apparel views bangladesh/march - april 2017/1

68 Pages·2017·5.25 MB·English

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APPAREL VIEWS BANGLADESH/MARCH - APRIL 2017/
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/APPAREL VIEWS BANGLADESH/MARCH - APRIL 2017
Bangladesh has earned around $26 bn from the export of goods in the
first nine months (July-March) of the current fiscal year 2016 – 2017.
The export figure, which was exactly $25.946 bn, is 4 per cent more than
what it was in the same period of 2015-16 fiscal. However, the earnings fell
4.30 per cent short of the target at $27.11 bn set for the nine-month period.
FFrroomm
Exports in March rose almost 10 per cent year-on-year to $3.10 bn, beating
the monthly target of $3.02 bn. Shipment of garment, which contributes
nearly 82 per cent to the total national exports, increased 2.39 per cent to
$20.92 bn during July-March, compared to the same period a year ago as
TThhee EEddiittoorr’’ss
per Export Promotion Bureau (EPB).
According to the 12th edition of the Kurt Salmon Global Sourcing Reference
DDeesskk...... study production costs in China are almost reaching the level of Eastern
Europe and Turkey, as it has a Production Cost Index (PCI) of 47. It is even
exceeding costs in Southern European rim locations such as Morocco (PCI
31). At the same time, Myanmar and Bangladesh show the lowest PCI
values, 12 and 14 respectively. Ongoing efforts to improve social and
infrastructural conditions, such as the established minimum wages in both
countries, indicate further increases in sourcing costs for the future – but
still on a very competitive PCI level.
As China has longer transportation lead times, and as a consequence
considerable less sourcing flexibility, its competitive strength erodes rapidly
as it is no longer a low cost production country. According to the report, the
numbers also show that it is not pure cost considerations which lead fashion
retailers away from China. However, sourcing volumes are moved to regions
with higher production costs, but which are located closer to the consumer
markets, and thus offering shorter lead times and a higher reactivity to
new trends in those markets.
Meanwhile, Bangladesh is gaining market share both in Europe and North
America in spite of offering only less complex products, but has the potential
to further strengthen its relative position, if production capabilities can
evolve and quality can be improved, while ensuring social and
environmental compliance standards.
Recently at a pre-budget discussion with the National Board of Revenue
(NBR), industry representatives put forth various demands. These included,
reducing corporate tax to 10 per cent from existing 20 per cent and also
exempting the apparel industry from tax at source for a minimum period
of two years. There was also a request that the policy for the apparel industry
should be fixed for a five year period, as changes in policy, every year created
problems for the industry. I am sure Govt. will consider this in the coming
Budget for the benefit of the industry.
SHEIKH REZAUR RAHMAN
Editor & Publisher
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APPAREL VIEWS BANGLADESH/MARCH - APRIL 2017/
MAR. - APR. 2017 / VOL.-IV / ISSUE NO. 05
Editor & Publisher
Sheikh Rezaur Rahman
Correspondent 18
Tanmoy Mitra
Swati Sharma (India)
Business Promotion
Tapan Kumar Jana
Afsar Maruf
Circulation
Md. Riaz Uddin
Archana (India)
Operations
Md. Mehdi Hassan
Editorial Technical Experts - Overseas 34 44
Arvind Kumar (India)
Rajesh Chhabara (Singapore)
Creative Head
Sreekumar. M
Sr. Designer
S 04
Jatin Jain Globe Trotter
e-Magazine 10
Domestic Update
Sumer Singh
For Subscription T 18 GAP
Mobile: [phone] Study of sourcing practises of international brands
Email: [email protected]
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Global fabric output increased in
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Mobile: [phone] N Q4/2016, while global yarn production fell
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Horse Hair Fibre
Application of contemporary fibres in apparels
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Head Office E FESPA becomes annual Global Print Expo
