the selected items have been carefully mended and cleaned by The Renewal Workshop making them suitable to sell again.

This new initiative is a part of H&M’s overall aim to become fully circular. It has adopted a new cleaning process for this collection that uses a state-of-the-art waterless technology, which saves water and leaves no water contaminated.

And there’s a data element to all this too as impact-data collected from a third party, will give it the chance “to see exactly how much water, Co2, and energy we save by rescuing these products and making this collection. This information

Wrangler launches two new collections

Wrangler has launched two new collections in partnership with Fred Segal.

The Bluebell 1919 capsule celebrates the foundation of the brand with workwear-inspired jackets and on-trend coveralls with authentic Blue Bell patches. The back of each garment features Wrangler embroidery.

The War and Peace collection takes a look back to when Wrangler became part of youth culture in the 60s and worn by revolutionaries, riders, and rock stars alike. Garments include a cut-off jean vest, a studded leather jacket and tie-dye carpenter jeans. The’70s are brought to life in a collection of boot cut jeans, hypnotic patterns and colorful prints. The feeling of the ’80s is captured in a pop culture-inspired collection of booty shorts, graphic T-shirts with racing motifs and racing jackets.

While Wrangler is a heritage denim brand; Fred Segal is a boutique in the US. Both of them have held significant roles in the history of fashion for decades. n



AppArel / insiGhts

It’s been nearly a decade since designers reinvented activewear for everyday use, their popularity continues to soar. This was particularly evident at the recent Outdoor

retailer Summer Market, where many brands launched their spring collections that included leggings and tailored, fitted pullovers enhanced with new colors, upgraded performance materials and utilitarian details, these garments featured modern, contemporary designs not often associated with outdoor gear. Though their stylisation did not represent a true deviation from the categories, it definitely signaled increased openness of consumers to connect with the natural.

Brands launch more casual and wearable styles

With consumers’ new found desire to go explore their natural surroundings, many brand’s are introducing more casual, wearable styles that easily transition from street to mountain. Mountain Hardwear, which started as a brand for climbers, introduced modern shapes and silhouettes with color palettes that are more aligned with contemporary fashion apparel. The brand also plans to launch a new range of shirts featuring graphics designed by a handful of chosen artists,

all printed on organic cotton. The whimsical, eye-catching prints set the line apart from the brand’s more function-focused gear.

Designs become performance-orientedJason Israel, Creative Director-Performance,

The North Face says, the outdoor apparel market is currently going through a metamorphosis with consumers expecting more than a performance-


Popularity of outdoor apparels soars with new

designs and styles


AppArel / insiGhts

driven design. This transition allows Israel and his design team to infuse a new perspective into its design to cater to people’s needs and use applications.

One of the main attractions of the brand’s Spring ’20 collection is the women’s Arque jacket, built with the brand’s signature Futurelight material. Made from nanospun, 100 per cent recycled nylon and polyester, the jacket’s lightweight waterproof shell keeps wearers safe from the elements. Its slightly asymmetrical hem has been built with covert functionality, to suit the needs of its consumers.

The brand also plans to launch revamped version of its signature Denali fleece—specifically, the 1995 iteration. It will adopt trends or styles that are deeply rooted in the brand’s DNA and give them a modern and fresh look.

Merging fashion with function Jenna Caccavo, Senior Trend Forecaster of

Cotton Inc does not think outdoor brands will completely abandon performance fabrics. They will instead add certain selected styles to their line that are lighter on functional features. She advises mass market and fast fashion to capitalise on this growing trend which merges fashion with function.

Ashlee Peterson, of Mountain Headwear also agrees that outdoor gear is now ready to incorporate contemporary styling elements into its repertoire. earlier an outdoor product looked,

sounded and also felt like an outdoor product. But now, brands have started to blur these lines. The North Face is subverting the historical context and vision for outdoor products by combining the new apparel technologies and innovations in softer and more approachable ways. Its efforts are winning the approval of is consumers who are rushing to buy these garments. n



At the recent seminar hosted at the 26th Hong Kong Fashion Week for Spring/

Summer, industry leaders discussed about the latest fashion trends and how they can identify new opportunities in this industry. The seminar was organised by the Hong Kong Trade Development Council (HKTDC). Titled “New retail era: ‘Fashion x e-commerce’ Strategies”, it was attended by Alin Dobrea, Head of Brand Partnerships at Zalora; eddie Lee, regional CeO, Taiwan, Hong Kong and Southeast Asia, eCMS express; edwin Wong, Founder & CeO, Cloudbreakr; and raymond Yeung, Senior Sales Manager, Publications & e-Commerce Department at the HKTDC.

Boosting boost through AIDobrea said, information

provided by e-commerce channels can be used to identify the latest market

trends which can further help retailers to improve their procurement processes and boost sales. Online fashion retailer Zalora has a pool of

AppArel / retail

Online retail helps identify trends,

boost sales



over seven years’ data that gives the company a better understanding of the differences and similarities between the Indian and Southeast markets besides highlighting most popular items, patterns, colors and brands in these markets.

One way e-commerce companies can boost businesses is through cost, speed and reliability of logistics, which can be elevated through artificial intelligence (AI). Cross-border logistics solutions enable customers to track their orders even if the delivery process is outsourced to different suppliers. This reduces their costs significantly.

Logistics firms have now entrusted the entire responsibility of managing their returned goods to e-commerce companies. This constitutes a considerable portion of sales which significantly impact their profitability. These firms can set up their returns centre around the world to collect the goods, inspect and repackage them, or even directly send them to neighboring countries from the centers to satisfy new orders. This enables them to operate in areas where they do not have any operations office and rely solely on remote monitoring, resulting in significant savings in money and time.

More companies investing in e-commerce The trade friction between the United States and

Mainland China has prompted many companies to develop their own e-commerce businesses. As eddie Lee, regional CeO, Taiwan, Hong Kong and Southeast Asia, ECMS Express explains, the infrastructure of a single website can cater to many markets like Japan, Taiwan and Singapore. While this new e-commerce business might only constitute a small proportion of a company’s overall revenue, it may be the only sector that sees

strong growth compared with the largely stagnant traditional markets. This makes it natural for companies like Giordano to allocate more resources to e-commerce.

Influencer marketing to boost conversion rates

Since it is important for brands to raise their influence in the market, e-commerce companies need to use influencer market and tell the right story on the most appropriate social media channels. This will help brands to increase their influence in the market and boost conversion rates. Tools like AI can help social media companies analyse the most relevant topics based on what people post on their pages using natural language processing and image recognition. These companies can identify everything from brand matching, interest affinity, audience group, social performance metrics and content style.

edwin Wong, Founder & CeO of digital marketing firm Cloudbreakr feels, brands can use a mix of different content such as an instant video feed, short video clips, an image on a post or even a long video tutorial. He cites the examples of video sliders using 66 multiple images to grab fans’ attention and drive viewership. He views instant video polling, before-and-after trials and full product tutorial videos as other good ways to boost fan awareness. Wong believes the way people interact on various social media platforms can differ markedly. He points out that since that fashion and accessory brands are highly appeal-driven and affected by peer opinions, they are more inclined to give free samples to multiple influencers at the same time to drive an instant trend. n

AppArel / retail

At the recent seminar hosted at the 26th Hong Kong Fashion Week for Spring/Summer, industry leaders discussed

about the latest fashion trends and how they can identify new opportunities in

this industry. The seminar was organised by the Hong Kong Trade Development

Council (HKTDC). Titled “New Retail Era: ‘Fashion x E-commerce’ Strategies.



APPAREL / BRAND RETAIL

allied with a live streaming music platform. Primark offers facilities like a haircut or a coffee at its stores.

Brands are thus looking for new ways to stay afl oat especially in times where new business models are entering the markets. n

Primark, which is delivering strong sales growth in the United States, plans to tap suppliers from countries in Central America, such as Guatemala,

Costa Rica and Mexico. The UK-based brand has adopted a disciplined store-by-

store approach. It plans to create a supply chain closer to

the US market. Primark currently sources all its clothes for the United States from its traditional suppliers, China, India, Bangladesh, Cambodia, Vietnam and Turkey - a costly exercise as stock is freighted across the Pacifi c through the Panama Canal and up the US eastern seaboard.

