APPAREL VIEWS / MAY 2018 1 2 APPAREL VIEWS / MAY 2018 MAY 2018,VOL.- XVII / ISSUE NO. 05 Editor & Publisher ARVIND KUMAR f r o m t h e e d i t o r . . . Associate Editor B.P. MISHRA Asst. Editor I ndia’s apparel export has shown a decline of 22.76 per cent for the SWATI SHARMA month of April 2018 as against the corresponding month of April 2017, Editorial Adviser RAJESH CHHABARA as per the latest trade data. In April 2018, the Indian RMG exports were Sub Editor - Creative to the tune of $1.34 bn as against the corresponding month of previous JOHN EDWARDS year, when the exports was $1.74 bn. In rupee terms, export for the Art Director Month of April 2018 was `8,859.67 cr as against `11,272.24 cr in April SANJAY BHANDARI 2017, showing a decline of 21.40 per cent. Sr. Correspondent ASHWANI KUMAR Last year, the industry witnessed a strong growth but now the exports Correspondent DEEPTI are in a negative territory since October due to a declining trend in the global apparel industry. The high base effect has been due to the release Creative - Head SREEKUMAR. M of RoSL amount during April 2017 but the continued backlog in GST Sr. Layout Artist and RoSL is affecting the sentiments. Industry has been demanding for JATIN JAIN an early resolution of the issues. Sr. Designer RAJEEV KUMAR However, industry has welcomed the extension of MEIS scheme on Production Manager garments & made ups beyond June 2018. The extension in MEIS scheme MUKESH POKHRIYAL will be a breather and sanction of request to ensure that all embedded, e-Magazine SUMER SINGH non-reimbursed Central and State levies be refunded, which will help in Business Promotion restoring the competitiveness of Indian exports. BOBBY BAKSHI (DELHI) RAHUL SINGH YADAV (DELHI) Moreover, the country needs to relax labour laws and enhance incentives N. SABARI SELVAM (TIRUPUR) in order to become the preferred sourcing destination in textiles sector, PAVITHRA R. (TIRUPUR) as per a report submitted to the government. The study, suggested Circulation ARCHANA (DELHI) strengthening the eco-system for textile exports, integrating fragmented V. MURUGESHWARI (TIRUPUR) textile value chain and investing in skill upgradation as measures needed Accounts Head to boost India’s sourcing potential. ANJU CHAUHAN TONDAK Head Office The poor State of roads and connectivity around weaver hubs have led Plot No. 31, 1st Floor, Sai Enclave, Sector -23, Dwarka, New Delhi - 110077, INDIA to reduced number of personal visits by buyers, leading to greater Tel.: 093107 66051, 093508 64036 dependence on buying agents. Moreover, the high import cost of latest [email protected], [email protected] [email protected] machines deters many small manufacturers from upgrading to the latest Regd. Office technology, thereby contributing to compromises on quality. C-46, DGS Housing Society, Plot No. 6, Sector-22, Dwarka, New Delhi-110075 I think with timely intervention of the government, things should improve Regional Offices in next two-three months. Tirupur No. 23, Ground Floor, Indra Nagar, Avinashi Road, Tirupur - 641 603 Tel.: 0421-4325579, 95439 55888, 88700 06778 [email protected] Kolkata Tapan Kumar - 99581 99872 Arvind Kumar, Editor & Publisher Bangalore B.P. Mishra - 93414 44727, 080-2343 4446 Overseas Office Apparel Views Bangladesh Limited Section-1, Road-1, House-21, Priyanka Housing, Mirpur-1, Dhaka 1216, bangladesh, Bangladesh, Tel.: +88.02.900.9419 / 01799.751.096 / +01713.331.228 E-mail: [email protected] / [email protected] www.apparelviews.com Owner, Publisher, Printer & Editor - Arvind Kumar, printed and processed by him at Sterling Publisher Pvt. Ltd., A-59, Okhla Industrial Area, Phase - II, New Delhi - 110 020, published from C - 46, DGS Housing Society, Plot No. 6, Sector - 22, Dwarka, New Delhi - 110 075. 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APPAREL VIEWS / MAY 2018 3 Contents 28 36 68 Globe trotter 4 Domestic update 16 OEKOTEX® and Hohenstein develop portfolio to provide security and conformity in chemicals usage 26 Hank yarn packing order reduce obligation to 15% 28 “Fashion Goes Digital” takes the lead in fashion technology 30 Archroma enters into partnership with House of Denim Foundation 30 SWF SunStar coming closer to customers with improved service support 32 Directa Plus and Arvind sign exclusive collaboration agreement 33 FBB announces association with LYCRA® fiber brand to offer high-quality fashion with performance 34 40 How to build a sportswear brand 36 Increase your profitability and factory safety with Damir Busbar systems 38 Amazon India Fashion Week 40 Fespa Berlin Showcases latest innovations and product launches 52 Screen Print