Apparel Views Bangladesh Limited 26
Industry 4.0: Texprocess presents
Section-1, Road-1, House-21, Priyanka Housing,
‘Digital Textile Micro Factory’ for the first time
Mirpur-1, Dhaka 1216, Bangladesh
Tel.: [phone] T 28 Exceptional fashion technology
E-mail: [email protected]
for economically-minded by Tukatech
Regd. Office
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Apparel Views Bangladesh Limited Sri Lanka need to diversify its exports and markets
House No. 33, Road 2/E, Priyanka Housing, N 34
Première Vision Paris 2017
Turag City, Mirpur 1 Dhaka 1216, Bangladesh
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Overseas Office Bangladesh Denim Expo
138/2/9, First Floor, Kishan Garh, 44
Intertextile Shanghai Apparel Fabrics
Vasant Kunj, New Delhi - 110 070, INDIA O
Mob.: [phone]
Yarn Expo Spring
E-mail: [email protected]
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TEXWORLD, APPAREL SOURCING & AVANTEX PARIS
Editor & Publisher, Sheikh Rezaur Rahman, Printed and C 58 Yarn and Fabric Expo 2017
Processed by him at Sakura Printers, Hasan Tower, 180
Fakirapool, Motijheel, Dhaka 1000. Reproduction of any 60
DTG 2017
of the content from this issue is prohibited without
explicit written permission of the publisher. 64
Forthcoming trade events
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//AAPPPPAARREELL VVIIEEWWSS BBAANNGGLLAADDEESSHH//MMAARRCCHH -- AAPPRRIILL 22001177
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Scope of Indian e-commerce Govt. not reviewing FDI policy in multi-brand retail
very wide in GST
The Indian Government does not currently
have any proposal under its consideration
to review the foreign direct investment (FDI)
policy in the multi-brand retail sector. At
present, the government permits foreign
investors to hold a maximum of 51 per cent
stake in an Indian retail company. However, 100
per cent stake is allowed in single-brand retail
sector. “No proposal is under consideration of
the government to review the extant FDI policy
on multi-brand retail,” Commerce and Industry
Minister Nirmala Sitharaman said in a written reply to the Lok Sabha. Under the
existing policy for FDI in multi-brand retailing, so far, only one company—Tesco,
has received the government’s nod for opening stores in the country.
The scope of the e-commerce definition as given
in the Goods and Services dispensation has
been left so wide that it could go well beyond
Indian apparel industry hit by overvalued rupee
Amazon or Flipkart marketplace platforms and
may even cover the commodity exchanges,
Apparel exports from India are not picking up despite government support
ASSOCHAM has said. The body seeks clarity from
primarily because of strong rupee and depreciation of currencies of competing
the government to remove uncertainty among
countries like China, Bangladesh and Vietnam, according to the Apparel Export
businesses, as the GST is set for a roll out. "The
Promotion Council (AEPC). Indian rupee has appreciated by 5.8 per cent over the
scope of the terms 'electronic commerce' is very
last 3-5 months affecting export orders.
wide and does not restrict itself to cover electronic
marketplace service providers like Amazon and On the other hand, in the last 12-18
Flipkart. It covers all businesses where the supply months, Chinese yuan depreciated
of goods/services is through a digital or electronic by 13 per cent, Bangladeshi taka by
network," the ASSOCHAM said in communications 6 per cent and Vietnamese dong by 7
to different concerned Ministries. per cent. China got highest FDI
during this period and still the
The association said since the term 'e-commerce'
country resorted to depreciate yuan
covers all businesses where the supply of goods/
just to protect its exports and
services is through a digital or electronic network,
employment. So, while other
there is a possibility of 'unwarranted interpretations'
countries started taking recourse to
which may lead to future and commodity exchanges
depreciating their respective
being treated as an electronic commerce operator
currencies during the last one- and- a- half year, Indian rupee got appreciated, against
in respect of commodity derivatives which result in
the prevailing trend, the AEPC said in a statement.