Founded in 1969, Primark trades from 373 stores in 12 countries. Profi t increased nearly fourfold in 10 years - achieved without venturing into online shopping. Primark contributes more than half of the total profi t of its parent, Associated British Foods, which also owns major sugar and grocery arms. n

Brands diversify offerings for a complete retail experience

Primark to tap Central American countries

Brands are diversifying their offerings to provide its customers with an entire shopping

experience. Armani has launched a new megastore in Italy which not only houses a cafeteria but also a decoration division and a bookstore. Hermès has partnered with Apple to launch the new Apple Watch while Gucci collaborated has with Fiat to launch the Fiat 500.

Another brand H&M offers its customers an opportunity to dine at a restaurant in its fl agship store in Spain besides shopping for their clothes. Urban Outfi tters offers a variety of products to engage its customers for a long time in its stores. Bershka has

Banana Republic to boost apparel sizes

Banana Republic plans to boost its size selection to 26 or larger. The brand currently stocks upto size 16 in stores

and upto size 20 online for some articles of its clothing. The brand, which started out as a safari-themed clothing retailer, has now become more upscale and preppy.

Comparable sales of the brand slumped

by 3 per cent in the second quarter of 2019. To contain these declining sales, the brand is shutting down all its remaining stores in the United Kingdom. It also plans to spin off its Old Navy brand. n



APPAREL / BRAND RETAIL

Globally, H&M is also increasingly integrating online and physical stores in most markets including India where it launched its online store in March this year. The retailer stocks fast fashion items created in-house and teams up with designers for one-time collections. H&M has started to geographically diversify its collaborations, after having mostly formed partnerships with western brands in the past. For the upcoming autumn season, H&M has teamed up on capsule collections with an Italian designer and a Chinese designer. n

Old Navy plans increase its store count in the US from 1,100 stores to 2,000. For this, the brand will open 75 stores a year. These openings will happen

predominantly in underserved small markets. Over the past few years, Old Navy has opened about 35 stores in smaller markets. About three-quarters of Old Navy stores are not in malls.

Old Navy belongs to Gap and serves a core audience of

value-seeking families. Children’s clothing is often an entry point for the brand. It gets mothers to come in and shop repeatedly as their children grow. Those mothers can also shop for themselves and everyone else in their families while they’re there. The brand has focused on increasing its size range, too, making it a destination for the many American women who go underserved by the narrow ranges at other labels. And it has built an infrastructure that quickly feeds stores with what customers want rather than serving the same assortment to everyone.

This year has been brutal so far for America’s brick-and-mortar retailers. There were more than 7000 store closures in the fi rst half of the year. The majority of closings are happening in clothing and footwear, mainly due to bankruptcies and companies downsizing their store footprints. n

H&M sales rise by 8% in 2019 Q3

Old Navy to increase store count to 2,000

The sales of H&M increased by 8 per cent in the third quarter of the current year. This was the fi fth consecutive quarterly rise.

H&M, based in Sweden, is the world’s second biggest fashion retailer. The group has had well-received summer collections and an increased market share. The stock has soared 51 per cent this year on hopes that H&M is getting back on track after years of falling profi ts due to slowing sales at its core brand’s stores, and investments to adapt to tougher competition and changing shopping habits.

Activity levels related to its transformation work remained high in the third quarter, an indication investments in physical stores and online will weigh on margins again in the quarter.

In the year-ago period, sales were disrupted in several key markets due to troubles implementing a new logistics system.

Inditex Q2 sales to rise by 8%

The sales of Inditex in the second quarter of 2019 are expected to increase by 8 per cent even though the demand for the

brand’s offerings is declining. The first quarter was the most profitable for

Inditex since 2013. Its sales rose moderately by 4.8 per cent compared to the 4.5 per cent of the fourth quarter of 2018.

One of the best positioned brands in the market, Inditex continues to sell through both its physical stores and online channel at the same time. Though political instability does not affect the group, it is not immune to the currency effect that could probably erode its margins in the second quarter. The brand is currently facing turbulent times due to a recession in several European counties, weakened consumption and a transforming retail market.

Meanwhile competitor H&M closed its second quarter with a rise of 11 per cent in sales. It has started embracing digitalisation after two consecutive fiscal years with disappointing results.

Gap’s sales in the same quarter fell by 4 per cent; while sales at Fast Retailing fell by 7.3 per cent. The company is embarking on an international expansion. n



AppArel / trends

The continuous adoption of new trends is creating a smart and casual menswear that is not only versatile but also of utmost value to consumers. Marian

Park, Fashion editor, WGSN sets out key trends for menswear for the season. According to him, these trends are full of contradictions. While tailoring is slouchy, streetwear is refi ned.

The key menswear prints, colors and products for S/S 2020 include:

Colors becomes bright: Colors for S/S 2020 collection of menswear are shifting from the millennial pink and fl uorescent green towards a botanical garden green for garments with a raw or unfi nished appearance or organic textures. Along


New design and color trends help create smart and casual menswear


AppArel / trends

with this, a richer “heated pink” shade is gaining prominence as it blends well for cut-and-sew tops as an “easygoing addition for laid back denim looks.”

The overall color palette is light and bright. As bright yellow shade brightens an usually pale summer utility jacket, lilac is emerging as a complementary color to denim blues, yellow and tobacco.

Preference for tie-dye prints increasesTie-dye print is emerging as the most preferred

print for all events ranging from catwalks to street style. The print will continue to evolve as it offers brands an opportunity to explore sustainable dye ingredients that add a strong selling point.

For those retailers who have exploited the tie-dye prints to their full extends painterly prints prove to be a viable alternative. However, for S/S 2020 Park says the importance of the print is amplified by the growing prep trend, particularly colorful table cloth checks.

Consumers warm up to casual wear Cargo pants, which increased by 25 per cent

during the S/S 2019, is picking up traction for next spring, mainly as it aligns with several overarching

themes influencing men’s fashion. These pants can be fashioned with premium structured materials or with bold pockets and volume.

Demand for light and practical outerwear is on the upswing. The boxy jacket is being considered to be a viable alternative to streetwear’s bomber jacket. It’s simple and practical shape is easy to style for casual looks. The anorak also continues to have commercial success, as consumers understand it as a practical and stylish investment. The piece can look formal with traditional checks, or festival-ready in semi-sheer fabrication. Here, Park noted, brands have an opportunity to tell a sustainable story through the use of recycled polyester.

The resort shirt is gaining popularity due to its relaxed silhouette. The shirt is well-patterned with contrast colors. The volume T-Shirt with boxy sleeves also lives on, thanks in part to its ability to work alongside other “generously cut” items like relaxed jeans. Polos and rugby shirts are also important, Park said, serving as a baseline for the emerging prep trend.

As tailored clothes are making a comeback against readymade clothes, young consumers are warming up to the idea of summer occasion wear, especially styles designed for a casual end use. This is resulting in a relaxed approach to structure with slouchier leg and blazer options. n



As a popular saying goes, “one person’s trash is another’s treasure,’ the resale market for secondhand fashion has become a runaway success with

everyone jumping on to the bandwagon. As a recent report states, by 2028, around 13 percent of the clothes in women’s closets are likely to be second hand.

Mid-priced fashion items from chains such as Gap and J. Crew are likely to make up 14 percent of their closets while department store buys will also be squeezed from 14 percent in 2018 to 9 percent in 2028.

Increasing Internet use shapes growth One of the most important growth drivers of

the growth of secondhand clothes market is the increasing use of Internet. e-commerce platforms, ranging from eBay to rent the runway, Internet have not only shaped but also professionalised the universe of secondhand clothes.

Another business that is forecasted to grow at a rapid speed by reuters is that of garment rentals. It is estimated that the clothing rental business will grow at an annual average rate of 10.8 per cent until 2023, when it is expected to reach $1.9 billion.

AppArel / trade shift

Secondhand fashion to experience exponential

growth in the next five years



Changing consumer mentality also benefits market

Alongwith sustainability and transparency, another important factor that has driven the growth of secondhand clothes market is the change in the mentality of the new age consumers. The new generation of consumers prefers to experiment with their clothes rather than owning just a few of them. This gives fashion rentals the biggest growth potential in the next few years.

