apparel views / january 2018 1

116 Pages·2017·8.89 MB·English

APPAREL VIEWS / JANUARY 2018 1

JANUARY 2018,VOL.- XVII / ISSUE NO. 01
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
extile sector is among the largest contributors to India’s exports with 13 per cent
SWATI SHARMA
of total exports. The year 2017 turned out to be a mixed bag for the textiles
Editorial Adviser
RAJESH CHHABARA sector. In November, the Textiles Ministry notified post-GST rates under the scheme
Sub Editor - Creative for Remission of State Levies (RoSL) on exports of readymade garments & made-
JOHN EDWARDS
ups. For garments, the rates range between 1.25 per cent and 1.70 per cent and for
Art Director
made-ups between 1.40 per cent and 2.20 per cent effective from October. The
SANJAY BHANDARI
government also enhanced the rates under Merchandise Exports from India Scheme
Sr. Correspondent
ASHWANI KUMAR (MEIS) on readymade garments and made-ups from 2 per cent to 4 per cent. The
Correspondent rates will be applicable between November 1, 2017 and June 30, 2018.
DEEPTI
While initiatives were unveiled for power loom units and weavers, the much-awaited
Creative - Head
SREEKUMAR. M new National Textiles Policy is yet to see the light of the day. Towards the end of the
Sr. Layout Artist year, a Scheme for Capacity Building in Textile Sector to boost skill development and
JATIN JAIN job creation was launched with an outlay of `1,300 cr. Around 10 lakh people are
Sr. Designer
expected to be skilled and certified in various segments of textile sector.
RAJEEV KUMAR
Production Manager The year 2018 may turn out to be a challenging year for India's textile and garment
MUKESH POKHRIYAL
industry, with exporters still reeling under the impact of GST and outward shipments
e-Magazine
likely to miss the $45 bn target for 2017-18. Garment exporters have sought that the
SUMER SINGH
duty reimbursement to them should be retained at the pre-GST drawback rates of 7.5
Business Promotion
BOBBY BAKSHI (DELHI) per cent, amid declining exports. Currently, the drawback rates are 2-2.5 per cent.
RAHUL SINGH YADAV (DELHI)
N. SABARI SELVAM (TIRUPUR) India's apparel exports declined 39 per cent in value terms in October. A
PAVITHRA R. (TIRUPUR)
comprehensive national policy covering all segments of the textiles sector is the
Circulation
ARCHANA (DELHI) need of the hour, to give a push to exports from the sector, which have remained
V. MURUGESHWARI (TIRUPUR) stagnant for the past four fiscal years, mainly because of less demand in major
Accounts Head markets such as the US, the EU and China, and stiff competition from countries like
ANJU CHAUHAN TONDAK
Vietnam and Bangladesh, which enjoy an edge over India.
Head Office
138/2/9, First Floor, Kishan Garh,
Hence, the textile and clothing industry has lot of expectation and have sought tax
Vasant Kunj, New Delhi-110070, INDIA
Tel.: [phone] and labour reforms by the Government in Union Budget 2018-19. A comprehensive
[email protected], [email protected]
national policy covering all segments of the textiles industry can give a push to
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exports. A scheme of capacity building can boost skill development and job creation.
Regd. Office
C-46, DGS Housing Society, Plot No. 6,
Further, an interest equalization of 3 per cent in respect of yarn exports in order to
Sector-22, Dwarka, New Delhi-110075
make domestic product competitive in international market for boosting yarn exports.
Regional Offices
Tirupur It has also sought exemption from payment of GST on exports, reduction in GST
No. 23, Ground Floor, Indra Nagar,
rates from 18 per cent to 12 per cent on manmade fibre and sufficient provision for
Avinashi Road, Tirupur - 641 603
Tel.: [phone] Technology Upgradation Fund Scheme in Union Budget 2018-19.