actual delivery of the goods. "In our opinion such
an interpretation will not be in consonance with The industry was very hopeful after the special package offered to it in June 2016,
the object and intent of special provisions for the where significant financial and investment incentives were offered, besides critical
electronic commerce business. There are labour flexibilities, with the aim to generate 100.3 lakh additional jobs and $30.04 bn
distinguishing legal and operational factors additional exports. Despite this kind of support to the industry, exports are hardly
between e-commerce operators and commodity picking up. Also, in the last one year, cotton prices have increased by 24.7 per cent on
exchanges. The commodities exchanges cannot be an average, across all categories. In fact some categories have seen hike of up to 35
treated as electronic commerce operator in their per cent. This too is affecting India’s export order book.
legal capacity as well as in common parlance," the
“The growing cotton prices and rupee appreciation is not only going to nullify the
chamber pointed out.
intended impact of the package, but also weaken India’s position against our
"The ASSOCHAM would like a seamless and competitors, if left unchecked,” said AEPC Chairman Ashok Rajani. “Exporters are
flawless roll out of the GST to infuse a sense of not able to book orders due to overvalued rupee as apparel exports are highly
confidence among the consumers, trade and price-sensitive. According to RBI REER, rupee was overvalued by 18 per cent in
industry. Eventually, the GST should become a Feb 2017 and now it is almost 20 per cent. It calls for a carefully considered strategy
showpiece of our reforms," said DS Rawat, and more pragmatic approach to arrest the rise of rupee in overall interest of
Secretary General, ASSOCHAM. Rawat said the export endeavour and boosting employment in our country. “Also, I request the
chamber, is doing its bit to reach out to the government to fast track the roll out of the special package with full
stakeholders and holding a large number of reimbursements of the ROSL claims and implementation of the optional PF
workshops and training seminars for the industry provision provided in the package,” he added.
and trade in different parts of the country.
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Garment exports up 4.5 per cent in Apr-Jan 2016-17 India's fashion market to
touch $30 bn by 2020
The exports of readymade garments from India have witnessed a positive growth of 4.5
per cent in INR terms and 1 per cent in USD terms during April-January, 2016-17, as
compared to the same period of previous financial year. During April-January, India
exported garments worth `91,467.85 cr in 2016-17 to the world as compared to `87,560.23
cr in 2015-16. The RMG export figures were revealed by Ajay Tamta, Minister of State for
Textiles, while replying to a Lok Sabha question.
Tamta also said that the government has
announced a special package of reforms for apparel
sector in June, 2016 targeting employment
generation and exports. The special package
includes Employee Provident Fund Scheme reforms
(12 per cent employer's share of Provident Fund is The fashion market in India is estimated at
paid by the government), introduction of fixed term
$70 bn in 2016, with $7-$9 bn already
employment, additional incentives under ATUFS
digitally influenced, and the market is
and enhanced duty drawback coverage through
projected to rise to $30 bn, which will be
ROSL. In addition to the special package for
equivalent to 60-70 per cent of the total
apparel, there are some other initiatives and
branded apparel market, according to a recent
schemes of the government that are also
report. E-commerce constitutes 4-5 per cent
contributing to exports promotion, added Tamta.
share of the overall fashion market in 2016.
These initiatives include 3 per cent Interest Equalization scheme for manufacturer exporters
of readymade garments, Integrated Skill Development Scheme, Amended Technology Up- As per the report by Boston Consulting
gradation Fund Scheme, 2 per cent MEIS scheme and All India Duty Drawback. Group and Facebook, titled ‘Fashion Forward
2020’, online purchase for the fashion
category is estimated to grow by four times
Colouring cotton with cotton
to reach $12-$14 bn by 2020. This growth will
be driven by a spurt of new shoppers as well
Archroma has pioneered the concept of using natural as a maturing shopper base that spends a
wastes and byproducts to synthesise dyes to colour larger share of their fashion wallet online.
textiles. Bryan Dill from Archroma US, Inc, presented The number of online fashion shoppers will
the “Earthcolors” technology at the recent international double from 55-60 mn to 130-135 mn by
conference of the American Association of Textile 2020, with a significant shift in the user
Chemists and Colorists in Wilmington, NC. Archroma profile, says the report. Close to 50 per cent
has synthesised sulfur dyes from natural wastes such of online shoppers by 2020 will be women,
as almond shells, cotton gin wastes, plant byproducts over 50 per cent will be from tier 2 or smaller
and shoots of rosemary, etc. This technology originally towns and 37 per cent of them will be over
came out of Archroma’s unit in Spain. 35 years of age.
