CHAIRMAN'S MESSAGE APPAREL DEAR READERS, I look forward to your suggestions/feedback at Ashok G Rajani Chairman, AEPC

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1 December 2017 R50 France Unlimited! Insights int o the French econo my Structured For The Cut! Profi ling two you ng German brands

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3 APPAREL CHAIRMAN'S MESSAGE DEAR READERS, Ashok G Rajani Chairman, AEPC I look forward to your suggestions/feedback at chairman@aepcindia.com

4 APPAREL CHAIRMAN'S MESSAGE I look forward to your suggestions/feedback at chairman@aepcindia.com

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6 COVER IMAGE: SHUTTERSTOCK.COM EDITORIAL ADVISORY BOARD: CHAIRMAN AEPC Mr Ashok G Rajani CHAIRMAN - EP Mr Anil Buchasia ADDITIONAL SECRETARY GENERAL Anil Kumar Vasu Pillai EXECUTIVE COMMITTEE MEMBER Mr Rishi K Rajani ADVISOR AEPC Mrs Chandrima Chatterjee PUBLISHER Apparel Export Promotion Council EDITORIAL Asst. Editor Kashmira Mirza Senior Sub-Editor Anurima Das INDIA DESIGN Creative Art Director Parvez Shaikh Sr. Designers Sachin Bhogate Anand Dhuri Digital Imaging Ninad Jadhav Vikas Padloskar SENIOR VICE PRESIDENT Bobby Daniel Design, Editorial and Printed at Spenta Multimedia Pvt Ltd Design and Editorial office: Peninsula Spenta, Mathuradas Mill Compound, Senapati Bapat Marg, Lower Parel, Mumbai Tel: (022) Fax: (022) ho@spentamultimedia.com Printing Press: Plot 15,16 & 21/1, Village Chikhloli, Morivali, MIDC, Ambernath (West), Dist. Thane 30

7 CONTENTS INSPIRE. INFORM. CONNECT. INDIA I I I 06 I The Broadcast News from different segments of the Industry 08I A Report On The Gurgaon Fashion Forecast Seminar 10 I Report On The Fashion Forecast Seminar Held in Tirupur 11 I Report on the Buyer-Seller Meet, Madrid, Spain 12 I Curtain Raiser For The 22nd AEPC Export Awards I AEPC Launches Two New Awards to Promote Sustainability and Good Practices 30 I Fashion with a Mission 36 I Understanding QUAD 42 I All Roads Lead to Peru 48 I Structured For The Cut 56 I Ministry Noti cations 59 I AEPC Noti cation 60 I Events Calender 16I Bihar Apparel Meet Conducted in Ludhiana A M 17 I Report on India Trend Fair (ITF), Tokyo, Japan A report on the third edition of the 19 I How Debt Market Economics could affect the Rupee? 24 I France Unlimited! 36

8 APPAREL THE BROADCAST INDIA S READY MADE GARMENT (RMG) EXPORT UPDATE FY (APRIL-SEPTEMBER) India s RMG Exports RMG exports were to the tune of USD million in September 2017 with the increase of per cent against the corresponding month of September 2016 which were USD million. In rupee terms, exports for the Month of September 2017 were R10, Cr. as against R Cr. in September 2016 with the increase of per cent. India s RMG exports to the World in the April-September of were to the tune of USD mn. This has increased by 8.65 per cent compared to the same period of previous financial year. During April-September , India s apparel exports were to the tune of USD mn. I N D I A S R M G E X P O R T S T O T H E W O R L D Month FY FY In INR Crore In US$ Million In INR Crore In US$ Million MoM Growth of over (Per Cent) INR US$ April , May , June 10, July August September , April-September 56, , Source: DGCI&S, Kolkata, 2017 APPAREL EXPORT PROMOTION COUNCIL MAGAZINE DECEMBER

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10 APPAREL EVENTS AND REPORTS A REPORT ON THE GURGAON FASHION FORECAST SEMINAR Apparel Export Promotion Council (AEPC) under its awareness initiatives programme, kick started the rst series of Fashion Forecasting Seminars for the nancial year in Gurgaon on November 20, APPAREL INDIA reports on this exciting seminar. Ms Kim Mannino, Head of WGSN LIVE, addressing the seminar. These seminars have been organised by AEPC in association with WGSN, the leading trend forecasting agency of the world. Ms Kim Mannino - Head of WGSN LIVE from the WGSN London office, was the speaker at the event. Kim is a very seasoned and experienced professional and has worked for over 30 years in the industry. She has worked with Promo style for over 20 years and is currently leading the live presentations division of the company. At the presentation, Kim covered and provided insights on Key Commercial Items, colours and trends for AW 18/19 and Textile Trends for SS 19. AW 18/19, is divided into four broad themes namely, Thinker, HumaNature, Dark Wonder and Worldhood. The Thinker explores an emerging era of enlightenment, where ideas and education are the prized currency. For womenswear, the focus is on simple, functional designs. HumaNature explores the urge to trust our instincts. Natural materials, tactile surfaces, and quilted and intricately decorated designs gain prominence. Dark Wonder, however, explores the influence of new technologies on fashion. All the above trends were brought to life by 3D mood boards developed by WGSN, and key commercial items of the season which were developed in-house by the WGSN clients in India were also put on display. The next seminar series is scheduled to be held at Noida, Bengaluru, Mumbai and Ludhiana in the month of March Participants at the seminar. APPAREL 8

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12 APPAREL EVENTS AND REPORTS REPORT ON THE FASHION FORECAST SEMINAR HELD IN TIRUPUR Fashion Forecast Seminar on fashion trends for Autumn/Winter and Spring/Summer 2019 seasons was held in Tirupur on November 23, APPAREL INDIA reports from the venue. Dr A Sakthivel, President, Former Chairman, AEPC and Member, Executive Committee, AEPC addressing the seminar. Participants during the seminar. Dr A Sakthivel, Past Chairman, AEPC, & Executive Committee Member of the Council has inaugurated the Fashion Forecast Seminar and highlighted the importance of WGSN forecasting fashion trends for the upcoming season. During his Inaugural speech, he shared the outcome of his recent meeting with Member, Customs, Duty Drawback and the long discussion he had with the Chairman of the Drawback Committee on the issues of 40 per cent drop in exports compared to the same quarter last year. He has also informed that the members of the DBK committee are well aware of the issues and also understand the alarming situation. Dr A Sakthivel has further added that the DBK committee is working towards increase in Drawback by taking into account the embedded taxes on Petroleum products through Central and State taxes. Ms Kim Mannino, Head of WGSN, UK, presented in detail fashion trends for A/W and S/S This seminar focused on colours, key shapes, silhouettes, embellishments, prints, etc., for men, women and kidswear based on new topics encompassing, Worldhood, HumaNature, the Thinker, and Dark Wonder. Fashion trend for garments like, full shirt dress, slim belted trousers, ribbed trousers, cardigans, full sleeve roll neck, workwear jackets, neat checked trousers, etc., was dealt with detail for Autumn transition, winter, and mid winter. Trends focusing on concepts - Common Ground, Creative Manifesto and Touch were elaborated. Ms Bhawna, Account Manager, WGSN-South Asia, explained about garments, fabric swatches and story boards developed for the season and displayed at the venue. Participants interacted with the speaker on topics related to sustainable production of fashion goods and role of synthetic fabrics in fashion. APPAREL 10

13 APPAREL EVENTS AND REPORTS REPORT ON THE BUYER- SELLER MEET, MADRID, SPAIN AEPC has been organising Buyer-Seller Meet in Spain for the last nine years consecutively since APPAREL INDIA reports on this year s BSM, held in Spain during October 3-4, From L to R: Shri Ram Singh, IPS, SG-AEPC (third from left), Shri D B Venkatesh Varma, Ambassador-EOI, Spain, Shri Saravanan Balasubramaniam, Second Secretary (Commerce), EOI-Madrid, Shri D G Reddy, Advisor-AEPC. The Council is organising the BSM Spain, with the cooperation & support of the Indian Embassy in Madrid every year. Based on the excellent response received during the previous BSMs, the Apparel Export Promotion Council had organised the Buyer-Seller Meet in Madrid, Spain, during October 3-4, The Buyer Seller Meet at Madrid, Spain, was inaugurated by Shri D B Venkatesh Varma, Ambassador, Embassy of India, Madrid, Spain, in the presence of Shri Ram Singh, IPS, Secretary General, AEPC along with Mr Saravanan Balasubramaniam, Second Secretary (Commerce), Embassy of India, Madrid, and the exhibitors of BSM Spain. After the inauguration, Ambassador Shri D B Venkatesh Varma briefed the participants about the Spanish market. During 2016, the garment exports to Spain from India were around US$ million and its growth was recorded as three per cent over the last two years after the slowdown period, informed Mr Varma to the participants. He also emphasised on the inclination of Spanish buyers towards Indian products, mainly Apparel products. Mr Ram Singh, Secretary General, AEPC, met Shri D B Venkatesh Varma, Ambassador, EoI, Spain, and briefed him about the export potential for India for exports of RMG to Spain. Shri Varma appreciated the efforts of AEPC for organising the BSM continuously since the year APPAREL

