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vol. XIv Issue 15

Contents November 1-15, 2011

12. WorldWrap Local Fashion Labels, Working the Recession to their Advantage…

Stagnation! Inflation! = Hard Times!

18. Sustainability Social responsibility is never out of fashion…

22. IndustryUpdate Buyers As Worried As Exporters As Orders Slow Down…

26. IndustryWire Nitin International, Anmol Exports, G N Exports, Page Industries, NSL Textiles, Tulsi Exports

28. DomesticRetail Brands from Garment Exporters face uphill task…

35. Trends2012 Trends at Milan and Paris Fashion Weeks - Wrap-up Spring/Summer 2012

38. FashionBusiness Wills India Fashion Week Wish To Go Global Is Not Enough…

44. TextileUpdate Second Edition of Hindtex Varanasi Awes Everyone with Diversity & Quality of Exhibits and Buyers

50. H2F Heimtextil Russia 2011 Russian Retail Market for Home Products Growing

52. ExportStatistics India Increases Value of Garment Exports to the EU by 19.55%, but sees Decline in Volumes by (-) 3.09%

54. ResourceCentre Intertek initiates ‘iSupplier Program’ to promote exporters to international buyers

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10 ApparelOnline NOVEMBER 1-15, 2011

Vijay Singh, Director, Shilpayan Decor, Jaipur I feel the efforts done by AEPC to promote

Indian exporters around the world are good. Such efforts will give us a chance to prove ourselves over our competitors and give a new dimension to the Indian apparel export industry, on the basis of our design aesthetics, high-quality standards and price-points. Through this promotion, I believe that the Indian exporters – with their high quality assurance and design, would be able to divert the international buyers easily from the other countries. Although there are a lot of buyers in the market, AEPC is working towards our future in securing more relationships abroad.

Sameer Sehgal, Proprietor, All Saints Exports, New Delhi The level of work that the AEPC

has done is very good, but there is no definition of ‘enough’. They need to be very active in terms of their participation in fairs, and increase the volume of the fairs as well. The grant for the exporters should be timely and also be increased as the costs are going up. The time frame of the grant should also be lessened. They should also organize more fairs so that more number of buyers visit and place orders with us.

Naveen Duggal, Director, Kokeva Design, Delhi-NCR AEPC is indeed doing a good job in

promoting the exports, so much that it has now become a platform for the exporters to exhibit their collections and grow as a company. Among many of their brilliant jobs, I would like to point out a few. Firstly, for Indian exhibitions and fairs, they collect a number of exporters and advertise them as a group on a very big scale, which is nearly impossible for any individual exporter to do. Secondly, for international exhibitions, they negotiate with international agencies, to provide subsidies for us, which are in the form of MAI and MDA. AEPC gives us grants, which also include discounts for stalls, travel and accommodation. From my side, I would not like to give any suggestions as they have already generated a complete calendar for exhibitions around the world, with anyone else’s push. Apart from the regular fairs, this time they have participated in new markets like London (London garment Expo), germany, South Africa, Barcelona and Spain.

Suhail Mian, Proprietor, Crazy Desires, uttar Pradesh AEPC is doing a fine job, and they

are encouraging new as well as old exporters to participate in the various events organized by them. I, as a company, am only interested in fairs, where

Mindtreefood for thought

Q u e s t i o n

AEPC as an Apex body is responsible to promote Indian exports to the world… today developing new markets is very important. Do you think the AEPC is doing a good job in this regard… Do you have any suggestion on what more can be done…?

NOVEMBER 1-15, 2011 ApparelOnline 11

AEPC provides us with subsidized costs of the stalls, which seem to be a little out of reach. As far as I am concerned, I am extremely satisfied with the working and the functioning of AEPC as the body responsible to promote Indian exports.

I have one suggestion though, when they organize fairs abroad, the fees of the stalls are very high. Even the visa, travel and the accommodation has to be managed by us; which is very problematic. All these issues can be solved if the AEPC helps the exporters or even gives a recommendation to the visa authorities to smoothen the entire process.

Ramesh Poddar, Owner, Poddar International, Jaipur AEPC is not doing a good job at all.

There is no transparency in their procedures as the exporters are not made aware of their work. The circulation of information is never on time, while other organizations, like those for handicrafts have a much better approach. They need to give proper explanations to a lot of things. 90% of the buyers who visit the fairs are the ones that come every time, while most of them are the relatives of the AEPC board or the traders.

When only one person from a company is allowed to visit the fair, then how come they provide free

air-tickets and accommodation to 5-6 people per company? They should provide all the information about travel and accommodation in a fair way. Even the allotment of stalls, which is done by a draw method, is a partial process. They make the draw and then plan the position of the stalls, thus promoting favouritism. When they invite international designers to come to India, they do not do it in a proper way, because of which only the big names benefit from it. It should be organized to give some benefits to the small exporters as well.

Do garment exporters have the wherewithal to be successful in the retail market…? Should they enter as manufacturers for leading Indian brands or have their own brands… What is the right strategy?

Write your comments to us by 7th November 2011 at: [email protected] or post your views online through our website: www.apparelresources.com

q u e s t i o n n a i r e

MINDTREE

12 ApparelOnline NOVEMBER 1-15, 2011

Local Fashion Labels, Working the Recession to their Advantage…While market slowdown has impacted international fashion brands, who are struggling to maintain their position, it has also played an important role in development of local fashion labels. These local fashion brands have not only seeped in through the cracks made by the recession in the retail wall but, have also managed to grow and expand to make a name for themselves despite the weak economy. The demand for local fashion across a local region and internationally is on the rise, which is evident from the growing number of new fashion brands expanding regionally and internationally to cater to the increasing demand…

While almost every individual aspires to wear clothes that make them look

fashionable, not everyone can afford expensive brands and it is because of these individuals that local fashion brands have managed to flourish all over the world. In fact, the market for local brands has grown largely on the strength of affordability, low-margins, high volume manufacturing and brand value for the customers. Further, the simplicity of these brands provides the perfect antidote for the expensive style everyone wishes to own. No wonder local fast fashion brands are making big efforts to compete with their

at affordable prices as the increasing rate of unemployment and gas prices doesn’t allow them to splurge on brands and so, these brands provides them with options where they can spend and be satisfied. While well established brands in US and Europe are facing the harsh effects of the recession, local fashion labels have used the situation to their advantage and entered these markets while they are still soft, at prices that would further increase the competition for the existing names.

Local labels flying high…

All Kasi, Founded by Barnes Maplanka in 2000, is perhaps the oldest fashion brand in

WORLDWRAP

international counterparts by generating new ideas, launching new lines and working with new partners to make a way into the wardrobes of the fashion conscious generation with a set budget.

With the current economic scenario public enthusiasm for all things local and independent is on the rise providing these local labels with a measure of insulation from the worst effects of the recession. A survey of more than 1,800 local brand owners found that holiday sales at independent stores were up 2.2% on average. Customers today, prefer branded clothes to regular ones and want them

The local brands market has grown largely on the strength of affordability, low-margins, high volume manufacturing and brand value for the customers. Further, the simplicity of these brands provides the perfect antidote for the expensive style everyone wishes to own.

200 graduates to be recruited by Marks & Spencer in 2012

Applications for the Marks & Spencer’s 2012 Graduate Scheme and Business Placement Program have been opened, giving 200 graduates and undergraduates the opportunity to take their first step onto the retail ladder via approximately 140 graduate roles in stores and head office. Sixty one-year placements have also been offered to undergraduates as part of their degree.

M&S has also offered retail management roles within M&S UK stores and specialist head office schemes such as product technology, food development and fashion design, as well as general buying and merchandising schemes, along with 7 specialist e-commerce roles, in order to support its ambitions in multi-channel retailing; which the graduates can apply for. Kay Jones-Wolsey, Head of Recruitment at M&S said, “In a fast moving industry like retail, fresh and innovative thinking is essential to keep you ahead of the competition. Our Graduate and BPP schemes provide us with a pipeline of new and exciting talent, enabling us to develop the next generation of retail stars.”

Facebook stores for holiday season at Walmart and Tesco

Walmart has launched more than 3,500 store-specific Facebook pages, to connect stores with their local communities. “My Local Walmart” page offers shoppers information about local store product introductions, promotions, and events, as well as letting shoppers provide feedback about the store. Tesco, on the other hand, has opened a new pop-up Facebook store for Halloween, following the footsteps of Target and its pop-up Facebook Halloween store.

Powered by Zibaba, the Spooky Halloween Shop offers Tesco fans a VIP 20% discount on their ghoul-gear. The pop-up Facebook fan-store is a storefront app from an increasing number of providers, with no logistics, inventory issues or payment gateways to worry about. The use of Facebook has become a platform for online pop-up retail, with temporary stores offering Facebook fans VIP pricing or fan-first access to promote a retail event, as well as product-launches and marketing campaigns.

World SnipS

14 ApparelOnline NOVEMBER 1-15, 2011

While well established brands in US and Europe are facing the harsh effects of the recession, local fashion labels have used the situation to their advantage and entered these markets while they are still soft, at prices that would further increase the competition for the existing names.

opened its three-storey flagship store in Myeongdong along side Uniqlo, Mango, GAP and Bean Pole.

Riva, one of the most successful local fashion brands of Kuwait has established itself as a hugely successful Middle East fashion brand since its origin in 2001. Singapore’s local fashion brand Hansel came to existence in 2003 and has grown to be a popular favourite and commissioned to design uniforms and merchandise for various reputable firms, including DBS Bank, Maybelline New York and the Lexus Cup, apart from this the brand has designed for many Hollywood stars indicating that no one is untouched by the presence of these brands.

Going global with their success…

Opened in 2009, 242 People Clothing Co, the official clothing brand of The Bahamas is seeing a year-on-year increase in sales and the company has been generating profits, the company today releases a new line every three to four months, selling on an average of 3,000 pieces each time and is now looking on to new markets to expand. Former Olympic gymnast Li Ning’s sportswear brand Li-Ning Co Ltd. is a top domestic brand in China, with more than 7,900 stores across the country plans

to invest $ 10 million in its United States operations.

The Orka Group, owner of the domestic fashion brands in Turkey Damat, Tween and ADV, forecasted 33% growth in 2011 through the opening of new stores, already enjoying good response from London the brands are expected to move on to new destinations to make a global impression. Singapore brands are also making their presence felt overseas, from high-end boutiques in New York and London to emerging retail enclaves in Hanoi. Alldressed, launched in 2005, holds its campaign twice a year for buyers in top fashion capitals like New York and Milan. Raoul, launched in 2002 as a men’s brand by retail group FJ Benjamin, has now added a well received women’s wear line, spread over Dubai, Bahrain, Indonesia and the Philippines. South African brand 46664 launched a global apparel brand on 29th July 2011. Not well known by everyone but, these brands are here to stay and grow.

The growing numbers of these local fashion brands entering the retail structure suggests that the consumers might have changed their spending habits, but have not diverted from their habit to spend. The local fashion labels have used this to their advantage and have captured a market for themselves.

Botswana, The brand became an instant hit with the youth who loved the funky and casual look it provided. The fashion label made news in 2008 when it struck a more-than-million-Pula deal with the Botswana Football Association (BFA) to dress the national soccer team, Zebras. Anno Domini, formed in 2008 is still doing well and is growing strong. Mafia Soul, one of the most enduring fashion labels in Botswana founded in 2001 have been featured in videos of South African Hip-hop artist, Young Nations. Local artists and Eureka have also endorsed the brand and it certainly looks like the brand is here to stay.

Bustling Xidan Street in downtown Beijing apart from being home to dozens of clothing stores is also a testimony to the growing popularity of domestic brands. Not only are Zara and H&M full of chic teenagers, but so too is their Chinese competitor Meters Bonwe. Other names like PYE, JNBY, Ochirly, Septwolves, Lilanz and Cabeen have also witnessed growth in sales over past few years. Hong Kong-based fashion brand Bossini also launched the “be happy” campaign this month, introducing its new brand ambassador, Hong Kong actress Cherrie Ying. Korean fast fashion brand SPAO launched in 2009 made a big splash when it

Tegan, an online collection by French Connection

French Connection has launched a classic women’s wear brand ‘Tegan’ which will only be available online. Tegan, Welsh for “beautiful”, is a 50-piece autumn 11 range of versatile day-to-night designs with flattering silhouettes, is only available via ‘www.teganfashion.com’. French Connection Marketing Director William Woodhams said there was a “gap in the market” for a brand to appeal to a “slightly older woman than French Connection which he has tried to fill. The line includes a spot-print silk blouse and a draped jersey dress, with prices ranging from £120 to £220 for a dress, £150 to £220 for a coat and £90 to £130 for a pair of trousers. The launch of Tegan has followed the creation of French Connection’s Pippa women’s wear brand, a fashion-forward work wear range that launched exclusively in US department store Bloomingdale’s for Spring 2010.

Uniqlo soaring high with new stores

Uniqlo has opened up its largest store in Manhattan, following a new business strategy. Tadashi Yanai, the Chief Executive and Founder of Uniqlo, said that the Japanese companies are doomed if they don’t go global. He believes that Fast Retailing will push their quality standards even more and distinguish itself to become a brand that represents Japan in the world. To combat their economy, Uniqlo plans to open flagship and large stores in Europe, US, New York, Paris and London, as well as regular outlets in other major cities.

