apparel views / june 2017 1

84 Pages·2017·7.15 MB·English

APPAREL VIEWS / JUNE 2017 1
2 APPAREL VIEWS / JUNE 2017
JUNE 2017,VOL.- XVI / ISSUENO. 06
Editor & Publisher
ARVIND KUMAR
f r o m t h e e d i t o r . . .
Associate Editor
B.P. MISHRA
Asst. Editor T
he Goods and Services Tax (GST) Council recently fixed the GST rates and there
SWATI SHARMA
is no rate shock either for the highly labour-intensive textiles and garments
Editorial Adviser
RAJESH CHHABARA sector. Although many manufacturers of unprocessed fabrics (Powerlooms) that
Sub Editor - Creative are currently exempt will now come under the tax net (due to the lowering of the
JOHN EDWARDS turnover threshold for taxation to `20 lakh for GST from the present `1.5 cr for
Art Director
excise duty and the imposition of 5 per cent GST on grey fabrics), the seamless
SANJAY BHANDARI
input tax credit (ITC) chain would soften the cumulative tax burden. In the new
Sr. Correspondent
ASHWANI KUMAR system, for the textile value chain, full tax credit would be available but no overflow
Correspondent of credit would be permitted. This means the ITC will be restricted to 12 per cent
DEEPTI
even if the total taxes paid on raw materials are above 12 per cent.
Creative - Head
SREEKUMAR. M Readymade garments, especially those costing up to `1,000 per piece, could
Sr. Layout Artist become cheaper because the 5 per cent GST rate is much lower than the current
JATIN JAIN
duty incidence, helping the retailers to expand aggressively. The lower rates for
Sr. Designer apparel will prompt companies to introduce more product lines below the `1,000
RAJEEV KUMAR
price threshold, growing the value fashion category.
Production Manager
MUKESH POKHRIYAL
Under GST for the first time, the entire value chain of textiles and apparels will be
e-Magazine
taxed. However, the GST council not covered the ‘Job work on apparels’ within the
SUMER SINGH
ambit of this rate reduction and this negative step would likely to cause huge
Business Promotion
BOBBY BAKSHI (DELHI) hardship to several micro industries in textile clusters like Tirupur. Only the services
MEENAKSHI SINGH (DELHI)
which can be classified as ‘Job work in relation to Yarn and Fabrics of textiles’
RAHUL SINGH YADAV (DELHI)
N. SABARI SELVAM (TIRUPUR) alone is eligible for the reduced rate of 5 per cent. Some of these processes such
PAVITHRA R. (TIRUPUR)
as checking, ironing and packing, button fixing, etc., are actually carried out by
Circulation
people ‘who take work to their home for job work’. As the processes are only of
ARCHANA (DELHI)
V. MURUGESHWARI (TIRUPUR) B2B nature and since the final product garments is falling under 5 per cent slab,
Accounts Head levying 18 per cent on job work will create an inverted duty scenario disturbing the
ANJU CHAUHAN TONDAK
seamless credit flow thereby defeating the very object behind GST.
Head Office
138/2/9, First Floor, Kishan Garh, Besides, the 5 per cent GST levy on cotton yarn and fabric would make interstate
Vasant Kunj, New Delhi-110070, INDIA
movement of goods smoother and business would become transparent. A small
Tel.: [phone]
[email protected], [email protected] increase in the product rate would become immaterial once business goes with
[email protected]
uniform tax rates across the country. The raw cotton is expected to be little cheaper,
Regd. Office
but the cotton yarn will become little expensive. Similarly cotton yarn exports will
C-46, DGS Housing Society, Plot No. 6,
Sector-22, Dwarka, New Delhi-110075 get little expensive, but since the input tax credit would be available, composite
Regional Offices mills would be benefitted, as individual stage-wise taxation will not be levied.
Tirupur
No. 23, Ground Floor, Indra Nagar, Meanwhile, the textile trading community has opposed the levying of five per
Avinashi Road, Tirupur - 641 603
Tel.: [phone] cent GST on fabric, saying that it will only complicate the matters for businessmen
[email protected] without giving any benefit to the government.
Kolkata
Tapan Kumar - 99581 99872 But overall, GST rollout will help in improving the cost competitiveness and would
Bangalore go a long way in promoting 'Make in India' concept. At the same time, it would
B.P. Mishra - 93414 44727, 080-2343 4446
give impetus for the growth and development of the entire textile value chain.