14 APPAREL CURTAIN RAISER CURTAIN RAISER FOR THE 22ND AEPC EXPORT AWARDS The 22nd AEPC EXPORT AWARDS AND AEPC POWERgroup discussion is scheduled on December 18, 2017, at Sovereign Hall, Hotel Le Meriden, Windsor place, New Delhi from 6:30 pm onwards. APPAREL INDIA gets you the Curtain Raiser. Read on The AEPC Export Awards are the Indian Apparel industry s most prestigious awards, paying tribute to the success and innovative approaches of Indian apparel export companies. Extending across diverse product categories and including both experienced and start up representation, the awards are a celebration of the contributions exporters have made to the industry and, in turn, the national economy. The AEPC Export Awards recognise the outstanding vision of the organisation which has not only achieved success for their organisation in India and in the international marketplace, but while doing so, they have added to the growth of the country s international trade and contributed to our society. This year, AEPC EXPORT awards will be given for a total of 18 Categories. For the first time, this year, AEPC EXPORT awards will include two new award categories, viz. sustainability and good practices. To distribute these awards, an eminent jury comprising members from these two sectors has been constituted by AEPC. For the first time, AEPC has taken CNBC TV18 as Media Partners for the 22nd AEPC Export Awards Smt. Smriti Zubin Irani, Honourable Union Minister of Textiles and I&B, GoI, has given her kind consent to contribute to and participate in the POWERgroup discussion. AEPC is looking forward to the participation of Shri Arun Jaitley, Honourable Union Minister of Finance, GoI, Shri Suresh Prabhu, Honourable Union Minister of Commerce and Industry, GoI and Shri Ajay Tamta, Honourable Minister of State for Textiles, GoI, in the POWERgroup discussion. CNBC TV18 will moderate the POWERgroup discussion and will telecast an exclusive 30 minute episode on the event along with bytes from Honourable Ministers, Chairman, AEPC and Award Winners. This will have a far reaching impact all over the country and also reach out to our Buyers outside the country. Apart from the broadcast of the content by AEPC on all international event platforms and its well visited website, it is expected that the content will be shared by all winners with their Buyers overseas. The partner for the 22nd AEPC EXPORT AWARDS is SGS India, one of the leading inspection, verification, testing and Certification Companies, while the forex partner is Cox & Kings, one of the longest established travel companies. APPAREL EXPORT PROMOTION COUNCIL MAGAZINE DECEMBER

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16 APPAREL EVENTS AND REPORTS AEPC LAUNCHES TWO NEW AWARDS TO PROMOTE SUSTAINABILITY AND GOOD PRACTICES The 22nd AEPC Export Awards will have two new categories to encourage the initiatives taken by exporters in ensuring sustainable production and good work places. The Award on Environmental Sustainability is aimed at encouraging sustainable practices in the sector while the Award for Good Work Place Practices is aimed at encouraging good practices in the apparel units with respect to employment practices, social practices, better recruitment practice, work place relations, CSR initiative and also setting goals for sustainability. An expert panel of jury has been constituted to evaluate nominations for the award on environmental sustainability. The jury comprises of Mr Pawan Mehra, Managing Director, ckinetics, Mr Yasir Ahmed, Partner, PricewaterhouseCoopers and Mr Terence Simon, Manager (Social Compliance), KappAhl Far East Limited. ckinetics is one of the largest Sustainability Advisory firms globally specialising in textiles, apparel and footwear. The firm has worked with over 30 global brands and 500 factories; helping design long-term programmes related to improving resource efficiency. Mr Pawan Mehra has 20 years of experience working at the intersection of capital and new ventures first as a venture capitalist in India and in the Silicon Valley and then an entrepreneur who has founded & built successful organisations. Driving capital efficiency has been at the core of all the ventures he has built. He is presently an Executive Board Member of ckers Finance APPAREL 14

17 and Managing Director of ckinetics. Mr Yasir Ahmed, Partner is an expert in the field of climate change and sustainability and has been involved in trainings related to EHSS and Sustainability for a wide variety of audience. He has over 13 years of professional experience in the field of climate change and sustainability. Yasir is currently leading the Responsible Business Advisory practice at PwC. Mr Terence Simon is Manager (Social Compliance), KappAhl Far East Limited, and is based out of Gurgaon. His key result areas include ensuring the supply chain partners in India, Sri Lanka and Myanmar work towards sustainable implementation of our Code of Conduct and our Environmental Goals & Objectives. In Terrence's word, "At KappAhl, sustainability is part of everything we do and our goals are set very high. We shall have as little environmental impact as possible and save the earth's resources. We shall constantly improve the conditions of all those affected by our operations. Our clothes should not contain harmful chemicals. And it should be easy for our customers to make a sustainable choice at KappAhl.Our goal is for everything we sell to be produced with care and respect, now and in the future". The nominations for the award for Good Work Place Practices have been evaluated with the aim to incentivise proper monitoring and documentation of systems and initiatives like the Internal Complaints Committee and engagement with any community service, etc. The Jury for this award comprised Mr Avedis Seferian, President & CEO, WRAP, Mr Vikram Pandita, Regional Manager, NEXT PLC and Mr Rana Alok Singh, Regional Head-South Asia, Ethical Trading Initiative (ETI). Mr Avedis Seferian, President and CEO of Worldwide Responsible Accredited Production (WRAP), an independent, objective, non-profit team of global social compliance experts dedicated to promoting safe, lawful, humane and ethical manufacturing around the world through certification and education. He serves on the Board of Advisors of the Alliance for Bangladesh Worker Safety and is the Chairman of the Executive Board of the Association of Professional Social Compliance Auditors (APSCA). Mr Rana Alok Singh is a Senior CSR and Social Development professional with around 20 years of experience of working on labour rights and social development issues. An alumnus of IRMA, Alok has worked with informal as well as the formal sector workers with wide range of organisations, including International Trade Union Federations. He has also carried out several research studies for International Agencies, including ILO. For the last 10 years he has been managing ETI (UK) supported supply chain programmes in South Asia. He is also supporting the ETI teams in the region to strengthen discussions around Business and Human Rights in South Asia. 15 APPAREL

18 APPAREL EVENTS AND REPORTS BIHAR APPAREL MEET CONDUCTED IN LUDHIANA APPAREL INDIA reports on the Bihar Apparel Meet, which was held to enhance investment in the Apparel and Textile sector in Bihar and to amplify the bene ts provided by the state Government for Readymade Garment Exporters. The department of Industries of Bihar along with Apparel Export Promotion Council (AEPC) successfully conducted the Bihar Apparel Meet in Ludhiana on November 10, The meeting was presided by Dr S Siddharth, IAS, Principal Secretary, Shri R S Srivastava, IRS, Investment Commissioner, State Government of Bihar, Shri Ravindra Prasad, ITS, Director, Technical Development, State Government of Bihar, and Shri Vimal Kumar, Chief Executive Officer, Udhog Mitra, State Government of Bihar. Shri S K Jain, Shri Harish Dua, and Shri Narendra Chugh - Members of AEPC Ludhiana along with the readymade garment exporters of Ludhiana, represented AEPC during the meeting. Talking about the Bihar Industrial Investment Promotion Policy 2016, Dr S Siddharth, Principal Secretary, said that in order to promote Industrial development in the state, there is a 100 per cent exemption of stamp duty/registration fee and land conversion fee. Also, there is tax reimbursement equal to the amount of investment and up to 20 crore interest subvention for textile/apparel sector. He also discussed the cheap labour availability Delegation of the Bihar Government along with the members of AEPC, Ludhiana, during the seminar. in Bihar and further informed the participants that online Single Window Clearance System has been launched wherein the investors can submit proposal for investment online from anywhere and approval from the Government will be communicated via an online system. Shri R S Srivastava, IRS, Investment Commissioner, while highlighting the investor friendly climate of Bihar told the participants that Bihar is eagerly waiting to welcome investors from across the world. Shri Narendra Chugh, Member of AEPC, Ludhiana, concluded the session by giving a vote of thanks to all the participants in the Apparel Meet. APPAREL 16

