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1 #flaxlinencongress16
2 #flaxlinencongress16 FLAX/LINEN, THE SMART GREEN FIBRE FOR BUSINESS
3 TRENDS FOR LINEN & INTERNATIONAL FINAL MARKETS 亚麻流行趋势与国际终端市场 リネンの傾向と国際的な最終マーケット
4 Thomas VARGHESE Business Head ADITYA BIRLA GROUP INDIA Emerging Indian Trends in Linen
5 C E L C A N N U A L C O N G R E S S - M a d r i d
6 Points for Discussion Aditya Birla Group Textiles & Apparels India Textiles & Apparels India Linen Market Linen Club : Investment in products and retail Expectations from CELC
7 A d i t y a B i r l a G r o u p
8
9 Aditya Birla Group - Textiles & Apparels World's largest player in the Viscose Staple Fibre industry The largest player of Linen yarn and fabric in India The largest fashion retail network in India towns, 7500 points of sale, 5.6 million square feet of retail space 5 th Largest manufacturer of Acrylic Fibre Quality leader in spun yarn globally Manufacturing plants across Canada, Sweden, China, Indonesia, India and Thailand Dedicated R&D facilities spanning plantation to fashion
10 I n d i a n T e x t i l e a n d A p p a r e l
11 India Textiles & Apparels India s T&A industry was estimated to be worth USD 98 billion in 2013, including both domestic consumption and exports, and is projected to grow at a CAGR of 9% to reach USD 233 billion, by 2023 Total Exports Domestic 233 (USD bn) CAGR 9% 149 Exports; 2023 (P); Exports, 2013, 40 Domestic, 2013, 58 Exports; 2018 (P); 60 Domestic; 2018 (P); 89 Domestic; 2023 (P); 138
12 India Textiles & Apparels 9% USD 138 Bn USD 58 Bn The Indian domestic textile and apparel market was estimated at USD 58 billion in 2013, and is projected to grow at a CAGR of 9% to USD 138 billion by India s textile and apparel exports are expected to grow at a CAGR of 9%, from USD 40 billion in 2013, to USD 95 billion in 2023.
13 India s Linen Market Yarn (in MT) Fabric(in million meter) , % 6% 15% 11, % 29 4, E E E E The Indian domestic Linen market has consolidated its growth pace from the robust growth rates witnessed in yesteryears and is expected to grow at a moderate pace in coming years.
14 India s Linen Market Outlook Linen Business is expected to grow by ~ 5-6% in next couple of years. Rupee depreciation coupled with reduction in other competitive fibre prices like cotton are impacting the end price to consumer for linen products and hence impacting linen demand. Further, current inventory levels at different stages in value chain have also impacted the liquidity position. The growth in the Indian linen market has been supply led with more players coming into the market, both fabric & yarn. Linen blends have gained popularity in market space due to lower prices and making linen fashion accessible to mass markets.
15 L i n e n C l u b : I n v e s t i n g t o p r o m o t e l i n e n i n I n d i a
16 Jaya Shree Textiles - Linen Value Chain Linen Fabric - Retail Linen Fibre Linen Yarn Linen Fabrics Linen Apparel Retailing Strong presence in niche business - Yarn to Retail
17 Design Studio State of the art modern design studio at Rishra to build on new product development capability at Linen Club
18 Product developments : Adopting linen for popular product categories We have made efforts to develop a range of products while working with leading value chain players in India. Some of the key products developed for Indian markets are : Sarees for women, Dhotis for Men and Indian customer centered designs for stoles and other fashion accessories. There is a lot of focus given to final packaging and presentation to drive the premium image. Linen Silk sarees Linen Club Dhotis Linen Club range of fashion accessories and apparel
19 Product Developments Chic & Slim White For Life Linen club offers fine counts in 80, 100 & 120 lea. The fine fabric in all its crumpled look is the epitome of comfort for refined consumer. Linen Club - White for life with whiteness index same for 20 washes. A wide range of white dobbies and plains to chose from.
20 Product Developments Checkered Look The Cross-over Widest range of offering in checks for jackets, trousers or suits. Window pane or tartan. Linen wool or linen cotton blended with fine counts for the new age formals
21 Product Developments Prints Indian Influence From 60L to 100L prints for shirts and ornamental prints for bottoms work well Dobbies in 60L gives a rich feel to Indian attire
22 New product categories We have added a range of new products to enhance linen fashion for the Indian market: Apparels Stoles Bags Belts Wallets
23 New product categories - Women s wear Sarees Designer Label
24 Linen Club Enhancing consumer experience at Retail Modern retail identity of Linen Club Stores
25 Linen Club Elements of customer journey The retail journey for a consumer is designed to have multiple elements as she / he moves through the store : Attract Establish Inspire Inform Engage Accomplish
26 Linen Club Customer Experience - Attract Initial Architectural and material interaction is not only exciting and enticing for new patrons and passers-by, but also iconic and memorable. It is easily recognizable for return customers and those familiar with LINEN CLUB Life style product displays as well as visibility of the store interior, hint at what is in store for potential shoppers.