Archroma collaborated with Cary-based Cotton Incorporated in using sulfur dyes derived "The single largest challenge for driving e-
from cotton waste and gin waste to color cotton denims. Mike Tyndall, Vice President for commerce will lie in the ability to mirror the
Product Research at Cotton Incorporated stated that this endeavor expands the boundaries touch-and-feel element of physical
of agriculture and utilises agricultural resources to make dyes that replace petroleum channels. For more evolved shoppers, faster
precursors. Cotton denims dyed with cotton waste will be coming into the market soon. delivery and assurance of fit will also be
These products will be environmentally and skin friendly, according to Archroma. Interesting important," adds the report. About 25 per
feature is that consumers will be able to trace the entire supply chain from the origins of cent of all transactions by online apparel
the dyes and the natural raw material used in the process. shoppers are conducted entirely online. In
the future, this is expected to rise as
consumer confidence in online shopping
IT Techies foray into technical textiles
increases. In addition to this, a third of all
transactions use a mix of both online and
Two Indian IT techies are venturing into technical
offline touch points in the journey.
textiles field. In what seems to be a surprising
reversal of trend, engineers are switching from The report also says that consumers are
information technology to the manufacturing sector. increasingly spending more time on digital
India over the past two decades has gained reputation media, engaging with brands directly as well
as an IT giant with its skilled IT engineers spread across as following influencers and trendsetters.
the globe. Chennai, in South India is known for its The shift in media spending towards digital
automotive and IT sectors and is the home base for Wellgro Tech, which is aiming at marketing has begun, but there is further scope as
domestically, manufactured high-end nonwoven and technical textiles to domestic and export brands and department stores currently
markets. Wellgro Tech’s Co-Director R Prabakaran, in speaking to this scribe recently stated spend only 10 – 15 per cent on digital media
that although IT sector has employment opportunities; the business as such has become advertising. Going forward, digital will
very competitive. In echoing this sentiment, R Venkatakrishnan, the other Co-Director stated become central not just to the way brands
that that is the reason, they have ventured into technical textiles, in particular to market are marketed and sold, but also to
hygiene products. There is need for good quality and cost effective adult incontinence product design, plan merchandising and
products in India, according to their field research. customer engagement.
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India to have its first Non release of incentives pushes Pakistan
Denimsandjeans show exporters into losses
Value added textile
exporters have passed on
the benefit of cut in cost to
global buyers immediately after
the annou-ncement of PM
incentive package to the export
oriented industry. However, the
industry has not received any
of the incentives yet. This was informed by Adil Butt, Chairman, Pakistan Hosiery
Manufacturers Association (PHMA). According to Butt, the export industry has slipped
With distinction as a big consumer of denim
in to losses as the Federal Board of Revenue (FBR) has not released funds, since they
apparel, India will have its first-of-its-kind
have already passed nearly all incentives to their buyers, which had led to sever liquidity
denim show during September 25-26, 2017. The
crunch. "Earlier, Prime Minister Nawaz Sharif had announced 7 per cent duty drawback
event to be organised by Denimsandjeans.com, the rates for value-added textile exporters as incentives totalling to `180 bn, in order to
pioneers of denim exhibition in Bangladesh and
boost Pakistan's falling exports." According to a report. He termed the liquidity crunch
Vietnam, will be held at the Silicon Valley,
as major hurdle in promotion of exports. The textile industry had been facing
Bengaluru and bring some of the most reputed
unprecedented crises for many years and consequently, a sizeable textile capacity
denim mills on one platform. Denim has been
had been impaired, he said.