19 APPAREL EVENTS AND REPORTS The third edition of India Trend Fair was held during September 27-29, 2017, in collaboration with Japan India Industry Promotion Association (JIIPA). APPAREL INDIA reports on the successes of the event. Organisers of India Trend Fair (ITF). REPORT ON INDIA TREND FAIR (ITF), TOKYO, JAPAN JIIPA, is a Tokyo based NPO affiliated by Tokyo Metropolitan Government to enhance apparel trade between Japan & India. JIIPA was responsible to organise the India Trend Fair this year. Mr Raj Kumar Srivastava, Deputy Commissioner of Mission, Embassy of India, Tokyo and Ms Hiromi Sugiura, Director for Information Affairs and Technology, MIB, Ministry of Economy, Trade and Industry, Japan, inaugurated the India Trend Fair (ITF), Economic relations between India and Japan have vast potential for growth, given Participants and buyers at the fair. the obvious complementarities that exist between the two Asian economies. Japan's interest in India is increasing due to variety of reasons including India's huge and growing market and its resources, especially the human resources. The signing of the historic India- 17 APPAREL EXPORT PROMOTION COUNCIL MAGAZINE DECEMBER 2017

20 APPAREL EVENTS AND REPORTS Buyers inquiring at a stall. Japan Comprehensive Economic Partnership Agreement (CEPA) and its implementation from August 2011 is expected to further accelerate growth of trade, economic and commercial relations between the two countries. In his inaugural speech, Mr Raj Kumar Srivastava said that in the last few years there has been an exponential increase in India s political, trade, academic and cultural interaction with Japan. Our bilateral economic interaction is set to grow following the signing of a Comprehensive Economic Partnership Agreement that came into effect from August 1, CEPA has been good for the Textile Sector in particular, as tariff duty on textile products came down to zero from August 01, This is the right time for Japanese importers to take advantage of CEPA and the many strengths of the Indian textiles sector, such as easy and abundant availability of raw material like Cotton, silk, polyester and silk, a vast pool of cheap and talented workforce, and top-call designers using the latest technologies. He mentioned that the next five years should see a lot of growth in Indian Apparel Export to Japan. With a number of Japanese settlements increasing in India, we can be optimistic about a redefined interest in Indian garments in Japan. Apparel Export Promotion Council participated in the fair with top readymade garment manufacturer exporters from the nation with an objective to improve Indian Textile exports to Japanese market and to explore new opportunities. The Council had booked 40 stalls in the show. The show attracted buyers, manufacturers, trading houses, retailers and fashion designers etc., from Japan. The show helped advancing another step forward for enhanced Indo-Japan Apparel trade with publicity campaign being carried out to ensure maximum footfalls of buyers for the show. The buyers profile included importers, agents, buying offices, distributors/wholesalers, fabric and trim buyers, product development and design teams, and large volume retailers including; department/chain stores, catalogue/mail order companies. After the event, Feedback forms were distributed. The feedback by Exhibitors has largely been very positive and all of them have spoken about having made contact with new Buyers. Some have suggested shifting of dates of the event such that it may not clash with any other similar event and be more suitable to the market cycles. The majority of the visitors were buyers or from trading offices, supplying large Japanese stores. The visitors from a cross-section of companies, including a few leading ones in Japan like, Dinos, Moriring, Tokyo Kankan, Sumi Tex Titicaca, Cross plus, Itochu, Bussan, Blooming, Pent, Rose bud and Ron Herman, Onward, Crayon, Sanyo Shokai, Adventure, Teijin, Yagi, Nisshimbo, Can YKK, Titikaka, Sumitex, MK Fashion, Toyoshima, Bigi, Mitsukoshi-Isetan, Isetan, Tokyu-hands, Actus, Ryohin Keikaku (Muji), Takashimaya, Marubeni, Daimaru, Aeon, Sanyo, Seibu, Tobu, Keio, Sogo,7-Eleven, 7 & I Holding, Marui, Ito-Yokado, Nitori, Teijin, Tore, Adventure International Co. Ltd, Onward, Asahi Kasei Trading Service Co. Ltd, Itokin, Itochu, BEAMS, United Arrows, World, Aba House, Mitsui Bussan, Marubeni Fashion Planning, Hitachi, Mitsubishi, Sumitomo, sumitex, Jun, Comne Ca Lsm, Living Design Center, Sogo & Seibu, Kokubu, Nisshinbo, Nishikawa, IRIS, Yamamotosada, Gunze, Converse, Kowa, Yuzawaya, Yushima, Yagi, Accent, Yamato, Lanhua, Bandai, Nishikawa Living, Melrose, Sazabi, Accent, Dinos Cecile, Home Center Valor, Sumikin, Fashion.Net, Misses Tushin, Takihyo, Moririn, Hirota, Eddie Bauer, Bigi, Fukusuke, Toyo, Renown, Kawashima Selkon Textiles Co. Ltd, Lixil, Daiwabo, Takisada, R, Boycrews, Luxa, Tomen, Passport, AIC, KIYOHARA & CO. LTD, Koizumi Apparel Co. Ltd, Senshukai Co. Ltd, Toyota Tsusho Corporation, TOYOTSU TEXTILE CORPORATION and many others sent representatives. Most of the major store groups sent representatives but there were also smaller independent stores and agents. APPAREL EXPORT PROMOTION COUNCIL MAGAZINE DECEMBER

21 APPAREL GUEST COLUMN How Debt Market Dynamics Could Affect The Rupee? MR ABHISHEK GOENKA, CEO, IFA Global, talks about the dynamics of the debt market and through examples and pointers brings out the truth of the same, by pointing out how this would affect the rupee with time. S o far, during this calendar year, FPIs have poured in USD 30Bn into the domestic capital markets, out of which USD 23Bn has flown into domestic bonds. Capital account surplus has more than compensated for the current account deficit and that has led to persistent strength in the domestic currency. The question is whether the FPI appetite for Indian bonds would continue going forward. Here we analyse factors that have the potential to spook FPIs and cause a selloff in the bond markets. Two instances from the recent past immediately come to mind, where we saw signs of FPIs getting jittery about holding Indian debt. The first instance was when there were rumors of likelihood of the government missing its fiscal deficit target in order to boost growth; that had suffered on account of demonetisation and GST implementation. The second instance is more recent, i.e., when global crude prices crossed USD 55 per barrel mark. The third factor which has not yet played out but which possibly could is a spike in US yields in case the tax reform bill gets through the Congress. We look at each of these factors in detail below: GOVERNMENT FISCAL DEFICIT Though direct tax collections have been robust so far, there is considerable uncertainty around the figure for indirect tax collections this fiscal on account of GST implementation. The shortfall in indirect tax collection would possibly be offset by greater than expected disinvestment proceeds. RBI OMO SALES OMO sale by the RBI to suck out liquidity from the system has also weighed on yields. Post demonetisation, in the absence of credit offtake, the banking system has been flush with liquidity. The RBI has also been buying US Dollars in the spot market in order to limit Rupee appreciation and this further adds to systemic liquidity. TAX REFORM IN THE US The proposed tax reform is not likely to pass through the Congress in its current form. The bone of contention between the Republicans and Democrats pertains to the elimination of SALT deduction. In order to fund other tax republicans have proposed elimination of SALT deduction wherein US citizens filing federal taxes can claim deduction for property tax and local taxes. FPIs have been net buyers of Indian debt in the last nine months. November could turn out to be the first instance since January that the FPIs would be net sellers of Indian debt. The Rupee looks supported around in the medium term but we could see a spike to levels if the worst case in any of the above factors materialises. November has been a month which is prone to rupee weakness historically. IMAGE: SHUTTERSTOCK.COM

