I N DI A
April 2016
550
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April 2016
550
APPAREL CHAIRMAN'S MESSAGE
DEAR FRIENDS,
The financial year 2015-16 is expected to end on a low
note. Figures for exports till February 2016 indicate
a meagre growth of 1.5 per cent in exports this year,
translating to a lower than targeted export of around
US$ 17 billion for the year 2015-16.
The Council has ideated and laid out a nine-point
action plan for revival, recognising its inherent strengths
that can be leveraged for a long-term growth plan,
rather than focusing on short-term competition profile.
However, it’s not about ideas, but making ideas happen.
The action plan has many innovative ideas, which
needs an equally motivated team to make it happen.
To inculcate the spirit of bringing excellence in service
to our members and create a vibrant environment in the organisation, a team-building and
motivational workshop was organised with the national team of AEPC, in February. I hope the
enthusiasm and energy that was generated in that workshop will mirror in some good initiatives
and AEPC will be working as a “target-oriented corporation”.
Coming back to export performance, acknowledging the growing share of UAE (It is the
second largest destination for India’s apparel exports, after USA), AEPC organised its debut
event BSM, Dubai in March. We were encouraged by the positive response with footprints
from major buyers from all GCC countries in the event. This has motivated us to continue this
event and organise next edition of BSM, Dubai in March, 2017.
The other event in March was a reiteration of our focus on the Latin American market and an
attempt to leverage the FTA that India today has with Chile. AEPC organised the 5th Edition
of BSM Uruguay and Chile. The success of this event indicated ample scope for India in the
high-end segments in these markets. However, the Chilean and Uruguayan consumers are
focused on global fashion trends and, hence, focus on good designs will pay.
I am also happy to share that in response to our request for improved duty entitlement, duty
free imports of fabric up to one per cent of the FOB value of exports during the preceding
financial year has been allowed, provided the exporter is registered with the Apparel Export
Promotion Council. (No. 12/2016-Customs, dated 1/3/2016).
Please mail your suggestions feedback at chairman@aepcindia.com
8BSNFTU3FHBSET
Ashok G Rajani
April 2016
550
Dubai
Dubai
Diaries!
A report
re
ep
po
ort on
on the
the
th
Dubai
Buyer
Du
Duba
uba
bai Bu
Buye
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international
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COVER IMAGE: DREAMSTIME.COM
INDIA
EDITORIAL ADVISORY BOARD:
CHAIRMAN AEPC
Mr Ashok G Rajani
VICE CHAIRMAN - EP
Mr Amit N Goyal
EXECUTIVE COMMITTEE MEMBER
Mr Rishi K Rajani
ADDITIONAL SECRETARY GENERAL
Mr Vijay Mathur
EXECUTIVE PUBLISHER
Maneck Davar
SPENTA MULTIMEDIA PVT LTD
EDITORIAL
Asst Editor
Kashmira Mirza
Sub Editor
Meryl D’sa
DESIGN
Creative Art Director
Parvez Shaikh
Sr. Designer
Sachin Bhogate
Digital Imaging
Ninad Jadhav
ADMINISTRATION
Bobby Daniel
Design, Editorial and Printing
Spenta Multimedia Pvt Ltd
/DMHMRTK@2ODMS@
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CONTENTS
INSPIRE.
INFORM.
CONNECT.
