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Even as the GST for job working units in textiles has been cut from the proposed 18 per cent to five per cent, apparel, a major segment in the textile value chain, has been left out.
Garment exporters in Tirupur now want that extended to job working units in the apparel segment. They say levying 18 per cent on job work will create an inverted duty scenario disturbing the seamless credit flow thereby defeating the very objective behind GST. Since these job workers fall in the middle of the textile manufacturing value chain, where the credit would ultimately be passed on to the final manufacturer, there would be no revenue implication if the rates are kept at five per cent.
Only services which can be classified as job work in relation to yarn and fabrics of textiles are eligible for the reduced rate of five per cent.
In textile clusters like Tirupur a host of operations including garment printing, embroidery, garment washing, ironing and packing are carried out by micro industries on a job work basis. Some of these processes such as checking, ironing and packing and button fixing are actually carried out by people who do their job work at home.
Cloth merchants in Mumbai have decided to keep their shops shut for a day on June 16 to oppose the Centre’s move of bringing the textile industry under the Goods and Service Tax.
Sixteen associations of cloth merchants from the city and outskirts have formed a Joint Action Committee of Textile Traders Association and decided not to seek GST registration.
Bharat Merchants Chamber, a leading body of textile merchants in the city, says bringing the industry under the GST would hit it badly. It further says GST has been imposed on the textile industry by way of bypassing the existing laws.
The group says the industry is very unorganised and mostly uneducated or poorly educated people are engaged in over 45 lakh looms across the country. Around ten crore people are directly or indirectly involved in the industry. If the GST were to be imposed on the textile industry, it would affect these ten crore people. So it wants the government to do away with its decision to cover the industry under GST.
Textile traders refuse to seek GST registration as the textile industry has always been exempt from any tax under the provisions of the Essential Commodities Act 1957.
Levi Strauss & Co.-owned Dockers is ramping up its efforts to bring performance, stretch and buzz to the non-denim woven category. As the team at Dockers feels, “With the switch to more business casual attire in offices nationwide, khakis are making a comeback. Men are looking for an easy in-between style to wear that isn’t a suit and isn’t denim, and khakis are perfect for that,”
In September, Dockers is launching Smart 360 Flex, a product line featuring four-way stretch technology for premium comfort. With the introduction of the four-way stretch fabric, Dockers has set out to design the most innovative pant yet from the brand with all the functionality and durability consumers expect. Unlike typical stretch fabric, which only stretches one way, four-way flex stretches both horizontally and vertically to deliver maximum comfort.
The brand believes the Smart 360 Flex collection is the answer. It’s tailored, yet comfortable, and provides men with a pant they can wear on any occasion.
Khaki pants have been optimized with comfort that goes beyond fabric. The soft khakis include a stretch interior waist, covert security pockets for smart phones and other valuables, and stretch internal pocket bags to deliver the most purposefully designed pant in any man’s closet.
Dockers, founded in 1986, is a US brand and part of Levi Strauss & Co. Over the last 30 years, Dockers has gathered insights from men around the world. What the brand has learned is simple: men want comfort, modernity and the ability to jet from the boardroom to happy hour.
"Euratex General Assembly conference on Circular Economy in textile & apparel manufacturing held on June 8 was attended by about 100 delegates. Four committed companies and Grzegorz Radziejewski from the cabinet of the Commission Vice President Katainen discussed the opportunities and challenges confronting the sector. Drawing conclusions, Euratex called for collaboration to prosper and showcase art in the circular economy."
Euratex General Assembly conference on Circular Economy in textile & apparel manufacturing held on June 8 was attended by about 100 delegates. Four committed companies and Grzegorz Radziejewski from the cabinet of the Commission Vice President Katainen discussed the opportunities and challenges confronting the sector. Drawing conclusions, Euratex called for collaboration to prosper and showcase art in the circular economy. Klaus Huneke, President, Euratex, emphasised on three main areas the textile & clothing sector should focus on: importance of free and fair trade between key global trading partners; sustainability, as value for the society; and ‘new quality’ for many companies, which place it at the core of the business’ strategy, investments and a key factor for competitiveness; and the need to intensify market-driven applied research to defend Europe’s position as an innovation leader in the global marketplace and help the RegioTex Initiative should play at regional level.
Huneke said sustainability is one of the biggest change in our society and, just like digital revolution, it has the biggest potential to positively impact our society. Moving from a linear to a circular model, may change the way in which people use things, industries produce, the society uses its limited resources and dispose of waste, if any of it is left.