one of the main booming textile segments in
India in the past decade. While the capacity of
Indian mills to produce denim fabrics was only VN textile, apparel exports grow 11 pc in first quarter
about 300 mn mtr in 2005, it has risen over 300
per cent reaching about 1.3 bn, making India Vietnam earned $6.84 bn from garment
stand second only to China globally. A major and textile exports in the first quarter
part of this production is consumed locally. Over of this year, a rise of 11.2 per cent year on
500 mn jeans are being sold in India itself, a year, according to the Vietnam Textile and
little more than the approximate 490 mn jeans Apparel Association (VITAS). Currently,
sold in the US currently. Vietnamese garment and textile products
have been available in 40 countries and
This gives India the distinction of being the
territories over the world, with major
second largest consumer of denim apparel after
markets including the US, Japan, the
China. India is set to get a big lead over the US
Republic of Korea, China and the EU.
and the EU in coming years, as its consumption
increases in tier-2 and tier-3 cities. The exhibition Most businesses have had orders for the second quarter this year. However, orders
will be the first denim-focused show in the have been in shorter and shorter terms with price not increasing. The VITAS urged
country, which will bring some of the most enterprises to optimise the capacity of their equipment to reduce production costs
reputed denim mills including top local and and seek orders for high-quality products. This year, the garment and textile industry
international garment manufacturers, together has set a target of reaching a growth rate of 6.5-7 per cent compared to 2016 with the
on one platform and provide a great opportunity total export earning of over $30 bn.
to source denim fabrics and apparel. Key
retailers, buying houses and factories from India
H&M to launch new collection Conscious
as well as from Europe, South East Asia and the
US are expected to visit the show. The country is
Exclusive made from Bionic
witnessing growth in textiles and clothing
industry sector due to rising government focus
H&M, a Swedish fashion retailer to launch on April
and favourable policies. The Union Government
has recently announced a `6,000 cr special 20 its latest ‘Conscious Exclusive 2017’ collection
made from Bionic, a recycled polyester made from plastic
package for the textile and apparel sector. This
shoreline waste as well as other sustainable materials
package is likely to bring forth significant
including, organic cotton, organic silk, and recycled
flexibility in labour laws, boost exports and
polyester tulle in 160 stores worldwide. For womenswear,
generate employment.
products comprise of clothes, bags and other
Sandeep Agarwal, Founder, Denims- accessories. One such item, the Pleated Long Dress, is
andjeans.com, said, "I feel that the Indian made from recycled polyester Bionic. This long, sleeveless
denim industry is at an inflexion point, where dress is available in a powder beige colour that gives a
we will see it take off strongly and attain depth sense of lightness for its wearers. In Indonesia, this new
and breadth. While we are already the second collection is only available at the Grand Indonesia
largest consumer of jeans today, we will see Shopping Mall, Central Jakarta, with the starting price of `449,000 ($33).
the market maturing substantially in terms of
H&M’s Head of Design and Creative Director Pernilla Wholfahrt said that for the design
usage across regions and demographies. Our
team at H&M, this year’s ‘Conscious Exclusive’ is a chance to dream and create pieces
show aims to bring together the major
that are both quirky and beautiful. In addition to womenswear, the ‘Conscious Exclusive
stakeholders in the supply chain to come
2017’ also boasts relaxed formal wears for men and, for the first time, kids’ pieces.
together and help in this process."
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Digital technology to accelerate Indian business growth
Indian business will benefit much by going digital technologies, companies can
digital, according to a new study which has consolidate documentation, automate
predicted an increase in revenues by up to 27 processes and have access to efficient and
per cent, employment by up to 84 per cent cheaper ICT capabilities," said Sandeep
and access to international markets by up to Jajodia, President ASSOCHAM.
65 per cent for small and medium business
India has pledged to decrease its carbon
with use of digital technologies. The study has
emissions by 33 to 35 per cent relative to its
been done by ASSOCHAM and Deloitte.