New President for JCPenney

JCPenney announced that it has appointed Michael Francis as its President, most recently a senior executive at Target Corporation. He will report to incoming JCPenney Chief Executive Officer Ron Johnson and will be responsible for all merchandising, marketing, planning and allocation, and product development and sourcing functions at a time when the company is focusing on redefining the department store. Francis has more than 25 years of merchandising and marketing experience, which started in 1986 as an executive trainee with Marshall Field’s in Chicago.

World SnipS

Meters Bonwe, a Chinese brand giving tough competition to established names

WORLDWRAP

16 ApparelOnline NOVEMBER 1-15, 2011

Bruce Replies…Rahul Bangera, working with a Buying office: I’d like to know your views on the role of buying houses for the future. Do you think that there is a general attitude to cut out the middle-man and work directly with the supplier, or is there a sustainable future for buying agencies in their current form?

Bruce: I have written many times, “There is nothing as permanent as Change”, but change is not always easy or fast or slow. New communication networks have somewhat changed the Sourcing Methods… The “OLD SCHOOL” of an entity whether it be a manufacturer/importer, or a retailer is to work directly with the vendor/supplier of the end-product. As the need for different classifications are required to supply the vast consumer through the retailer, an agent to source all the different types of merchandise the retailer may need, will be an integral part of the importing methods needed to service this retailer or importer/manufacturer that may have many divisions, for a long profitable future.

The Old Importer usually creates agents in order to achieve the quality, consistency, and maintain RELATIONSHIPS, so they have an uninterrupted flow of merchandise. The retailer because of so many different products change quickly, and also they do not have the time or desire to have any legal relationship with the vendor directly; will either use the Brokers, Agents, Agencies, 3rd party professional firms, in order to be at what is called “ARMS LENGTH”, from the actual manufacturer.

From the Li & Fung’s, Mast Industries, to the smaller independent agents or agencies, they are needed, but in order to deliver what their clients’ needs, rather than just supplying the service of getting the items produced, in today’s market they now have to present new ideas to their clients’ in order for them not to be thought of as just a facilitator, but rather as an innovator.

STAGNATION! INFLATION! = HARD TIMES!

B R U C E ’ S I N S I G H T S

I could have said “Depression, Continued Recession, Non-survival, Closures, or Bankruptcies”! This is the first time I have felt that there is “NO

EXCITEMENT” in our textile/apparel industry.

Many governments are unstable; governmental corruption, old cultural disputes still plague the trust of risk taking in the business community, banks, with money not lending, no immediate solutions for unemployment, political philosophy’s taking precedence over solving problems, new ideas not being supported, and worldwide leadership is either being overthrown with no replacement, or leadership having only old status quo movement on how to solve these problems.

Raw materials that have become commodities are now out of normal business “supply and demand” formulas, but in the hands of speculators, that can change the value without really being in the finished product marketplace.

Where is the EXCITEMENT!... The word FASHION is supposed to be the catalyst that moves our industry forward.

The so-called runway shows are becoming “OLD HAT”, the large designer lines, are not being creative or inventive, (true they must be Lean and Mean in these economic times), but this should not take away the creative PZZAH!, that makes us want to purchase something new.

I have been in the international marketplace for many years, and I realize that new domestic needs in the country are growing, so maybe, the international recognition of NEW FASHION IDEAS are not being developed as it normally would, but it just seems that playing it safe, and not developing new textiles, or styles of garments are creating stagnation and not excitement.

Stagnation is also being caused, by the youth today who are graduating from higher education, expecting either a management position, or the government of their country to place them in jobs.

When academia, government, and corporate, ever get together especially in the USA, maybe we can prepare our students for jobs that are needed, rather than have already been outdated.

We have in the USA presidential commissions, working on this issue, that in my humble opinion are just a lot of talk and non responsive to our unemployment issues, that exist today.

I have been going to seminars introducing the new Free Trade countries of Columbia, Korea, Panama, and Haiti when it is official by the end of each year it will enhance their exports into the USA greatly.

We in the USA need to export our products, just as much as the countries we in the USA are buying from, and Free Trade agreements, is a great path to do so. Since China has raised prices over the past few years, (NAFTA) Mexico, Canada, USA, (CAFTA) Central America Countries of Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, and Dominican Republic, has increased in volume for 2011, and for 2012 it is expected to have double digits increases of export to the USA.

We need “Entrepreneurship” to start taking us out of the stagnation we are now in, and regulate the speculators that are causing the inflation of raw materials.

Have a profitable 4th quarter, as we are already half way through October.

Bruce S.Berton Executive Vice President & COO, Roochi Traders Inc., USA Direct your queries to: [email protected]

WORLDWRAP

18 ApparelOnline NOVEMBER 1-15, 2011

Social responsibility is never out of fashion…Proving to be deeper and more than just fashion, brands and retailers are taking important steps and initiatives to be more socially responsible. Comprising of ethical values with styles, these brands have proved that quality runs through the entire process of their product. With big names like Nike, Gucci, Puma, Adidas and many more joining hands to ban cotton from Uzbekistan involving child labour, the industry is not only concerned, they are doing something about it too.

susTAINAbILITy

have signed a pledge to not knowingly source Uzbekistan cotton harvested using forced child labour. The companies are to maintain this pledge until the elimination of this practice which is to be independently verified by the International Labour Organization (ILO).

Steps like these by the brands goes a long way to prove that the industry is no longer disconnected with the process of where and how their garments are made, while some still run after quantity and price factors, there is a growing number of retailer/brands in the industry which looks at the quality and ethics of the supply chain of their products. Fashion conglomerate PPR

Group, home to luxury labels like Gucci, Puma, Yves Saint Laurent, and Stella McCartney are stepping up their Corporate Social Responsibility (CSR) with the launch of PPR Home, an in-house sustainability team to implement the best business practices, work toward reducing and mitigating the social and environmental impacts and developing opportunities for the benefit of people and their environments.

As a result of increasing demand for ethical clothing by the consumers, it has become standard practice for UK clothing retailers to develop CSR policies which impact upon their methods of garment sourcing and partnerships with suppliers. The traditional perception that ethical clothing is unfashionable, has been challenged with an increasing level of participation by established fashion designers and known brands in the field. Several leading UK retailers have launched ranges of organic or Fair Trade clothing in the last few years. Market leader Marks & Spencer introduced garments made from Fair Trade cotton in 2006, followed in 2007 by its planned strategy to promote its commitment to ethical issues. Fashion retailers Monsoon and New Look sold Fair Trade clothing and organic cotton T-shirts during the same period. Established designer

Recently, more than 60 of the world’s best known apparel companies and brands

as well as the American Apparel and Footwear Association (AAFA), representing more than 800 brands including names like PPR Group (Gucci, Bottega Veneta, Yves Saint Laurent, Balenciaga, Stella McCartney, Alexander McQueen, PUMA, Volcom, Redcats), PVH Corp., Target Corporation, The TJX Companies Inc., The Jones Group, VF Corporation, Walmart Stores Inc., ASDA, Better Homes & Gardens Canopy, Faded Glory, George, Home Trends, Mainstays, Adidas Group (Adidas, Reebok, Taylor-Made, Adidas Golf) and many more

People protesting through rally’s to stop child labour in cotton fields

20 ApparelOnline NOVEMBER 1-15, 2011

UK hosiery firm awarded M&S eco-factory status

Courtaulds leg-wear, a factory based in Derbyshire, with more than 400 employees, has secured its future by turning itself into an eco-factory, reducing its energy bill by half and saving millions in the process. Marks & Spencer has awarded its Plan-A eco-factory status to this factory, which also has been supplying M&S with hosiery for more than 30 years.

It is the first UK clothing factory to receive this award, following the roll-out from M&S’s eco model factories in Sri Lanka and Bangladesh. Jonny Mitchell, the Managing Director of Courtaulds leg-wear, said the factory’s changes, such as reduced energy and water consumption, have given an “edge again to be able to compete with the Far East”. Marks & Spencer has a 28 per cent share of the British hosiery market, with an average product turnaround time of 3.5 weeks. A UK-based factory can respond to these fast-moving fashion trends much quicker.

Textile cleanup – A success in BangladeshThe World Bank’s International Finance Corporation (IFC) has declared the initiative to use global expertise to clean up Bangladesh’s notoriously dirty wet textile processing units, a success. It has helped to install new cleaner and efficient production equipment in 12 factories so far, reducing water consumption by annual 75 m litres and saving US $ 1 m in operating costs. This action was taken after a series of pollution incidents happened in Bangladesh involving its textile sector.

For a country where 31 m people lack clean water, this was a very serious problem. IFC has worked with six major international buyers – Hennes & Mauritz (H&M), KappAhl, Lindex, Mothercare, Levi’s, and WE Fashion – and Dutch international development group Solidaridad, along with The UK Department for International Development and the Norwegian Agency for Development Co-operation, to deliver technological improvements. The World Bank arm’s Monika Weber-Fahr added: “The success of this project will allow the Bangladesh textile sector to gain a competitive edge by showcasing a greener supply chain.”

Courtaulds, based in Derbyshire, secures Marks & Spencer ‘plan-A’ eco-factory award for 2011

CSR initiatives in the Apparel IndustryKatharine Hamnett launched an ethical fashion range in 2007, incorporating organic cotton. People Tree and Gossypium are amongst the niche clothing brands utilizing green textiles in their products, and casual wear brand Howies sells products manufactured from recycled cotton fabric.

H&M has announced a target for all cotton to come from more sustainable sources by 2020, in fact, H&M played an active role in forming the Sustainable Apparel Coalition, working to create a universal index to show the environmental impact and fair labour practices for clothing and footwear production and saved 50 million litres of water in denim production this year. Noir and the organic cotton brand Illuminati II were founded concurrently in 2005 and the diffusion line Bllack

With celebrities, models, and designers such as Stella McCartney, Rogan Gregory, Peter Ingwersen, Ali Hewson, Bono, Stewart Brown and Summer Rayne Oakes drawing attention to socially-conscious and environmentally friendly fashion, the masses are not far behind. Increased media coverage and consumer awareness has also played a very important role in building up an industry

susTAINAbILITy

Noir was introduced in 2008, the three Danish brands work and were introduced on the principles of social responsibility. Examples like these present us with fashion bodies who are contributing to both the society their profits, as social responsibility has become more of a choice amongst the buyers and it enhances the brand image as well.

Though, corporate social responsibility has impacted the policies and behaviour of companies throughout the world, relatively little attention has been devoted to the link between CSR and strategic marketing.

where fashion has taken an important step in building up a complaint environment in the entire supply chain of their product. Traceability tools are also becoming increasingly popular, usually in the form of an interactive map displaying each stage of the supply chain.

The concept of social sustainability is no longer a lip service for brands and many examples have emerged of the seriousness intent to support ethical manufacturing, while condemning supply chains that are unable to weed out bad practices.

Several leading UK retailers have launched ranges of organic or Fair Trade clothing in the last few years. Market leader Marks & Spencer introduced garments made from Fair Trade cotton in 2006, followed in 2007 by its planned strategy to promote its commitment to ethical issues.

The traditional perception that ethical clothing is unfashionable, has been challenged with an increasing level of participation by established fashion designers and known brands in the field.

NOVEMBER 1-15, 2011 ApparelOnline 21

22 ApparelOnline NOVEMBER 1-15, 2011

Hint at Changing Buying PatternsAfter talking to the exporters in the last issue of Apparel Online, it made sense to question the buying offices on the current buying position and the indications coming from the international clients. Though every buying office had a different response to their own order position, the common thread was the fact that there is certainly a slowdown in business and buyers are being very cautious in their sourcing. Just how long the problem will remain is a very tricky prediction, but how to tackle the issue has many suggestions; conditions are tough, but not insurmountable...

Buyers As Worried As Exporters As Orders Slow Down…

today,” says Vivek Bhatnagar, Fusion Consulting. Fusion customers have placed orders, but there is a drop of around 10% on the overall quantity; however the knits categories are showing higher growth still as opposed to the woven garments. “The trend visible is that for the coming seasons there shall also be delayed decisions to buy as the market is uncertain and for brands to plan their sales has become even more difficult,” adds Vivek.

At Mumbai based Kalp Exim, the downfall of orders is of over 30%. “The confusion over the US and Europe economy is somewhat keeping the buyers at bay, and buyers in Europe specially are very conscious in spending their

money, the motto is to stay low risk. With no new orders and a 30 per cent fall in the current ones from regular clients in US, Canada and Europe have forced many exporters to look for newer avenues. And the countries they are now looking at are: Russia, Brazil, Argentine and Japan. From my interactions I feel Tirupur and Punjab-based suppliers are the ones mostly facing a very tough season,” says Kaplesh Kabra, Kalp Exim.

Many buyers feel that the impact on sourcing is coming more from the big retailers. “Orders are very slow moving, as the larger customers have taken a back seat. The boutique customers are rather active. In fact we are very happy right now to work with

“Recession is the word we all have been hearing for so long, but the effect is being felt now,” says

Sameer Thapar, Montrose India. He adds, “Garment business for the US, Canada and Europe has really slowed down, with costs increasing for various other essential commodities, garments is one category which gets affected first, pushing the slowdown in our industry.” Montrose is buying garments mostly for the US market, the prime customer for the company being Jones Apparel, though smaller brands like Bydesign are also on the customer list. Last year the buying office which has operations in India worth over $ 10 million added Canada to its list of client countries, but business there is also slow.

