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James Brett is chief executive officer of apparel retailer J Crew. Brett has had more than 25 years of retail experience. He most recently served as president of specialty home furnishing company West Elm, a unit of Williams-Sonoma.
Sales at J Crew, whose ballet flats and cashmere cardigans were once a staple of middle-class US wardrobes, have been declining, as it struggles to keep abreast of changing tastes and faces fierce competition from cheaper online retailers.
J Crew has been an institution since 1983. It is renowned for its fresh, luxurious take on everyday staples.
America’s favorite basics store is known for its lace jogging pants, skirts, tank tops, tees, dresses, fine Italian cashmere sweaters, sequin and lace-detailed skirts and playful jewelry.
Following a six per cent sales slump in 2016, the company is investing in retuning J Crew’s identity as an affordable and accessible brand for everybody — not just the fashion-forward crowd.
J Crew is now trying to compete without marking everything down by 40 per cent every other week. It has created an analytics team to research and optimize the cost of each item. It also plans to switch up its supply chain beyond China so that clothing will arrive in stores faster.
Being the 11th largest producer and 6th largest exporter of cotton, EU is the largest market for textiles in the world and the important trade and research institutions in the world of cotton are headquartered in the EU. The membership of the EU in the ICAC is of premeditated significance as there are 150 million people involved in cotton production, marketing and processing each season. The European Union itself, and many individual countries and companies within the EU, are significant providers of cotton-specific development assistance in recipient countries.
On May 16, the Council of the European Union approved the accession of the EU to the ICAC on May 18, 2017. H.E. A formal Instrument of Accession to Minister (Trade) Ali Tahir of the Embassy of Pakistan and ranking member of the ICAC Standing Committee on May 24, 2017 was presented. The membership of the EU today at its 549th Meeting was confirmed by the Standing Committee confirmed the European Commissioner for International Cooperation and Development, NevenMimica, commented on this that Cotton is important both to the EU's economy also the EU's accession to the International Cotton Advisory Committee is significant step. As a member, the committee will work for a sustainable and inclusive cotton sector.
Started in 1939, ICAC is one of the oldest organizations within the architecture of intergovernmental bodies. It is the International Commodity Body representing cotton and cotton textiles. The mission of the ICAC is to assist governments in fostering a healthy world cotton economy. The role of the ICAC is to raise awareness of emerging issues, provide information relevant to the solving of problems and to foster cooperation in the achievement of common objectives. By bringing together producing, consuming and trading countries and all segments of the cotton industry and serving as an objective statistical observer, the ICAC serves a unique role as a substance for an overall positive change.
Ministry of Textiles plans to draft guidelines of National Textiles Policy which will be further forwarded to the union cabinet for approval next month.
Pushpa Subramanyam, secretary of Textiles Ministry says that the Centre is awaiting a formal request from the Telangana Government also the draft is almost ready.
She further added that after the Textiles India-2017, the document will be deepened with the more inputs from the event and it will be approved by the cabinet in July 2017. The policy aims to achieve $300 billion of textile exports by 2024-25 and create an additional 35 million jobs.The event is expected to be inaugurated by the Prime Minister Narendra Modi and attended by several union ministers and chief ministers of various states.
On the proposed Textile Park in Warangal, Pushpa Subramanyam mentioned that there is no dearth of funds for the project and there is 7 per cent growth in the textile and garment exports from India between July 2016 and April 2017 and in 2016 the total exports stood at $40 billion however, the Ministry is targeting $45 billion in 2017.
The officials are further waiting for the proposal from the state government to soon sanction it In a bid to boost textile industry
Philip Yeung Kwok-wing is the president of the Society of Dyers and Colorists.
He has been a SDC member for 50 years. He is an active member of SDC’s Hong Kong region. The Hong Kong region was established in 1972 and has the highest number of chartered colorists outside the UK.
Philip Yeung Kwok-wing graduated from the Hong Kong Technical College with a higher diploma in dyeing, printing and finishing in 1968.
He is currently executive director of the Clothing Industry Training Authority in Hong Kong.
The coloration industry is facing environmental, health and safety issues.
SDC, established in 1884, is the world’s leading independent, educational charity dedicated to advancing the science and technology of color worldwide. SDC is a professional, chartered society. It has an international network of regions and activities.
Its mission is to educate the world about the science of color. It does this by maintaining professional standards and improving the skills of coloration professionals, enabling them to deliver exceptional results for their organisations. This is delivered through membership, qualifications, training, consultancy, publications, events and access to knowledge and expertise. SDC provides tried and trusted practical support services focused on implementing best practice in textile color management, resulting in improved efficiency and cost savings.