Several brands and retailers in the United States have opened their doors to secondhand, rental or even subscription market, either through their own resale channels or by collaborating with specialized marketplaces. This can be seen from ThredUp which started its resale service this year in collaboration with companies like Macy’s or JCPenny. The company has also tied-up with reformation to resale around 7,500 garments at the beginning of this year.

Similarly, Farfetch has launched the Farfetch Second Life platform, which enables luxury bag makers to exchange them for credit for Farfetch’s own ecommerce. H&M organised secondhand sales in April through the ecommerce of &Other Stories, while Neiman Marcus, bought a stake of Fashionphile last April, a company specialising in selling secondhand accessories.

Consumers explore the growing rental market

The rental or subscription market is also attracting conventional retailers Urban Outfitters, Nike or Gap. Urban Outfitters launched the monthly clothing rental service Nuuly; Nike created the Adventure Club service of footwear for children between two to ten years old, while Gap has begun testing this terrain with Banana Republic, through the new Style Passport platform. n

AppArel / movement



APPAREL / BUSINESS

garments declined from 65 per cent in 2015 to 55 per cent in the fi rst half of 2019.

China’s exports of textiles and garments to Africa grew rapidly, achieving a year-on-year increase of 5.24 per cent. Especially, textile exports to Africa increased by 10.06 per cent year-on-year. Exports of textiles to countries along the Belt and Road route were up 3.23 per cent year-on-year. Obviously the diversifi cation of the Chinese textile industry’s export market is yielding results. n

Fashion consumption in Europe has slowed down. The markets for apparel, footwear and accessories have weakened in the past few months with the ghost of

recession haunting the continent. Fashion sales in Germany declined by 1.9 per cent in July

2019, compared to the previous month. Germany is the biggest fashion market in Europe but the country is expected to enter a recession in the third quarter of the year.

Fashion sales in the United Kingdom, the second biggest European fashion market, have been on the rise for two consecutive months. The retail industry in the country increased by 2.9 per cent in July; however, this rise was more moderate than in June, when the rise was 3.2 per cent.

The British economy is also shrinking with the GNP of the country dropping by 0.2 per cent during the second quarter of 2019. This was partly due to the fear of its possible exit from the European Union without a deal.

Sales in France are showing the worst performance. The country is the third biggest fashion market in Europe. For April, fashion sales in the country shrunk by 6.7 per cent, being the biggest drop in the last seven months. n

China’s H1 apparel and textile exports to the US decline by 0.66%

Fashion consumption in Europe slows down

China’s textile and garments exports to the United States, starting from January to June 2019, declined by

0.66 per cent year-on-year. Though textile exports declined by 2.24 per cent year-on-year; apparel exports increased by 0.11 per cent. Although the trade friction between China and the United States has escalated since May this year, the most important export market for China’s textiles and garments is still the United States.

Chinese textiles and garments exports to Japan also declined by 4.65 per cent year-on-year from January to June this year. Its growth rate of garment exports to Japan decline by 6.11 per cent. Japan’s import of textiles and

US imports 22 % less fabrics from China

Compared to the same period last year, US imported 22.36 per cent less fabrics from China in the first seven

months of 2019. For the 12 months through July, China’s market share of fabric imports declined to 27.34 per cent as it shipped 7.52 per cent less fabrics than the previous year.

China’s textile exports to the US have gone through a major decline in the last 20 years. Chinese yarn imports into the US dropped 33 per cent year to date through July. Yarn imports for the 12 month-period from China were down 6.13 per cent, leaving

China with a 16.79 per cent market share. Chinese mills seem to have fallen on tough

times. Domestic demand is weak, overseas demand is declining and there are general concerns about business volumes. Most factories are absorbing some of the additional US import duties to keep production lines moving. Chinese mills are also expected to rapidly move their production capacity investments offshore. Most Chinese fabric mills are holding prices and, in some cases, making the sale to keep capacities running. There are lots of shifts to Southeast Asia and not just because of the trade war but in general due to a price increase in China. n



APPAREL / BUSINESS

garment sector, each employing between 500 and 2,000 workers. About 50 small and medium-sized garment factories have shut operations since April. Closures will take the number of small and medium apparel factories that went out of business in the last one year to more than 200 units. n

The global licensed sports merchandise market is growing by 4 per cent. Increasing number of fi tness initiative programs and campaigns on social

networking sites are encouraging consumers to remain fi t and use social media fi tness apps and socially integrated fi tness trackers. The increasing participation of consumers in various sports and fi tness activities is further expanding the market.

The apparel and footwear segment has a signifi cant market share, and this trend is expected to continue. Factors such as increased participation in sports and physical training activities will play a signifi cant role in helping the apparel and footwear segment

maintain its market position. The increasing popularity of athleisure is expected to have a positive impact on the overall market growth. Athleisure outfi ts are made from materials that provide odor reduction, offer moisture-wicking, and have stretchability properties. This is encouraging vendors to focus on innovations and improvements in design and quality of athletic outfi ts, which will make them more breathable, lightweight, and waterproof.

However, rising labor cost and fl uctuating raw material prices, environmental impact of production of sports merchandise, and stringent regulations for procurement of leather may hamper the growth of the licensed sports merchandise industry. n

RMG manufactures shut down small and mid size factories

Global licensed sports merchandise market grows by 4 per cent

Small and medium-sized garment factories in Bangladesh are shutting down due to the high production costs, lower prices offered by foreign buyers, the recent wage

hike and the recent free trade agreement between Vietnam and the European Union. Many work orders are shifting to Vietnam, one of the competitors of Bangladesh, because of this free trade agreement. Another important reason is that larger fi rms’ sub-contracting work to small units has been restricted after the Rana Plaza building collapse in 2013. The restriction on sub-contracting is a major threat for the units as most of them are dependent on the bigger units overloaded with work orders. Now they can’t do the same job because of poor compliance. It is this that prevents retailers from placing work orders with them. Also, small garment units face capital shortages and have low negotiation skills.

There are more than 1000 small and medium units in the

Textile and apparel exports in Ethiopia grow by 32 %

Exports of textile and apparel in Ethiopia grew by 32 per cent from 2012 to 2016. The share of these exports in the country’s

total exports also grew from 2.46 per cent to 5.46 per cent during the same period.

Ethiopia is transitioning from an agriculture-based economy. The textile-apparel industry is a significant element of the economy, in both financial and social terms, as it is a major source of employment and foreign exchange. Cotton consumption in Ethiopia is expected to increase in the coming years as a result of expansion in the textile industry due to foreign investment from countries such as China, India, and Turkey, among others. The Ethiopian cotton sector currently meets 70 per cent of the domestic industry’s raw material requirements. Several foreign companies have committed to investing in industrial parks to accelerate textile production and garment manufacturing. There are at least a dozen spinning mills in the pipeline to address some of the expected demand for yarn. n



In a major relief to apparel exporters, the cen-tral government recently decided to extend the Merchandise Exports from India (MEIS) scheme till December 2019. The scheme was

earlier supposed to end after July 31. Implemented by the Central Government led

by Prime Minister Narendra Modi during its first term, the MEIS scheme aims to offset the infra-structural inefficiencies and the associated costs of

products exported from India by priortising goods that generate revenue besides creating employ-ment and enhancing India’s competitiveness in the world market.

The scheme grants certain rewards and incen-tives to exporters at a specified rate. This rate var-ies from product to product and from country to country. These incentives are awarded in the form of Duty Credit Scrips that are freely transferable

AppArel / poliCy

A relief to exporters as government extends

MEIS rollback deadline• MEISschemegrantscertainrewardsandincentivestoexportersintheformofDutyCreditScrips

• TheschemealsoincreasesinsurancecoveragebytheExportCreditGuaranteeCorporationto90percent.

• RollbackoftheschemewouldhaveincreasedfabricimportsfromChinaandBangladesh

• ThegovernmentwillreplaceMEISwiththeRoSCTLscheme



and can be used for the payment of Customs Duty.

Additional insurance cover to exporters• The MeIS scheme also provides an additional in-

surance cover to exporters besides increasing their insurance coverage by the export Credit Guaran-tee Corporation to 90 per cent. This enables banks to provide more loans to their customers.

• The scheme also empowers the reserve of Bank to review the norms of the priority sector to lend an additional loan of rs 30,000 crore to exporters.