India 2018 68 Budding designers of Satyam Fashion Institute showcase Women Power 70 Forthcoming trade events 71 4 APPAREL VIEWS / MAY 2018 APPAREL VIEWS / MAY 2018 5 Bangladesh & Thailand boosting bilateral trade B angladesh and Thailand are working towards boosting bilateral ties and the trade between the two countries is expected to touch $2 bn by 2021. Bangladesh has also requested a Thai delegation led by Kobsak Pootrakool, investment and economic reforms affairs Minister, to consider a free trade agreement (FTA) to encourage bilateral trade. A meeting was held between the Thai delegation and Bangladesh representatives led by Tofail Ahmed, Commerce Minister of Bangladesh. Ahmed made the request to sign an FTA as Thailand already offers duty-free access to many Bangladeshi products. He has also asked the delegation to provide duty-free access to some other items including garments, leather goods and jute products. The Commerce Minister also invited Thai entrepreneurs to invest in Bangladesh, according to report. The country is willing to provide a special economic zone as well as business facilities to foreign investors, added Ahmed. Bangladesh- Thailand trade currently amounts to $800 mn, with the latter’s export amount standing at $781 mn. Ahmed also said that Bangladesh is now concentrating on signing FTAs as it is slated to graduate out of the least developed countries (LDCs). The country will sign FTAs with Cambodia and Sri Lanka by the end of this Kenya's AGOA exports decline year and is also considering similar agreements with some other nations 4.65 per cent in 2017 US retail imports to grow despite K enya’s exports of goods to the US under the African Growth and Opportunity tariff threat Act (AGOA) declined by 4.65 per cent or Ksh1.6 bn ($15.9 mn) in 2017. The exports, mainly textile items, fell from Ksh34.4 bn ($343.3 mn) in 2016 to I mports at the major retail container ports in the US are expected to grow Ksh32.8 bn ($327.3 mn) last year, according to recent Economic Survey. steadily throughout the summer despite the prospect of heavy tariffs on Capital investment too goods from China, says a recent report. Ports handled 1.54 mn Twenty-Foot dropped last year by 14.1 Equivalent Units (TEU) in March that was down 8.6 per cent from February per cent. “The value of ex- because of Lunar New Year factory shutdowns in Asia. TEU in March was ports reduced for a sec- down only 0.7 per cent YoY, according to the monthly Global Port Tracker report ond consecutive year… released by the National Retail Federation (NRF) and Hackett Associates. A with capital investment TEU is one 20-foot-long cargo container or its equivalent. reducing to Ksh14.2 bn “With proposed tariffs yet to ($141.7 mn) in 2017,” the be officially imposed, Survey said. AGOA ex- retailers are stocking up on ports constituted 60 per merchandise that could cent of all Kenyan goods shipped to the US in 2017. Textile and apparel products soon cost considerably continue to dominate Kenyan exports under the AGOA since it was enacted in more,” NRF Vice President 2000. AGOA was last extended in June 2015 for ten years till 2025, including for supply chain and third-country fabric provisions customs policy Jonathan Gold said. “If tariffs do take effect, there’s no quick or easy way to switch where these products come from. Renova announces partial exit American families will simply be stuck paying higher prices and hundreds of from its investment in Oerlikon thousands of US jobs could be lost.” “Despite the threats and risks to trade, we continue to see solid expansion and L iwet Holding AG, Zurich ("Liwet") on May 18, 2018, Renova has divested the our models are projecting this to continue throughout the year,” Hackett majority of its shareholdings in Liwet, Renova's Swiss company holding a Associates Founder Ben Hackett said. “This is driven by a high level of confidence major stake in Oerlikon. As a result, Renova’s effective shareholding in Liwet as the economy remains strong and unemployment is at its lowest level in dropped below the controlling block and amounts to 44.46 per cent in total. nearly two decades.” April was estimated at 1.73 mn TEU, up 6.4 per cent YoY. While Renova's shareholdings in Oerlikon have fallen from 43.04 per cent to May is forecast at 1.82 mn TEU, up 4.3 per cent from last year; June also at 1.82 approximately 20 per cent, Liwet’s stake in Oerlikon remains unchanged. mn TEU, up 6.1 per cent; July at 1.9 mn TEU, up 5.5 per cent; August at 1.92 mn Oerlikon engineers materials, equipment and surfaces and provides expert TEU, up 4.6 per cent, and September at 1.82 mn TEU, up 2.1 per cent, as