GDP from 2005 levels by 2030. The Digital
The study 'Digital India: Unlocking the Trillion India programme is likely to have a positive
Dollar opportunity' says that availability of contribution towards achieving these goals.
digital infrastructure will accelerate business Widespread implementation of telepresence
growth. It will help companies drive significant and cloud computing technology under
efficiencies by reducing time to market (new Digital India will lead to reduction in carbon
products, new markets). Technologies like emissions. For example, telepresence can
global ranking for ease of doing business.
telepresence will reduce the need for eliminate 20 per cent of the business travel,
Services such as eBiz portal and KYC are
business travel and result in cost savings. leading to reduction in carbon emissions by
contributing to this improvement. The vision
Use of digital technology is also expected 1.08 mn tonne globally. Use of cloud storage
and initiatives towards "digital India" are
to improve employee satisfaction and for documents will significantly reduce the
expected to boost investment in the digital
collaboration, leading to a more productive consumption of natural resources like paper.
space in the short-term and lead to rise in
workforce. It is estimated that in India,
digital innovation, efficiency and productivity India is the fifth-largest producer of e-waste,
employees in SMBs with advanced digital
in the long-term. Currently, a number of discarding approximately 1.8 mn tonne of e-
engagement are 8.7 times more likely to
domestic and global companies have waste each year. Under Digital India, adoption
collaborate than offline businesses.
announced investments in the digital space of ICT solutions such as waste collection
Indian Government has taken several in the country. "Digital India is likely to have automation and waste management
measures to improve ease of doing business a significant impact on the profitability and information and prognostics are expected to
which has led to an improvement in country's operations of business. Through adoption of considerably reduce e-waste.
MAS to set up its first manufacturing and Japanese apparel
development centre in US retailer Adastria buys
Californian brand
Sri Lankan apparel and fabric manufacturing conglomerate MAS Holding is set to open
its first manufacturing and development centre in the US in Randolph County in a
move designed to improve speed to market and flexibility for its customers and will also
create 133 new jobs. This was announced by Governor Roy Cooper.
North Carolina enjoys a worldwide
reputation as a center for textile
research and workers. Their excellent
business climate and location offer
international firms an ideal place to
reach and serve customers in the
United States. The company's
selection of a North Carolina location
includes a pending acquisition of Japanese apparel retailer Adastria has
Asheboro based textile manufacturer entered into a definitive agreement to
Acme-McCrary, a 108-year-old textile acquire Velvet, LLC, a California based apparel
manufacturer, with additional facilities in Chatham County and the Republic of Honduras. company, which owns the 'Velvet by Graham
The company produces legwear and active wear for large US retailers. WH Redding, and Spencer' brand. Velvet is the second
Chairman of Acme-McCrary stated that MAS Holdings brings to North Carolina an investment for Adastria in the US market. Last
exemplary corporate culture and a growing business. Their concern for environmental year, Adastria had bought a minority stake in
impact is world class and keeping and growing textile jobs in North Carolina is exciting. San Francisco based apparel company Marine
Layer, Inc. Velvet by Graham and Spencer is
Mahesh Amalean, Chairman of MAS Holdings said that they are delighted to be associated known for its modern, sophisticated staples
with Acme-MCCrary, whose values and philosophies are very much in alignment with MAS. with laid-back California attitude, both for
Their presence in the Western Hemisphere enables them to strengthen their value women and men. Velvet operates eight retail
propositions of speed and flexibility offered through on-shore and near-shore operations stores in the US, while also being available in
to their customers. It also enables them to engage and strengthen their continued multi-brand and department stores in the US
association with academia and research institutions in the US. as well as UK. The Japanese company founded
MAS plans to invest nearly $20m in the Asheboro facility, providing additional payroll in 1953, operates 1,358 retail stores in Japan
impack exceeding $4m annually. An a performance based grant of $575,000 from the One and 108 stores overseas and reported revenues
North Carolina Fund will help facilitate the new centre. of $1.8 bn in fiscal 2016.
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