27 Linen Club Customer Experience - Establish A welcoming first impression promotes recognition that Linen Club stores provide a unique, service-based luxury retail experience. This is the opportunity for us to determine and cater to the specific needs of clients.
28 Linen Club Customer Experience - Inspire The main product and its unique presentation acts as a gallery that delights and surprises clients.
29 Linen Club Customer Experience - Inspire New, seasonal and promotional products are isolated and featured to create a dynamic and fresh appearance. Customers may browse independently or with the help of a knowledgeable salesman.
30 Linen Club Customer Experience - Inform A semi-private consultation area where selected product is inspected, provides a comfortable place to interact and develops a better understanding of the wide spectrum of product that Linen Club offers. Knowledge of the process and science behind various fabrics gives shoppers confidence in their purchases and promotes repeat business.
31 Linen Club Customer Experience - Engage Once a customer has made their fabric selection, a process of personalization begins. The store provides an atmosphere of a lounge and a studio. Clients can relax with friends or family members while measurements are taken and garment style and fit are discussed and determined.
32 Linen Club Customer Experience - Accomplish In ceremonious fashion, the product is prepared, packaged and presented to the client. As transaction area also serves as a concierge where customer loyalty is encouraged by offering personalized services for garment finishing options/ information and storing customer size/ measurement information as well as samples of previously purchased fabrics and garment preference.
33 O u r P h i l o s o p h y - W e a r e R e s p o n s i b l e
34 Sustainability Our Focus
35 CSR Our Belief We believe that co-creation and stakeholder engagement go Our employees are at the heart of our hand operations. in hand We work consistently towards building a culture that empowers our employees, builds their confidence, and creates a positive work environment. We encourage diversity at the workplace and encourage those with varied skills, backgrounds, experiences and education levels to work with us We are an integral part of the region we operate in and wish to contribute significantly to its economy. We constantly engage with our communities and extend various skill development trainings and focus on developing education and training centres and medical facilities in and around the areas we are present in. Encouraging Girl Child Education- supporting Kasturba Gandhi School
36 G r o w t h f o r L i n e n v i a c o l l a b o r a t i o n
37 Linen Demand and profitability scenario Un-precedented drop in consumption of linen yarn in India Linen Yarn Jan-Sep 2015 Jan- Sep 2016 Drop Over LY Quaterly Avg Demand ( MT) % Demonstrating reduced demand for pure linen fabric Drop in prices of cotton / polyester leading to drop in both yarn and fabric prices of substitutes. Major producers in China & India have kept production running, skilled workforce employed, despite low EBIDTA margins in current yarn prices. No major support has been forthcoming from European farmers / scutchers / traders in terms of lower prices for flax. The purpose of this congress is get entire community of flax stakeholders working together to support sustainable growth of flax industry. In last 4/5 years all players, specifically flax growers as well as value chain have done well. It is imperative that in crisis situation today, we need to come together to support each other. The congress will lose meaning if we do not follow collaborative working.
38 Immediate action areas The major consumption centres of China, India, Japan and Korea now account for major share of European flax consumption. It is important that the congress deliberate on how sustainable growth can be ensured in these markets. The crop of 2016 is a major worry in terms of quality. All major importers have been consistently asking for drawing of standards of flax fibre including setting up of scientific testing laboratories to test and grade fresh linen crops. No major progress has been seen on this, over past few years. Getting new segments of consumption like home, women s wear and technical textiles in also a major need for the market.
39 In Summary Linen usage is coming under threat of substitution by cheaper fibers trying to imitate the linen look. Popularity of linen blends is increasing by day, impacting total linen demand. Increasing manufacturing costs due to increase in cost of labour, power and flax will contribute to the already existing gap between linen and other fibers such as cotton, viscose and polyester including linen blends, posing a threat to growth of 100% pure linen category It is important that the industry players help each other by sharing and institutionalizing the process of supporting each other with information and key initiatives: Modernization of machinery and automation of manual processes Initiatives for yield improvement and reduction of waste / losses Wastage reduction and better utilization of short fibers Improved maintenance practices to improve quality, uptime and cost of spares It is also important that collective investments to be made towards enhancement in downstream such as better seeds, improving output per hectare of land and fibre quality Certification and classification of fibres to improve transparency is very critical
40 In Summary There are many countries where in linen as a category has not grown, allowing for great opportunity for the whole industry A central body which can support market entry of linen players by providing key consumer insights on fashion, industry requirements etc. and also connecting key value chain players will help the growth of the whole industry Clear communication of benefits and differentiation of linen will only help us together. Currently many brands do not value the European Flax certification. CELC could work with leading brands o make them aware of the European Flax certification.
41 T h a n k Y o u
42 #flaxlinencongress16
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