The need for circular economy
Radziejewski highlighted the growing number of people and organisations interested and committed in the circular economy and real benefit of it for resource saving, societal gains such as new jobs creation or increase in disposable, income, environmental footprint among others. He stressed on the benefit from enormous potential of circular economy, we need to change people’s, business and consumers’ mindset, which is the hardest challenge to tackle. He also underlined two essential financing elements to reach circularity goals to engage private capital and to count on business engagement.
For Radziejewski, investment in innovation – in broader sense, not just technological, which includes new business models and processes – and collaboration are key to prosper and gain competitiveness through circular economy in the European Union. He indicated possible ways to finance circular projects. Among others, the ‘Horizon 2020’ program, whose budget for the circular economy has been raised from €600 million to €800 million for 2018-20 period and structural funds with €5.5 billion in 2014-20 period or through the investment plan which aims at mobilising private capital.
Suggested initiatives
To improve existing efforts on circularity in the textile and apparel supply chain two needs emerged from the companies’ views: a clear definition of what recycling really is to protect consumers from false claims; and better visibility for SMEs capacities to create awareness and trigger new partnerships. Drawing conclusions, Mauro Scalia, Head-Sustainable Businesses, Euratex, introduced the industry’s policy brief and upcoming line of action of Euratex with its members, based on three ideas: gather online successful business cases from 100 companies, especially SMEs, to learn about capacities, challenges and to support new partnerships; joining the relevant platforms launched by EU institutions, business and society organisations to contribute by sharing information and technical inputs; and stock taking of results and new actions planning in a public event within one year, by June 2018.
Euratex will work with policy makers and help in designing measures which fit, removing barriers, incentivising demand for circular economy and drive the transition through innovation and investment. Euratex will also work with any other business and society organisation to build on common interests and let the transition happen.
"Campaigns against “fast fashion” scapegoat working-class consumers while doing little to improve the conditions of garment workers. “The high cost of cheap fashion” has alerted customers to the debasing labor conditions and environmental practices that are involved in the production of cheap trendy clothes, or so-called ‘Fast Fashion’. Having realized its impact, many are opting not to buy/shop at fast-fashion retailers, and the short cut to fashion trends."
Campaigns against “fast fashion” scapegoat working-class consumers while doing little to improve the conditions of garment workers. “The high cost of cheap fashion” has alerted customers to the debasing labor conditions and environmental practices that are involved in the production of cheap trendy clothes, or so-called ‘Fast Fashion’. Having realized its impact, many are opting not to buy/shop at fast-fashion retailers, and the short cut to fashion trends.
It’s hard for most people to sound such outlandish excess; it’s become hard for the excessive spender to feel the full glory of her excess when the status barometer is forever on the rise. Fast fashion looks more like robbing workers of a living wage and safe working conditions, and robbing legitimate designers of their creative property. Opposing fast fashion is intuitively appealing. It often springs from a genuine desire to make the world a better place, to limit exploitation, and foster creativity.
Anti–fast fashion stances give rise to racist, class-biased, and historical myths about garment workers. To decry this low-level, already stigmatized market is to either misunderstand or intentionally ignore the structural relationships and realities of the larger fashion system. Campaigns urge consumers to avoid budget retailers to show that they stand against the exploitation of fashion workers and intellectual property theft.
Fast fashion is a market within a massive apparel and commercial industry. Its designs generally don’t capture headlines or public attention. The central myth of anti-fast fashion discourse is that low prices signify low standards of production (and a lower-quality product), while high prices indicate high standards of production (and a high-quality product).
At present many expensive fashions are associated with higher-status consumers whose tastes are morally superior, ethically discriminating, and knowledgeable about the “high costs of cheap fashion”.
However it isn’t just fast fashion brands that copy other designers or use sweatshop labor. These practices exist across the industry, from budget to luxury fashion. It’s not uncommon to find workers in the same factory producing both fast fashion and luxury fashion garments. Purchasing more expensive clothes based on some misguided code of ethics does nothing to reduce global capitalism’s racially gendered divisions of labor, opportunities, and rewards.
Tommy Hilfiger has named musical duo, Grammy award-winning pair, Andrew Taggart and Alex Pall of the music group, The Chainsmokers as its new global menswear ambassadors. The Chainsmokers, will appear as the new global brand ambassadors beginning Fall ’17. The advertisements will feature a limited edition co-branded item as well as Tommy Hilfiger Tailored garments and the brand’s sportswear lines.
Daniel Grieder, CEO, Tommy Hilfiger Global and PVH Europe says that Tommy’s pioneering approach to fusing fashion and music is part of menswear heritage and the partnership with The Chainsmokers reflects the company’s strategic commitment to bring the next generation of Tommy Hilfiger consumers into our men’s business with exciting fashion collections, curated shopping experiences, and digital commerce convenience. The brand will be seen all over the world.