22 ADVERTORIAL Message from Mr Narendra Aggarwal, Chairman, Shivalik Prints Limited Dear Friends, It s a proud moment for Shivalik Prints Limited to win the AEPC EXPORT AWARD 2017 for the category of Highest Global Exports On this occasion, I would like to sincerely thank all the team members of Shivalik Prints Limited, its associate vendors, customers and well-wishers, who have made this happen. Being a winner always gives pleasure and makes everybody stay focused & motivated. Our team has a Vision to set milestones of excellence and strive to achieve until it is achieved and then set another Milestone. For Shivalik, it has been an eventful journey, as just nine years back in September 2008, we started with a small manufacturing unit. Today, as a result of the efforts of our team, Shivalik has 12 huge manufacturing units, with 15,000 people on board and with the shipping capacity of 60 million pieces per year. We are currently serving world famous retailer brands like Target, Walmart, KMart, Sears, JC Penney, H&M, Kohls, Primark and many more. The Indian apparel industry is estimated to be around $34 billion with readymade garments alone contributing approximately $20 billion annually and is growing at a healthy double-digit rate. The emergence of modern retailing, backed by steadily increasing income levels and consumer aspirations are driving this growth in the country. In a country which is the largest producer of Cotton in the world, our company has positioned itself to use this strength & produce top quality garments. At Shivalik, we strongly believe in sustainable production techniques and are focused on giving back to mother earth and ensure protection of the environment. With this belief, our company has always been a pioneer in adopting sustainable ways of production techniques. We are aggressively using solar energy and have an Operational Capacity of 2.5 MW of Solar power and are in the process of adding 1 MW more. An important initiative undertaken by us is that we have equipped our Process Houses with Zero Liquid Discharge based water Re-cycling plants wherein we recycle 100% effluent after treatment & reuse all the water back.we have to focus more towards conservation of Natural resources, otherwise the Days are not far, when our future generations would have no Water to drink, Fresh air to breathe. For boiler operations, we use greener fuels like PNG. The long term objective of our company is to closely align with the modern customer needs, while continuing to capture existing opportunities in the traditional space. Over the years, we have made significantly large investments in bringing home the best technologies, talent and expertise in the knitting and manufacturing value chain of the fashion industry. We have dedicated design teams to support and fulfill buyers expectation. We are further developing our team and strengthening our design studio to offer new developments to the Industry. Shivalik strongly believes in empowering the women and to fulfill this objective, we hire unskilled female workers and impart training to them in association with IL&FS, thus helping them in becoming self-reliant. As a part of our Social responsibility, Shivalik has adopted a village named Ardana in Karnal in Haryana and is involved in the development of the village with the state Government of Haryana. The company is also part of an organisation that looks after Thalassemia patients. I would like to end with a quote from Swami Vivekananda, Are great things ever done smoothly? Time, patience and indomitable will must show. These noble thoughts inspire us to persevere in our efforts to lead Shivalik Prints towards even better performance. With warm regards. Yours Sincerely, Narendra Aggarwal

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24 texport APPAREL I UNPARALLEL Texport Industries Pvt Ltd 154, 3rd Cross, 5th Main, Yeshwanthpur Indl Suburb, Bangalore mail@texport.com

25 MORE THAN RESPONSIBLE TEXTILES TONS Organic Co FARMING INITIATIVE 33, 000 farmers 450 villages - 160,000acres WOMEN EMPOWERED Empowering women by promo skills, dev processes and or COMMUNITY DEVELOPMENT A wave of es, cr c SPUN DYED SOLUTIONS T innov nergy for MILLION GARMENT Pieces TONS abrics RECYCLED ALTERNATIVE M ocess R ORGANIC LUXURY Handpick co om c TONS Yarn P Plo www om

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27 APPAREL MARKET FOCUS France or the French Republic as it is formally known is recognised the world over for its exquisite culture and art. SAMIR ALAM gives an overview of the French economy and talks about the various aspects of the same.

28 APPAREL MARKET FOCUS France is a nation filled with rich history and exotic locales extending from the paradisiacal Mediterranean coastline to the magnificent scenic heights of the Alps. Throughout history, France has also played a pivotal role in world affairs due to its ambitious colonial empire and range of global trade. As one of the oldest nations in the world, it has been instrumental in defining numerous concepts such as human and civil rights, as well as promoting the importance of art, science and philosophy in the world. The nation also played a crucial role in defending the future of the world against the Nazi occupation during the Second World War, which eventually left much of the nation devastated in the mid- 1940s. The following decades witnessed a resurgence in French politics, art and culture, as it quickly went on to become a developed economy with outstanding achievements in public education, health care and human development. On the international stage, France was one of the founding members of the United Nations, and remains as one of the five permanent members of the United Nations Security Council. It is also an important member of the European Union and the Eurozone, along with being a member of the G7, NATO, the OECD and the WTO. In terms of global business, France ranks 4th in the Fortune Global 500 list of the biggest companies in the world. OVERVIEW OF ECONOMY According to projections from the International Monetary Fund s Economic Outlook Report 2017, France ranks as the 7th largest economy globally in terms of Gross Domestic Product, with a nominal GDP of USD 2.42 trillion and ranks 10th in terms of Purchase Price Parity GDP of nearly The fundamental soundness of France's trade portfolio is thanks to the numerous industries which it operates across. Intl$ trillion. The projected nominal per capita income for 2017 is estimated to be USD 37,295, while the PPP based GDP per capita was estimated to be Intl$ 43,653, placing France at 26th and 28th respectively, in global ranking. France is also the third largest economy in Europe, with UK in second place and Germany ranking first. The country s economy is defined as being a highly developed mixed market economy. The nation s economy was resilient during the 2008 global economic crisis and showed a slower recession rate while recovering in just four quarters. The most significant slowdown however came in 2012 when France underwent stagnant growth for two years with less than one per cent economic expansion. Since 2015, the growth rate has recovered moving from 0.8 per cent to 1.1 per cent in 2016, with a projected 1.6 per cent growth in 2017 and 1.8 per cent growth forecast for France is also noted for being the second largest trading nation of Europe, after Germany with a highly positive trade balance. For the period between , France maintained a trade surplus which, at times, reached as high as USD 38 billion (corrected for inflation). Since then, the nation's trade balance has faced occasional deficits within normal parameters, with recent figures showing a decline to USD 5.3 billion in August from USD 5.9 in July with rising exports, reaching an eight-month low. Most of this improvement has been due to the steadily rising exports across the goods and services sectors. The fundamental soundness of France s trade portfolio is thanks to the numerous industries which it operates across, such as aircrafts and engines, apparel, beverages, electrical equipment, chemicals, cosmetics, luxury products, metals, perfumes,

29 goods. The fostering of this brand under well regulated government controls and low corruption rates has allowed for the economy to flourish. pharmaceuticals, plastics and weapons. The sectoral breakdown of the economy is highly concentrated in the service sector with 79.8 per cent contribution to the Gross Domestic Product, followed by the industrial sector at 18.3 per cent and agriculture at 1.9 per cent. The French economy also benefits from a range of other aspects such as high degrees of tourism, a vibrant international brand in terms of food and wine, as well as a culture noted for producing high quality luxury APPAREL AND FASHION IN FRANCE France has a long history of being distinguished in the world of apparel and fashion. Since the 17th century, French culture has been lead by the virtue of clothing and style as defined by their monarchic leaders. In fact, France was the original birth place of haute couture as an industry, giving birth to modern high fashion. Since then France, and in particular Paris, has been recognised as the fashion capital of the world. With renowned apparel innovators such as Coco Chanel, Christian Dior, Hubert de Givenchy, Pierre Balmain and Yves Saint Laurent influencing global fashion trends for decades, well into the contemporary period. And despite the boutique and specialised nature of the craft, the French economy is reliant on the apparel and fashion industry for employment and revenue. Even seasonal events such as the French Fashion Week, inject over USD 1.4 billion into the economy, and with nearly six 27 APPAREL

30 APPAREL MARKET FOCUS such events every year, the French Fashion Institute estimates over USD 12 billion in revenue each year. As of 2016, the fashion industry, as a whole, contributes about 2.7 per cent of France s GDP or USD 176 billion and supports nearly one million jobs in the country. The industry revenue is projected to be on a dynamic upward trend with a cumulative average growth rate of over 10 per cent for the next four years. Regionally, the nation remains the third largest producer of textile and apparel in Europe, after Italy and Germany. TEXTILE INNOVATIONS The apparel and textile market in France has also moved into newer areas beyond fashion The modernisation of the French textile industry has seen its textile segment nd new consumers across other industries, especially in terms of equipment and technology. and clothing. Over the last few decades, France has seen the fruits of its investments in high value added textile products such as technical textiles. As of 2016, technical textiles contribute about 15 per cent of the market, despite which it continues to dominate the manufacturing of traditional linen in Europe, with over 70 per cent production share. Overall, France has over 35 textile machine manufacturing companies which generate an annual average turnover of USD 1.76 billion, with exports of over 90 per cent across product segments to over 115 countries. The modernisation of the French textile industry has seen its textile segment find new consumers across other industries, especially in terms of equipment and technology. The innovations arising from this shift include, long fibre spinning machinery, textile waste recovery machines, systems for yarn treatment and production of technical textiles, nonwovens manufacturing lines; equipment for weaving (dobby and jacquard heads), finishing machines for bleaching, dyeing, and yarn finishing, finishing lines for knitted goods and textile hydro-extractors, and air-conditioning equipment for textile factories. Even the non-woven processes APPAREL 28

31 segment is being completely dominated by French machine innovations. France has also been one of the leaders towards sustainable and equitable labour within the apparel industry. As a supporter of the Sustainability Compact and the Better Work initiative, the French industry is also engaged in improving social and labour conditions in their global manufacturing and production locations, such as Bangladesh. The French industry is paying special attention to issues of labour inspections, worker safety, labour rehabilitation, labour law reforms and supporting trade unions across various locations where French production is carried out. In addition to which, the French industry is leading the world in the development of new ISO standards, which oversee the responsible procurement of production goods, ensuring eco-friendly and environmentally sustainable practices such as ending the use of materials such as angora for apparel production. It is worth noting that while France innovates across textiles and grows globally, its domestic market for apparel is shrinking. The proliferation of e-commerce and global sales markets, combined with a younger consumer base has altered the traditional trade balance. However, as per research by the BVA, Foncia and La Presse Régionale, the majority of French consumers, nearly 66 per cent, across demographics still prefer to shop at brick-and-mortar outlets for their apparel needs. On the whole, the state of the French apparel and textile industry remains strong across parameters, mainly due to the global strength of their national brand and its place in the high luxury segment, which remains in high demand in emerging markets such as China, Japan and other parts of Asia.