INDIA
VOL 02 I ISSUE 2 I April 2016
I 5IF#SPBEDBTU
News from different segments
of the industry
I %VCBJ%JBSJFT
A report on the Dubai Buyer
Seller Meet
I "-BT7FHBT"GGBJS
A report on AEPC’s participation in
the Sourcing at Magic Fair, Las Vegas
I 5IF4PVUI"NFSJDB$POOFDU
A report on the Buyer Seller Meet
held in Uruguay and Chile
I 3FBDIJOH'PS(SFBUFS)FJHIUT
A report on the motivational seminar,
‘Paradigm Shift’, organised by AEPC
I 4PVUI"NFSJDB#PVOE
Exploring the charm of the
South American market for
the Indian manufacturer
I .BLFJO*OEJB"O0WFSWJFX
Insights into how the Make in India
campaign and the Make in India
Week can bene³t the industry
I 5IF&YQPSU(SPXUI4UPSZ
Insights into the apparel
exports scenario
I 5IF'BCSJDPG‘-JHIU’
In conversation with Malin Bobeck, a
Textile Designer with a difference
I $PMPVSBOE1SJOU5SFOE
'PSFDBTU"8’
A look at the trends forecast by
WGSN in the men’s wear category
I 3FWJFXJOHUIF#VEHFU,
FYQMPSJOHUIFQPTTJCJMJUJFT
A report on the Union Budget of
2016 and its impact on the apparel
export industry
I 3FBMJTJOHUIF
"NFSJDBOESFBN
Pro³ling two renowned
American brands
I +$1FOOFZ
6OSFJOWFOUJOHJUTFMG
Insights into how a retail store
changed the way it did business
and then corrected course
I 5IF2VBMJUZ$POVOESVN
Exploring the world of export
quality apparel
I "&1$/PUJꗅDBUJPOT
Noti³cations from
the AEPC
I 'BTIJPO$BMFOEFS
A look at the
upcoming fairs
across the world
I "&1$&WFOUT
$BMFOEFS
A look at the proposed
Export Promotion Events
up to March 2017
52
4
APPAREL THE BROADCAST
INCENTIVES IN THE BUDGET TO
GENERATE ADDITIONAL GARMENT
EXPORTS OF 57,500 CRORE FOR THE
YEAR 2016-17: CHAIRMAN, AEPC
Shri Ashok G Rajani, Chairman,
AEPC, welcomed the Union
Budget 2016-17 and termed it as
balanced, growth-oriented and
forward-looking. The thrust on
boosting manufacturing, skill-led
employment and infrastructure
will surely provide a boost to the
garment industry.
Mr Rajani, in a reaction to
the Budget 2016-17, stated that,
“Addition of one per cent FOB
value of exports in custom duty free
for specified fabrics would enable
the garment exporters to undertake
production of those garments where
they were not competitive. In the year 2016-17, fabrics worth
around 51,000 crore (one per cent of one lakh crore rupees)
would be eligible for imports and a custom duty of 5110 crore,
would be saved by garment exporters. This will give avenues
for new product development. It would provide additional
exports of 52,500 crores in a complete year.
Shri Rajani further said, “Continuation of duty free import
of trimmings and embellishments to the extent of five per
cent of FOB would give additional garment exports of 55,000
crore in the full year (2016-17)”. The benefit of Notification
No 41/2012 is now effective from 1.7.2012. Here, the Govt.
has changed the post manufacturing drawback
rate from 0.18 per cent to 0.21 per cent.
Exporters shall be able to take the benefit
of this notification from 1.7.2012. This is
subject to the passing of Finance Bill. The
effect of this would be additional 0.03 per cent
drawback on service tax on garment exports
on FOB value of exports. The total additional
exports†57,500 crore in full year 2016-17†
is envisaged by the incentives announced in
this budget, he added.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
4
NEW TEXTILE POLICY LIKELY
TO BE FINALISED BY APRIL
2016: TEXTILES MINISTER
Textiles Minister Mr Santosh Kumar Gangwar said that the
long-awaited National Textile Policy is nearing finalisation and
is likely to be issued before the end of April 2016. Interacting
GOVERNMENT IS FUNDING
CONSTRUCTION OF NIFT
CAMPUSES AT SHILLONG,
RAEBARELI AND SRINAGAR:
TEXTILES MINISTER
Speaking regarding NIFT, Textiles Minister Santosh Kumar
Gangwar, said that the premier academic institution in the
country in the field of fashion education and research has deftly
combined the local and the global as a part of its pedagogy.
Through the Crafts Cluster Initiative, NIFT faculty, students
and alumni play a proactive role in the growth of traditional
handicrafts and handlooms; at the same time, NIFT also
collaborates with leading fashion institutions around the
globe, through its 34 MoUs, to keep itself abreast of latest
global trends and developments. The Minister said that it is
a tribute to the academic rigour of NIFT programmes, that
almost 3,000 industry-ready professionals are delivered by
its various campuses and placed with the best names in the
fashion industry every year. The Minister recalled that almost
all independent rating surveys of fashion schools place NIFT
campuses at the top of their charts. Mr Gangwar added that
the Government of India is presently funding the construction
of NIFT campuses at Shillong, Raebareli and Srinagar.
