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"During a recent meeting with the Finance Minister Arun Jaitley, GST Sangharsh Samiti, the textile traders’ body, leading the strike that had shut down a four-km stretch of the country’s biggest cloth market on Surat’s Ring Road, asked for exemption from the Goods and Services Tax (GST) — or at least, an 18-month GST holiday. It seems they have been assured by the government that the matter would be taken up at the next meeting of the GST Council on August 5."
During a recent meeting with the Finance Minister Arun Jaitley, GST Sangharsh Samiti, the textile traders’ body, leading the strike that had shut down a four-km stretch of the country’s biggest cloth market on Surat’s Ring Road, asked for exemption from the Goods and Services Tax (GST) — or at least, an 18-month GST holiday. It seems they have been assured by the government that the matter would be taken up at the next meeting of the GST Council on August 5.
GST aims to bring every link in the chain of transactions on record, possibly raising the price of the cheapest saris and dress materials from Rs 70 to Rs 150-200, say experts. Ashok Jirawala, President, Federation of Gujarat Weavers’ Association, points out between 3.5 crore and 4 crore metres of cloth is woven in Surat every day on an average, and sold to other states and even foreign countries. While most saris are unbranded local products, Surat is also home to big brands like Rachna, Prafful, Parag and Garden Vareli./span>
The problem areas
Till date, the textile supply chain was exempted from indirect taxation. Ashish Gujarati, President, Pandesara Industrial Association, says pre-GST cost arithmetic was as follows: Yarn manufacturers, who paid 12.5 per cent VAT and 5 per cent excise duty, sold 1 kg of yarn to weavers for Rs118. A kg of yarn yields around 15 m of woven grey bale (about two retail saris). The textile trader purchases this bale for Rs16 per metre on average — or Rs 240 for 15 m of cloth. The mills that process (dye and print) the bale, charge Rs 12 per metre on average — so, for 15 m, the textile trader has to pay Rs 180 to the mill owner. Thus, the total cost of the finished cloth from 1 kg yarn is Rs 420 for the textile trader. The textile trader sells his material to wholesalers in other states and cities, keeping a profit margin of around 15 per cent on the cost price. The wholesaler sells it to the retailer, again keeping a margin of 15 per cent, and the retailer keeps a margin of between 10 per cent and 15 per cent while selling to the customer.
Post GST, there is 18 per cent GST in place of the combined VAT and excise on yarn. When the weaver sells the bale to a textile trader, the trader is liable to pay 5 per cent GST. As the textile trader sends the bale to a mill for dyeing and printing, he will pay processing charges with 5 per cent GST. After the cloth is dyed, printed and returned to the textile trader, he sells it to the wholesaler, again with 5 per cent GST. The wholesaler adds his profit margin and sells it to the retailer with 5 per cent GST.
GST gives weavers, mill owners and traders input credits at different levels. As per the pre-GST tax structure, a combined excise duty and VAT meant 18.16 per cent tax imposed on yarn manufacturers, which the weavers would pay during purchase of stock. Under GST, weavers stand to receive 12 per cent input credit, thus bringing back benefits. This benefit will be passed down the chain. The textile traders and processors also stand to benefit from input credit options as traders get an input credit of 5 per cent, and processors will receive input credit for chemicals and dyes, which form almost 30 per cent of the business, 5 per cent input credit for coal for powerlooms, and so on, explains Jitendra Vakharia, President, South Gujarat Weavers’ Association. Ultimately the chain of traders will also have to pass on the benefit to the consumers.
Tax experts perspective
Ahmedabad-based tax expert Monish Bhalla feels tax calculations after GST put a liability of only 0.5 per cent tax on the traders. So far, only manufacturers and service providers of the industry fell under the purview of taxes, which added up to 18 per cent pre-GST. In fact, with input credit system under GST, the chain of textile processors stand to gain at least 5 per cent input credit at various stages. But on traders who were out of the purview of excise and other taxes, GST will impose a liability. This protest is not against GST, but against getting accounted.
Traders acknowledge that most of their business was unaccounted for them to avoid income-tax. With GST, accounts will also lead to higher income-tax for traders with bigger turnovers. A trader who has been supplying saris to south Indian states for over two decades, said we have always showed only a part of the transaction in the books, and the rest of the trade has been trust-based. But with GST, the entire business has to be put on the books. It will be difficult to hide volumes, and we will be liable to pay higher income-tax on our turnovers. That’s what is worrying the industry and the strike is the outcome of that, which is hampering the livelihood of many workers.