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Apparel Views Bangladesh Limited
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Tel.: [phone] /
+01713.331.228 /
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Arvind Kumar, Editor & Publisher
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Reproduction of any of the content from this
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permission of the publisher.
APPAREL VIEWS / JUNE 2017 3
Contents
44 54 58
Globe trotter 4
Domestic update 16
Arvind Envisol all set to green Ethiopia’s industries 27
Bring TMC back to double farmer’s income 28
Classify the fault
Defects due to embroidery 32
Planet Textiles makes a big splash in Bangalore 34
SGGCI organises National Digital Textile Printing Conclave 36
JD enters into strategic partnership with Farfetch 38
EcoVeroTM to achieve next milestone
in Lenzing’s sustainability journey 42
GST rollout
68 Gets mixed reactions from textile supply chain 44
Caron Technology
Italian excellence providing customized solutions 54
All exports schemes to continue in mid-term review 56
Pitti Uomo 92 58
Pitti Bimbo 85 68
Lectra Fashion PLM gears
fashion companies up for fourth industrial revolution 76
Forthcoming trade events 78
4 APPAREL VIEWS / JUNE 2017
APPAREL VIEWS / JUNE 2017 5
New training centre for garment
industry in Sri Lanka
A
training centre to train some
35 youth for the garment
industry has been set up in Sri
Lanka after the Security Force
Headquarters - Mullaittivu
(SFHQ-MLT) took initiatives to
establish a new garment factory
in collaboration with the District
Secretary for Mullaittivu and
garment industrialists. The
training centre is an initiative of Global Design Tex. Global Design Tex intends to
provide the youth job opportunities in the garment industry in Mullaittivu area
under the Phase one.
In the second leg of the project, Global Design Tex expects to establish 300-
employee garment factory in the Mullaittivu area for the benefit of unemployed
youth as a gesture of reconciliation and goodwill. With the close coordination of
the District Secretary for Mullaittivu, the new training centre and the SFHQ-MLT,
Sustainability Compact reviews
the training session for 35 young men and women has commenced. During the
priorities for RMG sector training period, each trainee is to be paid `14,000 per month, in addition to meals
and transport provided free of charge
P
artners of the Sustainability Compact – the Government of Bangladesh,
the European Union, the US, Canada, and the International Labour
Archroma to sponsor SDC International
Organisation (ILO) – have held the third follow-up meeting. The meeting
aimed at assessing progress made since the second follow-up meeting on Design Competition 2018
January 28, 2016 and to review priorities for the coming year. The partners
recognise progress made in several areas of the Compact, says the ‘Joint
Conclusions’ released by the partners after their meeting in Dhaka. These
include recent increase in trade union registrations in Dhaka division, work
towards the development of standard operating procedures (SOPs) to better
process applications for trade union registration, strengthening of Department
of Inspection for Factories and Establishment (DIFE), formation of the
Remediation Coordination Cell (RCC) and investment in factory safety with
the initial implementation of corrective action plans.
They also noted the introduction A
rchroma, a global leader in colour and speciality chemicals, will be the new
of the concept of workplace
major sponsor for the SDC International Design Competition 2018 launched
cooperation and building a culture
by SDC on June 20, 2017. SDC’s annual competition engages with hundreds of
of occupational safety and
students, universities and designers globally, helping the entrants develop their
health, according to the Joint
understanding of colour and the challenges around sustainability in the textile
Conclusions. The Compact and the
supply chain. The theme for 2018 is ‘colour communication’.
Joint Conclusions of the Partners
continue to serve as a set of With a global textile supply chain, being able to communicate a given colour
commitments and priorities by its through the supply chain efficiently and effectively is vital. Ultimately this provides
partners aimed at securing respect for labour rights, occupational safety and health, the designer with the knowledge that their product is commercially suitable
and the promotion of responsible business conduct in the RMG sector. from the initial concept stages through to final product. Archroma will support
the competition with its Colour Atlas colour management system, which will be
To ensure that the new SOPs are agreed to for the smooth and expeditious
key to both the competition theme and the accompanying educational package.