Cotlook discarded anticipation of a further fall in world cotton inventories next season, quoting the prospects of a strong US harvest. Starting in August Cotlook forecast a rise of 44000 tonnes in world inventories of the fibre in 2017-18.The estimate contrasted with a previous expectation of a small decrease in stocks, of 47,000 tonnes. And it placed Cotlook at chances with an idea from the US Department of Agriculture of a 520000-tonne decreased in world cotton stocks next season.
On the other hand the International Cotton Advisory Committee estimates to fall by 960000-tonne.
Talking about the firm prices Cotlook's raised inventory estimate reflected an increased forecast for world production, upgraded by 91000 tonnes to 24.5 million tonnes, to improved ideas for the US harvest. Cotlook also stood by expecting for output in top grower Indian, seeing the country's harvest at 6.29 million tonnes, ahead of the USDA's 6.10 million tonne figure, and a forecast from the ICAC below 6 million tonnes.
According to the group the Global raw cotton production may rise by 1.78 million tonnes, which has increased to 4.18m tonnes its forecast for the US crop, putting its figure in line with that of the US Department of Agriculture. The group also highlighted a "difference" in inventory moves, with China's stocks seen dropping by nearly 2m tonnes over 2017-18, as the country extends a sell-down of government inventories swollen by a now-reformed guaranteed pricing scheme for growers. In the rest of the world, "an addition of similar magnitude is foreseen" cotton in inventories.
It is surprising to know that the govt still thinks polyester is a fibre for high class and cotton is for poor class, that is the reason growth is restricted. Soon a day will come when govt will have to think independently, if it wants to grow at bigger pace like Bangladesh/Vietnam etc, says R K Vij, Advisor, Indorama Synthetics
The manmade textile industry wants the government to lower the levy for manmade fibre (MMF) products. MMF fabric and yarn, dying and printing units as well as embroidery items would attract 18% GST. This would result in an increase in input costs and adversely affect the entire textile value chain, industry officials said.
"Keeping the GST at this rate (for MMF products) will undoubtedly cripple hundreds of small and medium synthetic textile manufacturers," said J Thulasidharan, chairman, Confederation of Indian Textile Industry (CITI). "The 18% GST rate levied on manmade fibre and synthetic yarn would have inverted duty structure problem as the fabric would attract only 5% GST rate," said M Senthilkumar, chairman, Southern India Mills' Association. "Garment units may find it difficult to offset input tax credit (for synthetic fibre and fabric)," said Raja M Shanmugham, president, Tirupur Exporters' Association (TEA). The government should reconsider the rates on MMF products and bring it to 12%, Thulasidharan said. "India is already suffering a huge competitive disadvantage in the global textile market as the MMF-based textile products are attracting higher rates of import duty," he pointed out.
India is facing stiff competition from textile producing countries such as Bangladesh, Vietnam and China, he said. "Keeping the tax rates high will not only escalate textile inflation but will lead to cheap imports from these countries," the CITI chairman said. "The textile sector is suffering from various disadvantages like high energy costs and infrastructure bottlenecks. Keeping the rates of key inputs at a higher level will further affect the competitiveness of the sector," he said.
Industry officials also urged the government to exempt textile jobs from service tax as it would benefit the predominantly decentralised micro, small and medium enterprises, especially in the powerloom, knitting, processing and garmenting sectors.
About 80% of garment units in Tirupur do their business on a job working basis and the 18% service tax on textile jobs would hit them hard, Raja Shanmugham said. The GST rates for all natural fibres including cotton, cotton yarn, fabrics and readymade garments valued below Rs 1,000 has been fixed at 5%, which has been in line with the expectations of the textile industry.
R K Vij, Advisor, Indorama Synthetics adds some more pertinent points, raising issues related to accumulated Cenvat and other, “Manmade fibre sector is not placed well. Since last so many years, the whole textile industry has been demanding fibre neutrality, if we have to grow in line with world pace. Textile cloth producers small or big will accumulate Cenvat credit. It is surprising to know that the govt still thinks polyester is a fibre for high class and cotton is for poor class, that is the reason growth is restricted. Soon a day will come when govt will have to think independently, if wants to grow at bigger pace like Bangladesh/Vietnam etc.
He further adds, “Man made Textiles cloth and garments will become costly because no producer will adjust the accumulated CENVAT credit while selling their goods. Import of manmade fabric will increase because garments producer will get cheaper imported fabric. Blended yarn producers may sell their blended yarns misrepresenting them as cotton yarn. Only efficient producer and composite mill will be able to compete in the markets. Spinners will have to add value, adding fabric manufacturing in their units to utilise the accumulated Cenvat. Govt should consider these facts and rethink their secessions of GST percentage of 12% if not the 5% on Manmade fibres and yarn including on raw material PTA and MEG.