32 APPAREL IN FOCUS APPAREL 30

33 APPAREL IN FOCUS FASHION WITH A MISSION Pushpika Freitas, President, MarketPlace: Handwork of India, in conversation with BRINDA GILL, shares the ethos of her organisation that produces and markets stylish womenswear crafted by artisans in Mumbai for buyers in the US. "We are very mission driven. We regard designing, producing and selling apparel as a means to an end, says Pushpika Freitas, Mumbai-born, Evanston-based, Founder and President of MarketPlace: Handwork of India, an innovative non-profit organisation founded with an aim to empower women in the low-income section of the society in India. MarketPlace is a non-profit Fair Trade and Development Organisation. It is a member of the World Fair Trade Organisation. MarketPlace works towards and achieves its aim by involving women, living in and near Mumbai, in different aspects of handcrafting unique fabrics and hand stitching stylish garments for export to customers in the US. MarketPlace 31 APPAREL

34 APPAREL IN FOCUS enjoys a niche market in the US as the handcrafted character and attractive look of its garments makes them stand out and garners appreciation of customers who also appreciate the mission of the organisation. FROM QUILTING TO GARMENTS In 1980, Pushpika Freitas and her sister Lalita Monteiro founded SHARE, a non-profit organisation of a very small scale to encourage women to handcraft patchwork quilts from home and market them. The venture started with three women and within three years, 75 women had joined. However, they found selling quilts was difficult and felt that the patchwork could convert to yokes and borders for apparel. They also felt apparel had a larger appeal. Thus, Pushpika and Lalita decided to found a non-profit venture to produce cotton women s garments that would be handcrafted by artisans in Mumbai and sold in the US. As a result, in 1986, MarketPlace: Handwork of India, was incorporated in Illinois. THE PRODUCT RANGE MarketPlace produces a variety of attractive handcrafted jackets, tops, skirts, pants, dresses and knits for women. The garments are hand stitched with fabrics (made by traditional craftspersons in their ancestral villages) that have motifs created by hand block printing, hand batik, tie-dye, hand painting and hand embroidery by artisans who work with MarketPlace. All these techniques and handstitching of the garments create a garment that has an endearing and unique handcrafted look and feel, and conveys a message to the buyer/wearer that it has empowered artisans who have crafted it. As fabric for MarketPlace s garments is produced using traditional Indian textile techniques and an interpretation of traditional motifs, it has an Indian character. Yet, the choice of garments (tops, dresses, skirts, pants) and their stylish cuts, gives them an appeal that is international. Most of the fabric is cotton; a small selection of garments is of linen. MarketPlace works with artisans making these fabrics and with them on colours and prints for each season/collection. These artisans are traditional craftspersons working in their original villages. There are two main collections Spring and Fall, and a small collection for Summer and Late Fall. The garments can be machine washed, which is an important factor for customers in the US. The sizing ranges from Petite to 4X and a small collection of garments of a free size. The garments are designed to have a relatively loose we actually say it is a relaxed fit. The jackets and vests are sized to layer with shirts or tops or a sweater; some are reversible. SHOWCASING THE PRODUCTS The products are sold by means of a print catalogue as well as on-line sales; an e-catalogue is available for download from the website. Effort is taken to communicate to customers the impact the making of the garments has on the artisans through stories in the catalogue, website, blog as well as Facebook. The MarketPlace catalogue was first printed in 1990 with 60,000 copies, and now about 5, 00,000 catalogues are sent out each season. We have a customer list of about 40,000. Our customers are women ages 50+, highly educated and the major occupations are women in the arts, women in education and women in health. 75 per cent of our sales are via the website, although mostly APPAREL 32

35 it is women who have received the catalogue and then order online. We have been growing a minimum of 10 per cent/year since The website has about 16,000 visitors each month. MarketPlace does sell to some boutique retailers; however it is a very small part of sales. THE DESIGN PROCESS MarketPlace works with a fashion designer in the US. Our designer sends a brief for fabric outlining colours, prints, looks, etc. She visits Mumbai twice a year to work on each collection. The fabrics for samples are ordered and made into specific styles as per her direction. She visits a hand block printing unit at Uttan and works with printers and dyers to develop different techniques too. During her visit, a design workshop is held where some the women artisans work on the embroidery for each garment. Embroidery is very important to our mission because it increases employment. Each garment has hand embroidery. MarketPlace works with nine cooperatives in and around Mumbai who craft the line of garments. MarketPlace Mumbai coordinates the design process in India as well as the production and shipping. Explaining the production process further, Pushpika says, We place three orders per season. The first two orders, comprising of about 70 per cent of total orders, is based on past sales, experience, placement and exposure in the catalogue. The third order is placed after we start getting some response to the catalogue and website. Our order size could range from pieces of each garment. We do purchase what is ordered and 33 APPAREL

36 APPAREL IN FOCUS take the responsibility if our predictions are not right. THE ORGANISATION Soon after the launch of MarketPlace, the demand for its products picked up and as more artisans expressed their interest to join the organisation. By 1992, the artisans numbered over 120, and the organisation was restructured to encompass multiple independent cooperatives. We felt by owning and running their own cooperatives, the artisans would achieve meaningful and sustainable self-sufficiency and empowerment. MarketPlace works with over 400 artisans in 15 independent cooperatives. The cooperatives vary in size, structure, history and location. Six cooperatives comprise fabric artisans who create a variety of yardage using different textile techniques handdyeing, batik, block printing, ikat and tiedye. They are traditional fabric printers and live in different parts of the country. Nine cooperatives are involved in crafting garments and thus their activities cover cutting fabric, stitching garments, embellishments such as hand embroidery, and finishing of the garments. The orders are sent to MarketPlace Mumbai and they are distributed among the

37 cooperatives depending on their skill level and size. ARTISAN COOPERATIVES Artisan cooperatives are the heart of the MarketPlace model of development wherein each artisan is supported in her efforts of crafting fabrics and/or garments and managing the cooperative as may be her role. There are intra cooperative and inter cooperative meetings held regularly for members to continually learn, develop and take on new skills and responsibilities. Among the cooperatives is Aashiyana, in Tardeo; Arpan, in Thane; Nirmaan and Sahara located in Santa Cruz (E) whose members are involved in tailoring and embroidery. CHALLENGES ALONG THE WAY Handcrafting fabric, hand stitching garments, coordinating processes within a cooperative, coordinating linkages between cooperatives, giving orders for a certain number of garments, producing garments in India and supplying them to customers in the US involves several chains of processes, and entails deep involvement in day to day work, smoothening out processes and e ncountering challenges. The challenges are many. Among these is a commitment to quality. We continuously hold training programmes, especially at the beginning of the season, to maintain a high level of quality. For timely delivery, the MarketPlace Mumbai staff work with each cooperative to plan their production and to help them trouble shoot as well as think creatively to deal with problems that would cause delays. Replicating colour and receiving the fabric on time is also a challenge but we work closely with the fabric suppliers to make this happen. Over the years MarketPlace has developed various systems to help things work The challenges are many. Among these is a commitment to quality. We continuously hold training programs, especially at the beginning of the season, to maintain a high level of quality. smoothly and anticipate problems so they can is resolved swiftly. We visit India twice a year and meet with MarketPlace Mumbai and the artisans. BEYOND FABRIC Through undergoing training and working for MarketPlace, women develop their craft skills and earn an income. The organisation also holds training programs to provide artisans with educational inputs and help them overcome issues they may face in their everyday life. As the women become more self-confident, they become agents of change. They ensure that their children receive education, the family receives medical care and they help others in their immediate and extended families and in their community, thus fostering a cycle of positivity, economic and social development, and a sense of wellbeing and confidence. 35 APPAREL

38 APPAREL IN FOCUS UNDERSTANDING QUAD The Philippines played host to the 31st ASEAN summit and the 12th East Asia summit this November, as numerous national leaders met to discuss issues critical to the state of the world. SAMIR ALAM assesses the complexity of this geopolitical development and infers what it may mean for the Indian trade. APPAREL 36

