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Zara would go slow on expansion, due to lack of availability of high quality retail spaces, which can generate reasonable sales throughput and global fashion retailer Hennes & Mauritz plans to open eight stores in the second half of 2017, while Inditex Trent is the joint venture between Zara brand owner Inditex and Tata Group’s retail arm Trent. When it entered India in 2010, Zara was an oasis to Indians thirsting for fashion. Long lines of shoppers queued up at malls, in a frenzy only a few brands in India have managed to replicate. It was instant retail success for Inditex, Zara’s Spanish-based parent company, and for a long time, sales were phenomenal.
But almost six years later, growth at the world’s largest fast-fashion brand has slowed down a notch in India, as a shortage of new shopping malls makes it hard for Zara, which has more than 2,100 stores in 88 countries, to keep adding outlets in India. For the year ending March 31 2016, Zara’s revenue in India grew 17 per cent to Rs842.57 crore, trailing the 24 per ecnt growth reported a year earlier. Further Zara clothes are much more upmarket in terms of fashion which is also a reason for the brand unable to expand in smaller cities.
Arvind Singhal, chairman, Technopak, says that many malls are on revenue sharing basis and given the strong sales performance shown by H&M many mall owners are ready to offer them cheaper rentals compared to its rivals, which is helping the company to focus on aggressive expansion.
H&M has signed leases for eight new store locations, to open in the second half of 2017, and is also planning its online shop launch in 2018. With an accumulated space of more than 160,000 sqft, these stores will be launched in new cities as well as cities with currently operational stores, said a spokesperson of the company. H&M will continue its strong expansion in new cities. The brand plans to open two more store in the Southern part of the country.
An American clothing company Miami Fitwear removed leggings carrying images of Lord Ganesha from its website after Hindus objected.
Hindus in the US found images of the deity on leggings highly disrespectful. Ganesha is revered in Hinduism and worshipped in temples or homes.
Miami Fitwear is an athleisure and lifestyle company. Its products include leggings, capris, pants. It claims to handcraft every legging. The now removed True Wisdom Ganesha leggings were priced at 98 dollars and its description included: “We hope our hand-drawn Ganesha leggings help you remember how beautifully strong and wise you are when you decided to use your energy in a positive way.”
There are about three million Hindus in the US. They said the lord can’t be adorned on legs and that inappropriate use of Hindu deities or concepts for commercial or other agenda was not okay. They suggested corporations send their senior executives for training in religious and cultural sensitivity so that they have an understanding of the feelings of customers and communities when introducing new products or launching advertising campaigns. They say Hindus are for free artistic expression and speech as much as anybody else if not more. But faith was something sacred.
Hinduism is among the oldest and the third largest religion of the world with about 1.1 billion adherents.
Protests by traders in the state has refused to die down with retail shopkeepers and textile merchants considering for beefing up their agitation.
Wholesale shops of clothes remained closed for the second consecutive day, though retailers opened after shops. Strike was called against the lathicharge on textile traders in Surat and imposition of 5 per cent GST on textile sector.
A meeting was called to decide on further course of action. Wholesale dealers are likely to open their shops tomorrow but if there is unanimous demand for close down, everyone will join says Suresh Saini, office bearer of Rajasthan Cloth Traders Association (RCTA). Earlier, RCTA went on a four day strike from June 27 to June 30.
At the time of the meeting some traders claim for pan India strike to make their efforts count. They felt that any action in isolation will not put any pressure on the government.
There has to be consolidated efforts. There has been consensus over taking associations of other state in confidence and give call for all India movement, added Saini.
On the front of food items too voices of agitation are simmering. After Gujrat, grain markets in Rajasthan may face yet another round of closure against abolishing role of commission agents with roll out of Goods and Service Tax (GST).
On the other hand Babulal Gupta, chairman, Rajasthan Khadya Padarth Vayapar Sangh says that the mandis are open but hardly work is happening there. Without commission agents, no work can take place and mandis will not function. With Gujrat going on strike we too will sit and decide on it next week.
Small traders also alleged that there is still incomplete information on GST and they feel helpless in front of new tax regime. Traders from both urban areas and rural areas were not given any training on new taxation law. If we are unaware about the law, how they are expected to follow, says Vishnu Agarwal, wholesaler and member of RKPVS.
Turkey has imposed customs duties on textiles and garments from India and some other countries.