In fact, almost all the buyers agree that business this season is quite slow compared to the previous two years at this time of the season. Many feel that even in case of buyers where orders have come in, the numbers are really small. “The mood in Europe is not to buy too much but it is also not that buying is not happening, it’s just that brands are not taking risks and carrying stocks. The Express collections are starting to do better as they are buying newer and fast fashion that is the trend

Kaplesh Kabra, Kalp Exim with his buyer, Martin Mohr MD of Washlender Group GMBH - With no new orders and a 30 per cent fall in the current ones from regular clients in US, Canada and Europe have forced many exporters to look for newer avenues, says Kabra

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boutique customers as they are giving small quantities no doubt but good prices,” says Mukta Malhotra, SAAR International. She adds, “Orders from larger customers have just started trickling in at very minimal quantities. As per our larger customers the orders will come but late where retailers will then want miracles, for vendors to perform in short span of time. In this case the fabric suppliers will have to gear up to deliver fabric in shorter lead time the whole scenario will have to change.”

Most of the retailers that are deferring their orders for S/S have stocks and they are waiting to see the winter demand before taking a call. Normally during this time of the year, most of the garment factories are fully booked till February. However this time of the year, a lot of factories have spare capacities for January production. “As per my discussions with many of my buyer colleagues at a rough estimate, there is a 50% cut in garment orders as compared to last year and out of the balance 50% orders, the retailers are asking the exporters to defer production. Also there is tremendous pressure on prices as many exporters in the last few weeks picked some orders assuming softening of cotton prices, however due to firm raw material prices and low/late arrivals of new cotton, cotton still remains firm,” shares Sharad Sanghai, Texperts, which is sourcing garments, fabrics and yarn for customers in both the US and EU.

Many expect to get orders by end November, but this is just a hope and there is no certainty. It will depend entirely on how garment sales move in the west, which depends on a number of macro level factors that influences the sentiments of end user and that holds the retailers to take a optimistic view about S/S. “Bottom line is that there is no clarity on when and how much orders will actually come in,” says Sameer. The impact is more powerful since spring/summer is the key season for exporters in India. “Spring/Summer being biggest season for India, it is really becoming difficult for exporters and would certainly effect business in the long run for the garment industry in India,” adds Sameer.

At Triburg, the orders from most of its clients have come in and while with some products the orders are a little less in others they are more. “Overall we are hitting targets this year, though a lot of exporters they work with are complaining that they are seeing a dip in numbers in their total export basket. The way the markets in the west are behaving will impact business next year… we think we will see the slowdown in numbers for fall 2012,” predicts Jayashree Rai, Triburg. Another buying office which claims to have hit targets is Hausmod, though they too have reservations on the next season. “Buyers are a little apprehensive in ordering earlier and they want to place order at short term deliveries, which is in season.

This is putting a lot of pressure on deliveries and prices,” says Aroona Mann, Hausmod, which is primarily working with customers in Europe.

The change in buying patterns is also challenging the buying offices. “The trend is also to buy lesser style and fabric options and brands do not want quantities distributed across more style and fabric options rather they also want to consolidate and meet their budgets. Therefore from distribution of a number of styles across multiple vendors we have a limited ability today. Fusion customers also have adapted to the trends that are friendly in certain countries in Europe which are still stable and growing and for these brands those are the export markets which are bringing in growth,” says Vivek.

Not wanting to be mentioned, a leading buying office in Delhi

claimed that sales figures that they have received from 11 of the most prominent retailers in Europe and the US show that sales are much slower this season. They say that retailers are still placing programs in order to have inventory manufactured and ready, but they will accept deliveries if the sales are good. If not – there will be cancellations on false pretexts (colour not matching etc., etc…). This according to them is where the real worry lies. “We are better off with fewer orders than with huge returns and cancellations,” says the buying office.

In such a scenario not many are ready to make a guess as to when the situation will be back on track. What the buyers do say is that the task is uphill. “Though most of us feel that the situation should improve in first quarter of 2012, but this may not be sustainable if the US falls into

“The mood in Europe is not to buy too much but it is also not that buying is not happening, it’s just that brands are not taking risks and carrying stocks. The Express collections are starting to do better as they are buying newer and fast fashion

Vivek Bhatnagar Fusion Consulting

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another recession and Eurozone problems persist. It cannot be overlooked that though the major part of delayed orders are due to slowdown in sales higher interest rates, instability in financial markets, increased unemployment as well as lower growth should the US fall into recessionary conditions, may only add to the mess,” cautions Kabra. “I would not like to call it ‘recession’, but yes the overall financial and economic situation of Europe and the US looks gloomy. For last one year we have also seen the political instability in countries like Syria, Libya, etc. have created a depressing mood at the consumer level, due to which the common man has fear about the future and is not willing to spend,” adds Sanghai.

Although most of the buyers blame the current buying position on the global economic situation, Mukta feels that Indian exporters too are to be partly blamed for the decrease in business. “No doubt recession is the key factor but more so the increase in yarn prices in-between is also a major factor where retailers placed some of their businesses in countries where prices were sharper, that is where vendors were smart to cut down their margins and react proactively to the situation with a long-term vision. Whereas in India the vendors were firm and were not ready to cut their margins and suffered in the interim, by

the time they realized, a certain amount of business was placed elsewhere,” she argues.

Many buyers are already anticipating the trickle-down effect of the situation. “The export industry will be hit harder than expected as the quantum simply isn’t there and there will be an inequitable distribution of business as the business will be lifted by people who are able to offer product diversity and greater degree of product developments. Prices everyone has to compete with but if the learning curve for product development is short and the buyers are able to see the developments that are on trend then business placement is inevitable,” reasons Vivek.

Of course with low or less orders, the exporters too will hold their buying, which will actually affect the whole industry. “This would mean a lot to suppliers who will have to take actions for cost cutting, which will mean lay offs and less buying will be a double blow to raw material traders and thus cresting the whole chain of slow down. Further for buyers as such in the case of a depreciating dollar, exporters will have to bear the loss as a cut in margins which in some cases will also lead to loss,” predicts Kabra.

Buyers were very vocal in what the industry needs to do to stay preferred suppliers. “Ship the best possible quality…that’s the only thing which will

keep exporters going. No one wants to be saddled with a bad quality product which does not sell, so focus on quality, quality and more quality,” advises Jayashree. Completely agreeing with her, Sameer adds, “The tolerance levels have to be brought down, as there is no room for slip ups. Obviously in a very difficult business climate and retail business in stores becoming challenging, sales being off, stores are looking for excuses for quality problems or late deliveries to cancel goods. So it is the time to execute on time and correctly.”

Controlling costs, retaining existing customers by serving them in the best possible manner so that they stay along and don’t look for alternatives, and putting concerted efforts in exploring newer markets/customers/applications as there are a number of new avenues opening on account of various FTA/PTA’s and increasing demand in developing countries especially Asia are some of the suggestions offered. “Exporters should focus on new markets and South America is certainly a good option today,” says Amita Batra, Rubric Apparels. It has also been suggested that there needs to be a platform for sharing experiences. Any factory approaching a new customer should be aware of their track record.

Vivek feels that there is an opportunity in every recession and that needs to be

capitalized upon. “Exporters should plan to travel more frequently as Indians are generally much behind the Chinese exporters and the other Asian counterparts in terms of travelling and being in the face of the buyers. This is a strategy that will be a key for all people who want to expand. The second thing is to get the prices for printing and yarndyeds down as there is a huge business potential India loses out with regards to the yarndyeds fabric pricing and lead time and there no one competes with China,” he says. Adds Aroona, “the only answer is to reduce margins and give substantially low prices and work on short term deliveries in order to give the buyers room for working in season and not taking extra risks. We also need to accept lower quantities in order to keep the business going.”

Presently, it is a wait and watch scenario, the primary focus of the major business is to make the break-even margins and wait for the situation to improve. “Personally I feel that reviving up will take at least 5 years! This is also creating a major issue and is forcing the specialized traders to look into other ventures like real estate, which can give back good returns and low risk! On the other side, Government is not doing enough to support exporters significantly which can save them enough margins to remain in the industry,” says Kabra.

However, not all is lost and many feel that the churning is happening and not only the exporters, but the retailers are also making effort to get business back on track. “I feel that the growth will soon be there as this is also the time when the brands and retailers are consolidating and trying to enter new markets in Europe so brands are appointing various agents for selling in core growing markets of France and Germany. Poland is also becoming an important player for Exports,” concludes Vivek.

“Ship the best possible quality…that’s the only thing which will keep exporters going. No one wants to be saddled with a bad quality product which does not sell, so focus on quality, quality and more quality,”

Jayashree Rai, Triburg

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New emerging markets provide relief to exporters…

With market slow down in traditional markets,

Indian exporters are looking out for new markets to enter and cover up their losses. Consequently, exports from India are rising to emerging markets across the world in South American countries, Kuwait and South Africa. Even though, put together, the exports to emerging markets account for about only 8 per cent of total exports, they have contributed disproportionately to growth in exports over the past two years. Kuwait and South Africa have seen over 100 per cent growths in 2010-11, while the others have grown between 45 and 65 per cent. With high success rate of business in these emerging markets, many Indian exporters are trying their luck in the unknown yet potential markets with an optimistic approach and a view for relief.

nitin international, delhi after struggling to cope up with financial crisis caused due to late payments from the US and EU markets and other labour issues has taken a turn towards the South American market and will export there as well, along with their existing base in Europe and America. While one company is looking for a new market for survival, Jaipur based Anmol exports is looking forward to work with new markets as they are planning to expand their business. With good response and orders from the existing buyers and tie ups with new buyers, the organization is expecting good orders and has expanded their manufacturing unit by adding 100 more machines in anticipation. Anmol Exports is starting exports to South Africa and Russia for higher profits.

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Page Industries gets license of Speedo Swimwear

Innerwear maker Page Industries has recently tied up with swimwear brand Speedo International

to manufacture, market and distribute the brand in India. Under the exclusive licensing agreement, the Bangalore-based Page Industries will make swimwear, watershorts, apparel, equipment and footwear in India. These products will hit shelves in January 2012. The Rs. 491-crore Page Industries is the exclusive license partner of Jockey International till 2030. Besides India, it manufactures for Sri Lanka, Republic of Maldives, Bangladesh, Nepal and the Middle East market.

The Pentland Group, makers of Ted Baker and Ellesse, owns Speedo and the Australian brand is distributed in 170 countries. “As Speedo continues to develop its global market presence, India is an extremely important market for Speedo,” said Michael O’donnell, Vice-President of international Business development for Speedo, pointing out that a large number of people in India are now taking up swimming as a fitness and lifestyle option.

Excited about the opportunity, Sunder Ashok Genomal, Md, Page industries Ltd. said Speedo’s product technology and marketing leadership, clubbed with Page Industries’ expertise in manufacturing and distribution, will forge a mutually beneficial partnership.

G N Exports coming up with first garmenting unit in Varanasi

Established in 1966, Varanasi based G N Exports a known name for sarees, fabrics,

embroidered fabrics and scarves/stoles is setting up a world class garment factory in the city of holy Ganga by the name of G N Designer Handlooms Pvt. Ltd. The unit with 400 machines would

be the first garmenting unit in Varanasi. “We are getting very good support from DC Handloom and we are planning to produce high-end ladies garments with handloom fabrics both for the domestic as well as export market. We are putting hand embroidery, adda-work, computer embroidery, digital printers, laser cutting machines all under one roof,” shares Mukund B. Agrawal, director of the company.

The unit is coming up in 80,000 sq. feet area and with 100% power back up. For the factory layout, the company has hired a Bangalore based consulting company called Centre for Excellent Designing founded by Milind Ulkar, who was also consultant for Bombay Rayon’s garmenting unit. Besides this, for machines they are taking consultancy from IIGM who are also their machine supplier along with Technopak. With a total investment of Rs. 12 crore, the plant would be commissioned by March 2012.

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Two new garmenting units for NSL TextilesAdds 850 Sewing Machines

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Hyderabad based NSL Textiles Ltd. has recently gone for

major expansion. The company has put up one garment unit with

capacity of 3000 pieces per day with 300 machines and also created an additional new unit at a different location for 6000 pieces per day with 550 machines.

Before putting up the new units, NSL had two units

with combined machine strength of 1100 machines. The company is manufacturing cotton shirts and tops and now it’s planning to produce bottoms/trousers.

According to ravi Advani, Head – Garments, good backup of fabrics, complimented with good marketing

resources are the key reasons to go for expansion. “Presently 20% of our garmenting production is for the export market, however with the expansion it is expected to grow to 70%,” states Ravi who is a B. Tech in Textile Technology and an MBA. He also carries a rich experience in apparel supply chain management, operations, design & product development, product merchandising and sourcing and has worked with Arvind Brands, Raymond, and Aditya Birla Group.

For NSL, a Rs. 1500 crores Group with many streams of business like infrastructure, power, sugar, seeds and textiles, the garment manufacturing division is among the smallest, but with huge potential for growth. Presently the garmenting turnover of the company is Rs. 30 crores and in the next fiscal it is expecting to touch Rs. 70 crores.

While the old players in the industry are struggling, Tulsi Exports from Pushkar,

Rajasthan is a new entrant which started manufacturing about a year ago with just 30 machines. The company is now adding 100 more machines riding on positive feedback from its buyers in Latin America.