• It makes available adequate foreign currency re-sources at a reasonable cost to banks with sup-port of rBI. This supports the expansion of export credit at lower rates.

Setbacks of untimely rollback The untimely rollback of Merchandise export

from India Scheme (MEIS) would have hit the tex-tile sector hard, especially traders in Gujarat as the state is already witnessing a slowdown due to the implementation of the goods and service tax (GST). Its textile products including fabrics, gar-ments and made-ups would have lost their compet-itive edge against China and other countries.

It would have also increased the fabric imports from China and Bangladesh—which have already in-creased by over 60 per cent in the last couple of years.

It would have also impacted the Sari industry in Jetpur which is currently facing action by Gujarat Pollution Control Board (GPCB) over release of un-treated water in Bahdar river. The rollback of this scheme would have impacted their existing orders as the costing for these has already being worked out and incentive factored in.

An apt alternative After it expires on December 31, 2019, the gov-

ernment will replace MEIS with a new export in-centive scheme known as Rebate of State and Cen-tral Taxes and Levies on export of Garments and Made-ups |(roSCTL)

The roSCTL scheme includes value added tax (VAT) on fuel used in transportation, captive pow-er, farm sector, mandi tax, duty of electricity, stamp duty on export documents, embedded SGST paid on inputs such as pesticides, fertilisers etc. used in production of raw cotton, purchases from unregis-tered dealers, coal used in production of electricity and inputs for transport sector.

The scheme also includes the central excise duty on fuel used in transportation, embedded CGST paid on inputs such as pesticides, fertilisers etc. used in production of raw cotton, purchases from unregistered dealers, inputs for transport sector and embedded CGST and compensation cess on coal used in the production of electricity.

The scheme has so far being extended to gar-ments and made-ups sector. It will soon be imple-mented in phased manner for all sectors in tandem with the phasing out of the Merchandise Export Incentive Scheme (MeIS). n

AppArel / poliCy


The MEIS scheme grants certain rewards and incentives to exporters at a specified rate. This rate varies from product to product and from country to country. The incentives are awarded in the form of Duty Credit Scrips that are freely transferable and can be used for the payment of Customs Duty.

The MEIS scheme aims to offset the infrastructural inefficiencies and the associated costs of products exported from India by priortising goods that would generate revenue besides creating employment and enhancing India’s competitiveness in the world market.


AppArel / seCtor foCUs

Denim gets a new look with luxury

features and innovative silhouettes

A new luxury or premium look is giving the traditional fi ve-pocket denim a

life beyond basics. New denim makers are responding to the changing mindset of consumers who now prefer brands that offer comfortable styles and designs besides using sustainable fabrics and adopting responsible manufac!turing practices.

Focus on consumer experience

Though athleisure products such as leggings and track pants briefl y diverted the consumer’s attention from denim, jeans have still retained their counter-culture connotation, making them relevant for the moment. And Sharon Graubard, Creative Director of MintModa points



AppArel / seCtor foCUs

out athleisure items don’t have the classic appeal of jeans as jeans are sexy and modest, casual and elegant, and be paired with anything from a simple T-shirt to the most extravagant brocade jacket. In addition, customers can also personalise their denims by modifying their designs and styles.

Susan Lee, Designer and Fabric Merchandiser at Twin Dragon feels luxury has evolved from being driven by brands and a price range to the kind of experience it offers to customers. It now focuses on the end-product and the benefits it offers to consumers. As per Tricia Carey, Director of Global Business Development for Denim at Lenzing Fibersb the ‘street to runway’ trend has resulted in brands including Gucci, Louis Vuitton and Michael Kors transforming the use of the indigo base cloth in a unique way.

This is evident from the works of Lenzing, which uses Tencel in its denim to give them a more fashionable look. Tencel offers denims a sheen or luster that is more reminiscent of higher-end or dressier styling. It also offers longevity to these denims as such jeans are worn often, washed infrequently, can be repaired and last a long time.

Innovative fabrics, fittings add to comfort Many luxury makers are primarily using cotton

with small amounts of modal, polyester or elastane in their denims. They are also adopting certain blends with other natural fibers like linen, flax and even wool. Brands like Off-White, 6397, reDone, Chloe, Brock Collection, r13, Frame, Mother, The Great specialise in denim though they also offer collections that include denim in the mix.

MM6 offers subtly innovative silhouettes and washes and treatments. Barneys also has an excellent jeans department. Similarly, boutiques in downtown Manhattan like 3×1 in SoHo and Self-Edge on Orchard Street celebrates the craft of denim, which fits into the current passion for all things artisanal.”

Self-Edge offers an innovative denim range ‘Strike Gold,’ which uses indigo-dyed thread for the warp and a beige dyed thread for the weft in a 17-ounce fabric. The 634S by Iron Heart is the flagship model that brings the brand’s signature 21-ounce selvage denim to a straight-cut jean made with hand-picked U.S. cotton that offers a

“super soft hand” in an “ultra sheen” finish.

Move towards sustainable denimsSustainability, which has become the primary

criterion for most denim consumers, is being increasingly adopted by new age brands who are also discussing about the impact that their choice of fabrics has on the environment.

A case in point, the brand Twin Dragon, which uses powdered indigo in place of liquid indigo for saving water. It also uses laser techniques instead of traditional washing and also turned to recycled and sustainable fibers for its denims. n



AppArel / fashion oUtlook

Consumers revisit historywith vintage fashion


Serving as a time machine, vintage clothing transports people to a different era. For instance, a 1970s smock

dress can transport woman wearing it to a different era and enable her to connect with history.


AppArel / fashion oUtlook


As reth Ni Loinsigh, owner of Om Diva vintage clothing store in Dublin says, vintage garments can be aligned with current trends. They can also be mixed with contemporary pieces and accessories to give them a modern look. This year, garments of the 1980s and 90s are a huge rage with more and more people opting for distressed Levi’s, neon windbreakers, and bright colored blazers.

Authentic garments for women of all shapes and sizes

Vintage garments cannot be copied by others as they are out of production for many years. This ensures the authenticity of these garments. Armelle Mitchell, Owner of No.38 clothing store in Dublin, offers vintage designer clothes in good condition at affordable prices.

Vintage clothes can also be a great option for stout women as most previous designers focused on

dressing all women and flattering their individual figures. Of all decades, the 1930s was the most sensitive to women as it accommodated women of all shapes and sizes.

Blending the past with the present Vintage Clothes also pass the sustainability test

as they can last for generations. These garments are made with higher quality fabrics as against the current trend of fast fashion, which focuses on making clothes with cheap fabrics in larger quantities.

Vintage clothing offers people an opportunity to be creators of new styles. It enables them to dress in beautiful and well-made garments that blend with the current trends. Highlighting their personality, vintage clothes enables consumers to seamlessly blend their past and present worlds. n


Old sci-fi films enabled their makers to widen their imaginative realms by portraying their leading characters in futuristic apparels. These films enabled

their designers to transform traditional cotton or synthetic fabrics through their futuristic designs. Going a step ahead, new designers are using more

sustainable materials besides innovating on their designs and styles.

Textile scientist experiment with new eco-friendly materials

Though 60 per cent of our clothes today contain plastic microfibers such as polyester, nylon and

AppArel / teCh trends

Futuristic apparels,an unconventional approach




acrylic, these do not remain in our garments for long. They either leach out during the day or are dumped into oceans during the process of laundering. As a 2016 research notes, millions of kilograms of fibers are released into the water supply every year. To deal with this issue, textile scientists are experimenting with a range of less environmentally damaging, more sustainable materials derived from naturally occurring sourcing. Some of these new materials being introduced include:

Pinatex fiber: This is a leather substitute made from pineapple-leaves. As most pineapple leaves are discarded during harvesting of the fruit, they are readily available with no additional farming necessary. This fiber is already being used for making shoes, handbags and dresses.

Mylo fibers: This is a vegan, eco-friendly synthetic leather made by Bolt Threads. The company is partnering with fashion brands Stella McCartney and Patagonia to make clothes from these fibers.

MycoTEX: This is a living material that can be grown into clothing. The material can be grown into the desired shape without cutting. This eliminates the waste generated during the process of garment-making. The garment can be built three-dimensionally and shaped whilst being made, fitting the wearer’s wishes using clothing-shaped molds.