[email protected]
At this occasion, I would like to wish all our readers a very Happy and Prosperous
Kolkata
Tapan Kumar - 99581 99872 New Year 2018…
Bangalore
B.P. Mishra - 93414 44727, 080-2343 4446
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APPAREL VIEWS / JANUARY 2018 3
Contents
34 50 58
Globe trotter 4
Domestic update 16
Invoke ROO provision
To stop cheap textiles imports 28
Abhishek Tibrewal wins
Liva Protégé 2017 Talent Hunt competition 32
AEPC recognises
best performers of the apparel industry 34
Inventive and imaginative, Ultra Violet lights
the way to what is yet to come 38
What is aisle spacing and why is it important? 40
ZDHC scouring and one bath bleaching technology
An absolute innovation in organic chemistry 42
90 Top 10 Textile Innovation Awards
for 2016-2017 by Fabric Link 46
Wildest Innovations in Clothing Technology in 2017 50
Mouvent reveals ground-breaking digital textile printer 54
Some of the latest technological developments
in apparel industry 58
Pitti Uomo 93 90
Morgan revolutionizing
cutting room segment in India 100
Modaprima 106
Forthcoming trade events 110
4 APPAREL VIEWS / JANUARY 2018
APPAREL VIEWS / JANUARY 2018 5
Nepal begins construction of
garment processing zone
T
he Government of Nepal has
initiated the construction of
the `2.5 bn garment processing
zone within the Simara Special
Economic Zone (SEZ). The
project expected to complete by
2018-19, will lower the cost of
production while increasing the
scope of exports. The production
cost in Nepal is considered to
be relatively high in the region.
The services that will be offered at the processing zone will make the price of
Nepali products competitive in the international market.
The facility located in Bara District, likely to be spread in more than 300 bighas,
will house at least 30 production units of apparel, quoted Chandika Prasad Bhatta,
Executive Director of the Special Economic Zone (SEZ) development committee
as saying. Garment manufacturers can purchase the plot at the rate of `20 per
sqr. mtr with infrastructure such as electricity, drainage and other such logistics
at an affordable price. Firms exporting at least 75 per cent of their production can
Pakistan textile exports likely to also benefit from the services.
touch $13 bn this year "Companies with a history of being a large exporter, providing jobs to a large
number of people and making large investments will be given priority to operate
P their production units inside the processing zone," Bhatta said. The garment
akistan textile exports have been going up steadily, in the first five month
processing zone is expected to compensate high transport and shipment
(July to November) of the current fiscal year textile shipment jumped 7.66
costs due to Nepal's landlocked status because the proposed zone is located
percent year-on-year to $5.51 bn driven primarily by a surge in value added
near the country's only rail-linked dry port in Birgunj. The garment processing
textile exports. This positive sign raises expectations that full-year proceeds
zone concept gained traction after the US extended zero tariff preference for
likely to touch $13 bn after a hiatus of two years. In a review of the industry’s
66 products, including apparels, into its market through 'Trade Facilitation and
performance in the outgoing year 2017, Pakistan Textile Exporters Association
Trade Enforcement Act'
(PTEA) Chairman Shaiq Jawed said that textile shipments had been on an
upsurge since the start of 2017-18 in July following a continued fall in the
previous fiscal year. US retail sector jobs fall by 20,200
After hitting the peak at
in December
$13.73 bn in 2013-14,
textile exports dropped to
U
S retail sector jobs decreased by 20,200 in December 2017 compared to
$13.47 bn in 2014-15 and
November, said the National Retail Federation (NRF). The number, which
$12.44 bn in 2015-16.
excludes automobile dealers, gasoline stations and restaurants, is in contrast
Afterwards, they inched up
to the rise in 20,500 jobs seen in November over October. Overall, the economy
0.04 per cent at $12.45 bn
added 148,000 jobs in December, the labour department said.
in 2016-17, but were still
lower by more than a billion Retail numbers were lower
dollars than the peak. than NRF’s expectations
Propped up by cash but these are seasonally
incentives under the Prime Minister’s trade package, textile exports took off, adjusted figures and can be
but challenges were still there that should be addressed to further ramp up revised, an NRF report
growth, Jawed said. quoted Chief Economist
Jack Kleinhenz as saying.