The exporter is also very upbeat and work on the new factory is underway on a land of about 33,000 sq. feet. The proposed factory has already been bought near the old factory and machines are being installed. “We hope to get the factory running commercially by May 2012,” says Bhagwan Khatri, Md, tulsi exports. The company is manufacturing ladies wear with a FOB range of $ 2 to $ 10.

The new factory will not only cater to existing buyers but also to newly developed buyers in Spain, Australia and France. “We have had regular business since the start and orders are aplenty, so it made sense to expand and increase our presence in the export market,” concludes Khatri.

Tulsi Exports adds 100 more machines in less than a year

New Entrant to Industry sees growth

28 ApparelOnline NOVEMBER 1-15, 2011

Over the past few years an increasing number of garment exporters have entered the

retail arena while companies like Orient Craft, Bombay Rayon Fashions, Mandhana Industries, The Shirt Company and Prateek Apparels preferred to take the licensing route partnering with already established brands, Others like BL International, Viraj Exports, TCNS, Aster Apparels, Akriti Apparels and many more opted to create their own brand for market in India. The path to penetrate the retail market for each has been challenging and while some are satisfied with their growth path many others have closed down or sold off their brands to domestic manufacturers.

“Garment exporters come from a different business with a completely different mindset. They have expertise in making products for international brands and meeting their order requirements, without any expertise in retail. So, when they start thinking of retailing, they primarily think about the ways of reaching the consumers to sell the export surplus they have,” argues Prashant Agarwal, Jt MD, Wazir Advisors. This is indeed one of the biggest reasons for setbacks, it is important to understand that the Indian retail landscape is different from the US and EU and the preferences also changes. Even International brands selling in India take into consideration local preferences in colour, fit, size and detailing before finalizing the collections.

Exporters are not investing on brand development say retail experts. Most exporters jump into the fray without adequate consumer research

to understand their needs and wants. For creating any brand, it is important to define your positioning and your target customers and then your offer to the target group. You cannot be selling everything to everybody. But majority of the garment exporters fail on these critical activities and think of retailing as an extension for the products they already have. They are unable to disassociate themselves from the garment exporting business to treat the retail venture as a separate business model. There are various examples such as EAST by Orient Craft, Avocado by Richa Knits, Mayur Décor from Mayur Overseas, discounted brands such as Priknit from Proknit Exports, TNG from Ankit Garment, etc. which were launched by garment exporters and failed due to lack of focus and inappropriate approach towards target market segmentation and brand building efforts.

The success of international bands like, Promod, Mango, Zara, Vero Moda, Only and Jack N Jones, on the other hand is to a large extent founded on the extensive market research done before opening up in India, due to which they have prices and silhouettes which suit the Indian market seeking greater success in the Indian subcontinent. With international brands giving better and competitive prices as compared to many local brands, the consumer prefers to buy an international tag for a much cheaper price, than investing in expensive silhouettes from a domestic retailer. International brands also provide customers with better customer service, like 100% payback option if not

Brands from Garment Exporters face uphill task… Yet some build strategies that keep them moving

Though many garment exporters have over the last few years ventured into the domestic market with their own brands or licensed brands, not all of them have been successful. Besides the challenges of retail as a separate and distinct business model from garment exports, the choice of products and brand positioning have also been a major problem for most. The increasing inflow of international lifestyle and inspirational brands has also dented the scope of home grown brands as the consumer prefers to buy an international brand given a choice.

Kazo, from exporter BL International is among the new Indian brands that is growing in popularity for its International look and global appeal for the modren Indian woman

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NOVEMBER 1-15, 2011 ApparelOnline 29

happy with the purchase, which is an added bonus and attraction for the consumer.

Indeed these foreign brands have forced Indian brands to rethink their strategy. Mauh which was created by Rohan Bhargava of Viraj Exports in 2007 on the lines of FCUK and Zara was one such brand that was badly hit when ZARA made an entry in India in 2010. However, The brand has repositioned itself and is today targeting young party hoppers who are making money at a young age and need a new dress every time, without doling out a bomb. “As the partying culture hits a high point and people want trendy clothes, they might shop from a big label occasionally, but for the rest of the time, they want something unique for their weekly parties,” says Rohan. Price, of course, is the biggest selling point for these boutiques. “Dresses, blouses and accessories priced between Rs. 700 and Rs. 3,000 are a big draw,” asserts Rohan. The strategy has paid off and Muah is already in Mumbai and is now expanding to Bangalore.

Another Garment exporter brand that is targeting the party hoppers is KAZO, from the house of BL International under the directorship of Deepak Aggarwal. From single store in 2007, today they have 14 stores across India and another six are expected to open over the next six months. “We consider Kazo an international brand as we are retailing not only in India but in Holland also under a license agreement. Further, we have design studios in Barcelona and Paris,” says Deepak. With the entry of Zara, Kazo came up with a traffic collection designed to get the girls into the stores. Priced below Zara, the collection is a footfall puller, but the real thrust is on the boutique collection which is high-end.

A market which has seen the biggest influx of Indian brands from garment exporters is the kidswear market. The segment is not so difficult and exporters working in the segment are well aware of the basic norms in kidswear. Brands like Ant, Zyxw

and Juno from Aster Apparels (Tirupur) and Beebay from Akriti Apparels (Faridabad) are prime examples of success stories. The deep understanding of the Indian market for kids and the gap that exists for good quality offerings has helped these two garment exporters hit the bull’s eye. “We ensure children’s wear is not inspired by adult clothing ideas, a common phenomenon in international kids clothing. You can’t sell in the Indian market if you give adult clothing for children. The strategy is to show a constant change in the product mix because children grow up very fast and the rotation of styles is the maximum compared to all other categories,” says Unnamalai, CEO, Aster Apparels.

Ant was introduced in July 2006 and last financial year they acquired Juno and Zyxw from a Bangalore-based company. By March 2012, the company plans 40 to 50 stores across the country. While Aster’s forte is knits, Beebay is more into woven garments though knits is also a major category. Within a span of two years since its inception, Beebay has fast grown with presence in more than 24 locations all over India. “The brand is among the first in India to launch internet sales online through its website www.beebayonline.com supported by our sister concern Royal Datamatics which is also providing ERP support to Akriti’s entire manufacturing and retail operation,” shares Avanish Jain, Director Akriti.

Another success story is ‘W’ from TCNS, but then they are not competing with the international brands and was the first attempt at reinventing Indian fashion with a lineup of fusion wear comprising trousers, skirts, tunics, tops and tees along with an exciting winter outerwear line. “Today W is the only national brand providing total wardrobe solution under one roof to the modern Indian woman,” says Anant Daga, CEO of W. Set-up in 2002-03 in Delhi, today W has 51 Brand Stores and a total of 500 touch points across India.

It is difficult to measure success and though the above brands claim to be popular, the critical question is whether they have the vision and resources to become huge billion dollar retailers in the league of Zara or GAP. As of today they are very small players in the Indian retail scene… will they in the next decade capture

a sizeable market share or will they prefer to remain boutique stores with limited access is any bodies guess. Is the constantly rising real estate prices a constraint for growth or is it the challenge of managing inventories that is keeping them from expanding or the lack of understanding of the people and how to create a brand larger than life. Do we even have the right knowledge partners to help carry the concept forward or are exporters dependent on their limited exposure to Indian market. It cannot be denied that the major Indian brands that are big come from domestic manufacturers or corporate houses… is the retail space real as big as retail consultants claim it to be giving scope to new players or is success just about having a few profitable stores!

Most exporters jump into the fray without adequate consumer research to understand their needs and wants. For creating any brand, it is important to define your positioning and your target customers and then your offer to the target group. You cannot be selling everything to everybody.

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5th Container Terminal okayed at JNPT to increase handling capacity

Jawaharlal Nehru Port (JNPT), Mumbai has recently announced its

plans for a fifth container terminal at the port to accommodate the increase in freight volumes expected. This is a long-term project for India’s largest container gateway. In recent months the shipping lines have been forced to miss calling at the port and re-route to further up the west coast, so freight has to be carried further miles on the road.

The terminal with a designed capacity to handle 4.8 million twenty-foot equivalent units annually will increase the JN Port’s capacity to more than double on completion. The

JN port has three terminals at present, two run by private parties and one by the port trust with a design to handle a total of 3.6 million twenty-foot equivalent units a year.

In the meanwhile, the fourth terminal is under construction at a cost of INR 6,700 crore which will be the single largest foreign direct investment (FDI) in the Indian port sector. JNPT is one of the 13 major ports in the country that handled 4.27 million containers last fiscal year, nearly 5% more than it did in the previous year. The port handles more than half of the container traffic in the country and so a fifth container terminal comes out as a bright plan for everyone.

S.V. Arumugam is new Chairman of CITI

In a meeting held recently, the Committee of the Confederation of Indian

Textile Industry (CITI) has elected S.V. Arumugam as Chairman of CITI for the year 2011-12, Prem Malik as Deputy Chairman and Mukund Choudhary as Vice Chairman. Arumugam is a charted accountant and the Managing Director of Bannari Amman Spinning Mills Ltd. and also Honorary Secretary of Indian Wind Power Association, Chennai.

The other office bearers have also played important roles in the industry. Prem Malik, currently running a Management Consultancy in textiles, has a work experience of over 43 years with companies like Bombay Dyeing and Mafatlal

TEA request to include Non-SME Garment Sectors in Interest Scheme

Tirupur Exporters’ Association (TEA) has requested the Commerce

and Industry Minister Anand Sharma to include non-SME garment and knitwear sectors under the 2% interest subvention on rupee export credit for revival of units. The decline in demand, in US and EU markets has significantly affected the performance of the garment

Daniel Hechter will open 10 outlets in India

Daniel Hechter, the French lifestyle brand, best known for its sporty, elegant and sophisticated product portfolio is planning to open at least 10 brand outlets over the next three years in India and are looking at Bangalore, Mumbai, Delhi, Chennai and Hyderabad to achieve their target. Indus League, the company that brought Daniel Hechter to India, plans to grow and make it a Rs. 50 crore brand by the end of three years.

Daiso in talks to tie-up with Reliance Retail

Japanese company Daiso is in talks with Mukesh Ambani’s Reliance Retail to enter the Indian market, with a joint venture tie up with Reliance Retail for a shop-in-shop format across its various stores in the country. The first Daiso shop-in-shop format is expected to come up in Gujarat. The project will be an added advantage in the business of the signage majors engaging in the in-store displays and signage.

KVIC moving on to have a makeover

Khadi and Village Industries Commission (KVIC) is looking at modern retailing concepts and style to popularize Khadi among the youth, for which the company has planned to launch 20 khadi plazas in the major cities of the country to retail Khadi apparel in trendy setting and ambience, the rollout of these plazas will start from 2013. The success is expected to come from the increased interest in Khadi

Hermès opens at street-level in India

French luxury brand Hermès has opened its first standalone store in Mumbai making it the first luxury brand to open a street-level store in India. The 5000 sq. feet store was launched in October first week. To mark the launch, Hermès created 27 special edition saris made in silk inspired by its famous scarf patterns. After the launch of the recent store, the total number of stores in India becomes three.

RETAIL SnIpS

Industries. Apart from being in the main board of several major textile companies, he is currently Managing Committee member, Synthetic and Rayon Textiles Export Promotions Council (SRTEPC) of India, Director of Cotton Association of India and also engaged in textile exports.

Mukund Choudhary, Functional Director, CLC Group is also a member of the Committee of Administration of the Cotton Textiles Export Promotion Council (TEXPROCIL), President of Northern India Textile Mills Association (NITMA) and Chairman of the Young Business Leaders Forum of the PHD Chamber of Commerce and Industry and an active member of the Young Presidents Organization too.

and knitwear exporting units. Even the non-SME export sectors, particularly garment and knitwear exporters have been hit due to high interest rates and have lost their competitiveness in the global market and are struggling financially. Considering the impact, A. Sakthivel, President, TEA, believes the request should be considered.

JNPT to expand handling capacity

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New Drawback rates for Garment Industry

Cotton Grower's move to regain lost market

JD Institute's Convocation event brings memorable moments of joy

The Department of Revenue, Ministry of Finance, recently

introduced the new drawbacks rates that are being followed from 1st October 2011. The new drawback rates have been reduced by 4-6%, much to the disappointment of garment exporters, though the value cap in the revised drawback has been increased in the range of 6-10% for all categories of apparel.

Under the revised rates, the drawback rate of a cotton garment has been reduced to 7.1% against the previous rate of 7.5% in 2010-11, while value cap has been increased to Rs. 45 against the Rs. 42 of the previous year. For garments made from blend of cotton and MMF, the drawback rate has been reduced to 8.2% against 8.6% last year and value cap is now Rs. 47 against the previous price of Rs. 44 in 2010-11.

For other categorized garments of MMF, drawback rates are reduced to 9.1% against 9.5% of 2010-11 and value cap is now Rs. 49 per piece against Rs. 45 of 2010-11. In case of garments made up of other fibres, drawback rate has been brought to 7.1% as against 7.5% of 2010-11 while the value cap has been increased to Rs. 36 against Rs. 34. Drawback rate for the silk and non-silk categories have also been reduced to 7% against 10% of 2010-11 while their value cap remained unchanged and in case of garments made from wool, drawback rate has been brought to 7.1% as against 7.5% of 2010-11 and the value cap has been increased to Rs. 45 against the Rs. 45 of 2010-11.