Another smart-tech use being explored for fabrics are materials laced with sensors that monitor the wearer’s health, going far beyond fitness watches to clothes that keep an eye on a wide range of health indicators.

Haptic fabric: Wearable X specialises in materials that support Haptic feedback, electrical signals that mimic a sense of being touched or of interaction with virtual objects. The company currently sells NADI X yoga garb with embedded haptic feedback that provides training cues. An earlier product put the “fun” in Fundawear by allowing touch to be transmitted from a smartphone to a partner anywhere in the world, “created with long-distance couples in mind.

Brands are delivering on the demand for new,

attractive and workable materials that offer a feel-good factor to their consumers. However, we’ll have to wait to see what these clothes will actually look like. n

AppArel / teCh trends



Seasonal and designer-driven apparels, earlier marketed in retail outlets, are now being sold on social networking platforms within seconds of being launched. This

is pressurising brands to condense their product lifecycle and respond at a record speed. As a recent McKinsey survey reveals, around 80 percent of the apparel companies are working on improving their delivery speeds with an additional 19 percent planning to improve within the next 12 months.

Dealing with sample rejection and time wastage

One factor these brands tend to concentrate on is the proper selection of colors. As there are just a few colors that can be successfully applied to specific types of fabric, brands need to pay special attention to the creation of their color palette.

They also need to communicate these colors across their supply chain. This will eliminate differences in visual evaluations which lead to sample rejections,

AppArel / markets

A correct color palette ensures quick delivery,

improves product quality



time wastage and confusion. For this, the industry can rely upon specialised equipment, such as spectrophotometers, and quality control software to digitally measure and communicate colors between brands and their suppliers.

New tools to shorten production processThese tools capture accurate, repeatable color

measurements that can be precisely communicated down the supply chain — regardless of location, individual color perception or other influencing factors.

However, nearly 50 percent materials such as multi-colored prints and textured materials can’t be measured by a traditional spectrophotometer. For these, the industry has introduced innovative spectrophotometers that offer the benefits of digital color measurement and communication to this previously neglected category. The new technology is already shortening the development and production process.

Priortising certifying mills approve their colors

Often, slower and faulty deliveries are also a result of disconnect in the supply chain. This can be attributed to poor transparency, lack of accountability among suppliers and the absence of real-time data to inform decision making. For this, brands need to choose the right suppliers who not only ensure correct color-fabric combinations, but also approve samples and expedite the production cycles.

The approval of color and fabric sample can be lengthy and challenging process as brands need to match colors from different sources. They require multiple rounds of physical lab dips and strike offs to get a product finally approved. To avoid this, brands should prioritise certain certifying mills to approve their own colors and provide real-time data for tracking purposes. This will eliminate many approval rounds and allows mills to focus on other issues like improving their product quality, ensuring quicker deliveries and cost –efficiency. n

AppArel / markets



AppArel / markets

Funding issues

slow down plus-size market growth

Miniscule in size as of now, plus size start-ups are searching for venture capitalists who can change the dynamics of their business by

providing them adequate funds. Nadia Boujarwah, Co-founder of the plus-size personal styling service Dia&Co, notes, investors usually try to match their current opportunities with previous successes which works against these startups as they still have to prove their capabilities. Also, only 10 per cent of decision makers in the segment are woman, of which, none are plus size. This further compounds matters. The segment needs to hire a plus-size person who understands and empathises with the problems faced by plus size shoppers.

Investors skeptical of market growthBoujarwah points out, though the market always

presents huge opportunities, investors seek proofs for their success. To prove them, Boujarwah and co-founder Lydia Gilbert invested their own money in to their firms. After exhausting their funds, they approached friends and family. It was only in December 2015 that their company could secure a $3 million in seed funding from Rebecca Kaden, a



AppArel / markets

partner at the venture capital firm Union Square Ventures. This brought their company’s entire capital to date to $95 million.

Creating public awareness to build capital On the other hand, Haber Jones had already

built a community through her plus-size fashion blog The Pear Shape by the time she started pitching Part & Parcel to potential investors. She launched a successful campaign for a pair of wide-calf leather riding boots that came in four widths; and was an executive at Poshmark, leading growth and expansion. Despite her fashion bona fides, though, Jones was looking for investment partner who would understand her vision for the company.

Jobes initiated the “plus to plus” model, a sort of souped-up referral program that allows fans of the brand to sign up as “partners” and earn a 20 per cent to 30 per cent commission by evangelizing the products within their networks—the impetus for which was the rampant workplace discrimination that plus-size women still face. The brand also offers dimension sizing which provides an option to add extra room in the bust or biceps for a more tailored fit. The entire

concept added up to something unique.

Eliminating size differencesAlso spear heading the plus-size revolution are

Waldman and Polina Veksler, founder and co-founder of Universal Standard who are trying to eliminate the difference between the “plus” and “straight sizes” To achieve this, the founders bootstrapped the company from their savings at first, which gave them a valuable degree of freedom. The company’s first round of investment—$1.5 million led by red Sea Ventures—gave it a short runway from which to start ramping up the business, after which they got to work raising their Series A.

The second round of investment compromising $7 million, which closed in February 2018, was led by Imaginary, the venture capital firm founded by Net-a-Porter founder Natalie Massenet and investor Nick Brown, and joined by red Sea Ventures, Gwyneth Paltrow, MatchesFashion’s Tom and ruth Chapman, Toms’ Blake Mycoskie, SoulCycle’s elizabeth Cutler, and Sweetgreen’s Jonathan Neman and Nicolas Jammet.

However, Waldman believes the investors still underestimate the potential of the plus-size market. According to her the biggest barrier is the lack of knowledge and understanding on the investment side. To combat this, established brands need to keep expanding their size ranges to prove that the market is there to meet the supply. n



AppArel / sUstainaBility

Sustainability gains ground as brands adopt

a ‘no-waste’ policy

Fashion lovers ranging from top brands to small fabric companies are making conscious efforts to reduce the colossal amount of waste fi lling our landfi lls every

year. Luxury brand LVMH Moët Hennessy Louis Vuitton recently signed a fi ve-year biodiversity partnership with UNESCO, committing to an ambitious set of environmental goals.

However, adopting systems and practices that make a difference, is easier said than done. As the annual ‘Pulse of the Fashion Industry’ report

indicates, the rate of this improvement is slow as economic and technological issues prove a major hurdle. The report says, around 15 per cent of the global fashion industry is yet to embrace any responsible practices.

Brands learn new ways to reuse their products

Sustainability, which was fi rst adopted by outdoor clothing makers, has now penetrated to every part of the industry with brands have



AppArel / sUstainaBility

learning new ways to reuse their products. Unifi, a North Carolina-based manufacturer

of synthetic yarns, launched a recycled polyester yarn, repreve, in 2007. The brand opened its own recycling center in Yadkinville, North Carolina, in 2010. In 2014, it expanded its operations and opened a Repreve-dedicated bottle processing centre in 2016. In 2018, the company partnered with the Mercedes Benz Stadium, Georgia Aquarium, and Atlanta International Airport to recycle bottles. Till date, the company has recycled 14 billion plastic bottles into jackets.

Demand for recycled materials fuels expansion plans

Textile manufacturers are expanding their operations on basis of demand for these recycled materials. Aquafil, an international textiles producer with headquarters in Italy, makes and markets econyl, a nylon yarn made from industrial and household waste. This yarn, manufactured from materials as diverse as fishing nets and discarded carpets, has been used by more than 600 fashion brands, including high-end designers like

Gucci and Stella McCartney.Last year, Aquafil recycled five million pounds of

nylon and other materials. The company now aims to double this quantity by 2021.

Brands opt for more green chemicals Fashion companies are no longer relying

on harmful chemicals like mercury dyes and formaldehyde finishes. Some of them are recycling and reusing petroleum-based products such as polyester fabrics. In 2007, Patty Grossman with her sister, Leigh Ann Van Dusen, developed Two Sisters ecotextiles, an eco-friendly textiles manufacturing company based in Seattle. The company only produces

natural and cellulosic fibres. Its certified dyes don’t have too much copper in them.