In his opinion, 18 per cent tax on job work will require a lot of compliance. Also fabrics import price now with removal of cvd n sad but GST input credit to importer need to be looked into. Man made fabrics may have some impact as recycled polyester is same duty as 18 per cent, as earlier it was 2 percent only.
The recent levies of taxes under new GST regime had brought big benefits to the composite textile units as compared to the independent textile manufacturing units. Manufacturers who are getting their goods manufactured on job basis are the worst sufferers.
They have to pay GST @18%on yarn or 5%in case of cotton , 18%on job weaving charges and also 18% on job processing charges whereas composite units are not required to pay any GST at these stages. No textile manufacturer is entitled for any refund. Means GST paid on all inputs are higher since their conversion cost is very less than payable on fabrics then no refund will be allowed. This would lead to cost escalation and make their fabrics costlier than composite units. This is for sure under the current tax regime job manufacturers who are not owning their industries will be left with no alternative other than to close their operations.
A composite manufacturer will have to pay tax only at fiber stage and then finally on fabrics against which duty paid on fiber will be set of. As against this merchant manufacturer will have to pay tax at yarn stage, weaving stage and processing stage and this altogether is more than the GST payable on fabrics. This is against the basic principal of GST that full input credit is not allowed since it results into refund.
This differentiation between composite units, weaving units and finally manufacturers on job basis would be substantial and will lead to closure of the business by job manufacturers. Government's policy had been always to safeguard the interest of the small and less resourceful merchant manufacturers whereas their this step has gone drastically against the small manufacturers and traders.
Strong representation is being contemplated to be made to the finance ministry/GST council to save this section of manufacturers from this anomaly. This is possible only if the textile services like weaving, processing should be exempted from the preview of GST. If at all this is not possible then these services should not be taxed at a rate more than the rate of output that is 5%. Small weaving units and merchant manufacturers are catering largely to the clothing needs of the poor and economically weaker section of the country.
Textile and fashion is the second biggest industry in Italy after machinery. Fashion in Italy in the widest sense includes in addition to apparel and products such as eyewear, jewelry and cosmetics.
Italian fashion revenues continue to outperform Italy’s broader economy, and in the last part of 2016 and in the first quarter of 2017 they even picked up speed.
Italy’s products continue to be appreciated in countries such as China and Korea in Asia. Japan and Hong Kong are also good, with exports growing at 5.8 per cent and 8.5 per cent. Exports from Italy to Russia are up 19.5 per cent.
However there has been a slowdown in exports to the United States. Companies need to increase their presence in international markets and need to find capital to make it happen especially for medium-sized businesses.
The fashion and luxury industry must exploit the new opportunities for personalization. Customization is strategic: already 22 per cent of luxury consumers consider this important when they make purchases, a percentage that is expected to increase in every country, and in particular among millennials, born after the 1980s.
Growth in luxury is expected to continue. Between 2009 and 2013 it was 8.3 per cent and between 2013 and 2016 it was 3.8 per cent.
Bangladesh’s garment industry wants full withdrawal of source tax and additional five per cent cash incentives for the next two years.
It also wants the corporate tax to be reduced to ten per cent from the proposed 15 per cent. It feels imposition of such a tax burden on the industry is not appropriate and would hamper its growth.
The existing source tax on garment exports is 0.7 per cent for the current fiscal year. The proposal is to make it one per cent from the next fiscal.
Other points made by the industry include additional five per cent cash incentives on freight on board price.
The garment industry is Bangladesh’s largest manufacturing industry. The sector has been facing various challenges including currency devaluation in major markets, decline in global demand for garments, ongoing safety initiatives and increasing cost of doing business.
The budget for fiscal year 2017-18 proposes reducing corporate tax to 15 per cent and a further cut of one per cent to 14 per cent for readymade garment companies having internationally recognised green building certification from the existing 20 per cent. Bangladesh has a target of achieving 7.4 per cent economic growth in the new fiscal year.
AEPC feels the apparel industry was looking forward to a simplified tax regime under GST, with a single rate for the entire value chain, but that the multiplicity of rates announced will lead to interpretational issues.
For instance, while the cotton value chain was largely under the zero duty route, the introduction of five per cent tax would lead to an increase in production cost.
AEPC also says the 12 per cent rate for readymade garments above Rs 1000 is higher than the industry expectations. “Readymade garments are the historic growth engine of this industry and the maximum employment generator as well,” says Ashok Rajani, chairman, AEPC. “We hope that the government takes care of this segment’s interest by continuing with ROSL and the drawback rates.”