In order to deliver improved garment performance, US fiber producer Invista has unveiled a new tool that helps casual bra designers select the best fabric. The Lycra bra fabric finder technology has been developed in response to consumer-driven shift towards casual bras including wire-free bras, sports bra, bralette or bandeau.
The new platform can help designers easily identify the best fabric construction and add functionality to any casual bra collection. Fabric selection is critical when it comes to deconstructed, casual bras as the garment.
The technology works by encouraging casual bra designers to identify the desired comfort and support level they need to develop the bra in question, before choosing the shaping type, be it natural for a softer silhouette or power shaping for more defined curves.
Designers then select the appropriate certified fabric, which goes through a rigorous testing process to ensure it meets the predetermined parameters. Designers will be able to create the perfect casual bra that delivers the shape and support women need, and the comfort they want. Casual bras have a widespread, global appeal and represent a style evolution. The Lycra bra fabric finder will make it easier for brands to meet this growing demand and gain market share.
As per latest ‘Cotton and Wool Outlook’ report released by the Economic Research Service of the USDA, India is the largest cotton producer in the world accounting for 25 per cent of the 2017-18 global crop estimate, while China and the US are expected to contribute 21 per cent and 16.5 per cent, respectively.
Global cotton production remains concentrated among a handful of countries, and the top five cotton-producing nations are forecast to account for more than 76 per cent of total production, similar to last season but slightly below the 2013-14-2015-16 average.
India is projected to produce 29.0 million bales of cotton in 2017-18, 7 per cent above 2016-17. Although the yield is forecast lower (near the 5-year average), an area rebound of 14 per cent is expected to push the 2017-18 crop to its highest in 3 years.
China’s, cotton production is projected to rise 5.5 per cent (1.25 million bales) in 2017-18 to 24.0 million bales. Area devoted to cotton is forecast to return to the 2015-16 level of approximately 3.1 million hectares. Meanwhile, the China national yield is projected at a record 1,713 kilograms per hectare, as area is heavily concentrated in the high-yielding Xinjiang region.
The report says each major producing country is expecting larger crops, 2017-18 global cotton production is forecast at its highest level in 3 years at 115.4 million bales, 8 per cent (8.8 million bales) above 2016-17 and 19 per cent above 2015-16’s 12-year low.
The world cotton yield is estimated at 775 kilograms per hectare (691 pounds per acre) in 2017-18, 2 per cent below a year earlier.
Huntsman Textile Effects has won awards from the Dyestuff Manufacturers Association of India (DMAI) for performance in exports of dyestuffs by a large scale unit and performance in pollution control by a large scale unit. The awards are presented for outstanding contribution in supporting environment, health and safety and sustainability for the textile industry. Huntsman Textile Effects received the awards based on criteria such as innovation, creativity, development and quality.
Winners of the DMAI awards were determined by a judging panel from the chemical, pharma, dye and dye intermediates manufacturing industries. Huntsman Textile Effects is the leading global provider of high quality dyes and chemicals to the textile and related industries. It has operations in more than 90 countries and seven primary manufacturing facilities in six countries (China, Germany, India, Indonesia, Mexico and Thailand).
The company uses cutting edge technology to develop solutions and create innovative products with intelligent effects such as durable water repellents, color fastness, sun protection or state-of-the-art dyes which reduce water and energy consumption. The Dyestuffs Manufacturers Association of India (DMAI) was set up in 1950 to promote and protect trade, commerce and industries connected with dyestuffs. DMAI participates in international chemical mega events such as India Chem, Chem Expo, Chemspec as co-sponsor.
Swedish fast fashion maker H&M’s June sales rose seven per cent compared to June last year. The flagship H&M brand has or will establish eight new online stores globally this year, with a site planned for India next year, and is now available in 41 markets. The new Arket banner announced in March will launch with 18 online markets this year.
As on June 30, the total number of stores globally were 4,517, up from 4,095 stores a year ago. Some 500 new stores are set to open this year. New and remodeled H&M stores will include new forms of visual expression for a more inspiring in-store experience. Expectations are for online sales to grow by at least 25 per cent each year going forward.