processing of trade unions’ registration applications in accordance with objective
and transparent criteria, the partners underlined the importance of upgrading The Colour Atlas includes: A "physical library" consisting of over 4300 colours, in
the Department of Labour with staff and resources. 6 volumes, for quick and intuitive browsing of the cotton poplin samples.Mobile-
friendly Colour Atlas Online with exciting features such as “colour-on-the-go”
The partners welcomed the formation of Tripartite Consultative Council (TCC)
which allows you to capture an image using your smart phone, and identify the
for RMG sector as an advisory body for industrial relations between the workers
closest Colour Atlas shades. Engineered Colour Standards connected to robust
and the factory owners. They also recognised the urgent need to begin inclusive
online technical databases via mobile communication technology.Using these
consultations towards the amendment of the Bangladesh Labour Act (BLA) and
colours also provides the best opportunity to minimise the environmental impact
associated regulations to address the conclusions and recommendations of
during the dyeing/printing process by ensuring that the dyes conform to many of
the ILO’s supervisory bodies.
the environmental standards that exist and are applied using best practice.
Further, the partners recognised the urgent need for promoting responsible
“We at Archroma are very proud to be the official sponsor of the SDC International
business conduct (RBC). “They encourage brands and retailers to adopt RBC
Design Competition. The participants will be able to experience first-hand how
practices and a uniform code of conduct for factory audits in Bangladesh,” the
the Colour Atlas can support their creativity. For Archroma, this is a great
Joint Conclusions said.The partners agreed on the need for the National Initiative,
opportunity to further drive innovation and sustainability in the textile supply
the Accord, and the Alliance to commence where not started and advance
chain,” commented Brad McClanahan, Global Head of Service Businesses at
remediation work. “They encourage private initiatives to remain engaged with
Archroma. “We are looking forward to seeing our Colour Atlas translating into
the government and to renew their commitments to working for safer RMG
cool fashion pieces,” McClanahan concludes
factories in the coming years”
6 APPAREL VIEWS / JUNE 2017
H&M initiates steps to improve Vietnam gets assistance from IFC
working conditions for green textile production
H T
&M group has initiated several steps he garment-textile sector is the second largest earner of foreign currency
to improve working conditions of for Vietnam, earning over $27 bn. from exports per year. To help Vietnamese
workers making H&M products at its garment-textile outsourcers save over 20 per cent of water and energy
suppliers. One of its major goals has been consumption, the International Finance Corporation (IFC), a member of the
to ensure that factory employees are World Bank Group held a workshop reviewing the programme on enhancing
represented by trade unions to negotiate resource-efficient consumption in HCM City.
collectively, for this it is training factories
The sustainable production project
on workplace cooperation, negotiation
has been carried out in 28
skills, collective bargaining and labour law. “The work is at the top of our
enterprises and factories nationwide
agenda and we stay true to our collaborative approach and methodical way of
doing outsourcing for VF Group and
working, making it possible to take important steps forward,” H&M said.
Target Group over the past 18
The group facilitates dialogue between the employers and the employees at months, mostly during the stages of
the factories and in the labour market in the countries where its products cutting, sewing, dyeing, printing and
are made. This is fundamental to be able to improve working conditions, laundry. The project, worth $9.9 mn,
including wages, it said and added 290 factories are enrolled in the workplace has applied measures to enhance
dialogue and industrial relations programmes while more than 370,000 factory resource efficiency, saving $15 mn for Vietnamese enterprises by reducing water,
workers are directly covered by democratically elected worker representation energy and chemicals consumption. Once all recommendations under the project
through its programmes run in Bangladesh, Cambodia, China, Ethiopia and are implemented plus an additional investment of $26 mn in new equipment is
India. “In 2018, the goal is to have democratically elected worker made, the targeted enterprises will save up to 2.8 mn cubic mtr of water and
representatives in place at supplier representing 50 per cent of our product 562,000 tonne of greenhouse gas per year in the next two years.
volume,” the group said.