Mr Gangwar said that at the behest of his Ministry, NIFT
is moving towards greater engagement with handlooms
and handicrafts. He said that this linkage of fashion with
5
" 1 1" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
with media persons after participating in the
Make in India Seminar as a part of the Make
In India Week in Mumbai, Mr Gangwar said
that consultations with all stakeholders are
in progress and he is confident that the new
textile policy would be released during the
Budget session of the Lok Sabha.
handlooms and handicrafts should be
beneficial to both, i.e., NIFT students will
be sensitised to the artistic heritage on the
one hand and the handlooms and handicrafts
sector will get new ideas, insights and
technology on the other. The Minister noted
that another important dimension of NIFT
is its role towards women’s employment and
empowerment, given the fact that almost 80
per cent of its students are girls.
The Members of Parliament highlighted
the need to improve the reach of Government
schemes to artisans. Citing the huge revenue
and export potential of the sector, the MPs
called for the strengthening of marketing and
promotional activities, through advertising
and other means. The Minister replied
that the Government has already linked
handicrafts with tourism and is pursuing this
initiative in earnest.
The Minister said that it is a matter of
credit for NIFT that there has not been a
single complaint regarding admission this
year. The MPs congratulated the Ministry
and NIFT for sustaining the world-class
quality of NIFT over the years. They also
appreciated the collaboration of the institute
with 34 reputed fashion institutes across the
world. One of the MPs spoke of the need to
increase the student intake as well.
APPAREL THE BROADCAST
NANO-ENHANCED TEXTILES
CLEANED BY LIGHT
Researchers at RMIT University in Melbourne, Australia,
have developed a cheap and efficient new way to grow special
nanostructures†which can degrade organic matter when
exposed to light†directly onto textiles.
The work paves the way towards nano-enhanced textiles
that can spontaneously clean themselves of stains and grime
simply by being put under a light bulb or worn out in the sun.
The process developed by the team had a variety of applications
for catalysis-based industries such as agrochemicals,
pharmaceuticals and natural products, and could be easily
scaled up to industrial levels.
The advantage of textiles is that they already have a 3D
structure so they are great at absorbing light, which, in turn,
speeds up the process of degrading organic matter. There is
more work to do to before we can start throwing out our
washing machines, but this advance lays a strong foundation
for the future development of fully self-cleaning textiles. The
researchers from the Ian Potter NanoBioSensing Facility
DIGJAM TEXTILES LTD FIXES
RECORD DATE FOR SCHEME
OF AMALGAMATION
In continuation of the letter dated March 14, 2016, from
Digjam Limited intimating that the Committee of Directors of
the Company will meet on March 17, 2016, to fix the Record
Date for allotment of Shares to the Shareholders of Digjam
Limited (Amalgamating Company).
This is to confirm that the certified copy of the Order of the
Honble High Court of Gujarat sanctioning the scheme has
been filed on March 17, 2016, with the Registrar of Companies,
Gujarat, by both the companies and thereby, the scheme has
come into effect from March 17, 2016, with the appointed
date as on close of business, on June 30, 2015. Consequently,
Digjam Limited stands dissolved without winding-up.
and NanoBiotechnology Research Lab at
RMIT worked with copper and silverbased nanostructures, which are known for
their ability to absorb visible light. When
the nanostructures are exposed to light, they
receive an energy boost that creates ‘hot
electrons.’ These ‘hot electrons’ release a
burst of energy that enable the nanostructures
to degrade organic matter. The challenge for
researchers has been to bring the concept out
of the lab by working out how to build these
nanostructures on an industrial scale and
permanently attach them to textiles.
The RMIT team’s novel approach was to
grow the nanostructures directly onto the
textiles by dipping them into a few solutions,
resulting in the development of stable
nanostructures within 30 minutes. When
exposed to light, it took less than six minutes
for some of the nano-enhanced textiles to
spontaneously clean themselves.