per the services to enable customers to have high-performance products and systems report. The numbers forecast for July and August would each set new records for with extended lifespans. Drawing on its key technological competencies and the number of containers imported in a single month, beating the previous high strong financial foundation, the Group is sustaining mid-term growth by executing of 1.83 mn TEU in August 2017. three strategic drivers: addressing attractive growth markets, securing The first half of 2018 is expected to total 10.4 mn TEU, an increase of 5.8 per cent structural growth, and expanding through targeted M&A. over the first half of 2017. The total for 2017 was 20.5 mn TEU, up 7.6 per cent from A leading global technology and engineering Group, Oerlikon operates its 2016’s previous record of 19.1 mn TEU. Global Port Tracker, which is produced for business in three Segments (Surface Solutions, Manmade Fibers and Drive NRF by the consulting firm Hackett Associates, covers the US ports of Los Angeles/ Systems) and has a global footprint of around 15,000 employees at 186 locations Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New in 37 countries. In 2017, Oerlikon generated CHF 2.8 bn in sales and invested Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and CHF 107 mn in R&D Jacksonville on the East Coast, and Houston on the Gulf Coast 6 APPAREL VIEWS / MAY 2018 Myanmar Govt. launches garment EC takes action against workers' safety guidelines hazardous chemicals in clothing T A he Government of Myanmar has introduced some health and safety guidelines majority of the EU for workers in the garment sector in order to improve the working conditions of countries have supported the employees. The guidelines have been launched by the country’s Ministry of the European Commission’s Labour, immigration and population and includes instructions for handling machines, proposal to protect the EU equipment and chemicals. consumers from substances known to cause cancer and The Labour Ministry along with reproductive health problems. Myanmar Garment Manufacturers Under the REACH Regulation, the Association (MGMA), Myanmar Commission proposed to limit Infrastructure, Craft and Services the exposure to 33 chemicals (MICS), the Confederation of Trade that are carcinogenic, mutagenic Unions Myanmar (CTUM) and the or toxic by restricting clothing and textiles containing them. “The proposal Agriculture and Farmers Federation follows discussions with relevant stakeholders, in particular citizens, public of Myanmar put together the safety authorities, industry and trade associations, NGOs and EU countries’ guidelines. They also received representatives,” European Commission said on its website. technical support from the government of Denmark. Thein Swe, The proposal will now go to the European Parliament and the Council for labour Union Minister of Myanmar, urged the garment sector to use these guidelines scrutiny. Thereafter, it will become applicable in the following 24 months from for the safety of factory workers at the launch ceremony held recently. The guidelines the date of publication in the Official Journal of the EU. Once the restriction have especially been formulated for the garment sector as it is one of the most enters into force, clothing and related articles, textiles and footwear containing important industries of Myanmar and offers jobs to a number of workers in the country. the listed substances, whether they are produced within the EU or imported into the EU, will not be allowed to be placed on the EU market. Close to half million workers are employed in the garment sector and the demand for more employees is increasing, said Kyaw Win, Vice President of MGMA, at the The restricted substances may be present in clothing, textiles, and footwear launch ceremony of the guidelines. He added that the association wants to ensure either from the production process or because they have been added sustainable development of the sector. intentionally to give specific properties such as to prevent shrinkage or make fabric crease-resistant. Consumers can be exposed to these hazardous Stressing on the importance of following the guidelines, Naw Aung, Vice President substances through skin contact, inhalation or unintentional ingestion of of MICS, urged factory owners to obey the guidelines. The garment sector is likely to dust released from the textile fibres. Small children are also at risk due to a provide jobs to close to 1.5 mn workers by 2020, as per the Myanmar Government. possible oral exposure Investments are also expected to increase by about $10 bn APPAREL VIEWS / MAY 2018 7 Hugo Boss to increase Drop in customs revenue from garment use of sustainable cotton imports worries Nepal T he drop in customs revenue from import of readymade garments (RMG) and its raw materials in the first eight months of the current fiscal, which ends on July 15, is a major concern for government officials in Nepal, which has set an overall revenue growth target of 25 per cent in 2017-18. Revenue from import of RMG fell by 10 per cent to `1.69 bn. From July 15 last year to February 15 this year, garment imports increased by a whopping 91 per cent to Hugo Boss, a German luxury fashion house, has defined `11.44 bn over figures during the same specific goals for sourcing sustainable cotton, says its period of the last fiscal. However, its sustainability report for 2017. By the year 2020, 50 per cent imports saw a sharp fall in the eighth month of the current fiscal to `1.2 bn from `2.3 bn in the of the cotton will come from sustainable sources, in seventh month, according to a report. accordance with the criteria defined in the group’s cotton Officials believe many traders might have stopped ordering garments after Finance Minister Yuba commitment. By 2025 this percentage will increase to 80 Raj Khatiwada announced in February curbing under-invoicing at the customs points. Investigation per cent. Cotton by far constitutes the largest percentage of is under way into the reasons behind the significant drop in revenue and security agencies have total material usage at Hugo Boss, followed by wool, beefed up inspection at border points and nearby areas to curb smuggling of goods from India. With synthetic fibres and leather, according to the report. The below-target revenue collection, the government has been forced to continue internal borrowing to majority of the woven fabrics sourced by the company come arrange funds for its spending, said the report from Europe, with many materials being supplied by long- established partners in Italy. Egypt's garment exports up 17 per cent to In order to promote more sustainable cotton production, the group joined the BCI in 2017, which supports farmers $385 mn in Q1 2018 with sustainable cotton farming, trains them and provides them with licenses, thus also improving their quality of G arment exports from Egypt fetched life. Efficient water usage in cotton farming is one of the $385 mn (LE 6.77 bn) in the first BCI’s six core principles and is defined through optimised quarter of 2018, showing an increase water consumption and the protection of groundwater and of 17 per cent over exports of $330 mn surface water. "In 2017, a sustainable capsule collection during the same period of the previous was also created under the Boss Men’s Casualwear, where year, reported quoting data from the sustainable raw materials, recycled cotton and organic Ready Made Garments Export Council. cotton were used exclusively, and where particular The council expects $1.8 bn exports attention was paid to special environmentally-friendly this year. Of the total export in January- finishing processes. The capsule collection will be March 2018, around 48 per cent or $185 available with the Fall/Winter collection 2018 in stores, mn of garments were destined to the US. This a 16 per cent jump compared to $160 mn during the online in Europe and also at selected stores in the Americas comparable period of 2017. Month-wise, exports earned $129 mn, $133 mn and $123 mn in January, and Asia," the report stated. February and March respectively, compared to exports of $104 mn, $110 mn and $116 mn in the "We have made a commitment to sustainable management corresponding months of the previous year. with the purpose of developing the future growth of the If the current trend continues, the council is hopeful of achieving $1.8 bn in exports this year, said Group. Sustainability at Hugo Boss is based on the interplay quoting Council Executive Director Sherin Hosny. Egyptian garment industry is also expected to between the three factors of quality, innovation, and benefit from the recently agreed African Continental Free Trade Area (ACFTA), as it will boost responsibility. As one of the leading companies in the Egyptian apparel exports to other African countries, including South Africa premium segment of the global apparel market, Hugo Boss and its brands represent premium fashion and accessories for men and women. We ensure that these products are Cambodia can benefit from US-China trade war also manufactured in compliance with environmental and ethical standards on the production side. When selecting The ongoing trade dispute between the US and China could provide raw