The 20th edition of AAFA published its list of restricted substances earlier this year. The list features 250 chemicals. Though many of these alternatives haven’t been tested yet, there has been an appreciable push to remove harmful chemicals from American manufacturing in the past 10 or 15 years. n



APPAREL / SUSTAINABILITY

company to limit the destruction of unsold goods. Louis Vuitton now the highest sell-through of any brand in the world and destroys less than anyone else.

While the luxury label has opened factories in Italy, Spain, and the US, it is committed to keeping the majority of its supply chain in France. In fact Louis Vuitton plans to add roughly 1,500 manufacturing jobs in France over the next three years, ramping up production to feed surging demand from China and other emerging economies. Chinese consumers fueled a 20 per cent increase in sales of fashion and leather goods last quarter for Louis Vuitton’s parent LVMH. n

Lyocell has attracted worldwide attention as a green regenerated cellulose fi ber. With increasingly stringent environmental protection policies and awareness of

social responsibility in enterprises and consumption, Lyocell is worthy of vigorous promotion and application.

The promotion of regenerated cellulose fi bers is a concrete action for the industry to practice green development and promote sustainable development of the textile industry. It will signifi cantly improve production technology and equipment level of new solvent-based cellulose fi bers, and will also serve the structural adjustment of the textile industry. Transformation and upgrading of the regenerated cellulose fi bers industry and the green manufacturing of textile fi ber raw materials have made positive contributions.

With the continuous breakthrough of various basic research, equipment and process technologies in the green cellulose fi ber industry and the advancement of industrialisation, the industrial application of new solvent-based regenerated cellulose fi bers will usher in a broad space for development. Of the 70 million tons of chemical fi bers in the world, the total amount of regenerated cellulose fi bers is less than fi ve million tonne, of which traditional viscose accounts for the majority. Major projects for the conversion of new and old kinetic energy include advanced basic textile new materials, key emerging strategic fi ber new materials and bio-based chemical fi bers. n

Louis Vuitton launches new initiatives to control environmental damage

Lyocell attracts worldwide attention as green cellulose fiber

Louis Vuitton is taking several steps to limit the environmental damage caused by its products. For the past

one year, the brand has been using salpa, a type of reconstituted leather, to produce some of the models for its leather goods products, which enables it to avoid using real leather. By 2020, 70 per cent of tanneries LVMH sources from will be Leather Working Group certifi ed. The aim is to make that 100 per cent by 2025. The group uses leather off-cuts to reduce waste.

Faster production and data-crunching about demand trends have allowed the brand to cut back on inventories. That allows the

G-Star to reduce carbon emissions by 30%

G-Star aims to reduce total carbon emissions in its own operations as well as its value chain by around 30

percentFor this, the company plans to join the UN

Climate Change Fashion Industry Charter for Climate Action. Launched in 2018, the charter outlines a plan for the fashion industry to achieve net-zero emissions by 2050. It draws on science-based targets outlined in the Paris Agreement, and enforces signatories to prioritise energy efficiency, renewable energy and low carbon materials and logistics.

G-Star is the latest to join the initiative, alongside VF Corp, Levi Strauss & Co., Gap, H&M, Guess and others. For 30 years, the brand has been focused on sustainability by designing

for circularity, using raw material and more. Recently, it offset its greenhouse gas logistics emissions by using DHL’s Express GoGreen climate neutral service, a green logistics solution. By signing this charter and working with other leading brands, the company will be able to boost its impact. n



APPAREL / SUSTAINABILITY

Italy, Germany and the US. In the minds of consumers today, having sustainable clothes no longer means they can’t have nice clothes. Among the hurdles facing consumers who want to buy sustainable fashion products, lack of information and lack of knowledge on where to fi nd such products. The thorny issue of information is predominant. Only 22.8 per cent of French consumers are able to mention a fashion label that sells sustainable products. n

According to Retail Dive, textile waste increased by a massive 811 per cent from 1960 to 2015, says Retail Dive. Approximately 66 per cent of this waste is

being dumped in landfi lls. Plastics show the largest increase in waste since 1960, a colossal 8,746 per cent. Rubber and

leather, common materials used in footwear and clothing, have also shown a signifi cant increase at 361 per cent.

Consumers now purchase more than 80 billion pieces of new clothing each year, with an increasing amount ending up in landfi lls. Companies want to be seen as being environmentally responsible. It’s about reducing waste during textile production and reusing or recycling waste to produce other products. Rugs and outdoor fabrics, for instance, are increasingly being made with recycled

materials instead of new plastics. Fashion design students are experimenting with milkweed and fl ax to create luxurious fur from 100 per cent plant material.

Another student design team has come up with the idea for a spandex-type elastic fabric using a protein found in oysters. An exhibit of textile innovations in the US included a dress made by a Japanese design team that features naturally glowing silk, made from silkworms injected with a green fl uorescent protein derived from jellyfi sh. n

Sustainable fashion lags behind in France and Italy

Global textile waste increases by 811 per cent

Compared to food and cosmetics, sustainable fashion is lagging behind in France and Italy. This isn’t the case in Germany and especially in the US,

where consumption of responsible fashion exceeds that of organic cosmetics. For French and Italian consumers, environmentally friendly production processes are the priority. For Americans, the type of material used is the fi rst concern. For German interviewees, the priority concern is that of working conditions. Product provenance isn’t the prime concern for any of the groupings. In 2018, 45.8 per cent of French interviewees bought at least one sustainable fashion item, from eco-responsible brands, secondhand or from a local producer. The fi gure is 43.4 per cent for Germany, 46.7 per cent for Italy and 55.3 per cent for the US.

When it comes to sustainable fashion, consumers don’t see price or style as an obstacle. This is especially true of France,

Brands launch sustainability initiatives

As more customers are questioning them on the subject of sustainability, brands are launching new sustainability

initiatives. Fair trade sourcing business Fairly Made

has classified around 800 eco-friendly fabrics as either natural, synthetic or cellulosic fibers. Mirae has small-batch production and uses the most sustainable materials possible. When selecting fabrics, the brand chooses Oeko-Tex certified materials and excludes synthetic textiles.

Gentle Factory chooses to go up each level of the supply chain to ensure that all eco-friendly and sustainable criteria are met. However, since controlling each step of the value chain is not easy, the brand asks Tier I suppliers to give detailed information on their materials, who in turn ask their Tier II suppliers etc.

Gentle Factory looks at each level of its value chain. One big challenge for change-makers is the durability of products. Gentle Factory is built on simple and timeless products and has its own internal laboratory where it tests textiles and then the finished products. If there is a problem with a certain product, say, a shirt that shrinks, the brand organises up-cycling workshops so that the product isn’t wasted. n



AppArel / AEPC EvEnts

AEPC organises seminar on Enabling Competitiveness in Apparel Sector

and launches Compendium for Good Management Practices

Shri HKL Magu, Chairman, AEPC, addresing the seminar

(L-R) Mrs. Chandrima Chatterjee, Advisor, AEPC, Shri Balram Kumar, Secretary General, AEPC, Ms. Dagmar Walter, Director, ILO Decent Work Team for South Asia and Country Office for India, Shri Ravi Capoor, Secretary,Ministry of Textiles, Shri Ajay Shankar, Former Secretary, DIPP, Mr. Sudhir Kumar, Adviser, NITI Ayog, Mr. Kelvin Sergeant, Specialist Enterprise, ILO Decent Work Team for South Asia and Country Office for India, Ms. Sudipta Bhadra, Programme Officer, ILO Country Office for India and Mr. Vikram Pandita, Regional Manager, South Asia, Middle East and Mauritius, Next Plc



Shri Ravi Capoor, Secretary, Ministry of Textiles, addressing the seminar

Shri Ajay Shankar, Former Secretary, DIPP, speaking at the seminar on the Launch of Good Practices Manual



Apparel Export Promotion Council (AEPC) in partnership with the International Labor Organisation (ILO) organised a seminar on Enabling

Competiveness in the Apparel Sector on August 30, 2019 in New Delhi.

The seminar also launched a one-of its-kind Good Management Practices compendium that focused on workplace co-operation, quality, productivity, clean production, workforce management and Oc-

cupational Safety and Health (OSH).The project aims to benchmark apparel industry

production, management practices and profitabili-ty to global standards. Based on the practices ad-opted, the participating units would benefit with time and cost saving as indicated in the compen-dium.