Further, the Committee has fixed March 31,
2016, as the record date for determining the
shareholders of the erstwhile Digjam Limited
who will be entitled to be allotted shares in
Digjam Textiles Limited. It may be noted that
the name of the Company ‘Digjam Textiles
Limited’ will pursuant to the sanction of the
scheme stand changed to ‘Digjam Limited’
upon compliance of required formalities
with the Registrar of companies, Gujarat.
Shares of DIGJAM Ltd were last trading in
BSE at 513.04 as compared to the previous
close of 512.42. The total number of shares
traded during the day were 1,28,214 in over
237 trades. The stock hit an intraday high of
513.04 and an intraday low of 511.8. The net
turnover during the day was 516,39,059.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
6
APPAREL THE BROADCAST
INDIA’S READY-MADE GARMENT (RMG) EXPORT UPDATE
FO R FY 2015- 16 ( AP R I L-FE BR UARY )
RMG exports were to the tune of US$ 1,527.5 million in February 2016 with a
decline of 0.7 per cent against the corresponding month of February 2015, which was
US$ 1,538.6 million.
In Rupee terms, export for the month of February 2016 was 510,423.1 crore as against
59,545.3 crore in February 2015, with an increase of 9.2 per cent.
India’s RMG exports to world in April-February of 2015-16 were to the tune of
US$ 15,491.4 million, which is up by 1.5 per cent compared to the same period of the previous
financial year. During April-February 2014-15, India’s apparel exports were to the tune of
US$ 15,262.8 million.
In Rupee terms, India’s RMG exports to world in April-February of 2015-16 were to the
tune of 51,01,143.2 crore, which is up by 8.6 per cent as compared to the same period of the
previous financial year. During April-February 2014-15, India’s apparel exports were to the
tune of 593,133.7 crore.
Exports in Dollar terms for April-March of the FY 2014-15 had increased by 12.3 per cent
over the same period of the previous FY and reached to US$ 16,846 million.
INDIA'S RMG EXPORT TO WORLD
Month
7
FY 2014-15
FY 2015-16
MoM Growth of 2015-16
over 2014-15 (%)
In INR Crore
In US$
Million
In INR Crore
In US$
Million
INR
US$
April
7979.2
1322.0
9062.6
1444.2
13.6
9.2
May
8850.9
1492.4
10007.4
1568.5
13.1
5.1
June
8511.4
1425.0
10104.8
1582.3
18.7
11.0
July
8719.5
1451.8
9845.2
1547.1
12.9
6.6
August
8421.3
1382.9
8340.4
1281.7
-1.0
-7.3
September
7874.0
1294.0
7535.3
1138.0
-4.3
-12.1
October
7324.5
1194.0
8013.8
1231.8
9.4
3.2
November
7422.6
1202.9
8195.0
1239.5
10.4
3.0
December
8609.8
1372.0
9594.8
1440.8
11.4
5.0
January
9875.4
1587.0
10020.8
1490.0
1.5
-6.1
February
9545.3
1538.6
10423.1
1527.5
9.2
-0.7
April-February,
2015-16
93133.7
15262.8
101143.2
15491.4
8.6
1.5
" 1 1" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
SHUTTERSTOCK.COM.COM
APPAREL EVENTS AND REPORTS
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Dubai was the strategic spot for such a meet since India and UAE share strong
trade relations, and Dubai is well-known to be the gateway to the UAE. Add
to that, the ease of international travel to Dubai and the BSM just could not
be better located.
UAE is one of the top importers of Indian ready-made garments (RMG). In
2014, the country exported estimated US$ 2,329.6 million of RMG to them,
which is an increase of more than 60 per cent from total trade in 2012 of
US$ 1,432.8 million. The expansive trade relations is what allowed the Dubai
BSM to be a well-placed opportunity to leverage this positive relationship in
order to diversify trade and further strengthen it.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
8
36/61505)&&7&/5
As with any event, work started months in advance with the first round of
Expression of Interest to participate being posted on the APEC website in
July 2015. The event was earlier slated for November but was then pushed to
March, allowing for a longer period for exhibitors to sign up and visitors
to register.