For Indian exporters, the imposition of the additional duties has resulted in a sharp increase in levies for textiles and garments from 8 per cent and 12 per cent to 28 per cent and 42 per cent respectively. This has been a big disincentive for Indian exporters to expand in the Turkish market.
There are reasons to believe Turkey might not have followed the prescribed criteria for imposition of safeguard duties as they are not applicable on all countries. The additional duties have not been imposed on EU members or Turkey’s free trade agreement partners. Hence they may be discriminatory.
India’s garment exports to Turkey declined from 650 million dollars in 2011-12 to 340 million dollars in 2016-17 while textile exports increased marginally from 330 million dollars to 430 million dollars in the same period.
During a conference in Brussels, in February 2016, European law firms made it clear that the Turkish additional duties on the imports of textile, apparel, and an increasing number of other products like carpets, rugs, bedding, leather bags, are illegal. These duties are in breach of WTO rules and, as far as Turkish imports of EU and Euro-Mediterranean products are concerned, they are also in breach of the EU-Turkey Customs Union.
Avantex Paris will be held, September 18 to 21, 2017. This is a show that offers technical and technological solutions and services for all branches of fashion like clothing and fashion accessories. It is aimed at designers and professionals.
The show in September 2017 will focus on innovative fabrics. Avantex will build on activities that are crucial in developing new technologies in the textiles, clothing and accessories sectors.
With over thirty exhibitors, the event is expanding to offer a vast range of textiles, which are becoming ever more technical and innovative and are showcased against a backdrop designed by the show’s artistic directors.
The trade show will attest to the diversity of research and development. Some amazing technical materials are likely to be seized on by the fashion sector. Textile collections from Taiwan and an increased presence from component manufacturers, Korean and Chinese, will be fundamental at Avantex.
Avantex will have a wall of images to highlight the activities taking place there and will aim to demonstrate the links between technology and clothing through a series of presentations and round tables moderated by experts on the inherent issues in the market and which make up the exhibition: materials and components, clothing and accessories, prototype studio, smart retail.
Apparel Sourcing will be held in France, September 18 to 21, 2017.
This is the number one platform in Europe for sourcing. It offers a range of products from international manufacturers like China, Bangladesh, Hong Kong, India, Taiwan and Pakistan. On display will be knits, dresses and blouses, bespoke tailoring, casual wear, sportswear, outerwear, corporate wear, accessories etc. for men, women and children.
Apparel Sourcing continues healthy growth and has already registered 25 per cent more exhibitors, a double-digit increase for each show.
There will be a series of lectures about the latest developments in the sector, news from exhibitors and catwalk shows.
Myanmar will be exhibiting for the first time. Chiefly known for its range of casual wear, Myanmar will be showcasing far more technical products, one of the drivers for growth in the country.
Vietnam will return with a pavilion housing ten stands. Turkey will have an increased presence, in particular with fresh solutions for children's organic knitwear. The Chinese made-to-measure workshop will showcase from workshop to shop and from tradition to excellence.
Major Indian scarf manufacturers will exhibit shawls and scarves.
Peru is awaited with great interest. This is a country with a wealth of textile tradition going back 5000 years. It will present ready-to-wear collections for men, women and children and accessories made from one of the finest natural resources of the country: alpaca.
Great Yorkshire Show will be held July 11 to 13, 2017.British Wool will be showcasing the work that it carries out on behalf of its wool producers.
With shearing and fleeces very much at the forefront of the sheep industry at this time of year, the show will have a fleece competition. This competition will see the show’s champion fleece automatically qualifying for a place in the British Wool’s 2017 National Golden Fleece Competition. This champion fleece will compete against entries from 13 other nominated shows as well as successful fleeces entered by producers via the British Wool grading depots for a chance to win this prestigious title.
Shearing is a fundamental part of wool production and British Wool supports shearers at all levels including supporting a number of shearing classes at the show.
For many visitors to the Great Yorkshire Show, the shearing competition provides a real showcase of the skills required. Technical skill and speed is the key to competitive shearing and many of the British competitors at the Yorkshire Show will have benefitted from British Wool shearing courses.
The Great Yorkshire Show is a key event in the calendar for both British Wool and producers in the north of England. It provides an opening to meet with those at the heart of the industry and to offer support and advice.
Redma Gita, Secretary General of Indonesian Filament and Filament Yarn Producers Association (APsyFI) decided to reduce production volume in IdulFitri, causing production in the second quarter 2017 to decrease. Reduction in the amount of its production by reduced demand from the downstream textile industry.