Sessions of the seminar aimed at capturing poli-cy requirements and expectations of various stake-holders. These included:


Shri Balram Kumar, Secretary General, AEPC, giving vote of thanks at the seminar

Ms. Dagmar Walter, Director, ILO Decent Work Team for South Asia and Country Office for India addressing at Seminar of the Launch of Good Practices Manual

Strategies for developing enabling policy framework for promoting long term competi-tiveness

This session was moderated by Sudhir Kumar, Adviser, NITI Aayog. It included presentations by panelists such as Bhavna Saxena, IPS, Special Commissioner, APEDB, Govt. of Andhra Pradesh, Virender Goyal, CMD, Alpos ( Former MD, Epic Group), Indra Guha, Partner, TTC Global and

Ankit Singhal, Associate Director, PWC.

Presentation on the Good Practices ManualIn this session, a presentation on the Good Prac-

tices Manual was given by Sudipta Bhadra, Pro-gramme Officer, ILO Country Office for India & Mr. Kelvin Sergeant, Specialist Enterprise, ILO Decent Work Team for South Asia and Country Of-fice for India. n




L-R, Mr. Ankit Singhal, Asociate Director, PWC, Mrs. Bhavna Saxena, IPS,Special Commissioner, APEDB, Govt. of Andhra Pradesh,Mr. Sudhir Kumar, Adviser, NITI Ayoyg, Mr. Virender Goyal, Alpos (Former MD,Epic Group), Mr. Indra Guha, Partner, TTC Global

L-R, Mr. Anant Ahuja, CEO, Good Business Lab (M/s Shahi Exports), Mr. Sudhir Garg, Joint Secretary, Department of MSME,Mr. Nitin Aggarwal, Group Head (HRM & PA), National Productivity Council, Mr. Siva Ganapati, MD, Gokaldas Exports Ltd.

L-R, Mr. Kelvin Sergeant, Specialist Enterprise, ILO Decent Work Team for South Asia and Country Office for India andMs. Sudipta Bhadra, Programme Officer, ILO Country Office for India




AppArel / transparenCy

Growing awareness leads to increased transparency

in the fashion industry

Today, consumers are more concerned about the origin of their clothes than they were earlier. They are now familiar with every aspect of their garment’s

production including the source of accessories, dyeing process, factory conditions and the environmental impact of overseas shipping, etc.

A recent report by Sourcing Journal titled

“Transparency: Opportunities, Obstacles & Outlook 2019” reveals that around 85 per cent respondents have realised the importance with around 66 per cent of them having already introduced transparency initiatives into their operations. Of the remaining, 15 per cent plan to introduce such initiatives within the next year while the remaining 13 per cent expect to pursue



AppArel / transparenCy

these initiatives in the next 2-to-5 years.

Consumer demand leads to increased focus on transparency

The report also notes that around 35 per cent these respondents viewed consumer demand as being the major trigger for increasing focus on transparency by brand. Nearly 53 per cent believe increasing consumer interest in transparency arises out of their curiosity to know everything about their products.

Around 56 per cent respondents measure the return on investment of their transparency efforts by how much they meet or exceed industry standards, while nearly one-quarter (24 percent) measure sales, monetary returns and good press coverage.

Transparency improves brand reputation Around 78 per cent executives advocate an

improvement in transparency of their supply chain, around 60 per cent preferred their factories and retailers to be more transparent. As per International Corporate Accountability roundtable (ICAr), transparency improves a brand’s reputation, efficiency, legal compliance and

access to capital. Around 66 per cent believe it is important for them to be known for their apparel product’s environmental impact. Out of this, 58 per cent are willing to pay around 20 per cent more prices for sustainable and eco-friendly products. Another 82 per cent would pay more for items they could recycle or dispose of sustainably.

Government involvement to ensure compliance

The Global Consumer Transparency survey also indicated that around 78 per cent respondents would like to ensure fair treatment to apparel workers. An additional 78 per cent would like to understand the price dynamics of their products while 77 per cent would like to ensure their clothes are eco-friendly. Around, 81 per cent respondents expressed their willingness to buy clothes from transparent brands while 50 per cent are ready to abandon brands that make environmentally or socially harmful clothes.

Though the transparency report acknowledges improvements in accountability within the fashion industry, it advocates more government involvement to ensure that companies remain compliant with the law. n



APPAREL / EVENTS

from all angles, with increases in attendees, exhibitors, and international recognition from visitors and trade press. It’s now widely regarded as the most prestigious denim trade event in the region, helping promote Bangladesh and its denim industry to a broader national and international audience. Each expo presents a theme to promote discussion among exhibitors, guests and invited speakers, intended to inform attendees and the trade about issues surrounding sustainability, transparency, circularity and better business practices. n

Bangladesh Denim Expo to cover the entire denim supply chain

Imprinted Sportswear Shows renamed as Impressions Expo

To be held from November 05-06, 2019, the Bangladesh Denim Expo will cover all aspects of the denim

supply chain. Its exhibitors will display fabrics, garments, threads, machinery, fi nishing equipment and accessories. The underlying concept of the expo is to fulfi ll the needs of the international denim community. It will offer an opportunity to make new contacts, discover new products and gain a comprehensive overview of the latest developments available from the region.

Nearly 100 denim industry exhibitors will present latest denim developments and innovations for autumn/winter 2021. Bangladesh Denim Expo offers the ideal environment for discovering the latest in denim trends and advances in sustainable denim production techniques within the country.

Now in its fi fth year, the expo has grown

Imprinted Sportswear Shows, a leading operator of business-to-business trade shows in the United States, has been renamed as Impressions

Expo. The new name is meant to better reflect what

the show is about and not just sportswear. Events will continue to showcase the same product categories with a name that now encompasses the entire decorated-apparel industry, from raw goods/ fabrics to the finished, packaged product. There is no change in the show or the core markets it serves. It will continue to be dedicated to the garment and non-wearable decorating professionals seen at all its events today and embrace the evolution in technology, products and services of both new and old needed by attendees as they relate to the decorating process.

This transition will start with the trade show in California, January 17 to 19,

2020. Among the product categories are screen printing, embroidery, direct-to-garment printing, blank apparel, sublimation, heat transfers, product packaging, promotional products and more.

The Impressions Expo brand reflects the ISS brand’s alignment with Impressions magazine, a leading B2B publication canvassing the decorated-apparel industry and longtime ISS sponsor. The goal is to provide attendees with authoritative, informational content, trade show interactions and award-winning conferences that are benchmarks of both prestigious brands. n



APPAREL / EVENTS

should allow for major change in the entire industry. Several of the previous winners have on-going co-operations and pilot projects with the industry, and some are already on the market. n

The Maroc in Mode – Maroc Sourcing trade show will be held in Morocco from October 17 to 18, 2019. The show will be segmented into fi ve categories: fast fashion,

denim, jersey/knit/lingerie, sportswear/leisure wear/technical garments, and leather/shoes. The fair offers a comprehensive overview of the Moroccan textile and garment industry from fast fashion to high-quality production of trend peaks up to offers of sustainably produced collections. The sourcing show will host 200 suppliers and 1500 attendees. The fair program

will be supplemented by special B2B meetings and conferences, which deal with current production topics.

Trade uncertainty is provoking brands and retailers to re-examine their

supply chains, prompting the show’s organizers to center its conference programming around the benefi ts to be had with closer-to-home operations. Morocco will be highlighted as one such solution, with its specialties, including knits, denim and technical textiles. The region’s infrastructure has grown thanks to an infl ux of foreign investments. The country consists of more than 1600 companies and over 1,90,000 garment workers. Morocco is being promoted as an attractive sourcing destination because of its close proximity to Europe and shorter delivery routes, lower ecological impact, stable political and social environments, and duty-free EU agreements. The promise of nearshoring has piqued the interest of apparel and textile companies. n

Fifth edition of Global Change Award receives over 14,000 entries

Morocco to host the Maroc sourcing trade show in October

The fi fth edition the Global Change Award has received more than 14,000 entries from 182 countries. Named as the Nobel Prize of fashion, the award aims to reduce

fashion’s impact on the planet by helping groundbreaking ideas move from tissue sketch to market. It also aims to inspire a new generation of creatives, scientists and entrepreneurs to reduce the planetary impact of the fashion industry through innovation.