The success of a BSM depends greatly on those interested being able to
get information on the exhibitors and other visitors. Keeping the importance
of this in mind, AEPC established an exclusive website for the Dubai BSM.
The website contained pages of the exhibitors, visitors, floor plan and other
relevant details about AEPC, registration forms and contact details.
A new way of presenting the exhibitors’ profiles was seen on the
website. Company names were listed and linked to individual pages that
gave detailed information of how to reach out to them, their contact
persons and a description of their range of production, manufacturing
capacity in unit number and even the general profile of their buyers and
sellers. What this achieved was to establish the nature of the companies that
would be exhibiting and gave the right amount of information to allow
businesses to know about the immense benefits the participation in the
BSM would bring them, especially meeting industry leaders and exhibiting
their products.
The success
of a BSM
depends
greatly on those
interested
being able to
get information
on the
exhibitors and
other visitors.
9
" 1 1" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
APPAREL EVENTS AND REPORTS
Another way the website raised participant
interest was by giving them an insight into
potential visitors through the Visitors Profile page,
which highlighted the broad group of stakeholders
from whom participation was expected and would
be seen. For instance, the designers and fashion
industry players, garment and contract manufacturers, retail investors and
entrepreneurs and retail outlets and boutique owners, etc.
The user-friendly website allowed for relevant information to be shared in
brief and simple terms so as to raise the interest of the visitors to come and
interact with the industry experts. AEPC also released the advertisement of
the BSM in the national daily of Dubai.
The major displays
at the BSM were
children’s wear,
women’s wear,
night wear, t-shirts
and high value
party wear for both,
men and women.
"55)&&7&/5
The Plaza ballroom saw work beginning on the exhibitors’ 3x3 metre stalls,
early on March 13, 2016. Exhibitors were asked to bring in all their material
the day earlier and the event began in full swing on March 14 at 10 AM and
ended at 6 PM.
The BSM was inaugurated by Mr K Murleedharan, Deputy Counsel
General, Embassy of India, EOI in Dubai, in the presence of Mr Ashok G
Rajani, Chairman, AEPC; Mr Amit Goyal, Vice Chairman EP, AEPC;
along with other delegates, i.e., Mr Premal Udani, EC Member and Mr V
Elangovan, EC Member, along with the international buyers and exhibitors.
The major displays at the BSM were children’s wear, women’s wear,
night wear, t-shirts and high value party wear for both, men and women.
The event saw 25 exhibitors with big names such as Apparel Group†
the parent company of Nautica, Calvin Klein, along with Basicxx†who
brought to the BSM their well-known men’s wear, women’s wear and kids’
wear line, and Landmark†the parent company of Lifestyle which again
displayed their kids’ wear line. They were joined by other industry honchos
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
10
such as Al Safeer, Emirates LLC, Yellow
Fever, Big and Tall, Diva Group and Vogue,
to name a few.
The success of the meeting is evident in the
numbers and a testament to the work of AEPC
and the Consulate General of India, Dubai.
The meeting saw 138 buyers and a business of
US$ 3,25,000 having been transacted during
the two days of the meeting.
The AEPC has
an old hand in
creating and
maintaining
platforms
that allow
for pro³table
business
relationships
to grow.
5)&8):T0'#4.T
BSMs are highly beneficial for the industry
stakeholders to gain a better understanding
of the current trends in the market as well as
the scope of the competition. BSMs allow for
significant and relevant conversation to take
place regarding newer business opportunities
up and down the supply chain.
A valuable feedback by one of the visitors
was that the BSM was a platform to meet
groups such as Landmark, Apparel and others,
who are not easily accessible in their offices.
11
" 1 1" 3& - EXPORT PROMOT ION COUNCIL MAGAZINE APRIL 2 0 1 6
These meetings open up opportunities for
small and medium enterprises to then tap
into newer markets and build relationships
beyond existing networks.
Experts will tell you that the interest in
trade fairs, expos and platforms such as
BSM are only increasing. With cutting
edge innovation and stiff competition in the
garments industry, face to face opportunities
for interaction are much sought after to
develop strong networks and to be up to date
on all the happenings of the markets.