Cotton growers are hoping to regain the market share after the volatile prices

led apparel manufacturers to shift back to manmade fibres. Cotton lost its market share in the past six to eight months when the cotton prices rose due to various reasons including the weakening of US dollar, poor crops in India and China and thus low availability, which led to deadlines not met by the quotas. Cotton prices came under additional pressure after official

data released showed that China’s economy expanded at a rate of 9.1% in the third quarter of 2011, below forecasts of 9.2% and slowing from growth of 9.5% in the preceding quarter, it was the slowest rate of growth since the second quarter of 2009.

According to South Indian Mills’ Association (SIMA), currently, the Indian textile industry has been subjected to a loss of over Rs. 15,000 crore due to high volatility in cotton and yarn prices. But, now when the

The function which auspiciously began with Diya Lighting and Saraswati Vandana performed by Parineeta Kaur concluded with the roars of applauds when the students received their degrees and diplomas. The presence of names like Puneet Nanda, Satyapaul and Mridula Sharma, Editor Living, etc. made the award ceremony more enchanting.

RC Dalal, Executive Director, JD joined the guests on the stage to congratulate the students. Ex Jedian, Neena Sahni who has been working closely with Sunil Sethi, the current President of FDCI and Managing Director of AMC, as Senior Merchandising Manager, was honoured by Puneet Nanda with citation awards.

JD Institute of Fashion Technology with a pan-India presence has

contributed to a sizeable number of trained designers to the Indian Designers Fraternity and this year too all the hard work and dedication of the

students and the faculty of the JD Institute of Fashion rounded up with the most awaited convocation ceremony held recently in New Delhi. The event was full of both bitter sweet memories and a sense of joy and achievement for all.

prices of cotton have lowered and have become stable and the industry is expecting to cover some of the losses. All this has become possible largely because the consumers in US still hold a strong preference for cotton and also as farmers are now growing more cotton, making the global production of cotton more than the consumption. Cotton production in India is expected to hit record production of 36 million bales (1 bale = 170 kg) in 2011-12, providing an optimistic look at the future.

‘7 For All Mankind’ introduces kidswear

Inspired by the sophistication of today’s youth, 7 For All Mankind’s children’s collection features a variety of styles with youthful washes in autumn colours including rich indigos, military-inspired greens, greys, blacks and browns. Taking cue from the women’s line, popular fits like Dojo, Kaylie and Roxanne are being offered in mini versions for little girls.

Duke enters new segments

Aiming to achieve Rs. 300 crores turnover in the next 2-3 years, Duke Fashions now plans to foray into new segments like sportswear and kidswear. The brand that has seen a positive growth track since its inception in 1966 is looking to add new lines to establish its leadership position. The brand is also focusing on Tier II, III and IV cities as these are the upcoming growth areas.

Pan America to expand with EBOs

With a target of achieving Rs. 150 crores turnover by the year end, menswear brand Pan America from Royalex Fashions plans to add T-shirts to its product line by March 2012. It also has retail expansion plans in place and would soon add EBOs to its retail spread. Their range consists of yarn-dyed check fashion shirts, polyester cotton and 100% cotton and fashion denims.

RETAIL SnIpS

Ex Jediiian Neena Sahni being awarded citation by Puneet Nanda

INDIAcANvAs

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36 ApparelOnline NOVEMBER 1-15, 201136 ApparelOnline NOVEMBER 1-15, 2011

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38 ApparelOnline NOVEMBER 1-15, 2011

The Indian fashion weeks have been known for their glamour quotient with

celebrities walking the ramp and adorning the front seats. The press too covered the event lavishly, mostly as page 3 news with greater focus on the celebrities and the parties than the actual collections and the business angle of the event. However, this year the scene was different… Sunil Sethi, President, FDCI says that there was a conscious effort to pull the limelight way from the glamour and focus on the ‘business of fashion week’. The reporting event on page 3 was more subtle and designers concentrated on collections rather than dressing ‘bollywood’.

Middle East emerged as a big business potential and not necessarily in caftans and highly embroidered salwar kameez. Pret lines with affordable fashion were a highlight with buyers overall satisfied with the collections. The shift towards serious business is a good sign and indicates that the industry is moving beyond glamour to grab a bigger share in global fashion…

BUYERS SPEAK…Taking a first-hand review from buyers, AO discovered that the Indian fashion fraternity seems to be maturing in terms of designs and quality, going global with Western designs and patterns blended with aesthetics that display a strong Indian presence. “We deal in high-end designer wear, from India, Pakistan and Saudi Arabia, for our boutique store in Moscow. Although this is not our first time in India, we are looking for some new names as we are already dealing with some big players in the market like Tarun Tahiliani. We specially liked the work of Ankur Modi: Priyanka Modi and Reynu Tandon, who have gone very Western and global with their design sensibilities. Eastern fashion will get more share in the coming future with Indian tradition, colours and embroidery

WILLS INDIA FASHION WEEKWish to go global is not enough…The 18th edition of the Wills India Fashion Week showcasing Indian designer interpretations for Spring/Summer 2012 saw few of the buyers mostly from the Middle East and Europe trying to find products that fit their sensibilities and budgets. Tapping a feedback from the 5-day fashion event, the Fashion Team at AO actively interacted with both buyers and designers to see how competitive the designer fraternity is today…

FAshIONbusINEss

Lazer cutouts, the biggest trend forecasted for the global market for S/S 12, was proudly showcased by Pankaj and Nidhi

The famous technique of placement prints, which adorned the international runways, was beautifully executed by Hemant and Nandita.

NOVEMBER 1-15, 2011 ApparelOnline 39

being in the limelight,” said Svetlana Kuzovova representing Asian Spirit from Moscow.

The diversity of buyers also reflected diversity in demand with many buyers looking out for a mix of culture, with garments that are traditional and yet western in appeal. One such buyer was Delphine Laurenceau, Managing Partner at 90 Studio of France who was looking for garments for her private showroom in France. “I am looking for new techniques as I want the collection to be very special for my clientele back home. The collections so far have been good, and I wish to buy very simple pieces with some surface texturing and an expensive appeal,” she said.

Stressing on the vibrant colour stories available from India, Zaineb Alam from Zena Couture Ltd., London added, “I have stocked many names in my store in London, which are

already established, and now I am looking for something fresh and new. My requirement is a line of garments that is a fusion but not completely Western. Without doubt, the colours of India are the best part about Indian fashion.”

What is still lacking…? Even when the country is receiving positive acclaim with changing sensibilities, there are certain areas Indian designers still need to work upon, which were expressed in some mixed reviews received from buyers mostly from the Middle Eastern countries. “Even though Indian designs have worked very well for the Kuwait market, as Indian designers have amazing style, they still have a problem in dealing professionally with international buyers, regarding negotiation of prices and sticking to the deadline. The orders still tend to get late and the final product costs much more due to the

FAshIONbusINEss

high embellishment costs. However, although French and US designers being more professional, the finishing and stitching quality of Indians is good,” expressed Lulwah Al Hageri, Designer Lounge

Boutiques who is presently dealing with Vineet Bahl, Namrata Joshipura, Kavita Bhartia and Pinky with a positive business response.

Experiencing ‘pricing’ problems as designers are not open to

James Veenhoff from Frontier Strategy, the Founder of Amsterdam Fashion Week

Lulwah Al Hageri, representing Designer Lounge Boutiques, Kuwait

40 ApparelOnline NOVEMBER 1-15, 2011

FAshIONbusINEss

negotiations, Ayman A. Abu-Suliman of Basma Al Jazaery Fashion added, “The price points of Ranna Gill and Geisha Designs are most suitable, but I would still want Indian designers to lower down their prices for greater market penetration because of the ongoing recession abroad. The collection at my store has lot of styles, so I am on the lookout for new designers as most of them are not retailing abroad, but even then, a competitive price for us is a priority.”

Expressing a different sort of discontent from the point of view of silhouettes on offer, Hiba Al-Ateeqi, Managing Director of Darusha from Kuwait said, “I am looking for trendy clothes with Indian designs fused in them, like European silhouettes combined with a lot of colour. For both of my stores in Kuwait, I have currently stocked Tarun Tahiliani, Pankaj Nidhi and Hemant & Nandita. Although the diversity of fashion is the best part about India, I still feel that Indian relate only caftans with the Middle East, whereas we wear many silhouette as is in fashion and look for the same too. I am looking for a lot more options from Indian designers than just the traditional caftans.”

Pathway to a global collaboration…This season, the fashion week witnessed the presence of James Veenhoff from Frontier

Strategy, the Founder of Amsterdam Fashion Week, who was talent hunting. “I am specifically looking at designers with international presence, like Manish Arora to collaborate with. Since Manish is located in Paris, it is very easy to work with him. Although, Paris, Milan, New York and London are the four pillars of international fashion, other fashion weeks such as Delhi and Moscow are moving slowly towards the top circle. We are planning to collaborate with designers who can showcase at Amsterdam Fashion Week. One thing that I really like is the diversity among the designers. Amongst the designers that I liked was Nida Mahmood, whose collection was high on energy, colour and fun. The Denim and sari combination caught my fancy as Amsterdam is known for its denim and we can work around something like that,” he shared with Team AO.

DESIGNER’S INPUTS ON BUSINESS AT THE FASHION WEEK…

From the feedback of the designers it appears that though the show started off

on a slow note, the final outcome was very satisfying with many new buyers negotiating

business. The duo of Ashima-Leena, who has been showing at the WIFW since long were happy at the response, as along with the old buyers, they keep coming back to the fashion week for new business. “The overall response to the fashion week might have been comparatively weaker than the previous seasons, given to the recession, but for us, it’s still been positive. The key reason for this is because we do couture dresses which has prêt + couture elements, so it’s not just a printed tunic, it’s got to have a hint of embellishment or a texture added, which would give it an extra edge over the other collections,” said Leena. The duo is catering to buyers mostly from the Middle East as the natives share similar sensibilities and a lot of Indians are settled there. Enquiries also came in from Japan and Spain.

For some, more than international buyers, it was Indian retailers who generated business.

“India has a growing scope for designers with smaller cities like Chandigarh, Ludhiana, Amritsar

coming into the fashion scenario and adding onto the large number of fashion-conscious consumers,” said Raj Shroff. Raj has just returned from Prêt-

a-porter where the business was disappointing, mainly given the economic recession, and buyers were looking for garments at as low as 20 – 40 pounds. In India, consumers indulging in couture for formal occasions and festivals buy embellished garments even if they wear a black suit to office. “Even if it is a small patch of embroidery on a kurta, it can add the aesthetic as well as monetary value to the garment,” adds Raj.

Nida Mahmood was among the most sought-after designers and recession hasn’t

affected her ledger figures at all. “The business for me was great and I have added a number of new buyers to my list. There were two buyers from Paris, seven from Japan besides a lot of Middle East buyers. Alongside, there is a regular incoming of bulk orders,” said Nida.

Even designers who were showcasing for the first time were impressed. “After ten seasons

at the Lakme Fashion Week, I showcased at WIFW for the first time and the response has been tremendous, I have got few new buyers too,” said Nachiket Barve. Nachiket already has buyers from Korea, Japan and UK in his kitty of 30 stores who retail his collections on their shelves. The key reason for his popularity is that he can customize any garment from his collection according to the sensibilities and aesthetics of the clients that his buyers cater to. “The Indian design scenario still has to arrive at an international platform and though many of them do have a retail presence all across the country, but what lacks is the influence that the fashion houses of Europe create,” he concludes.

Leena Singh

Raj Shroff

Nida Mahmood

Nachiket Barve

The stalls at WIFW have become a place of serious business with each stall showcasing its own unique display

Official media partners for the event :

42 ApparelOnline NOVEMBER 1-15, 2011

Fashion File

Pixellated, or distorted designs, which were

once considered to be of inferior quality, are the newest fashion statements. Designers like Preen, Jeremy Scott, Josie Natori, Milly and Carolina Herrera have showcased innovative variations of this interesting print design in their latest collections. Used for semi-fitted or loose garments, these prints add structure as well as a visual illusion to the garments. Variations like checkerboard designs, zoomed in images, randomly placed boxes and bright combinations of colour can be made to accentuate the modernity and complexity of the pattern. Using tiny pixels highlight the blur and illusion effect. Imparting the feeling of a tessellation, these prints can be used individually, with solid colours and even contrasted with other prints like flowers, bold stripes or fruits and vegetables. When used in tunics and dresses, these prints can also be used to sport the popular summer outerwear trend with a cardigan or blazer in a solid colour.

PIXELLATED PRINTS

American Apparel, the vertically integrated clothing

manufacturer in Los Angeles, has announced the launch of its first Men’s Jeans: Regular Fit 100. This new style is the most recent addition to the highly successful denim line American Apparel premiered earlier this year, which is designed, cut, sewed and washed at American Apparel’s vertically-integrated facilities. Georges Atlan, Director of Denim at American Apparel said, “We’ve come up with a truly authentic pair of jeans – something the market has lacked for a long time. The fit and

American apparel forays into men's jean

Multi-branded fashion retailer, Republic is launching a new in-house brand, White Label.

Due to increased customer demand, the label is launching in-store and online this month, featuring a collection of wardrobe staples bought in bulk to achieve the best possible value for customers. With prices starting from £ 8, the range includes straight and carrot fit denim, chinos, T-shirts in an assortment of colours, checked shirts, cuffed jog pants, zipped sweats and a choice of gilet or puffa jacket. Guy Daltry, Buying Director at Republic said, In the current climate we are continuously reviewing ways to make a saving for the customer and by buying in significant quantities we can pass this saving on while producing quality fashion.”