Kyle Kelhofer, Country Director of IFC for Vietnam, Cambodia and Laos, said that
“Our collaboration within the Global Framework Agreement - pushing the the results of the project in the first stage have proven economically efficient
development forward - was converted to a permanent agreement. H&M became thanks to the saving of resources. With fast growth of the nation’s economy as
an official supporter of the Global Deal partnership,” it said. The group is also well as in the garment-textile sector, measures to enhance resource efficiency in
trying to make sure that the wage issue is negotiated and that workers have the garment and textile sector will open up important opportunities for Vietnam
knowledge about their wage, benefits and rights. Wage should also take the to boost sustainable growth in the private sector. They will also help Vietnamese
individual worker’s skills, experience, performance and responsibility into factories save production cost while promoting resource-efficient consumption
consideration. Such systems are being implemented at an increasing number and sustainable development. IFC plans to work with other leading global brands
of factories - 140 until the end of 2016, and an additional 96 during 2017 to promote implementation of the programme for Vietnamese outsourcers
APPAREL VIEWS / JUNE 2017 7
Pakistan textile, Brandix is Sri Lanka's most valuable export brand
clothing export decline
B
randix, rated Sri Lanka’s top exporter across all sectors,
has emerged as the country’s most valuable export brand
for the third consecutive year, according to the 2017 Brand
Finance rankings of the country’s leading brands. Brandix leads
a group of highly respected export brands in apparel, IT, tea,
manufacturing, processed foods, services and printing.
According to Brand Finance, the attributes taken into account
for the rankings included a brand’s corporate vision, reputation
and image, leadership and people, degree of innovation, and
quality consciousness.
“The scale or size of the exporter plays a key role in being included in our listing, as it is based on
the perceptions of survey respondents who are middle to Senior Managers in business,” Brand
P Finance said in its segment titled ‘Strongest Export Brands’. Last year, Brandix was declared the
akistan’s textile and clothing exports witnessed
country’s largest exporter overall by the Export Development Board for 2014 and 2015, confirming
decline during the July-May period of 2016-17, as per
the group as Sri Lanka’s top exporter across all industries for the past four years. In all, the group
data released by the Pakistan Bureau of Statistics recently.
has won 25 Presidential export awards. The pioneer of the concept of ‘total solutions’ in Sri Lanka’s
The decline in export proceeds was evident in rupee terms.
apparel sector and a preferred supplier to some of the top retail brands in the US and Europe,
Overall export proceeds in July-May were down 3.13 per
Brandix is also a benchmark and international award winner for eco-friendly manufacture and
cent to $18.540 bn. During the first 11 months of the
commitment to environmental best practices
current fiscal year textile and clothing exports decline
1.98 per cent year-on-year to $11.24 mainly due to lower
proceeds from raw material and low value-added products,
PNG Govt. to support its garment and textile industry
such as cotton yarn and fabrics.
On a month-on-month basis, the export proceeds dropped P
apua New Guinea (PNG) is looking to boost its
12.24 per cent in May negating the government’s claim
textile industry, the government run garment and
of reviving the growth in the sector despite offering huge
textile training institute, a sleeping giant striving to
subsidies. Product-wise details show exports of ready-
make its stand in today’s small to medium business
made garments rose 4.15 per cent while those of
sector. The training institution under the care of the
knitwear dropped 1.85 per cent in July-May. Exports of
SME Corporation has been serving, women, girls,
bedwear edged up 3.22 per cent, while those of towels
men and youths in tailoring and textile programs in
fell 4.77 per cent. In primary commodities, exports of
the bid to help improve their lives.
cotton yarn witnessed a year-on-year decline of 3.64 per
cent while those of cotton cloth and yarn (other than So far more than 3000 participants have
cotton) dropped 5.81 per cent and 27.32 per cent, graduated from the institution since the
respectively. Exports of made-up articles, excluding establishment of the program in 2002 and are now engaged in the SME business development
towels, dropped 0.45 per cent and those of tents, canvas sector in the country including Solomon Islands. The Department of National Planning and Monitoring
and tarpaulin grew 52.85 per cent. Proceeds from art, Representative and Keynote Speaker Betty Nime speaking at the 28TH Graduation Ceremony was
silk and synthetic textile exports declined 33 per cent overwhelmed by the participants’ efforts.
while exports of raw cotton also recorded a year-on-
Nime said that the government remains committed to creating an environment that is conducive to SME
year decline of 47.14 per cent.