Talking about the brand Tommy Hilfiger is one of the first designers to blend fashion and celebrity, and dressed young artists. The brand also sponsored tours for the likes of Britney Spears and Lenny Kravitz, and featured musicians such David Bowie and Beyoncé in advertising campaigns.
Written in accordance with the Global Reporting Initiative’s (GRI) G4 Guidelines Core option, Southwire recently launched its third report. This interactive, online update on the progress of Southwire’s sustainability commitments features the company’s management approach, goals and advancement in its most significant, or “material,” sustainability topics. The report update also highlights examples of how Southwire is strengthening its focus in these key areas.
Southwire had launched its first GRI report as an overview of its progress for the year 2014, further supporting its strong allegiance to transparency surrounding the company's sustainability initiative. Southwire's report for 2016 features not only updates on the company’s 13 identified material topics, but launches a revitalized brand and an updated set of goals for 2021.
The new brand provides a captivating visual representation of how all five of core tenets integrate to form commitment to sustainability. Behind the brand are a new set of goals which will help guide us toward more significant advancements on our journey to best-in-class sustainability practices..
As referenced in the report, 2016 yielded positive growth for Southwire, highlighted by strong business results, the creation of a clear business strategy under its new leadership and a steadfast commitment to its communities. A key highlight for the company was its marked progress in the area of safety.
Some of Southwire’s other notable accomplishments for 2016, within its tenets of sustainability, include the successful acquisition and integration of United Copper Industries and Sumner Manufacturing; the development and launch of several innovative, award-winning products and record volunteer efforts through Project GIFT, the company’s non-profit employee initiative.
India’s annual rate of inflation dropped to 2.17 per cent for May 2017 over May 2016. The index for manufacturing of apparel declined by 0.4 per cent in May 2017 from April 2017 due to lower price of leather garments, including jackets and shirts.
The monthly wholesale price index for manufacturing of apparel declined by 0.4 per cent in May 2017 from April 2017 due to lower price of leather garments, including jackets and shirts. The index for all commodities for May 2017 declined by 0.4 per cent from the previous month.
The index for manufactured products for May 2017 rose by 0.4 per cent from the previous month. The index for the textiles sub-group increased by 0.3 per cent from the previous month due to higher price of cotton yarn and manufacture of other textiles, texturised and twisted yarn and manufacture of made-up textile articles. However, the price of synthetic yarn and manufacture of knitted and crocheted fabrics and manufacture of cordage, rope, twine and netting declined.
The index for primary articles declined by 1.5 per cent from the previous month. The index for fuel and power also declined by 2.1 per cent from the previous month due to lower prices of LPG, bitumen, electricity, naptha, ATF, petrol and HSD. However, the price of petroleum coke, lignite and kerosene moved up.
If a FTA between India and the EU comes about, the EU will gain by 0.14 per cent and India will gain by 1.3 per cent. Due to the differences in size of populations and economies, the per capita increase for India would be 22 dollars as against 44 dollars for the EU. Within the EU, Ireland and Belgium would gain the most in relative terms and Germany the most in absolute terms.
As for sectors which would gain or lose from this FTA, India would gain the most in business services and textiles/apparels. The automotive and mineral sectors would lose. Increased competition in the machinery and equipment sectors would cause losses. The gains accruing to India in business services and textiles outweigh possible losses in the automotive and machinery sectors.
India should take a leap of faith with a region with which it shares economic and political values — more so in a world faced with a US administration in favor of protectionism and a China with hegemonic ambitions.
India has been active in its free trade discussions, concluding deals with many South Asian countries. Regional comprehensive economic partnership talks are gaining momentum. Indian exports, though, have not benefited immediately following its agreements with Asean as well as those with Malaysia or Thailand.
After a weakening in the last 3 years, apparel export have started booming. The export will be a positive in the second quarter of this year, which can be seen from the projection of the Indonesian Textile Association which says Chairman of the Indonesian Textile Association (API) Ade Sudrajat said the relocation of factories to several regions in Central Java that encouraged the growth of new high-tech factories helped boost the productivity of apparel manufacturers. In addition, the competitiveness of apparel products was also boosted as many business people also employ trained workers.
Energy cost has been concern with the manufacturers in downstream industries, causing high operational costs due to the cost of electricity. Energy cost for textile industry is high at US $ 12 cents per kWh on an average. On the other hand Indonesia's main competitor in the textile sector set a much more competitive electricity tariff, like in Vietnam and Bangladesh to be charged only US $ 6-US $ 7 cents per kWh. One of the factors of stagnation of the textile industry in the country is due to the imbalance of energy costs, whereas India, China, Vietnam and Bangladesh are growing rapidly.