Along with its brick-and-mortar footprint, the launch of new global brands is essential in the retailer’s growth strategy. The value of the COS brand is expected to reach revenues of around 1.19 billion dollars this year with profitability in line with that of the H&M brand.
H&M will publish the group’s sales per quarter instead of per month. Sales for the quarter will be published ahead of each interim report as the percentage change in local currencies and in Swedish kronor, as well as in absolute figures in Swedish kronor, both including and excluding the European value-added tax.
Apparel Textile Sourcing will be held in Canada from August 21 to 23, 2017. The event will uncover trending silhouettes, colors and textiles, including fabrics, finishes, washes and patterns which will dominate the apparel market. It will give attendees a glimpse of what’s in store for 2018 and beyond when it comes to global design and consumer apparel trends. In general, the color palette is going to be lit up with warmer hues and textures are going to reflect handmade craftsmanship.
This is Canada’s premier international apparel and textile sourcing event. It returns on a larger scale, with 300 local and international exhibits, three days of seminars, panels and sessions. Panel discussions on modern supply chain best practices, the ever-changing consumer trends and shifts that today’s e-commerce world demands and how technology is changing the face of the textile industry and what it means for both businesses and consumers are lined up.
Participants include top apparel and textile manufacturers from more than 20 countries, including Canada, China, Bangladesh, India, Pakistan, the US, the UK, Turkey, Switzerland, Spain, Nepal, as well as a delegation of 30 artisanal companies from eight least developed countries. Significant early registration numbers and strong exhibitor interest – both internationally and locally– indicate a renewed strength in the Canadian apparel and textile industry.
Adidas alleges Forever 21 is not only selling a design remarkably similar to its trademarked three-stripe insignia but also selling counterfeit Adidas products on its website. Similar allegations were made by Adidas against the fast-fashion retailer in 2015.
The German shoe brand has taken its suit against Forever 21 to a US federal court where it alleges that the clothing chain uses a three-stripe design that is “identical and/or confusingly similar” to Adidas’ own trademarked design. Adidas claims Forever 21’s use of the design will diminish its own profits and identity.
In its filing Adidas claims the stripe designs represent a breach of contract stemming from a settlement the two companies reached after Adidas sued Forever 21 in 2015. The two have been engaged in a legal back and forth for years over Forever 21’s use of designs similar to those seen on Adidas apparel.
In addition to its battle with Adidas, Forever 21 has faced numerous lawsuits with various clothing companies in the past few months. Gucci’s lawyers have sent multiple letters to the company in recent months demanding it stop using the blue-red-blue and green-red-green stripes that bear a resemblance to the Italian brand’s iconic stripes. The fashion chain then filed a lawsuit against Gucci in June requesting the Italian house lose its trademark registrations for its distinctive stripes.
The fast-fashion chain has also seen some success in its recent legal troubles. The suit alleged that Forever 21 copied three designs from its Fenty x Puma collaboration with Rihanna. The California judge found that Puma failed to “show that they are without fault in creating the crisis requiring ex-party relief.
With textile print gaining ground, FESPA 2017 Mexico edition, to be held from September 21-23 in Mexico City, will offer a first-hand experience of latest products from top brands in the industry.
One such company to feature at the Mexican event is Kornit Digital. The Vulcan from Kornit Digital is targeted at screen printers that produce collections and short runs for retail use and promotional purposes. Lea Duckwitz, Regional Marketing Manager EMEA at Kornit Digital, describes the textile print sector as an ‘ever-evolving’ market and, from the point of view of both a manufacturer and print company, keeping track is a ‘non-stop job’.
The industry now needs the tools to enable companies to become online business enablers. That is how they will be able to meet increasing demand for short-run turnarounds and customize and personalie requirements, while at the same time remain versatile and sustainable. Kornit’s has identified two key trends in textile prints, mass customisation and professionalisation of workflow and job management solutions.
New launches in the offing
Launched at FESPA 2017, earlier this year, the Storm Duo is a direct-to-garment printing system that has 16 print heads in a double CMYK configuration, a productivity of over 200 prints per hour, and is well suited for producing light garments. Meanwhile, the heavy-duty Vulcan is targeted at screen printers producing collections and short runs for retailers and promotional purposes.