Gok Wan’s first women’s wear collection, Gok for TU, was launched in the stores recently.

The capsule collection that cleverly combines key basics with strong statement pieces is designed with shape enhancing pieces to make women feel confident, stylish and positive about their bodies with an affordable price range of £ 20.00 to £ 45.00. The capsule collection comprises 13 styles, totalling 28 garments created with the colour palette reflecting the autumn season, with rich red, teal and terracotta mixed with the designer’s statement black. Two signature prints that are present in the entire collection are Cherry Blossom and Oriental Floral decorating the garments inside and out. The collection is available in over 200 stores nationwide.

‘White Label' new in-house brand by Republic

Gok for Sainsbury's TU launched

US retailer target is joining hands with several

designers to create limited designer editions for their store. With internationally renowned designer Josie Natori introducing

Target partnering for limited editions…her first limited-edition collection of lingerie and loungewear at affordable prices, Target has also roped in designers Albertus Swanepoel and Dana Kellin to introduce their two limited-edition accessories collections, both launching on Oct. 30, 2011. Albertus Swanepoel’s collection features 14 hats for women including fedoras, cloches and floppies in solid felt, printed felt and faux fur, the pieces are priced at $ 19.99. Designer Dana Kellin’s collection features an assortment of necklaces and earrings made of mixed metals with colourful stones in hues of deep blue, teal

styling is the result of extensive testing and feedback, which when combined with American Apparel’s obsession for quality and my 30 years of experience in denim, makes for the perfect men’s jeans.” Re-establishing California’s rich history of denim manufacturing, the men’s jean is dark resin denim with a classic 1950s cut, designed specifically for men unlike many of American Apparel’s “unisex” products. They have a relaxed fit, with a tapered leg intended to hit right above the shoe, making them classy as well as comfortable.

green, soft pink and rich purple priced from $ 9.99 to $ 49.99. These designer collaborations follow the news that Jason Wu is also launching a limited-edition collection for the retailer that incorporates sophisticated, feminine dresses, mix-and-match separates and playful accessories including handbags and scarves which will hit the stores on Feb. 5, 2012, the prices of the collection range from £ 12.00 to £ 39.99 ($ 19.99 to $ 59.99). Before Wu’s designs hit the store, Gwen Stefani is next in Target’s sights with her kidswear line, Harajuku Mini, set to retail from Nov. 13, 2012.

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Gwen Stefani launches kidswear line, Harajuku Mini, set to retail from Nov. 2012.

NOVEMBER 1-15, 2011 ApparelOnline 43SEPTEMBER 1-15, 2011 ApparelOnline 43

44 ApparelOnline NOVEMBER 1-15, 2011

“We are extremely happy that we got visitation from good buyers from overseas and reputed buying/liaison

offices based in India. I thank AO for being our Knowledge & Media Partner and guiding us at every stage along with getting buying offices to Hindtex. It’s heartening to see that both buyers and exhibitors are equally happy,” avers Rajiv Agrawal, Chairman, Hindtex Committee. EUPEA is now looking at taking Hindtex overseas but before that it wants the third edition to be much larger in terms of exhibitors and buyers. “We want Hindtex to become a truly global fair and with each successive edition we are going to improve its standards,” echoed together General Secretary Syed Hasan Ansari and Treasurer Amitabh.

To give the fair a professional feel, seminars on relevant topics were organized and a fabric swatch book was also distributed. Pinaki Das Gupta, Professor IIFT (Indian Institute of Foreign Trade), New Delhi gave a very well received presentation on new potential markets for Indian exporters and tips on marketing one’s products. “We will have more number of

Awes Everyone with Diversity & Quality of Exhibits and BuyersImpressed with the product categories and the commitment of the Varanasi Industry, Textile Secretary Rita Menon announces that Hindtex shall be made a permanent event; allocates increased funds

Buyers came from Bulgaria, Austria, Germany, Japan, US, France, Canada and Columbia

Apparel Online takes Delegation of 25 buying offices to the BSM

Scarves/Stoles, digital prints, jacquard fabrics caught maximum attention of buyers

Second Edition of Hindtex Varanasi

The trend of small exhibits which are manageable and reflect quality and class seem to be catching by organizers and appreciated by the buyers. The second edition of Hindtex with 36 exhibitors displaying a wide range of textiles reflecting various techniques of Zardozi, Brocade, jacquard, satin fabrics, digital prints, home furnishing fabrics and made-ups, handicrafts, fashion accessories like scarves, stoles and much more spellbound the visitors.

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Foreign buyers came in good numbers at Hindtex (L to R) A Rahimi and Farhad Mirfattahi from Austria and Nilesh Mewawala from Germany

Sandeep Mahta, Sr. Buyer, Sharda Group of Companies (sitting) and Sarwandeep Singh, MD, Neerja Handa Corporate doing check-in formalities at the reception area of Hotel Ramada Plaza JHV

NOVEMBER 1-15, 2011 ApparelOnline 45

participants in the swatch book next year for the buyers,” shares Mukesh Agrawal, Marketing Head, Hindtex.

The importance of having a fair in the city cannot be overstated. In fact, thousands of looms in Varanasi have become silent in the last decade with cheap, bad quality imitations flooding the market, leaving the weavers and traders in despair. “An exhibition showcasing Banaras now popular as Varanasi through its textile and tradition is indeed a golden endeavour, an effort towards presenting responsible fashion and rediscovering pride in our collective heritage,” avers Manisha Saini, Designer, Montrose India.

The buyers who visited were happy to see the efforts to revive the textile city. “We came here with great hope and thanks to Hindtex team for taking up such a remarkable step to promote this rich heritage and especially to Rita Menon for taking effective measures for boosting entire textile trade across the country,” said Rajeev Sadana, Proprietor, Gracious Living. While thanking EUPEA, the organizers of Hindtex, Vishnu Manikandan Sr. Merchandiser, AGC, Tirupur said, “I never expected that I will find fashion made-ups like stoles, scarves and shawls here. Digital prints too came as a surprise to me. I am very impressed with pashmina shawl produced by East West Corporation. It would be a hot buy for our buyers in Europe and Middle East.”

Majority of the buying office representatives who visited

To give the fair a professional feel, seminars on relevant topics were organized. Pinaki Das Gupta, Professor IIFT, Delhi gave an insight on the emerging markets

TExTILEuPDATE

The three days buyers-sellers meet, Hindtex 2011 organized by Eastern UP Exporters Association (EUPEA) took place in Varanasi recently and was inaugurated by Rita Menon, Textile Secretary accompanied by Development Commissioner Handlooms R.N. Chaubey and Development Commissioner, Handicraft S.S. Gupta. The event was a roaring success with the exhibitors, buyers and government officials very satisfied with the event. Rita Menon, speaking on the occasion congratulated EUPEA for organizing an excellent fair and expressed optimism that the event would benefit the artisans and weavers from the area apart from bringing prosperity to the region.

To the delight of those present, Menon spelled out the incentives and measures that the Government has undertaken to boost exports of handlooms and handicrafts, major incentives that include 2 per cent subvention on export interest, providing packing credit in foreign currency, 4 per cent scrip for exports of handlooms and handicrafts for Latin American countries under focus product and focus market scheme. The textile secretary also announced inclusion of 110 additional products under focus product and focus market scheme and that in future Hindtex will be sponsored jointly by DC Handlooms

and DC Handicraft to make it even more elaborate and penetrating.

DC Handlooms, announced a Government scheme for supporting 10,000 families, by extending loan of Rs. 10,000/- per family, wherein the Government shall be giving the margin money. While 2000 families will be extended benefit this year, the remaining 8000 will be availed of the benefit in following years. DC Handicraft said that there is huge untapped market and if the industry exploits even 5 per cent of it, the volume would be immense. He also added that though many countries are under the effect of recession, but still there are a lot of countries which are not much affected by it and are business worthy, suggesting that the exporters should start exploring these markets as well. Gupta also emphasized the need for professional training for the industry. Bela Rajesh, MD, Handloom Export Promotion Council was also present on the occasion; she announced that HEPC is organizing a fair in Chennai and asked EUPEA members to participate in the fair.

While speaking on the occasion Naveen Kapoor, President EUPEA requested Rita Menon to make Hindtex a permanent fair and include it in the fair calendar of the ministry, and also raise the fund allocation for the event. Textile Secretary readily agreed on all fronts and announced that DC Handloom and DC Handicraft shall jointly sponsor the event next year onwards, and October shall be frozen as the event month for Hindtex.

Rita Menon, Textile Secretary lighting the lamp at the inaugural ceremony of Hindtex 2011 (from L to R) Mukesh Agrawal, Marketing Head, Hindtex; Syed Hasan Ansari, General Secretary; Rajiv Agrawal, Chairman, Hindtex Committee along with DC Handlooms and DC Handicraft; On the extreme right is Naveen Kapoor, President EUPEA watching the ceremony

Hindtex Gets Government Support

46 ApparelOnline NOVEMBER 1-15, 2011

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Sunil Gurnani Head Production, Abu Jani & Sandeep Khosla

Debanjali Chatterjee Senior Designer, LF Fashion – L i & Fung India

Ruchi Suri Senior Merchandiser, Contempo Ltd.

Ramesh Agghi Fabric Manager, Next Sourcing

are improving and I am quite positive that the business will definitely grow.”

Many buying offices expressed that Varanasi has potential to move up the value chain, as their fabrics are being bought by garment exporters in Delhi and Mumbai, who are making good profits by converting the fabric into garments and selling at higher prices. “I am really happy with the costing here. The similar stole which I spotted in Delhi were priced at $ 4 to $ 5 ballpark and here it is quoted between $ 3 and $ 4. A dollar less makes all the difference,” highlights Ruchi Suri, Senior Merchandiser, Contempo Ltd.,

Gurgaon. “What appealed to me was their readiness to develop any required product. No doubt, Varanasi has the potential to emerge as a base for high-end fashion and home textiles,” she adds.

The experience for many was moving. “Some of the products complement our shopping list of what we regularly import, as well as what we can introduce and explore in our markets. Hope AO keeps informing us on future exhibitions as well,” says Sandeep Mahta, Senior Buyer – International Desk, Sharda Group of Companies. Adds Madhu Bhargava, DMM, Orange Fashions Designs,

the fair feel that if Varanasi manufacturers/exporters wish to work with buying offices then they need to have their compliances and certifications in place. “They are amazingly progressive people and I am very sure that my division is going to procure a lot of products from this hub,” shares Debanjali Chatterjee, Senior Designer, LF Fashion – Li & Fung India, Gurgaon. Added Amit Aneja, Fabric Buying Consultant, Coach India, New Delhi, “I found the exhibition well organized and was extremely happy to see people from this city geared to do export business. I feel in Varanasi things

Gurgaon, “I am very thankful to EUPEA and AO for giving me the opportunity to attend this fair. It’s an eye opener that the city is walking with times while maintain its traditional strength, it’s also doing products which Delhi/NCR or other exporting hubs are doing. I found some very good jacquards but wish there were more exhibitors in this product category.”

Monita Sehgal, Proprietress, Subala’s, New Delhi not only liked the BSM but also the people of Varanasi. “Here people are simple, yet professional. I came to see brocades and dress material

“I am delighted that I

visited this fair. Varanasi

has amazing stuff. Their

brocades are just matchless.

The city still works on

handloom which now can

be afforded by high-end

consumers. I spent quality

time with most of the

exhibitors and I am looking

at sourcing a lot of fabrics

from here in brocades, hand

embroidery, etc.”

“The most attractive

product for me here is

digital prints. I never

expected this from Varanasi.

Their fabrics, colour palette,

everything matches to the

current European trends.

The only thing I would

like to tell the exhibitors

here is that if they wish to

work with buying offices

then they need to have

their compliances and

certifications in place.”

“I saw very good designs

in stoles and scarves.

Digital prints, though a

new concept, is being done

quite successfully here.

The products showcased

are definitely matching

the current European

trends. I have found certain

products which our buyers

like PotPuri, Dress Barn,

Connaught are looking for. If

it does not work this season,

it would definitely work out

the next season.”

“Some of the scarf suppliers

are really very good and I am

definitely going to promote

them in my company like

Gopiram Silk Mills. In digital

printed fabrics, I liked Fabco

and Dwarka. I am going to

give them some costing

exercise for our export

orders. Presently we are

sourcing a lot of these fabrics

out of Surat. I thank AO to

give this opportunity to me

to come here and know this

unique and fascinating hub.”

NOVEMBER 1-15, 2011 ApparelOnline 47

TExTILEuPDATE

Narender Bhatia AGM – Sourcing Orient Craft Ltd.

Sudarshan Sharma Director, CD Lifestyles

“I found stoles, digital

prints and polyester

jacquards as per today’s

marker requirement. I

feel product quality is

good but prices need to

be worked out as market

needs very sharp prices.

Some of the exhibitors

are surely producing as

per international trends,

but those who are not

should attend more global

exhibitions to get market

trends.”

“Our core area of interest

is scarves and stoles

and we could see a

large variety in terms of

design and fibre blends.

The quality of polyester

scarves was very good,

possibly, the weavers are

experienced in weaving

silk and they are using the

same skill set for polyester.