development and has already started to build business capacity trainings to support institutions such as
Exports of value-added products grew in terms of both garments and textile. She added that a PNG Garment and Textile Industry Development Policy has projected
value and quantity during the July-May period. The that the domestic demand for garment and textile from 2002-2015 is about K3.3 bn. in 2016-2022
preferential access to the European Union under the
GSP+ scheme hasn’t boosted proceeds due to a slump
in demand.Last year, the government announced a Christian Dior, Nike top apparel companies
textile policy that gave a 4 per cent rebate on the
exports of readymade garments on a 10 per cent C
hristian Dior, Nike, and Inditex have topped Forbes'
incremental increase over the preceding year, 2 per
2017 Global 2000 list as the largest apparel companies.
cent on home-textiles and 1 per cent on fabric. No
Forbes’ annual and comprehensive list of the world’s largest
support was announced on raw material or yarn exports.
and most valuable public companies is based on a
Jan 15 onwards, the government has not only increased
composite score of revenues, profits, assets, and market
the rebate to 7 per cent for readymade garments, but
value of the companies. This year, 28 retail names made
also allowed cash support of 4 per cent on yarn and
to the top of the list. The list includes luxury brands like
grey cloth under the Rs 180bn package announced by
Hermes, Prada, and Burberry, alongside legacy players like
the Prime Minister.
Coach, Macy’s and Nordstrom, according to Forbes.
Out of the total allocations, an amount of Rs 107.5 bn
Christian Dior came in as the apparel king, rising 27 spots
was allocated to textiles sector – Rs 87.5 bn for
to be number 189 on the overall list and the biggest in the
drawbacks and Rs 20 bn for withdrawal of duties/taxes
apparel industry with $43.6 bn in sales, $1.95 bn in profit
on import of cotton and machinery. Moreover, an amount
and $68.3 bn. in assets. Christian Dior also continues to bring in revenue courtesy of affiliated upscale,
of Rs 12.5 bn was the annual allocation for drawbacks
luxury brands through LVMH including Dom Pérignon, Veuve Clicquot, Givenchy and De Beers. Nike
on export of non-textile value added sectors. The export
occupied number 2 spot, ranking 249th on the Global 2000, up 12 notches from the year prior. Sales of
finance rate is currently at 3 per cent, which is the lowest
$33.8 bn and profit of $4 bn didn’t hurt the maker of athletic apparel.
in a decade. Spinning and ginning sector have been
included in the long term financing facility. The sales tax Finally, rounding out the top three is Industria de DisenoTextil (Inditex), which also rose in rank in 2017.
zero-rating regime for the five export sector was The parent company to Zara came in 276th, up 34 spaces from 310th in 2016. Inditex reported sales of
continued in the fiscal year 2017-18 $25.7 bn and profit of $3 bn and the company’s assets of $21 bn in 2017
8 APPAREL VIEWS / JUNE 2017
APPAREL VIEWS / JUNE 2017 9
Zünd unveils cradle feeder roll-feed system for fabrics
Z
ünd Systemtechnik AG, Switzerland’s textile Intelligent edge control continually governs the precise
machinery firm that specialises in manufacturing positioning of the web on the cutting surface. If the
digital cutting systems, has launched the new cradle sensor detects any irregularities, the cradle feeder
feeder, a new roll-feed system that permits wrinkle adjusts automatically by correcting the alignment of
and distortion-free unwinding of stretch fabrics. the cradle. Because of this capability, even less than
Integrated edge control ensures precise and reliable perfectly wound rolls can be fed accurately onto the
positioning of the material on the cutting surface. cutting surface. When the roll comes to an end, the
unwinding/advancing process stops automatically,
Simple handling, automated processes, and high-
which permits error-free feeding of textile rolls even in
quality results, these are the basic requirements any
At the core of the new feeder is a cradle equipped cases where the end of the material is attached to the
state-of-the-art roll-handling system has to meet. It
with an array of conveyor belts. For ergonomic loading, core. As no shaft is needed to hold the roll in place,
also requires the kind of flexibility that is indispensable
the back of the cradle tilts down. A dancer bar there are no particular requirements in terms of core
for complying with increasingly individual customer
continually registers fluctuations in web tension. If diameter or characteristics. Even rolls with crimped,
needs. To address all of these demands, Zünd has
necessary, the system automatically regulates the broken, or missing cores are suitable for processing
added a cradle feeder to its assortment of automated
feed rate, which is also in synch with the cutter and with the cradle feeder
material-handling devices.
further minimises tension and wrinkles.