39 The ASEAN summit was particularly of importance to India as the long awaited meeting between Indian Prime Minister Narendra Modi and United States President Donald Trump took place on the sidelines, with positive reports emerging thereafter. However, the real meeting of significance took place ahead of this, between the leaders of Australia, India, Japan and the United States or the Quad as they are known. This coalition holds special importance due to its significant geostrategic implications for the Asian region. And while many believe that the Quad may be an effective deterrent to China s ambitions, others are more wary about India s role and the ultimate obligations. WHAT IS THE QUAD? The Quad was originally envisioned as the Quadrilateral Security Dialogue in 2008 between the four nations. 37 APPAREL

40 APPAREL IN FOCUS Originating on the sidelines of the ASEAN Regional Forum, the 2008 Quad is widely considered a failure before launch. At the time, the Quad was seen by China as a threat which was intending to subvert China s growth, and the nation lodged official protest with all the countries involved. It was Australia that actually succumbed to Chinese pressure and withdrew from the Quad leading to a nonstarter in terms of Indo-Pacific co-operation between the four nations. However, in a stark contrast to the 2008 summit, the recent meeting of the Quad was widely popularised with an official statement from the Indian Ministry of External Affairs which described the interaction as being, focused on cooperation based on their converging vision and values for promotion of peace, stability and prosperity in an increasingly inter-connected region that they share with each other and with other partners, while also stating that the meeting concluded as, they agreed that a free, open, prosperous and inclusive Indo-Pacific region serves the long-term interests of all countries in the region and of the world at large. The officials also exchanged views on addressing common challenges of terrorism and proliferation linkages impacting the region as well as on enhancing connectivity. The officials also exchanged views on addressing common challenges of terrorism and proliferation linkages impacting the region. APPAREL 38

41 The direct and open acknowledgement of the Quad as a vital presence in the region is a direct sign to China that its aggressive posturing in the region will not go unanswered. The collective region of Southeast Asia has long raised issues with China in matters of freedom of trade, and has taken exception to alleged Chinese encroachment of the South and East China seas. In addition to which, for India alone, the shared border issues have proven to be contentious over the last few years and the Quad gives Indian concerns a strong platform from which to address all these issues. The pinnacle of the Quad s stated agenda, however, is clearly trade related and is intended towards sending China a clear signal that the Indo-Pacific region must remain a free, open and inclusive space with no room for single nation monopolisation. OPPORTUNITIES FOR INDIA Since 2008, China has strengthened its regional and international position on the back of the Global Financial Crisis which weakened the power of the United States. Subsequently, the weakening of Europe due

42 APPAREL IN FOCUS By building partnerships within Asia, there is a real possibility that India s role in the apparel and textile industry could reshape global trade ows by making a China-free trade bloc in Asia with Indo- Paci c reach. to various economic and political problems further gave China the space to strengthen its foothold across the region. As a result, China has gone on to take an aggressive stance in world affairs, particularly by undermining international law throughout the South China Sea. Such provocations have made China a real thorn in the side of its Asian neighbours and the world at large. But despite the clear threats China poses, it has been very hard for a cohesive response to emerge against it. In that context, the emergence of the Quad signifies a shift towards proactive engagement amongst allies across the Indo- Pacific region. For India, this development is a critical opportunity to find new allies and partners, not only against China but on the global stage. As an independent sovereign nation with no beholden ties to the United States, India is an exception among the Quad. Both Japan and Australia have long rooted treaties - the 1951 Australia, New Zealand, United States Security Treaty (ANZUS Treaty) and the 1960 Treaty of Mutual Cooperation and Security - which affiliate them with the United States. Due to this exclusion, India remains independent from any overt US influence and can determine its own direction as a member of the Indo- Pacific Quad alliance. With the status quo being unbalanced against the United States, there is ample opportunity for India to step in as a regional leader and benefit across both the geopolitical security and economic lines. India has the opportunity to frame the cooperative security framework of the Quad as it evolves and make strategic partnerships that benefit its own position. By partnering across programmes of peace and security in the Indo-Pacific regions various avenues such as air space, cyberspace, maritime routes and outer space, become accessible to India for the free flow of trade. As it exists, this alliance can bear direct benefits to India s trading position across all sectors, specially apparel and textiles, from and within Asia. With the Quad s leveraged position, India could recapture market losses in the United States, which it has lost to competitors such as Vietnam, Cambodia and Indonesia. With a USD 104 billion US market in textiles alone, India could play a pivotal role in reorganising and leading Asia s sourcing pipeline in direct competition to China. By building partnerships within Asia, there is a real possibility that India s role in the apparel and textile industry could reshape global trade flows by making a China-free trade bloc in Asia with Indo-Pacific reach. APPAREL 40

43 CAUTIOUS AMBITIONS However, it must be considered that while India s future ambitions may be worthwhile, there is an inherent risk in taking on China and allying with the United States. As a part of India s 'Act East' Initiative, there is much to be gained by being a part of the Quad. While many may be fearful of opposing China, it is the loyalty of the allies which is really the most serious concern. It would be naive to presume that the Quad partner nations will not prove to be obstacles in their own right. India s agenda will always face opposition if it doesn t directly contribute to the Quad s agenda. India s key priority to grow its economy and geopolitical standing will surely be put to the test, especially where the United States is concerned. Historically, any nation that has partnered with the United States has had to subvert its own sovereignty at times to accommodate the US agenda - be it Japan with its military bases in the Pacific or the Middle Eastern nations during the American war on terror. The implied obligations of partnering and depending on the United States can have consequences. And given the precarious tripartite relations between Pakistan, the United States and India, there is no telling which points of friction will crop up as China begins its own retaliations. The last thing India would want is to have any directives coming from America regarding its own security measures in across its sovereign borders. Any direct security collusion with the United States will bring to end any possibility of an alliance, however remote, between China and India in the future. The Quad is simply the first step for India to find greater visibility and authority on the global stage across a multitude of issues - from trade to security - and it must be handled with nuance and sensitivity. The politics of trade and war are separated by a fine line, which India must now walk if it is to successfully emerge as a global superpower. 41 APPAREL

44 APPAREL TRADE TALK APPAREL 42

45 Peru has been in the news recently, for something quite different and this is related to apparel. Well, the country is now a popular sourcing option for brands looking for quality garments at great prices. Bindu Gopal Rao dissects the reasons, leading to Peru s upward journey. International brands with the most renowned and prestigious labels are increasingly associating with Peru for developing their collections with domestic manufacturers in the country. According to statistics, Peru's textile industry employs approximately 250,000 people, and textiles and garment manufacturers account for more than 30 per cent of the non-traditional exports in Peru. Peru also provides 80 per cent of the world's supply of alpaca wool. MATERIAL MATTERS A key factor that is driving this trend is the fact, that Peru has high quality yarns and availability of prime materials. Coupled with good service standards and a quick response time, the designs are creative and manufacturing and delivery time standards are quite impeccable. The main materials here include the alpaca and cotton fibres which are of superior quality standards that have naturally become very sought after. In fact, Peru makes 80 per cent of the world s alpaca yarn and the softness of the Peruvian fleece - the ease with which this fabric is amenable to dye and weave gives it an added advantage. Alpaca, in fact, is known for its thermic properties and is light with a silky

46 APPAREL TRADE TALK touch. Additionally, this fibre does not contain lanolin, and does not cause any skin allergies and is also more durable than cashmere. Additionally, knitted cotton garments made with Pima cotton is another speciality here. This fabric gets its softness from both its length and silky texture. Also the Tangüis cotton has a high degree of dye absorption, which makes it the perfect choice for printing. With ideal growing conditions for Pima, Peru is one of the few countries that can grow it on a large scale. This is why brands like Lacoste, Ralph Lauren, Vineyard Vines, Hanna Andersson, Lululemon, Under Amour, Armani Exchange, Hugo Boss, L L Bean, Lands End, Life is Good, J Jill, Tommy Bahama, Guess, Kirkland, Vince, Zara, Express, and Ragman have Peruvian partners. Siddharth Saigal, Entrepreneur & Head of Wrap Studio, opines, "Peruvian garments are made from alpaca and cotton fibres. This textile is a superior fabric that is extensively used to produce garments. The speciality of the Peruvian textile lies in the softness and ease of dyeing and weaving of the cloth. Iconic international brands are also demanding for this supremely artistic fabric because of these reasons. Since, Peru as a nation is known for its fine craftsmanship, tourists from other nations are also inclined towards this fabric and it s always interesting to learn about this traditional textile from the natives. Although, it s a small country of South America with a rather uneasy history courtesy to the fact that it was conquered by the Spanish Empire in the 16th century, however people managed to save their rich traditions, customs and beliefs. It s a good idea to promote growth through something that the nation is superior in." APPAREL 44