materials and carrying out refinement, we acknowledge an opportunity to Cambodia to increase its exports to the US, the the aspect of environmentally- and socially-friendly largest market for its garment and footwear products, according to a production. This approach is rooted in our intrinsic conviction top official from the Cambodian Ministry of Economy and Finance. The and forms part of the quality promise we make to our recent tax reform in the US is also likely to help Cambodian exporters. customers," Mark Langer, Chairman of the Managing Board As trade barriers between the US and China increase, investors from and Chief Executive Officer. the US will look away from China to set up their factories. Cambodia can take advantage of this situation by improving its competitiveness The group’s overarching goal is to reduce the use of through reduction in power and transportation costs and streamlining chemicals for better environmental sustainability and the trade procedures, Vongsey Vissoth, Secretary of State at the Ministry, guaranteed safety of the products. Hugo Boss has developed told during the annual meeting of the Asian Development Bank in Manila. an internal roadmap in this respect and has set itself medium-term goals. In collaboration with partners in the Talking about the recent tax reform in the US, Vissoth said it will boost the US economy, and thereby supply chain, in order to drive forward innovations for create several new opportunities for Cambodian exporters. He expects this could help the Cambodian reducing the use of critical chemicals across the whole GDP to grow by 0.5 per cent. “A buoyant economy in the US multiplies opportunities for exporters in industry, Hugo Boss is also committed to various working Cambodia,” he said, adding that the US has recently extended its GSP programme, which grants groups and alliances Cambodian companies’ access to duty-free privileges when exporting to the US, a report said 8 APPAREL VIEWS / MAY 2018 APPAREL VIEWS / MAY 2018 9 Ethical scores in Bangladesh rose 15 per cent in 12 months E thical scores in Bangladesh rose by an average of as per the survey. Pollution and waste management 15 per cent during the past 12 months, according accounted for over 80 per cent of non-compliances to a recent report. The survey says that the results found by AI in Q1 2018, with over two-thirds of them reflect the continuous pressure to improve, which is classified as major. put on Bangladesh based textile and apparel Overall, ethical audit scores in Q1 2018 offer some manufacturers by the industry groups formed after hope for improvement after a disappointing the Rana Plaza collapse in the year 2013. performance last year, with a lower share of critically A look at ethical performance by region indicates little non-compliant (‘Red’) factories compared to early change for Chinese manufacturers, with average 2017. The report also says that Growth remains robust scores flat at 7.7 out of 10, notes the 2018 Q2 in Southeast Asia, with Cambodia continuing to Barometer report by Asia Inspection (AI). By contrast, percentage of factories at immediate risk is steadily outpace its economic forecast for the second year South and Southeast Asia are showing some much- inching upwards. Overall, only a third of all factories running, and inspection demand rising 22.4 per cent needed improvement. In spite of the increase in ethical received a passing grade for combined structural, YoY in Q1 2018. Pakistan also maintains momentum scores, AI data shows that factories in Bangladesh fire and electric safety, while 57 per cent require gained during last year, with inspection volumes are still plagued by health and safety issues, which remediation to mitigate medium-term risks. Also, the expanding 10.3 per cent YoY in Q1 2018. were ranked the most pressing concern of Q1 2018, majority of critical safety violations observed by AI Sourcing outside of Asia maintains an upward taking over working hours and wage compliance. this quarter were attributable to fire safety issues, trajectory, reflecting the ever-increasing Factory scores for health and safety are roughly 9 per adds the report. diversification of sourcing patterns, according to AI cent behind the aggregated average. There is a strong demand for environmental audits, survey. The Latin American region serves as a prime The AI survey’s data is consistent with the field data especially in China where brands and manufacturers example, with first-quarter demand for inspections of AI structural safety audits, which indicate the struggle to comply with the new anti-pollution laws, and audits increasing 26 per cent YoY