We liked the quality of

digital printing

as well.”

More Buyer’s Feedback on Products… “I found three good vendors, namely Prabha Creations, Silk Fashion Creator’s and Diamond Silk. Prabha Creations really have a nice collection of scarves and I was able to pick up some 25 designs to suit various customers. Prices too seem workable here. I have requested swatches of Viscose, checks black dots and animal prints. I have planned a trip to Europe this November. I will carry samples to show it to my potential customers.

– Rajeev Sadana Proprietor,

Gracious Living, New Delhi

“I liked the silk blends, viscose/cotton especially scarves, curtains, poly-dupion fabrics, brocade fabrics with ethnic and traditional look. However, I feel that the pricing was a bit high; suppliers must work on their prices in order to be more competitive. For example, one of the silk blended fabrics was quoted as Rs.58/- which shouldn’t be more than Rs.32-35/- if the same is from Surat, etc. Printed fabrics were extremely less or almost nil.

– Sonia Chopra, Sr. Merchandiser, Axstores

Far East Limited, New Delhi

48 ApparelOnline NOVEMBER 1-15, 2011

for my garments as Banaras is known for it. Some products which I see here, I also see in Delhi, so Varanasi should stick to its niche. I am catering to the Middle East market, which is rich and prefers brocade and blingy stuff.”

Varanasi based products/fabrics have a lot of potential in the domestic and international market. Fabric exports to different countries should be encouraged with the government backing with some subsidies for exporters/weavers. “The 100% silk and silk blended fabrics qualities were beautiful but price needs to be worked upon. More buyers/sellers meets should be organized at least twice a year. More buying agencies should be reached out to advising them of Varanasi’s potential especially in terms of fabrics/scarves,” said Sarwan Managing Director, Neerja Handa Corporate, Noida.

Majority of the buyers felt that the exhibitor range should be increased and that the presentation of samples needs to be improved and also the details of the product should be mentioned properly. Understanding of international business needs to be addressed sooner than later. Above all, such initiatives by organizations like AO needs to be continued and similar events should also be held in Mumbai and Delhi. That will make a big difference.

TExTILEuPDATETE

XTIL

E NE

WS

Wahid Fatima of Monsoon Accessorize looking at fabrics

Asit Parikh, Senior Executive Director, Texperts India (R) with Vakil Ahmad of Silk Fashion Creator

Amita and Amit Aneja, Fabric Buying Consultants, were very happy with Varanasi exhibits

Alok to Launch New Products

Durable, easy-care fabrications will be the focus for Alok Industries. According to Arun Agarwaal, CEO, the company is soon planning to launch the Dura family of products, including the Dura Sheet, Dura Towel and Dura Blanket.

In addition, Alok is following up on the introduction of Cloud Cotton towels during the Spring 2011 market with Cloud Zero, which enhances the absorbency and softness features of its predecessor. In the bedding area, Alok will present three new fitted sheet technologies and as well as a proprietary Button It Down sheet.

Arvind Limited Registers 58% growth in its Net Profits

Arvind Limited has registered 58% growth in consolidated net profit for the quarter ended 30th September 2011. It has earned consolidated net profit of Rs. 62 cr. as against Rs. 39 cr in the quarter of previous year on account of improvement in EBITDA margin.

Jayesh Shah, Director & Chief Financial Officer comments, “Textile business has improved the margins despite sharp increase in raw material cost. We believe that Arvind is well poised to achieve 20% revenue growth during the current financial year.

Self-cleaning Cotton Fabric by UC Davis Scientists

Scientists at UC Davis have developed a cotton fabric that kills bacteria and breaks down toxic chemicals such as pesticide residues when exposed to light. Ning Liu, who conducted the work as a doctoral student in Professor Gang Sun’s group in the UC Davis Division of Textiles and Clothing says, “The new fabric has potential applications in biological and chemical protective clothing for health care, food processing and farm workers, as well as military personnel.”

“I liked the home textiles range and feel that it has tremendous possibilities in international markets. Most of the exhibitors are capable of doing even smaller MOQs and that would make them really attractive when compared to China. Digital Prints is also one of the items that I feel has good potential. As far as the pricing is concerned, I feel that they are in the workable range.”

– Asit Parikh Senior Executive Director,

Texperts India, Ahmedabad

I liked the jacquard fabrics/yarn dyed scarves and digital printing products; these fabrics are in demand and this is going to increase in future. The product quality seems to be good, and to be honest, I did’t work much on the prices.

– Amit Aneja Fabric Buying Consultant,

Coach India, New Delhi

“Varanasi has amazing products and now we are trying to explore ways wherein we can work with the exporters there and hope something materializes, if not now then may be sometime in the near future.”

– Wahid Fatima Monsoon Accessorize Trust

Co-ordinator, Urban Craft, Gurgaon

NOVEMBER 1-15, 2011 ApparelOnline 49

50 ApparelOnline NOVEMBER 1-15, 2011

H O M E F A S H I O N F U T U R E

Heimtextil Russia 2011

Russian Retail Market for Home Products GrowingGloss, Bold & Vibrant Colours for 2012-13The Russian economy is showing a constant growth in the last few years. Disposable incomes have increased and had a positive impact on the market performance. The change in lifestyle of Russian consumers has increased the demand for houseware and home furnishing products. Economic growth has increased the number of retail chains and Russian consumers are buying products in Russia instead of going abroad. International Trade Fair for Home Textiles, Floor Coverings and Interior Furnishings, Heimtextil Russia 2011 took place on September 21-23 at the IEC “Crocus Expo”. A part of Heimtextil brand, the fair has been held in Moscow for the 13th time and once again has proven its leadership in the sphere of interior textile decoration.

status as a unique international business event for the industry.

The Spanish home textiles industry to consolidate its foothold in Eastern European markets participated at Heimtextil Russia. A total of eleven companies exhibited their latest collections in a group show supported and organized by Home Textiles from Spain, in

Following this tradition, Heimtextil Russia presented in 2011 the exclusive lifestyle trend show – A significant event and interesting business communication platform. Direct access to the professional target audience was ensured by partnership with world known brands such as Bene, Knauff, Amrip Décor, leading design bureaus and architect studios, and the powerful media support from Salon Press – one of the most recognized publishing house in Russia, covering all the topics relating to interior decoration and design, introduced new designs and tendencies, modern textile fabrics and decoration materials in the context of Heimtextil trends.

The creative show of wall coverings and wallpapers, wallpaper bar mini trend show presented decorative interior installations to architects and designers, offering innovative and creative solutions within the combination of style, fashion and functionality.

Colour RiotBold, vivid and vibrant palette and textures vary from high-gloss materials, coloured laminations, superimposed, fluid and flexible fabrics to ‘optical fibres’, iridescent effects and recycled materials. For the patterns, broad stripes, all-over geometric patterns and graphic motifs are on. Digital age takes its toll here with digital designs, photographic prints and hologram effects.

Trend Forecast Home Décor 2012-13Heimtextil Russia

became strong ground for acquired success and significant factors

for generated development. Following the end of the trade fair exhibitors and visitors confirmed the growth in qualities and quantities of the show and enjoyed new inspiring ideas and business opportunities.

With 256 leading companies – producers from 24 countries, Heimtextil Russia 2011 covered the entire range of product groups for home textiles and interior decoration – from new ideas and design solutions, recent trends in textile decoration, and interior furnishing to wall coverings. 14,238 professional visitors filled the halls, attracted by the splendid interior decisions that were presented by talented designs and high top trends in the international setting. An assured presence of eight National Pavilions from China, Egypt, Germany, Italy, Portugal, Syria, Spain, and Turkey confirms Heimtextil Russia

Heimtextil Russia 2011 covered the entire range of product groups for home textiles and interior decoration with new ideas and design solutions

conjunction with ICEX (Spanish Institute for Foreign Trade).

From India there were seven exhibitors. Majority of them exhibited bedroom and bathroom textiles, window finishing along with floorings. Mumbai-based Indo Count showcased its latest development in bed linen.

NOVEMBER 1-15, 2011 ApparelOnline 51

The Beauty of the NightWith black being the key colour, dark colours prove to be dominant with champagne and gold being the accents colours. Fabrics ranging from rubberised, liquid and glossy look to furs and long-haired, smooth hides, accentuate the key colour. Transparency, deep

gloss, metallic shimmers, sequins and elaborate surface ornamentation are to be found in almost all segments.

Craft IndustryEthical balance between the old handicraft techniques and the modern age industrial processes, the fabrics adorn irregular textures and

structured look, keeping alive the restrained, destroyed and used looks. Creative techniques and patterns like composite or offset checks, patch work, broken patterns, stripes and checks with partial pile effects, hand sewn looks, intarsia and elaborately processed patches create a fine look.

Split ClarityNeat, Clean and Sorted. The concentration lies on simple, functional and essential elements – having what is essential and cutting the trash out, resulting in clean lines, colours and aesthetics. Nature-inspired shades, and mostly in the lightest tint majorly comprises this minimalistic and restrained look with an accent of a

deep hue in the same colour palette. Here, light and shadow in different materials and surfaces create depth and intensity. Materials with metallic and reflecting qualities, semi plain patterns, transparency along with fabrics creating subtle animation present versatility.

H O M E F A S H I O N F U T U R E

52 ApparelOnline NOVEMBER 1-15, 2011

India Increases Value of Garment Exports by 19.55%, but sees Decline in Volumes by (-) 3.09%

EU Import Analysis – Jan.-June 2011

Cambodian Apparel Exports Boosted by Low Labour CostsCambodian apparel exports soared over the first part of the year, in volume and value terms. The rise in clothing prices remained relatively moderate, after wages stayed at very low levels in the impoverished country. Cambodia therefore gained additional shares of US and EU import markets, as reflected by our series of statistical tables, displaying average unit prices per product categories.

Sri Lanka Apparel Exports are Slowing Down Sri Lanka’s apparel exports surged over the first part of the year, according to official data. Shipments however slowed down in June and July, latest statistics reveal. US and EU import data which were compiled by EmergingTextiles.com reflect a less rosy picture.

Thailand Floods Threaten Garment ProductionAs per the Secretary General, Yuttana Silpsarnvitch of the Thai Garment Manufacturers Association the flooding in and around Thailand’s capital Bangkok has hit at least four large clothing factories, while the country waits to see if protective walls surrounding the city hold.

As the country tries to contain rising water levels, the garment manufacturing industry has not been spared, says Yuttana although he added other sectors have suffered more damage.

“We have found just a few garment factories that have been flooded and cannot continue with production,” he explains. “Two factories with around 700 workers mainly exporting to the US have had to stop production and expect to recover in a month.” He adds: “Another two factories with 300 workers, that mainly export to Japan also had to stop production.”

SNIPS

The current market conditions in the European

Union are a matter of concern for Indian exporters. That orders have been slow in coming is no longer news… but what is even more apprehensive is that the situation is now affecting those countries in the EU which were resisting the slowdown. Reports from Germany, by far the largest market in Europe, show that clothing retail sales has begun dropping in August while poor results were also released for the UK and France.

In Germany, total retail sales declined in August, offering the poorest monthly performance in four years. Sales were down 2.9% from the previous month, after taking account of price and seasonal changes. Clothing, textile and shoe sales fell 4.5% in value terms from the same month in 2010, a decline not seen in the past years. The IMF (International Monetary Fund) has recently predicted that economic growth will strongly decelerate in coming months in Germany. In the UK, retail sales dramatically fell in September, sliding to their lowest level in 16 months according to a survey by the Confederation of British Industry (CBI). In August, clothing sales had still increased 5.6% in value terms, from the same month in 2010. With prices however surging at retail, volume sales may have retreated to lower levels than a year earlier. August riots may have negatively affected sales, in addition. In France, clothing retail sales declined in August and are expected to further fall in September, partly due to a glorious weather at the end of the month.

While value of imports into the EU increased 16.64% in Jan.-June. 2011, the increase in quantities was smaller with 3.85% growth. Since the shipments till June reflect orders

placed in early this year, they are not a fair reflection of the retail position. Within the EU, the German clothing market remained extremely strong in the first half, while imports from other European nations were sliding in volume terms. German clothing imports rose 14% in volume over the first half last year. Shipments declined at UK’s borders (-2.30% over the first half) and also in Italy (-3%), Spain (-7.8%), Netherlands (-12%) and Belgium (-5%). Imports by the French market began slowing down, only rising 5.3% over the

second quarter, after still surging 10% in the first quarter.

In the meanwhile, exports from India grew 19.55% though volumes declined (-) 3.09% in the review period. The average UVR for Indian exports to the EU was Euro 21.46 (per kg of fabric equivalent) as against the EU average of Euro 16.21 (per kg of fabric equivalent). Among the competitors, Bangladesh did exceedingly well with 43.63% growth in value and 15.30% increase in volumes. The average UVR also increased from Euro 9.10 (per kg of fabric equivalent) to Euro 11.33 (per kg of fabric equivalent).