The AEPC has an old hand in creating
and maintaining platforms that allow for
profitable business relationships to grow.
The next big meeting is now being planned
in Montevideo, Uruguay and Santiago,
Chile, with 25 exhibitors at each venue.
The Ministry of Textiles and Ministry
of Commerce have already approved
the funding for the BSM in Uruguay
and Chile. Q
APPAREL EVENTS AND REPORTS
A LAS VEGAS
AFFAIR!
"11"3&-*/%*"SFQPSUTPO"&1$ѳTQBSUJDJQBUJPOJOUIF4PVSDJOHBU
AEPC participated in the Sourcing at Magic Fair held from February 15-18,
2016, at the Las Vegas Convention Centre, Las Vegas, Nevada, USA. The India
pavilion was inaugurated by Mr Bob Berg, Director of International Business,
Sourcing at Magic; Ms Barbara Ende, President, Sycamore Marketing Group
Inc., and exhibitors.
Sourcing at Magic is North America’s largest, most comprehensive sourcing
event, reflecting the fashion supply chain at its best. Offering unmatched access
to over 41 countries representing the world’s most important markets, Sourcing
at Magic showcases more than 3,800 exhibitors, including apparel, accessories
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
12
SHUTTERSTOCK.COM
.BHJD'BJS-BT7FHBT64"IFMEGSPN'FCSVBSZ
Exhibitors—
from worldwide
leaders to
local USA
suppliers—
build business
through
exposure to
thousands
of sourcing
executives,
designers,
merchandising
managers and
private label
buyers.
13
" 1 1" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
and footwear resources, and 80,000 plus
attendees conveniently merchandised by
country and category; contract and original
design manufacturers; fabric, trim and
component suppliers; and service and
technology providers.
Exhibitors—from worldwide leaders to
local USA suppliers—build business through
exposure to thousands of sourcing executives,
designers, merchandising managers and
private label buyers.
Magic connects the exhibitors to the global
purchasing power of tens of thousands of
men’s, women’s and kids’ apparel, accessories
and footwear retailers.
The Sourcing Zone is a convenient space
for retail buyers, global importers, licensees
and brands to meet and conduct business
with offshore manufacturers like India and
contract suppliers from the international
manufacturing countries.
Fifteen thousand and six hundred visitors
attended the Sourcing Section for this four-day
Fair, and more than 32 countries participated
in the show. The major countries exhibited
were China, Bangladesh, Pakistan, Peru,
India, Hong Kong, Colombia, Philippines,
Italy, South Africa, Korea, Greece, Mexico,
Indonesia, Spain, Canada and Japan.
Under the India pavilion, 41 companies
occupying 46 booths were present, including
the AEPC stall. Main products of interest
were women’s wear—tops, kaftans, dresses,
scarves, accessories, bags, etc. A business of
US$ 4.93 million was booked/negotiated
during the show and most of the exhibitors
were satisfied by the inflow of the buyers. „
APPAREL EVENTS AND REPORTS
THE SOUTH
AMERICA
CONNECT!
"11"3&-*/%*"SFQPSUTPOUIF#VZFS4FMMFS
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AEPC has organised the fifth Edition
of the BSM Uruguay and Chile which
was held at hotel Sheraton Montevideo,
Uruguay, during March 17-18, 2016,
and hotel Crowne Plaza Santiago, Chile,
during March 21-22, 2016.
The BSM at Montevideo, Uruguay,
was inaugurated by Mrs Swadha Rizvi,
Chargé D’affaires (AI), Embassy of
India (EOI), in the presence of Mr
Rubén
Azar
Scarone,
Honorary
Consul General, EOI in Uruguay, in
the ballroom of the Sheraton Hotel.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
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Twenty
exhibitors
from India
participated in
the BSM. The
major displays
were ladies
tops, blouses,
dresses, skirts,
men’s shirts,
children’s shirts,
pants, t-shirts,
shawls and
scarves, etc.
15
All exhibitors along with the buyers were present during inauguration on
March 17, 2016.