Pointing to the industry’s lack of competitiveness both in domestic and
Kleinhenz noted that retail
international arenas, he called the high cost of energy a serious concern as the
job numbers reported by
textile sector heavily banked on energy supplies to run its operations smoothly.
the labour department
In Pakistan, the industrial gas tariff was almost 100 per cent higher and electricity
count only employees who
price was about 50 per cent higher compared to regional competitors. Punjab-
work in stores while
based industries are compelled to consume high-priced regasified liquefied
excluding retail workers in other parts of the business such as corporate
natural gas (RLNG) in winter, which puts them at a disadvantage compared to
headquarters, distribution centres, call centres and innovation labs.
industrial units in other provinces.
Average hourly earnings increased by 2.5 per cent year-over-year, and the
The liquidity stuck in the tax refund system is another stumbling block; exporters
unemployment rate remained at 4.1 per cent in December, unchanged from
are waiting for the release of billions of rupees blocked in sales tax, income tax
November. NRF believes the rise in employment and wages should bolster income
and customs duty rebate claims, which has sparked severe liquidity crunch. If
and subsequently spending. Preliminary reports indicate that retailers hired
these payments are released, the exporters can utilise the money on trade
565,000 seasonal employees during November and December, added, NRF, the
expansion. Pakistan textile industry has not made enough investment in
world’s largest retail trade association, representing discount and department
technology because of which productive capacity of the sector has remained
stores, home goods and specialty stores, main street merchants, grocers,
stagnant. Technological advancement is another area where textile industry
wholesalers, chain restaurants and internet retailers from the United States and
has trailed its competitors
more than 45 countries
6 APPAREL VIEWS / JANUARY 2018
VN garment industry eyes to achieve $34bn export target
L
e Tien Truong, General Director of the Vietnam National Garment and Textile
Group (Vinatex), speaking at a meeting on reporting Vinatex’s results of
production and business in Ha Noi said that to achieve the target of more
than 10 per cent growth in 2018, the textile and garment industry must make
great efforts to focus further on solutions to increase labour productivity also
the local textile and garment industry must be careful with the anti-dumping
story. In 2018, Vietnam’s textile and garment industry will face more
competition, while other textile exporting countries in the world plan to
maintain their market shares in the world garment market, as well as expand
their market shares further, Truong said.
However, Vietnam’s textile and garment industry stands at a good position in the
world garment market as the major buyers of the world consider Vietnam as the
supply centre and give priority to Vietnam in supplying garment products to them.
Vietnam is the world’s largest producer of men’s and women’s suits.
Moreover, Vietnam has had experience in converting from a production method of The South Korean market jumped to the fourth position, close to the Japanese
processing to an FOB (free on board) and ODM (original design manufacturer). market, reaching an export value of $2.7 bn in 2017. Vietnam’s textile and garment
Now, the processing has reached only 30-35 per cent of production, while FOB has exports to China in 2017 reached $3.2 bn, the same as the export value to Japan.
accounted for 55-60 per cent and ODM producing textile and garment products, Meanwhile, the domestic textile and garment market also gained a year-on-year
from designing to finished-products, has occupied 10 per cent, Truong said. growth rate of 10 per cent in 2017. The balance in development of the domestic
market and the export market has been an important point for the local textile and
In addition, the industry should continue to invest in technology development to
garment industry to ensure jobs for the employees and to maintain development
create stability, sustainability and efficiency in development of the textile and
of the enterprises.
garment industry.