Another leading brand featured at FESPA Mexico this year is Epson, which, like Mutoh, has a number of textile print options on offer to the market. Heather Kendle, Market Development Manager, Epson Europe says they have seen increasing call for on-demand, customised and personalised fashion and interior decor. Digital processes can print on synthetic as well as natural fibres and they have seen huge strides in the range of polyester-based materials, many convincingly simulating the look and feel of natural products such as cotton, silk, satin or leather. Polyester-based materials are required for the dye sublimation process and can achieve really top quality results, even with complex design.
Some textile print solutions from Epson are: SC-F9200 and SC-F7200 64-inch models from the Epson SureColor SC-F series, suitable for low to medium production. Epson also offers the 44-inch SC-F6200, which it said is ideal for more flexible production environments.
Trendsetting equipment
Another major manufacturer with a strong presence in textile print sector is Mutoh. They will feature at FESPA Mexico this year. Nick Decock, Commercial Marketing Manager at Mutoh Belgium, there is a clear shift from centralised production and stocking of prints made with analogue equipment towards local and on-demand production of digitally printed textiles, specifically linked to the key benefits of digital inkjet technology. There is also a new trend towards direct printing on natural fibres like cotton using water based pigmented inks for applications such as home furnishings, upholstery and fast fashion. One of the advantages of water-based pigmented inks is that prints only need to be fixated after printing, making the manufacture process a lot shorter and easier.
Digital printing has now reached a good level of maturity with regards technology, quality and print speeds, which have are acceptable for traditional textile printers for their short run needs.
This year’s upcoming FESPA Mexico edition has much more in store. Being held at the Centro Citibanamex in Mexico City, the event will see visitors from across the Latin America region as they seek to learn more about latest solutions from various areas of the wider print industry. Visitors will have access to a series of informative seminars that are designed to offer valuable insight into key topics, while the event will also play host to the Mexican round of the FESPA World Wrap Masters.
China’s brand Urban Revivo will open a store in the UK in March 2018. Spread over 22,000 sq ft unit this will be the Chinese fast fashion retailer’s first store outside the country. It currently operates 160 shops, mainly in China.
Urban Revivo has also set its sights on expanding into the US, France, Japan and the Middle East in the next few years. Plans involve opening between 60 and 100 stores a year globally to reach a target of 400 stores by 2020. Urban Revivo specialises in affordably priced contemporary clothing and accessories for men and women aged 15 to 40 years, as well as children aged four to 14. Its lines include feminine chic, masculine tailoring, streetwear-inspired youth fashion and trend-driven accessories.
The brand, founded in 2006, introduces up to 12,000 new styles a year. But all its designs are available in only 12 pieces per store. It uses fabrics like 100 per cent polyester and non-sheer and stretchable. Urban Revivo opened its first international shop in Singapore earlier this year. It competes with the biggest international fast fashion brands and launches designs twice per week.
The brand belief is that fast fashion can enable ordinary people to sport the latest trends while getting value for money.
Industrial Fabrics Association International (IFAI) will be held in the US from September 26 to 29, 2017. IFAI represents the advanced, specialty and shade textile industries. Specialty fabrics feature traditional market suppliers from fabric and equipment to hardware and services needed to manufacture end products. Advanced textiles cover supply chain relationships in technical textile markets including medical, automotive, wearable, safety/protective, performance wear and aerospace. Shade and weather protection includes end products such as retractable awning systems, shade structures, canopies and other weather solutions.
Attendees looking for high tech or durable textiles, equipment, hardware, findings or services, will find it at IFAI Expo. The smart fabrics program will focus on e-textiles and their applications. The program comprises an e-textile workshop on the show floor with electronics and textile experts, easy to assemble e-textile kits available to all, an e-textiles standards roundtable and e-textile market discussions in an open forum setting.
The hackathon is a contest created to encourage innovative new e-textile products with commercial value. It’s open to all entrepreneurs, developers, designers, students, engineers, artists, makers and creators who will be assigned to teams and tasked with innovating using only materials found in the e-textiles workshop.
There will be discussions on topics from advanced textile development, e-textiles, environmental regulation compliance, fire protection to intellectual property law, and product and process development, among other topics.