Dutch and Italian fashion & textile industries join hands
O
n the occasion of the State Visit to Italy by Their Memorandum of Understanding (MoU). The MoU
Majesties the King and Queen of The Netherlands defines actions by MODINT and SMI to help the Dutch
and a Dutch trade delegation led by the Minister for and Italian fashion and textile industries work together
Foreign Trade and Development Cooperation, Lilianne on recycling, labour standards, sustainable raw
Ploumen, the Italian and Dutch fashion and textile materials and domestic production. MODINT and SMI
industry will join hands. MODINT, the Dutch are both members of the International Apparel
association for the Fashion and Textile industries and Federation (IAF), an international organisation that
lead of the fashion mission and Sistema Moda Italia supports industry development by helping to build
(SMI), the Italian association for the Fashion and Textile intelligent connections among its members. In the
supply chain in Italy, have concluded a Memorandum MoU, Italian and Dutch businesses will explain how
garment manufacturing. The Dutch industry is known
of Understanding (MoU) which emphasises the they cooperate, how they can support sustainable value
for its distinctive design and ground-breaking
growing interaction between the Dutch and Italian chains, how they envision their business growing
innovations in for example recycling and strong fibres.
fashion and textile industries. together in the coming years, and what their respective
Because the apparel and textile industry business
governments can do to support that growth.
During the ‘Best of Both’ Event on June 23, 2017 in models are relying more and more on sustainability
Milan, the Minister and a delegation of Dutch and Italy, famous for its high fashion design, also has a and transparency, responsible production within Europe
Italian VIP’s and innovators active in the fashion and strong integrated apparel and textile industry with a is gaining popularity and Dutch and Italian supply chains
textile industry will witness the signing of a promising focus on recycling, spinning, weaving, knitting and are becoming more intertwined
Reducing gender GAPS likely to improve Asia-Pacific economy
E
ast and South Asia stand out as the only two goal was realised worldwide it has the potential to add $5.8 tn. to the global
regions in the world where female labour force economy, of which $3.2 tn. would accrue to the Asia-Pacific alone. “This could
participation rates have decreased over the past also unlock large potential tax revenues – an important consideration as the
two decades and gender gaps increased, region adjusts to ‘new normal’ lower levels of economic growth,” said Richard
according to a new ILO report. According to Horne, Economist in the ILO Regional Office for Asia and the Pacific and Co-author
World Employment and Social Outlook (WESO) of the report.
report, Trends for Women 2017, shows gender
Besides these sizable economic benefits, engaging more women in the world of
gaps are one of the most pressing challenges
work would have major impacts on well-being. The report finds, for instance, that
facing the world of work. Women are significantly
around 80 per cent of women polled in East Asia and South-East Asia and the
less likely than men to participate in the labour Tomoko Nishimoto
Pacific stated that they would rather be working in a paid job than staying solely at
market, and those who do look for work are less
home. Yet at the same time, around 40 per cent of working-age women in these
likely than men to find it. What’s more, women in the region work in jobs that tend
regions are not in the labour market, suggesting major obstacles continue to exist
to be both of lower quality and lower pay than their male counterparts.
that prevent women from fully engaging in paid work.
At the global level, there have been some improvements in reducing gender
“The obstacles that prevent women from joining the workforce are still too firmly
gaps in labour force participation. Yet this has been less apparent in Asia. In
rooted in the region. We need to improve family-friendly work policies and have
fact, less than one in three women in South Asia are active in the labour
better care options for women to be able to take part in the labour market,” said
market (28.6 per cent), representing a female participation rate that is 51
Tomoko Nishimoto, ILO Assistant Director-General and Regional Director for Asia
percentage points less than the rate for males. Moreover, this gap has widened
and the Pacific.
the most over the last decade more than in any other region. In East Asia, the
gap is less worrisome as the participation rate for women remains the second Over 20 per cent of female respondents in the Asia-Pacific region cited ‘work/
highest globally at 61.3 per cent. family balance’ as a major challenge to labour participation. Worryingly, around 22
per cent of respondents in East Asia – more than any other region – cited ‘lack of
In 2014, G20 leaders made a commitment to reduce the gap in participation rates
affordable care’ as a challenge faced by women
between men and women by 25 per cent by 2025. The report estimates that if this
10 APPAREL VIEWS / JUNE 2017