During the meeting, Vinatex reported its total revenue in 2017 was estimated to
Last year in 2017, the textile and garment industry gained a year-on-year increase
have increased year-on-year at 10.7 per cent to VND45.55 tr ($2.02 bn). Of this,
of 10.23 per cent in the export value of textile and garments to $31 bn, higher than
domestic sales reached VND10.39 tr, accounting for 22.8 per cent of the total
its target set at the beginning of the year at $30 bn. Major markets of the United
revenue, 10.6 per cent higher than the revenue in 2016. The pre-tax profit in 2017
States, the European Union, Japan and South Korea maintained good growth,
reached VND1.43 tr. Vinatex has set a revenue target of VND48.5 tr in 2018, a year-
while there were breakthroughs in exports to other markets such as China, Russia
on-year surge of 6.5 per cent and a pre-tax profit of VND1.45 tr
and Cambodia, according to Truong.
APPAREL VIEWS / JANUARY 2018 7
Uzbekistan textile 2018 to be brighter for US retail, apparel sector
worth over $1 bn
A
s US retail and apparel companies emerge from their
exported in 2017 worst year since the Great Recession, many will be
happy to put 2017 behind as 2018 will be brighter overall,
even for department stores, says a new report by Moody's
Investors Service. However, more defaults and rating
downgrades are expected in the next few months as the
number of distressed firms rises. We expect defaults
among speculative-grade retailers to drop sharply to 5
per cent in October from 9 per cent today, but only after
peaking at 11 per cent in March," a Moody’s quoted Vice
President Christina Boni as saying.
The US retail and apparel industry chalked up 11 defaults last year, compared with seven in 2009, at the height
of the recession. Rating downgrades shot up by 87 per cent last year, while upgrades declined by 43 per cent.
Moody's Liquidity Stress Indicator for retailers was up by more than 3 per cent last November from a year
earlier, with the rise in the number of distressed companies signaling more defaults ahead.
The operating profit margins of companies that have invested heavily in online channels have come under
U pressure in the past few years. As retailers will continue to be under intense pressure to meet the needs of
zbekistan textile industry exported its
customers, the critical next step for companies will be to improve the customer-facing aspects of their trade
products worth $1.1 bn to more than 50
while also reducing costs, the Moody’s report said
countries in the world 2017 and the share of value-
added products exceeded 40 per cent. The growth
of export indicators was facilitated by the activity Cambodian guidelines to stop fainting of factory workers
of 64 trading houses which were opened in foreign
countries, according to reported quoting C
ambodian Labour Minister Ith Samheng recently issued
statistics from the Association of Textile and
guidelines to owners of garment and footwear units in the
Clothing and Textile Industries Enterprises
country to prevent workers from fainting in workplace. The 11
(Uztekstilprom). One of the effective forms of
guidelines include operating ventilation fans an hour before
further development of the textile industry will
workers arrive, installing thermostats, and maintaining fire
be the creation of clusters. This model implies
protection systems and adequately trained boiler operators.
the organisation of a single production cycle,
The factory management has to check the environment
which includes the cultivation of raw cotton,
surrounding the building, both inside and outside the factory,
primary processing and its further processing at
especially before allowing workers to enter, Samheng as
ginneries with the release of final products,
saying. The guidelines mandate factories to turn on fans and
Uztekstilprom’s representative said.
open all windows and doors in hot weather so that airflow is
The number of exporting enterprises rose from
not restricted at building exits, and make arrangements for infirmary and emergency help in the factory. The
293 in early 2017 to 350 by the year end. The
Ministry will take strong action against violators, Samheng added. Garment Manufacturers’ Association in
country produces around 1.4 mn tonne of cotton
Cambodia Deputy Secretary General Kaing Monika, however, said half of the fainting issues studied, based on
fibre annually, of which about 60 per cent is
a National Social Security Fund report, were the result of mass psychological illness, including personal stress
consumed domestically. Thirty four investment
coming from family issues, panic and mass hysteria
projects on modernisation of existing and creation
of new enterprises with a total export potential
Global fashion sales to increase in 2018
of $151.7 mn were completed in 2017 in the
country’s light industry. Their total value
T
exceeded $356 mn. Experts have already created he annual McKinsey & Company State of Fashion 2018 report shows fashion sales across the world will
a draft concept of development for the medium- grow in the coming year, and will be more sustainable than 2017. The figures show an average growth of
term perspective of cotton textile clusters, taking between 3.5 and 4.5 [per cent (+ 4 or 5 per cent for the luxury segment) for a total sales volume that could
into account the experience of such facilities in reach 2,500 bn dollars (equal to about 2,100 bn euros). The progress should be on average one percentage point
the Navoi region. Around 7,000 industrial higher than the estimates for 2017, while remaining below the forecast of 5.5 per cent over the long term.