47 FABRIC FIRST Almost synonymous with Peruvian apparel, sourcing professionals relate to Pima cotton. The fibre is ideal for making eye-catching, modern garments and is a favourite with U S consumers who recognise and appreciate the fabric as it is both soft as well as durable. In fact, the Peruvian Pima cotton garments hold up mainly because it does not peel and manages to retain its bright luster. The main difference is the staple length as compared to others as Pima cotton staple length is around one inch, while ordinary cotton measures about half an inch. Also, the Pima fibre is harvested only by hand, which brings a cleaner fibre compared to industrial harvesting methods, which is a big added advantage. Peruvian Pima cotton is also more versatile as compared to regular cotton which is not possible to spin into fine yarns. With Pima, the fibre can be spun into 100 singles, 120 singles or 140 singles. And even though Peruvian Pima cotton costs 10 to 15 percent more than regular cotton, the quality is so good that that these garments can be sold in the retail market at higher prices which gives manufacturers a good profit margin too. Naturally this fabric finds favour with major companies like Armani Exchange, Tory Burch, Kenneth Cole and Rebecca Taylor as it becomes a natural fit for products in a premium market. This fabric is also seeing a niche in baby clothing, which takes advantage of Pima s softness and natural anti-allergy properties, both of which are ideal for this segment. "Peruvian fabric is an interesting fabric made from alpaca and cotton fabric. The texture of the cloth is extensively and widely used to produce garments like dresses, ponchos, shawls, sweaters, etc. This textile is colourful and bright and comes in a striking colour that is rather thick and warm, perfect Peruvian fabric is an interesting fabric made from alpaca and cotton fabric. The texture of the cloth is extensively and widely used to produce garments like dresses, ponchos, shawls, sweaters, etc. This textile is colourful and bright and comes in a striking colour that is rather thick and warm, perfect for the winter season. Also, the most authentic Peruvian fabric is supremely lightweight and it feels cold when one rst touches it, and if it does not, it is probably not real but rather fake. 45 APPAREL

48 APPAREL TRADE TALK for the winter season. Also, the most authentic Peruvian fabric is supremely light-weight and it feels cold when one first touches it, and if it does not, it is probably not real but rather fake," says Saigal. To ensure consumers get appropriate value for their money, the Peruvian Trade Commission has been doing much to promote and market the Peruvian Pima cotton. As part of this, they have also created a Peru Textiles brand to promote the sale of garments using the fibre. The Commission also continues to support Peruvian designs and brands around the world and participates in trade shows that showcase the fabric s versatility. Peru has positioned itself as a high-quality textile country thanks to good workmanship and premium materials such as Pima cotton, the Alpaca fibre and Tanguis cotton which is also a long staple fibre highly valued by manufacturers as well as by consumers. ADVANTAGE PERU Apart from its fibre advantages, the manufacturing sector in Peru is technologically advanced, especially as far as textile based machinery as well as development and processes are concerned. In fact the best part of the industry is that it still manages to be true to its roots and supports local artisans who have expertise in hand-knitting which is a great way to merge technology with age-old craftsmanship to give the country s fabrics a unique touch. The other factor that augurs well for Peru is the fact that in spite of having these wonderfully superior fibres and innovated processes, the Peruvian manufacturers have a competitive pricing policy. Also, Peru has duty-free status when shipping into the U S, Canada and Europe which is a huge cost advantage for the international market. LOOKING AHEAD Peru plans to double its textile and apparel exports by 2017 and invest over US$60 million to promote its key designer brands in international markets. In fact, the country s value-added exports totaled US$11 billion last year, of which US$2.2 billion came from textiles, apparel and footwear. Apart from promoting its exports abroad, the country is also looking to strike free trade deals with Australia, Brazil, and Russia, in the near future. And as Peru works to promote itself in new markets in the US, Europe and Asia, it is likely that its exports should double to US$4.4 billion by Also, exports to Asia have been growing 15 per cent a year and the country is looking to build stronger brands to combat the highly competitive Vietnamese and Bangladeshi brands. Peru's Production Ministry will team with private APPAREL PA 46

49 India can offer Peruvian entrepreneurs high quality products at competitive prices," says Saigal. Peru also wants to enter new markets by participating in trade shows where the designers will be able to show their collections on the runway. It will also strike commercial alliances with shopping malls to launch promotion campaigns enabling designers to show their best cotton, vicuna and alpaca wears. The strategy calls for these designers to eventually open mall boutiques. With so much going for Peru, it is little wonder then that the fabrics of this country are finding an audience worldwide. ALL IMAGES: SHUTTERSTOCK.COM investors to finance the global expansion of a string of established and emerging designer brands. These trademarks include Kuna and Michelle Belau, in addition to those being created by emerging star designers Meche Correa, Sergio Davila, Jose Valdivia, Harumi Mamoto and Sumy Kujon and Peru will work to promote these designers in trade fairs around the world. "Due to the Make in India initiative by Modi government, today, the textile and apparel sector is the second largest employment provider in India. Hence, it is an advantage for India and Peru - if Peru imports textile and raw materials from India. 47 APPAREL PA

50 CHITRA BALASUBRAMANIAM looks at two brands from Germany - Hien Le and FRISUR. Both the brands are young and now, and they have launched stylish wear in a matured market.

51 APPAREL PAREL BRAND PROFILE

52 APPAREL BRAND PROFILE Offering a full range of clothing, shoes and accessories, Hien Le and FRISUR have moved from strength to strength to take their business overseas as well. They also retail online. Home grown brands, designed and produced in the EU (European Union), they conform to the strict international regulations. Both brands are aggressive marketers and come up with exclusive launches for Autumn/Winter and Spring/Summer. The storyline for each season is impressive, interesting, trendy, and exciting. As a young brand, there is an upsurge of youthful exuberance in their design and collection. FRISUR started in 2007 while Hien Le in In a short time, both the brands have established a religious and dedicated fan following. What is remarkable is that, in the short spell, both the brands have attained the global brand status. Each has similarities and each is different in its own right. FRISUR Termed more as a, multidisciplinary design studio and fashion label based in Berlin. It blends the classic German design with Scandinavian minimalism. It creates a new range of extremely comfortable and stylishly elegant range of attires. The brand was started in the typical old fashion way by two friends Stephan Sunder-Plassman and Thies Meyer in their hometown located in North Germany close to the Danish border. This explains the fashion twist of combining German sensibilities with Scandinavian minimalism. This was in The website describes the brand as, FRISUR functions as the designers creative playground merging the disciplines of art, design, fashion and lifestyle through the label itself and a series of ongoing projects. APPAREL 50

53 The stronghold for FRISUR is its design quality and hand-picked material. It focuses on classic yet chic designs which are current and trendy. As the website puts it, FRISUR focuses on classic yet current designs, quality construction and hand-picked materials. The label creates seasonal collections for men and women that remain authentic and unpretentious while still maintaining relevance. The FRISUR brand offers a full range of clothing, shoes, and accessories that are designed each season keeping a unique concept in mind. The range for both men s and women s wear is given a stylish yet contemporary appeal. The collection presents a balance between minimalistic styles paired with a certain degree of flamboyance. It is not too grave but fresh and youthful in its appearance. The brand takes pride in its emphasis on sustainability and following the EU norms for manufacturing. The company s website states, FRISUR is committed to sustainability and cooperates with only EUbased suppliers. The seasonal collections are designed in Berlin and produced in the European Union under strict regulations to ensure human and environmental rights in the production process. The brand s offering for Autumn/Winter is innovatively called, The Artist. The website describes it beautifully as, FRISUR s AW17 collection pays homage to the Artist who has a curious eye, who doesn t take things as they are given. The artist approaches situations with an open mind and is as creative within restraints as with freedom. In particular, the season rides with soft brushed flannel shirting; Italian merino knitwear and cosy wool blend jerseys. These make a comeback for the winter. This is teamed with the introduction of shiny silk 51 APPAREL