The Global Change Award is an attempt to move the needle in a space where global consumption of textiles and shoes is on track to increase by 65 per cent by 2030. The award was initiated in 2015 by the H&M Foundation.

To win, the innovation should have the potential to make fashion circular and to scale. Another criterion is novelty. The idea should be economically sustainable, the innovation team should be committed to make a difference and the innovation

Performance Days to highlight new sustainable materials

To be held in Germany from November 13 to 14, 2019, Performance Days-the trade fair for functional fabrics for sports and

work clothing, will highlight new sustainable materials.

The forum will explore all aspects of sustainability such as recycled fibers, natural fibers from renewable resources, recycling qualities, bio-degradables or compostables, microplastics, product life cycles, water conservation, energy savings, CO2 emissions and chemicals. The current state of the art will be highlighted in all these topics as they pertain to the textile industry.

On the assumption that sustainability should be seen in all stages of the textile production process, and that it is much more than simply using recycled fibers and fabrics, Performance Days will provide the impetus n various directions for sustainability research and development. n



AppArel / events

16th edition of Yarnex Fair 2019 concludes

AEPC organises a session on Intellectual Property Rights

The 16th edition of Yarnex Fair- 2019 concluded on a happy note. It was inaugurated by Dr A Sakthivel, Vice Chairman, AEPC on Sep 12, 2019 at

India Knit Fair Complex, Tirupur.Speaking on this occasion, Dr. A. Sakthivel

informed that various foreign brands have now set up their own direct trade outlets in India which is leading to increasing flow of orders to Tirupur and an opportunity to brands to grow their business.

Sakthivel also shared views about his recent visit to USA and Dubai along with the High Level trade Delegation of Tamil Nadu led by Hon’ble Chief Minister of Tamil Nadu.

He said that new investment proposals have been signed to the tune of Rs. 8,750 crores that would generate 40,000 new employment opportunities. He also stated that the introduction of latest technologies is likely to fuel the growth of apparel industry. n

AEPC recently organised a session on understanding intellectual property

right issues for the apparel industry at the Apparel House in Gurgaon. n

Participants during the seminar


Dr A. Sakthivel , Vice Chairman , AEPC interacts with an exhibitor during Yarnex



Sub: Clarification regarding duty drawback allowed in cases of short realisation of export proceeds due to bank charges deducted by foreign banks

CBIC in its Circular No. 33/2019-Customs dated 19.09.2019 has stated regarding show cause notices issued by some Customs fi eld formations for recovery of duty drawback on account of short realisation of export sale proceeds due to bank charges deducted from export invoice by the banks. exporters have contended that these short realisations are actually service charges deducted by intermediary banks while remitting payments from abroad and that said charges are documented by the banks. It has been requested such short realised export sale proceeds may be considered as full realisation and that duty drawback not be recovered for such short realisation.

Sub: Online filing & Issuance of Preferential Certificate of Origin through the Common Digital PlatformDGFT vide its Trade Notice No. 34/ (2015-2020) dated 19.09.2019 has notifi ed a new

online platform for issuance of Preferential Certifi cate of Origin which would be a sin-gle-point access for all FTAs/PTAs, for all designated CoO issuing agencies and for all export products.

Click the link for more information - http://coo.dgft.gov.in/

Sub: Eligibility Criteria for availing of DPD Scheme by ImportersCBIC vide its Circular No. 29/2019-Customs dated 05.09.2019 has prescribed guidelines

for the implementation of Direct Port Delivery (DPD) Scheme by Importers, one of the fl agship initiative taken by CBIC in reducing the dwell time as well bringing down the logistics cost of eXIM clearances.

Sub: Revised Norms for Execution of Bank Guarantee under Advance Authorisation, DFIA and EPCG Schemes

CBIC vide its circular no. 31/2019-Customs dated 13.09.2019 has stated it has received inputs from trade and industry seeking clarifi cation as to what should be the basis for waiver of Bank Guarantee to be executed with Customs in the Goods and Services Tax (GST) regime under AA, DFIA and ePCG schemes in respect of manufacturer exporters/service providers. The norms for execution of Bank Guarantee under AA, DFIA and ePCG schemes have been reviewed and clarifi cation are given in the circular.

Sub: Reorganisation of Regional Authorities of DGFTDGFT vide its Trade Notice No. 31/2019-20 dated 06.09.2019 has issued instructions

regarding reorganization of the regional authorities of DGFT by merging the smaller re-gional authorities (rA) with the relatively bigger rA’s and in order to assist exporters of old rA, the new rA will designate one offi cer from within the rA and assign the responsi-bility of monitoring the disposal of applications, queries, emails, contact@dgft (as the link offi cers), litigation, grievances, etc. from exporters of old rA’s.

Ministry Notification

AppArel / notifiCations



The decline in the country’s GDP is also affecting the output in the textile sector. To overcome this situation, the central gov-ernment is taking the following measures to boost the export industry. These steps include

Introduction of New scheme ofreimbursement of Taxes and Duties for export Promotion (roDTeP)

The major features of this scheme include:n The roDTeP scheme replaces the current MeIS scheme.n Existing dispensation in textile of MEIS + Old ROSL will continue

up to 31.12.2019.n Textile and all other sectors which currently enjoy incentives up to 2

per cent over MeIS will be transferred to roDTeP from January 1, 2020.

n The scheme ill more than adequately incentivise exporters than ex-isting scheme put together.

n Its forgone revenue is projected to be over rs. 50,000 Crores.

Fully Automated Electronic Refund Route for Input Tax Credit (ITC) in GSTn The Fully electronic refund module (Form GSAT rFD-01) for quick

and automated refund of ITC is nearing completion and will be im-plemented by end September, 2019.

n This module is expected to monitor and speed up ITC refunds.

This is a very important step as exporters need to contact indepen-dent authorities for manual refund. This was delaying the fi nal credit of refund as well as increasing the resultant cost. If properly executed Fully Automated electronic refund route will bring the much awaited relief for the exporters.

Centre announces new measures to boost exports

AppArel / Gst Update



Some Other Important Amendments1. earlier the delay in fi lling of GST returns would result in interest

liability on output tax which was fully set-off from input tax credit available for the month. But now interest to apply on net cash liabil-ity of unpaid GST.

As per the Amendment passed by Loksabha on July 18, 2019 to section 50 of CGST Act, interest liability will arise only if there is remain tax liability after Input Tax Credit set-off for the month.

This is a big relief for taxpayers because till this amendment was passed, interest was always charged on the entire amount of tax paid after the due date. This included the portion paid by utilising ITC which was unreasonable and unfair. The above amendment has removed this unreasonable treatment and brought much relief

2. ITC wrongly availed but not utilised shall not draw penal proceed-ings under GST-

The above quote is from the judgement pronounced on 18.07.2019 by The Hon’ble High Court of Patna in the Case of M/s Commercial Steel engineering Vs The State of Bihar, wherein it was held that wrongly availed input tax credit, refl ection in an electronic credit ledger under GST shall not draw penal proceedings until the same, fully or partially is utilised against the tax liability, so as to make it recoverable by the tax authorities.

This is a very useful judgement by the Hon’ble High Court of Patna as in case of exporters there is always a credit/positive balance in the credit ledger hence if by mistake any wrong credit is availed, they can reverse the same without any interest and penalty obligation.

[The author is Senior Partner in M/s. CHHABRA B K & ASSOCAIT-ES (Delhi / NCR). He can be reached at [email protected] and # 9810380489 / 9871630858]

AppArel / Gst Update



CALENDAR OF EVENTS - 20191

3

5

2

4

India Apparel & Accessories fair at Madrid, Spain

Bangladesh Denim Expo will cover all aspects of the denim supply chain

Artificial Intelligence on Fashion and Textile, China

9-10 October, 2019, SpAIN

5-6 November, 2019, BANglAdeSh

25-27 November, 2019, China

17-18 October, 2019, Morocco

12-14 November, 2019, AUSTrAlIA

The Maroc in Mode – Maroc Sourcing trade show will be held in Morocco

International Sourcing Expo Australia

AppArel / aepC event Calendar



All_Pages_August_2019 - Sanjeev.indd 45 9/10/2019 3:32:53 PM

With apparel sourcing moving out of China, it's advantage India

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