enterprises operate in the republic at present.
According to the report, which was compiled in association with the Business of
The Uzbek textile industry is mainly focused on
Fashion, 2017 signals the end of an era, as the West will no longer be the global
cotton, silk and wool.
stronghold for fashion sales—more than half of apparel and footwear sales will
Further development of its textile industry is one originate outside of Europe and North America. The main sources of growth are
of the policy priorities of Uzbekistan. The country emerging-market countries across Asia–Pacific, Latin America, and other regions;
grows about 3.5 mn tonne of raw cotton and they are forecasted to grow at rates ranging between 5 and 7.5 per cent in 2018.
produces 1.1 mn tonnes of cotton fibre annually.
Meanwhile, the economic outlook in the mature part of Europe is stable, and fashion-
The country plans to create 112 modern, high-
industry sales growth is likewise expected to remain at a modest but steady 2 to 3 per
tech industrial factories, expand, modernize and
cent. In North America, while overall consumer confidence is strong, the impact of
technologically upgrade 20 operating capacities.
policy changes is uncertain, and markdown pressures, market corrections, and store
All this will increase the export potential of the
closures continue. Here, we expect a modest growth of 1 to 2 per cent.
industry up to $2.5 bn a year and create more
than 25,000 jobs. Textile industry of Uzbekistan Mainstream customers are moving into a decisive phase of digital adoption, and online sales of apparel and
is considered to be one of the most dynamic and footwear are projected to grow rapidly. Consumers in Southeast Asia spend about eight hours a day online on
socially important sectors and ranks high among average. The modern shopper’s comfort with digital channels and content has created a complex customer
export-oriented industries of the country’s journey across online and offline touch points. But regardless of touchpoint, consumers expect a consistent
economy. The Uzbek textile industry is mainly brand experience across channels
focused on cotton, silk and wool
8 APPAREL VIEWS / JANUARY 2018
APPAREL VIEWS / JANUARY 2018 9
Industry 4.0 adversely affecting Vietnamese Vietnam textile
garment firms production fails to
meet garment
S
everal garment and textile companies in Vietnam have either closed units or have been facing such
possibilities since mid-2017 due to firms investing in automated production lines, robots and new technologies. requirements
Such modernisation requires much lesser number of workers and workers who can handle the modern equipment,
leaving many traditional workers jobless. Fenix Knitting Vietnam has announced closure of its plant to declare
bankruptcy, rendering 220 workers jobless. It has to pay arrears and social insurances to workers.
While Shing Viet Company is planning to end contracts
with 400 workers at Factory No.2 in Truong Tho ward, Thu
Duc District, because of lack of orders, K Garment Company
in LinhTrung 1 Export Processing Zone in the same district
has already dismissed 800 workers, most of them old, whose
chances of seeking new jobs are poor, according to a report
in a Vietnamese news website. Many firms are installing
robots to work together with humans in factories or replace
workers in some phases and divisions. An automated thread cutting machine can reportedly replace 4-10
workers in each production shift and a robot can replace nearly 30 assembly workers for three working shifts.