54 APPAREL BRAND PROFILE blends and water resistant brushed cotton. This season also has plenty of graphics. As the brand describes it, FRISUR has introduced more graphical pieces and newly developed styles which provide the opportunity for more expressive styling, while classic FRISUR staples are revisited and reworked, resulting in a collection which remains timeless and true to FRISUR s minimalistic aesthetic. The season is further described as, Following the theme of The Artist, this season s object has been designed by FRISUR themselves. Untitled is an organised stack of eight deconstructed notebooks which draw inspiration from the artist at work. The object is closely connected to pieces such as the JEPPE knitted jumper and the KATA dress, where the layering of the pages is translated into graphic compositions and the literal layering of textiles. Hien Le Another young brand started by a skilled entrepreneur with rich experience in the textile and apparel industry. The introduction of the brand and its founder is described by the website as, Before starting his own business, Hien Le acquired several experiences in different patches of the fashion scene and chose to implement his collected skills in his own, independent fashion label in From the early inception stage onwards, Hien Le made a mark with his creation. With his third collection, he won the third prize at the well known fashion contest start your fashion business. In July 2011, he made his first runway debut with the Mercedes-Benz fashion week in Berlin. The accolades added to being nominated as Best Newcomer by the prestigious International Fashion Trade magazine, Sportswear International. Further in 2012 the label won the coveted Musikexpress Style Award and from then on opened the Mercedes-Benz fashion week annually in Berlin with its show and new collection. With all accolades and awards, APPAREL 52

55 Hien Le with his brand under his own name has made a definitive mark. The brand again specialises in making stylish apparel which is very comfortable. It is cool, chic and comfortable. The website describes the style and design as, Besides concentrating on discreet cuts and the subtle application of details, he consequently maintains his claim to manufacture clothing that combines diligent design with accurate workmanship, everything produced in Germany. Apart from Germany, the collection is available in the USA, Switzerland and Hong Kong. The brand s Spring/ Summer and Autumn/Winter collections are much sought after. The website describes the brand s Autumn/Winter 2017 launch, which takes off from sportswear as, The collection takes us back to the beginnings of skateboarding when sportswear was unexpectedly chic with girls in floating midi skirts and boys in chinos and shirts on concrete streets. Reminding of 40s and 50s sportswear, the collection picks up on classic tailoring and details with wool fabrics, cotton and silk in a colour palette of beige, grey and night blue with sparks of fir green and rose. Besides faux leather and stripe patterns, Hien Le uses denim for the first time. The AW 17 look book is interesting. It shows an interesting combination of stripes in black and white teamed in skirts, tops and shirts. The collection in itself is casual, cool, and at the same time, stylish. Hien Le has diversified into fragrances, eyewear and more. What has stood well for Hien Le is his grounding and apprenticeship in the fashion industry. His personal belief is that fashion is all about craftsmanship. His strong hold and recipe for success has been his ability to mix classic German design with a freshness characteristic of Berlin young Berlin based impression defines a new maxim in apparel design. The brand has been able to balance the hard work of being a label or brand with the founder also being its designer. A tough job, which has been balanced remarkably by him. The brand again revels around minimalism, great cuts and styles. It has a general very comfortable, at home yet stylish and aggressive look. It is clean lines of design which makes the apparel interesting. There are several who feel, that there is a certain degree of Asian influence to his design, given Le s origins from Laos. He, however, leans it towards German with Scandinavian influence. His apprenticeship with designers, PR firms and working in the sales department has honed Hien Le s skills to understand all the aspects of an apparel brand from designing, production, PR to sales and customer care. This has helped him build the brand.

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58 APPAREL MINISTRY NOTIFICATIONS Subject: The New RoSL Rates has been announced This has reference to Ministry of Textiles notification no 14/26/2016-IT dated on RoSL rates effective from In order to support exports of readymade garments and made-ups, Government vide Notification No. 14/26/ IT dated November 24, 2017 has notified post-gst rates under the scheme for Remission of State Levies (RoSL) on exports of readymade garments, made-ups and under AA-RoSL for garments. Post-GST rates of RoSL are upto a maximum of 1.70 per cent for cotton garments, 1.25 per cent for MMF, Silk and Woollen garments and 1.48 per cent for apparel of blends. Rates are upto a maximum of 2.20 per cent for cotton made-ups, 1.40 per cent for MMF and silk made-ups and 1.80 per cent for made-ups of blends. For sacks and bags made of jute, the rate is 0.60 per cent. The RoSL rate for garments under AA-AIR combination is 0.66 per cent. Notification of post-gst RoSL rates for rebate of state levies/taxes is in pursuance of the decision of the Government of India to boost exports and employment generation in the labour intensive textiles and apparel sector. The Notification is in supersession of Ministry of Textiles Notification No 14/26/2016-IT dated These rates shall be effective from Further, DGFT has enhanced the rates under the Merchandise Exports from India Scheme (MEIS) from two per cent to four per cent on readymade garments and made ups w.e.f November 01, 2017 till June 30, These measures are expected to boost the exports of garments and made-ups from India. RoSL is being given towards refund of VAT on fuel used in transportation, VAT on fuel used in generation of captive power, Mandi tax on purchase of cotton, duty on electricity used in manufacture as accumulated from stage of Cotton/MMF fibre till garment/made up stage, stamp duties on export documents and SGST on inputs used in production of cotton and embedded SGST in purchases from unregistered dealers. The exporter shall have to give an undertaking that he/she has not claimed or shall not claim credit/rebate/refund/reimbursement of these specific state levies under any other mechanism. APPAREL 56

59 Full notification is available on pdf Subject: Enhancement of Merchandise Exports from India Scheme (MEIS) for two subsectors of Textiles Industry This has reference to Ministry of Commerce & Industry Public Notice dated 21/11/2017. The Directorate General of Foreign Trade (DGFT) has issued Public Notice no. 42 by which rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two sub sectors of Textiles Industry, that is readymade garments and made ups have been enhanced from two per cent to four per cent of value of exports with effect from till The estimated annual incentives will be R1, crore for and R crore for This measure will incentivise the exports of labour intensive sectors of readymade garments and made ups and contribute to employment generation. Full notification is available on pdf Sub: Onetime relaxation for EO extension and clubbing of Advance Authorisations This has reference to MINISTRY OF COMMERCE AND INDUSTRY's PUBLIC NOTICE No.3" DATED THE 2/10/2017 The Director General of Foreign Trade on recommendation of Policy Relaxation Committee (PRC), in public interest, hereby makes the one time relaxations in the provisions of extension of export obligation period and clubbing of advance Authorisations. For clubbing of Advance licenses 1 Authorisations issued under Foreign Trade Policy and is hereby permitted. Request for clubbing shall be made in ANF-4C to the respective RAs along with prescribed documents. Onetime relaxation is provided for extending Export Obligation (EO) period subject to the conditions that Exports made under Advance Licenses/ 57 APPAREL

60 APPAREL MINISTRY NOTIFICATIONS Authorisations issued under Foreign Trade Policy , Foreign Trade Policy and Advance authorisations issued prior to under Foreign Trade Policy shall be regularised by way of extension of Export Obligation Period Where exports have been made within 36 months from the date of issue of Advance Licenses/Authorisations, same shall be regularised without one time relaxation is provided for Clubbing of advance Authorisations issued during foreign trade policy and foreign trade policy One time relaxation is provided for extension of export obligation period of Advance authorisations issued under Foreign Trade Policy , Foreign Trade Policy and Advance Authorisations it prior to under foreign trade Policy Full notification is available on pdf Exporters advised to le Table 6A and GSTR 3B for processing of IGST Refund and for Refund of the unutilised Input Tax Credit The Government of India is seized of the issue of Exporters complaining about delay in grant of refunds pertaining to Integrated Goods and Services Tax (IGST) paid on goods exported out of India and similarly Input Tax credit (ITC) on exports. Media reports with incorrect estimations of refund amounts held-up for the period July to October 2017 have been noticed. It is clarified that the quantum of IGST refund claims as filed through Shipping Bills during the period July to October 2017, is approximately R6,500 crore and the quantum of refund of unutilized credit on inputs or input services, as per the RFD 01A applications filed on GSTN portal, is to the tune of R30 crore. Exporters are, therefore, advised to immediately file (a) Table 6A and GSTR 3B, if not already done, for processing of IGST refund (b) RFD 01A on GSTN portal for refund of the unutilised input tax credit on inputs or input services used in making exports and (c) GSTR 1 for August 2017 for amending details provided in July GSTR1 wherever required. The Government has taken various measures to alleviate the difficulty and is fully committed to provide speedy disbursal of refunds due to exporters. APPAREL 58

61 APPAREL AEPC NOTIFICATION 59 APPAREL

62 APPAREL AEPC EVENTS CALENDAR The proposed Apparel Export Promotion Council Events January 15-18, January 17-19, 2018 Hong Kong Fashion Week, Hong Kong February March 2018 (4 cities) 60th India International Garment Fair, New Delhi, India Magic Fair, Las Vegas, Nevada, USA ALL IMAGES: SHUTTERSTOCK.COM WGSN Fashion Forecast Seminars (Spring/Summer and Autumn/Winter) APPAREL 60

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64 RNI No. HARENG/2012/45083 Postal Regn. No. GRG/37/