INVISTA celebrating 60th anniversary of Lycra fibre to drive sales for leading clothing brands and retailers fibre that revolutionised the fashion industry, with a around the globe.” donation to the National Inventors Hall of Fame. Dr Joseph C. Shivers, a DuPont chemist, invented the The company commented that, today, Lycra fibre can world’s best-known branded fibre in 1958, changing be found in virtually every piece of clothing, including clothes and the way we wear them. underwear, lingerie, swimwear, denim, socks, activewear, hosiery, and ready-to-wear pieces. It has Dave Trerotola, President, Invista Apparel said that, also been the catalyst for the development of new multi- “This is an exciting year for the Lycra brand as we billion-dollar segments across shapewear, stretch reflect and look back at how far we’ve come and look denim, compression sportswear and athleisure apparel. forward towards a bright future filled with innovative It also added that, “It quickly became apparent that products designed to improve fabric performance.”He T Lycra fibre had the power to transform other types of also added that, “Throughout 2018, we will be developing he company concluded that, “What began six women’s clothing and menswear too.” engaging content for our media channels that celebrates decades ago as a single elastic fibre renowned for our brand’s rich heritage.” Originally invented to replace its ability to stretch and snap back to its original Dr. Shivers is being recognised for his invention by rubber threads that caused ladies foundation garments shape, time after time and wash after wash, has the National Inventors Hall of Fame Sixty years later, to lose their shape and fit over time, and made them evolved into a portfolio of over 200 differentiated fibres where he will be posthumously inducted into the hot and uncomfortable to wear. Lycra fibre outperformed designed to meet a wide variety of consumer needs. Class of 2018. The gala ceremony took place on 3rd the natural fibre it replaced by adding lasting comfort, Each one is engineered to improve fabric aesthetics May in Washington, DC.INVISTA is celebrating the fit and the ability to move freely and add lasting performance benefits that continue 60th anniversary of its Lycra fibre, the original spandex Ricoh partners with Coloreel to revolutionise textile industry P rint specialist Ricoh has entered a partnership collaboration between Ricoh experts based in Japan with Swedish technology innovation company and the UK with Coloreel engineers in Sweden. Ricoh Coloreel to create a groundbreaking thread colouring will develop and build a major sub-system in the unit, unit for the textile industry. The landmark move will based on the company’s advanced inkjet printing enable textile, fashion and sportswear businesses to capabilities. This will be complemented by Coloreel’s evolve their offerings through high-quality instant colorisation technology. colouring of textile thread while in production. By Peter Williams, General Manager of Commercial and instantly colouring a white base thread during the Industrial Printing Business Group, Ricoh, says: “The embroidery production, operators can enjoy complete partnership with Coloreel further demonstrates our has chosen to enter this partnership with us. To have freedom to create unique embroideries without any commitment to collaboration and pushing boundaries. Ricoh as our partner gives our product even more limitations in the use of colours. The added vibrancy Combining our history of driving innovation for over credibility, and we are excited to see what this achieved allows businesses to offer a more striking 80 years, our commitment to customer needs and partnership will bring.” portfolio and boast a genuine point of differentiation intent on becoming the analogue to digital in an ever-changing market. The first product to make Tetsuya Morita, General Manager of Commercial and transformation experts in industrial process is use of this technology is a thread colouring unit that Industrial Printing Development Division at Ricoh, enabling us to disrupt this exciting industry.” is compatible with any existing industrial embroidery concludes, “This partnership is a high profile project for machine. Initial production is set for autumn 2018. Mattias Nordin, CEO, Coloreel adds, “It feels amazing us; we see much potential in this product and this industry. The partnership is the result on ongoing international that a company like Ricoh, with their dignity and size, We believe in Coloreel and their unique technology” 10 APPAREL VIEWS / MAY 2018
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