TOTAL AVERAGE UVR OF APPAREL IMPORTS — JAN.-JUNE 2011

World China India B'desh Sri Lanka Pakistan Vietnam

2010 14.43 12.72 17.39 9.10 16.59 8.19 15.03

2011 16.21 14.21 21.46 11.33 17.67 10.00 16.64

EU GLOBAL APPAREL IMPORTS — JAN.-JUNE 2011

ExPORTsTATIsTIcs

Country/Category

Jan-June- 2010 Jan.-June-2011 % increase / decrease

Qty Value Qty Value Qty Value

WORLD

Knitted 1011.75 13062.60 1050.57 15217.75 3.84 16.50

Woven 891.56 14398.86 925.93 16813.26 3.85 16.77

Total 1903.31 27461.46 1976.49 32031.01 3.85 16.64

CHINA

Knitted 407.09 4837.60 411.18 5383.69 1.00 11.29

Woven 478.43 6425.76 478.62 7256.90 0.04 12.93

Total 885.53 11263.35 889.81 12640.59 0.48 12.23

INDIA

Knitted 69.58 971.22 67.96 1137.11 -2.34 17.08

Woven 62.92 1333.40 60.45 1618.00 -3.92 21.34

Total 132.50 2304.62 128.40 2755.11 -3.09 19.55

BANGLADESH

Knitted 200.06 1712.54 225.61 2416.45 12.77 41.10

Woven 82.6504 859.54 100.35 1277.87 21.41 48.67

Total 282.71 2572.09 325.96 3694.32 15.30 43.63

SRI LANKA

Knitted 18.87 308.84 18.36 319.98 -2.68 3.61

Woven 16.33 274.88 16.95 304.08 3.84 10.62

Total 35.19 583.72 35.31 624.06 0.34 6.91

PAKISTAN

Knitted 25.94 179.59 30.29 256.15 16.78 42.63

Woven 30.12 279.41 33.12 378.27 9.94 35.38

Total 56.06 459.00 63.41 634.42 13.11 38.22

VIETNAM

Knitted 12.83 152.85 14.14 199.70 10.16 30.65

Woven 23.73 396.48 29.20 521.65 23.08 31.57

Total 36.56 549.33 43.34 721.35 18.54 31.31Qty. & Value in mn Kg & Euro

NOVEMBER 1-15, 2011 ApparelOnline 53

ExPORTsTATIsTIcs

Among the emerging markets, Japan is one of the most sought-after by Indian exporters and going forward the focus to increase penetration is on the priority agenda more so after the FTA with Japan earlier this year.

In the first eight months of 2011, apparel imports of Japan were up both in terms of value and volumes of 13.76% and 8.28%, respectively. The upward movement was registered in both the knitted and woven segment with increase in value of 11.43% and 16.04%, respectively.

During the period under review India registered an impressive increase in value of exports by 22.87% over the same period last year. Volume increase was equally impressive with 23.71% rise in the period under review.

India saw increase in exports in both the knitted and woven segment with woven emerging as a stronger category. The growth in value for woven garments was 25.16%, while the segment registered 23.81% upswing in volumes. Knitted garments on the other hand increased by 7.35% in value and 23.29% in quantities.

During the same period Chinese apparel exports to Japan saw decline of (-) 10.62% in value of exports, while quantities were up 6.01%. The country once a leader with almost 90% share in the market is seeing less growth over the past two years.

Among the compet i tors, B a n g l a d e s h w i t n e s s e d substantial increase in exports to Japan with 44.46% growth in value and 36.26% increase in quantities. The country made impact in both knitted segment and woven garments, registering noteworthy gains in value of 94% and 21.53% in volumes, respectively.

India Exports to Japan: Jan.-Aug. 2011Wo v e n G a r m e n t s Growth segment for Indian ExportsLadies dresses a growth segment for most countries

Though ladies dresses are not among the top five product categories imported by the EU, it is an important category for Asian manufacturers. In the period under review it had imported 88.37 million kg of dresses worth Euro 2,142.76 million which is 18.69% increase in volumes and a 19.12% gain in value over the same period last year.

For India, dresses have always been a winner and in the six month period the country exported 15.53 million kg worth Euro 452.10 million of dresses to the EU during the year. The segment has seen increase in both volumes and value of 10.14% and 21.82%, respectively.

For China also, ladies dresses were an important growth segment with quantities exported being 38.87 million kg exported to the EU worth Euro 833.85 million, an increase of 11.95% in value and 15.90% rise in volumes.

Trousers lead import segment for EU

The biggest import category to the EU in the first six months of 2011 was trousers with total 482.73 million kg of volumes imported worth Euro 6,984.15 million. The segment saw growth in both values and volumes, which were up 16.47% and 3.33%, respectively.

For China also the biggest category in terms of quantities was trousers with export of 213.40 million kg to the EU worth Euro 2,502.33 million, an increase of 9.03% in value and decrease of (-) 4.32% in volumes.

In Sri Lanka again, the biggest category is trousers with volumes of 10.65 million kg, worth Euro 138.16 million; the segment saw growth of 5.10% in values, though volumes declined (-) 1.25%.

Trousers are the fourth major category for India with volumes of 16.69 million kg of exports worth Euro 290.41 million in the defined period. The segment has seen growth in both volumes and value of 7.87% and 26.35%, respectively.

AppArEl Import of EU – JAN.-JUNE 2011

ITEM-WISE PERCENTAGE INCREASE IN APPAREL IMPORTS BY EU: JAN-JUNE 2011

APPAREL TYPETotal Imports by EU

Exports to EU

China India Bangladesh Sri Lanka

Qty Value Qty Value Qty Value Qty Value Qty Value

Babies Wear 0.35 17.94 -5.22 11.44 9.07 36.08 26.92 55.21 7.89 0.55

Foundation Garments 12.48 14.16 14.86 17.61 37.09 58.92 25.39 30.47 -6.50 9.03

Jackets & Blazers 6.65 18.53 -0.03 16.39 1.80 12.99 45.36 73.65 8.20 7.84

Ladies Blouses -2.52 8.77 -13.46 -4.52 0.63 16.67 13.17 42.94 -4.28 6.26

Ladies Dresses 18.69 19.12 15.90 11.95 10.14 21.82 23.65 40.37 26.79 28.94

Ladies Skirts -0.67 7.90 -8.29 0.09 8.65 26.83 14.24 38.12 2.44 10.43

Legwear -0.10 13.31 -0.47 13.78 26.10 39.46 26.91 68.39 -8.51 -10.17

Mens Shirts 4.11 19.07 -5.79 10.19 -4.14 14.35 17.73 48.51 -14.58 -1.83

Nightwear -3.55 12.28 -5.19 9.43 -7.68 17.49 14.73 53.01 28.06 20.04

Suits / Ensembles 1.29 7.11 -0.26 4.30 -0.04 14.58 -5.23 22.96 -18.79 -17.02

Sweaters 10.06 17.16 6.12 9.79 -9.23 11.45 21.88 42.17 -9.60 -14.49

Trousers 3.33 16.47 -4.32 9.03 7.87 26.35 17.85 42.77 -1.25 5.10

T-Shirts -0.49 13.46 -11.41 0.78 -4.67 14.09 8.29 37.85 4.59 8.12

Undergarments 4.12 24.39 -0.21 20.46 17.63 48.69 32.63 70.78 18.77 25.36

54 ApparelOnline NOVEMBER 1-15, 2011

Intertek with its expertise, resources, global reach and a network of more than 1,000 laboratories,

offices and 30,000 people in over 100 countries around the world has created the iSupplier Intelligence program, as a platform that provides global buyers of consumer goods, industrial and commodities access to registered suppliers’ detailed profiles including product capabilities, quality compliance and reputational risk possibilities associated with social, environmental and security issues regardless of which organization has conducted the relevant verification.

ISI is a cost-effective solution for buyers who require trusted supplier partners to identify the same when making purchasing decisions. This new platform minimizes risks and knowledge gaps for global buyers, which is vital for success in today’s global business environment. “We make available active supplier profiles so trading communities can discover each other and do business with trust, transparency, confidence, greater speed, ease and reduced cost whilst also managing reputational risk and demonstrating due diligence. Transparency and traceability are the key ingredients of success,” said Horlock.

Using iSupplier Intelligence, buyers can filter search options to select quality suppliers from all over the world with the required criterion. As the parameters to decide sourcing destinations is readily available through a transparent platform, the buyers

Intertek initiates ‘iSupplier Program’ to promote exporters to international buyersIntertek, a leading provider of quality and safety services to a wide range of industries around the world, recently launched their iSupplier Intelligence (ISI) program in India in the presence of industry delegates and Intertek senior officials. “After the successful launch of iSupplier Intelligence in China and Taiwan, we are happy to bring the platform to India. iSupplier Intelligence builds a living profile of each supplier or manufacturer while Intertek validates and manages credible supplier's profiles in a secure environment,” said David Horlock, Vice-President, Supplier Management Services, Intertek at the event.

save upon the costs and times consumed in the process, just by paying a membership fees of $ 999. “The more you know the lower the risk,” says Horlock.

Trust through verificationThe ISI would not be just another database portal of suppliers and manufacturers as are already available on-line. The suppliers would have to pay a membership amount of $ 299 just for setting up their profile. “We have always been like policemen for the apparel industry, but with the iSupplier Intelligence initiative we aim at utilizing our extensive knowledge for the benefit of the apparel industry around the world,” averred Dilip Gianchandani, Regional Director – India and Bangladesh (Consumer Goods), Intertek India.

Suppliers are expected to pay additional amount of $ 1700 for achieving a “Verified by

ISI” indication on their profile which would activate the same. Currently, the web-portal has a total of 44,000 profiles out of which 4,000 have achieved the “Verified by ISI” mark. Apparel and footwear suppliers form about 24% of the total suppliers registered with ISI. “iSupplier Intelligence, enables buyers to improve business performance and preserve their brand reputations by increasing the success potential of supplier relationship,” reasons Rajesh Saigal, Managing Director, Intertek India.

Intertek takes responsibility for the scope of verification on the purpose for buyers to conduct supplier screening. “The position of iSupplier Intelligence to supplier is a marketing role rather than a sales role. That means it is a platform for them to expose their credentials to global buyers for business opportunity, which is for marketing purpose. Whether the business opportunity would

turn into a business contract, it is out of the service scope,” says Horlock. Many of the world famous brands and retailers are always looking for new suppliers so being listed on a credible and trusted platform with a fully completed profile verified by Intertek has the opportunity to attract new buyers. “In time, we would also be able to provide the supplier with important information on what buyers are looking for and how improving their profile will attract more traffic,” adds Horlock.

The supplier may also use the iSupplier profile as a linkage in emails and communications to its potential customers to build credibility, confidence and trust. For greater creditability buyer registration is subject to assessment and approval so that only legitimate buyers are registered.

The program is promoted through Intertek’s customer network with 5000+ global buyers and 200,000 suppliers, which is growing everyday by 2+ millions facility visits per year. For the suppliers who have subscribed to the portal, they can proactively send promotional message to the buyer members through the platform. “The buyer member will use our platform for sourcing supplier, searching and sending business inquiry message to the selected suppliers. And we are organising regular business matching activities from online screening through our platform to face-to-face business matching events. This would enhance a very close interaction between buyers and suppliers for a better marketing to each other,” concludes Horlock.

David Horlock, Vice-President, Supplier Management Services, Intertek (centre) with his Indian colleagues including Dilip Gianchandani and exporters who received certifications for compliances under various International certifications

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56 ApparelOnline NOVEMBER 1-15, 2011

REsOuRcEcENTRE

HANGERS / PACKAGING ACCESSORIES ZIPPERS / FASTENERS

BUTTONS / BUCKLES

FABRIC WOVEN / KNITTED ELASTICS / TAPES

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Special Offer On CLASSIFIED Advertisement

(Resource Centre)Call - 08826000378, 9871307950, 09810058986

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NOVEMBER 1-15, 2011 ApparelOnline 59

Bijoux Terner increases iTs sourcing from india india is Becoming a key focus

US based Bijoux Terner, a fashion accessory company with over 700 locations in 50 countries around

the world is looking at India for major sourcing in the next few years. Founded in 1974, the company’s headquarters are in Miami and distribution centre is in Florida. The company has Sourcing and Quality Assurance offices based in Hong Kong with first class representation in Shenzhen, China, as well as additional account support in India, Dubai, United Arab Emirates, Manila, Philippines, and Zaragoza, Spain.

According to President and CEO, Gabriel Bottazzi India is becoming a key focus for Bijoux as India offers value-added designer products, which matches with their clientele preference. The biggest product category from India for the retailer is hand woven pashmina shawls and fashion accessories like scarves and stoles.

The key to success is the trend-led collections. Bottazzi believes that they do not chase a product, they chase trends. The company has a talented design team who

follow the latest and upcoming seasonal trends, using powerful fashion forecasting tools. This vital information enables them to stay ahead when it comes to what’s hot and what’s not.

With its irresistible price and incredible assortment of watches, earrings, necklaces, bracelets, pashminas, scarves, belts handbags, and so much more, Bijoux Terner offers a value unmatched in the world of fashion. In the mid-1990s, the retailer pioneered the “all items, one price” concept and have not looked back since.

Bijoux Terner has opened many airport shops worldwide in last two years including its hometown airport of Miami, Madrid, Singapore Changi, Atlanta, Minneapolis, Tampa, Santiago, Trinidad and Cozumel, to name but a few. The latest stores opened recently in Oklahoma and Tirana, Albania, bringing its export tally to more than 55 countries. Casinos and hotels remain a major target. “We continue to outperform and we have lots of (in-store) conversions,” says Bottazzi.

Gabriel Bottazzi, President and CEO, Bijoux Terner is very upbeat of the potential to increase sourcing from India, particularly in fashion accessories like hand woven pashmina shawls, scarves and stoles