The BSM at Santiago, Chile was inaugurated by Mr Debraj Pradhan,
Hon’ble Ambassador in the presence of Saudi ambassador; Mr Pablo Urria
Hering, Director of Bilateral Economic Affairs, Ministry of External
Relations of Chile; Mr Jorge Guerrero, President of Indo-Chilean Chamber
of Commerce (CamIndia); Mr Rodrigo Mujica, Manager, International
Relations, Santiago Chamber of Commerce; and other EOI officials, visiting
buyers and along with the exhibitors in the Ball room of the Hotel Crowne
Plaza on March 21, 2016.
Twenty exhibitors from India had participated in the BSM. The major
displays were ladies tops, blouses, dresses, skirts, men’s shirts, children’s shirts,
pants, t-shirts, shawls and scarves, etc.
Big buyers from Uruguay and Chile participated in the BSM, the major
buyers who visited and negotiated business during the BSM are, Grupo Disco,
Tex-Time, Moksha Uruguay, Fashion Ave, Grupo Geant, Lolita, Text Time,
Woow, Urban, Lemon, Sea Harbor, Lightning Bolt, etc. Business worth US$
7.30 lakh at both the places was negotiated/transacted during the BSM.
BSM Uruguay and Chile ended on a very good note and it was observed that
there is an ample scope for India in the high-end market where the volume is
good and also the potential is quite high. The Chilean and Uruguayan consumers
are focused on global fashion trends and, therefore, the demand is growing in
this market. „
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APPAREL EVENTS AND REPORTS
REACHING FOR
GREATER HEIGHTS!
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This seminar was for
the of³cers of AEPC
with a mission to
inculcate the spirit of
bringing excellence
in service to the
members and create
a vibrant environment
in the organisation.
A seminar titled ‘Paradigm Shift’ was organised on February 27, 2016, at The
Oberoi, Gurgaon, for AEPC officials. After taking over as the Chairman of
AEPC, Mr Ashok G Rajani envisioned the need for radical change underlying
the working of AEPC in order to optimise the potential of the organisation.
This seminar was for the officers of AEPC with a mission to inculcate the
spirit of bringing excellence in service to the members and create a vibrant
environment in the organisation.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
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Mr Ashok G Rajani, Chairman, AEPC; Mr Virender Uppal, ExChairman, AEPC; Mr Amit Goyal, Vice Chairman EP, AEPC; Mr H
K L Magu Member, AEPC; Mr Gautam Nair, Member, AEPC; Mr
Vijay Mathur, Additional Secretary General, AEPC, along with the
esteemed Executive Committee Members were present for the seminar.
Mr Nimish Dave was the distinguished motivational speaker who steered
the programme. Nimish Dave is a BTech in Textiles from Sasmira Institute and
has a rich industry experience of almost 30 years. He is the CEO and Founder
at The Idea Smith and a specialist of motivational trainings and other related
learning interventions.
Mr Rajani addressed the gathering and shared his and the expectations of
the export fraternity with the AEPC officials. He explained the very reason of
conducting the ‘Paradigm Shift’ and sensitised the officials on the urgency and
importance to change their attitude and adopt a customer-centric approach. He
emphasised on better customer services with greater customer understanding.
He encouraged the staff to be more customer-focused and bring in innovative
and creative ideas to increase customer service standards.
Mr Amit Goyal who represented the generation next, spoke about the usage
and importance of social media as a brand building tool. He emphasised on
the three ‘Ms’ which are marketing, marketing and marketing. By citing the
example of a train engine and its boogies, he encouraged the officials to lead the
industry like an engine instead of just being boogies.
The slide show on ‘Paradigm Shift’ was presented by Mr Dave which captured
the following :
Q He defined the ‘Paradigm Shift’ as the change in methodology, practice,
thinking and planning which ultimately changes the way of execution.