APsyFI considers this demand by the downstream textile industry has already deposited its raw materials since the first quarter of 2017 for the future of IdulFitri. In addition, there is an indication of declining demand from the domestic market for garment products, causing apparel manufacturers to temporarily halt production and reduce demand for raw materials from upstream.
Meanwhile, raw materials needed by the upstream industry were affected by the government's policy of appealing to avoid being available at the time of going home and backlash.
Redma says that the appeal of raw materials for the upstream textile industry could not be transported. To do the production. The production volume association in the second quarter / 2017 decreased, for fiber from 150,000 tons in the same period last year to 120,000 tons. Production of filament fibers dropped from 135,000 tons in the same quarter last year now to 125,000 tons.
He says that in terms of declining production, utilities in the second quarter of 2017 are only 60 per cent to 65 per cent of the installed capacity, compared to last year's 70 per cent.
Redma explains APsyFI in 2016 that its association can produce fiber filaments and fiber each of 830,000 tons per year. The hope in 2017 did not happen significantly decreased compared to the amount of production last year.
He added interesting upstream textile industry is still about competitiveness with other countries. Competition is not the same as countries like India or Vietnam whose cost of production is cheaper with Indonesia.
While launching the ‘Make in India’ campaign in September 2014, PM Narendra Modi had stressed on the nation’s handloom and handicraft legacy as the campaign called on designers to back the cause. The textiles industry is India’s second largest employer after agriculture, engaging 40 million people, directly or otherwise. Yet the experts believe the fashion industry hasn’t received any government recognition till date.
The recently held TextilesIndia 2017 in Gandhinagar seems to be a path in the right direction. It brought together established and emerging designers with master craftsmen. Indian Handloom Brand show included a segment where designers showcased their work, created in collaboration with handloom clusters weavers from various regions of India. For instance, Hemang Agrawal and Rajesh Pratap Singh collaborated with handloom clusters from Varanasi and Anavila Misra, known for her ethereal linen of saris, collaborated with clusters in Gadwal. Through the initiative, the Ministry of Textiles claims to be working towards creating rural employment. The ministry hopes to turn Jharkhand into a new apparel and footwear hub, while a farm-to-fashion project unfolds in Gujarat. The government has stepped in to fund another project, Size India, with the National Institute of Fashion Technology. Most developed nations work with standardised sizing. India borrows the Western scale. Size India hopes to change this.
Figures speak
India stands at $41 billion, of which textiles contribute $24 billion and apparel $17.1 billion. This figure could have something to do with the fact that India’s export strength is cotton-based – it is the second largest producer of cotton after China. Darlie Koshy, CEO of the Apparel Training & Design Centre and Institute of Apparel Management points out in 1991, cotton was placed at $5 per band, and continues to sell at the same price. How can we expect to make a dent in our exports?
Everywhere in the world, textile and apparel industries come together as an integrated global fashion ecosystem, in which cotton growers or manmade fibre producers, fabric manufacturers, designers and fashion-related media, all work towards promoting the current or forthcoming fashions for garments, home furnishing, lifestyle products and accessories. In India, this network is missing. Turf protection by each segment means there is almost no dialogue between various players. Only an integrated fashion system that collectively moves towards creating consumer pull and demand for products can effectively create global leadership, highlighted Koshy. He feels, leadership qualities need to be encouraged in the fashion sector. Branding is an important exercise. Be! Fund, India’s first not-for-profit risk capital fund for less privileged young people, could have been a step in the right direction, but has been a non-starter for several years.
Amazon has invested more than $2 billion in India. In all the Seattle-based online retail major is committed to $5 billion to India. Amazon India wants to grow big in fashion. The focus is also on growing Prime membership for the next six months and keeping the user engaged. Part of the infusion will be directed to Prime content development.
A year after launching its subscription-based Prime program in India, Amazon is focused on growing the selection and offerings under Prime, to increase membership and stickiness as renewals for the program will be at a full price of Rs 999 this year.
Part of the infusion could also be towards strengthening the network ahead of the festive season, the biggest sale event online, which arrives earlier this year in September. Amazon is gearing up for Diwali and the usual investment in logistics and warehousing will continue. These infusions will continue in a six to nine month interval for Amazon India to take on the competition for the next two to three years.
Amazon is committed to its India business with a long-term perspective to make e-commerce a habit for Indian customers and to investing in the necessary technology and infrastructure to grow the entire ecosystem.