V
Citing data from International Labour Organisation, Nguyen The Hung, Deputy Director of the Vietnam Chamber ietnam textile industry is still facing many
of Commerce and Industry told at a recent seminar in Ho Chi Minh City that two-thirds of the 9.2 mn workers problems in textile production, as fabric
in the garment and textile and footwear industries in Southeast Asia are under threat from Industry 4.0, the determines the cost and quality of finished garment
current trend of automation and data exchange in manufacturing technologies. In Vietnam, 86 per cent of products hence textiles still cannot meet garment
workers in these fields, a significant number of which are female, will be badly affected by automation and requirements, said Vu Huy Dong, General Director
industrialization, according to the report. Companies that want to recruit a lot of workers require applicants of Damsan JSC.
to have working skills to operate modern machines
Vietnam has to import 65-70 per cent of fabric
every year, it exports two-thirds of yarn output.
This means that Vietnam has yarn in excess but
Bangladesh opens first-ever garment
not enough fabric. In 2016, Vietnam’s fabric
factory for prisoners imports increased by 3.2 per cent compared with
2015, though garment export value decreased by
Bangladesh Home Minister Asaduzzaman Khan $23.84 bn, of which fabric export turnover
recently inaugurated the country’s first-ever accounted for 43.9 per cent, down by 0.1 per cent.
garment factory to facilitate income of prisoners at According to Nguyen Son, Deputy Chair of the
the Narayanganj District jail. The Bangladesh Knitwear Vietnam Cotton and Spinning Association
Manufacturers and Exporters Association trained (VCOSA), one of the reasons behind this is the
around 400 prisoners to run the factory in two shifts. market management scheme.
Their earnings will be credited to their respective
The State has policies to help the development of
accounts. The prisoners can either send the money
supporting industries, but there is no specific policy
to their families or withdraw the amount after their
designed for the spinning and cotton industry. He
prison term gets over, according to jail superintendent
said that state-owned enterprises and foreign-
Subhas Kumar Ghosh. Built on a 5,000-sqr.ft area with the help of the district administration and the department
invested enterprises only undertake favorable links
of social services, 57 imported machines were installed at the factory, Ghosh as saying. The authorities have
in the textile & garment supply chain, while private
also installed six looms inside the jail where 12 prisoners will be working for producing Jamdani fabrics
businesses take difficult work.
However, private businesses are facing difficulties
APTMA urge govt. to announce policy for revival when developing their projects. Most provinces/
cities have rejected their projects to open dyeing
of textile industry
factories. As a result, a vicious circle exists in the
textile & garment industry: Vietnam makes yarn,
T
he Pakistan Prime Minister in his meeting with all the textile industry stakeholders in September had very exports cotton, then imports fabric and exports
wisely desired the Textile Ministry and the textile industry to come up with a long-term policy for the garment products.
revival and growth of the textile industry. All Pakistan Textile Mills Association (APTMA) has urged the
Vitas, affirming that textile and garment companies
government to announce and lay down the implementation mechanism for the agreed long-term policy.
are facing difficulties, have made many proposals
APTMA Chairman Aamir Fayyaz stressed that an early announcement of the policy will help reverse trade
to the government. It has asked to amend Decree
account deficit and thereby contribute to the country’s progress and prosperity.
60 on the conditions for granting licenses to import
Fayyaz said that the policy has been devised for printing machines. Under the current regulation,
the restoration of the international businesses owners must have junior college or
competitiveness of Pakistan’s textiles whereby higher-level degrees. If not, they have to attend
1,000 garment and stitching plants are expected MIC’s training courses majoring in printing to be
to materialise to make the best of the able to import printers. The association has also
opportunity. The Federal Textile Board, in its asked to remove the decision on raising the import
follow-up meeting with all stakeholders, had tariff on polyester from zero to 2 per cent, stating
unanimously proposed various initiatives as a that most Vietnamese enterprises have to import
long-term policy to be announced at the earliest. the product. In addition, it had asked Hai Phong
It enabled requisite investment to generate City to reconsider port fees to help enterprises cut
exportable surplus and achieve additional $20 bn exports in the shortest timeframe to overcome the menace production costs
of growing trade deficit, the biggest economic challenge for the government
10 APPAREL VIEWS / JANUARY 2018