Customer service is not a single department, it is everyone’s job. Everyone is
17
" 1 1" 3& - EXPORT PROMOT ION COUNCIL MAGAZINE APRIL 2 0 1 6
APPAREL EVENTS AND REPORTS
He shared the
customers’
expectations as
being those of
speedy service,
efforts, options,
simplicity,
con³dentiality,
importance,
positive
surprises,
satisfaction,
value for money,
consistency
and reliability.
accountable for customer service. Give people more than what they expect to get. He shared
the customers’ expectations as being those of speedy service, efforts, options, simplicity,
confidentiality, importance, positive surprises, satisfaction, value for money, consistency and
reliability. He also talked about the first five priorities of the customer:
Q Value for money
Q Customer service
Q Reliability
Q Quality
Q Ease of doing business
He further checked with the group on service vis-a-vis the reputation standards of AEPC on the
scale of one to 10. As per the average score by the responses received, it was decided to take up
the service/reputation score from 4/10 of now to 8/10 in 90 days.
He showed an inspiring video clipping on ‘Change Management’ to express that those who
adapt to change can only survive. He also spoke about self motivation which could be proved as
the driving force to achieve one’s desires or betterment.
The session concluded with many lessons on Innovations for 2016 which are as follows...
Q Technology has no monopoly on speed
Q Streaming cannot be stopped
Q Old companies can be remade
Q Markets are everywhere
Q Location does not matter
Q Partnership has power
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
18
Q
The seminar
was concluded
with a Vote of
Thanks by Mr
Sanjiv Malhotra,
Deputy
Secretary
General, AEPC.
19
Q
Q
Q
Q
Communities have impact
Bravery is required
Mission drives change
Hype fades and fads mature
There is a new world out there
The seminar was concluded with the Vote of Thanks by Mr Sanjiv Malhotra, Deputy Secretary
General, AEPC. For encouraging intra communication and ongoing feedback on various
important issues, a WhatsApp group was created during the seminar itself. The sessions were
interactive which compelled the participants to come out with their views and their suggestions
to improve the working standards of AEPC. The key suggestions of the participants were:
Q To increase social media engagement
Q Should have a textile technical team
Q Services of AEPC to be communicated to all
Q Have a voice modulated customer service tool
Q Giving a small window in IIGF to new start-up brands
Q All information shared has to be authentic and updated
Q Processes which are not relevant or obsolete to be abolished
Q Increase the service and reputation standard from 4/10 now to 8/10 – Target within 90 days
Q Communication Skill Programme to be conducted
Q Reduce communication barriers between inter and intra departments.
All in all, it was a very informative and interesting seminar and provided great insights into the
future of AEPC. „
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APPAREL MARKET FOCUS
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The South American market has grown to be very lucrative for the Indian
exporter. As per current data shared by the Apparel Export Promotion
Council (AEPC), the Americas are currently importing apparel worth US$
1.4 billion. India’s share in this import pie is about US$ 480 million.
Within the continent, the two regions of relevance that have emerged are
Chile and Uruguay. The importance of this region is underlined in India’s
attendance at the Buyer Seller Meet (BSM) at Monte Vido, Uruguay and
Santiago, Chile, from March 17-22, 2016, organised by the Chambers
of Commerce.
According to AEPC estimates, Chile imports apparel valued at US$ 2.4
billion annually. India’s share in this is US$ 53 million. Similarly, Uruguay
imports US$ 250 million worth of apparel with India, contributing roughly
around US$ 13 million.
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According to Mr Vijay Mathur, Assistant Secretary General, AEPC, “This is
a great time for the Indian market that is exporting into South America. All
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
20
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the factors seem to be aligned for us to make
great strides in achieving better numbers.”
The main export from India to South
America is fashion apparel that has a high
degree of sequined work and creativity
involved in it. While the demand for such
products is high in the South American
markets, the demand is complemented by the
ability to spend as well.
The sentiment is echoed by Mr H K L
Magu, Chairman and Managing Director,
Jyothi Apparels, who says, “Chile and
Uruguay had many land owners who invested
in property when land prices were at rock
bottom. With the conditions improving,
they are now making a premium by selling
their land. They are spending on a great life
with all this new-found disposable income.
Naturally, stylish garments and merchandise
are of a huge interest.”
Additionally, India is known for its great
fashion sense and its elaborate sequined
work. There is, therefore, a huge demand
for it and, occasionally, brands are willing to
pay a premium for something extraordinary.
“White evening wear in Lucknowi Chikan
work sells for almost US$ 100 per piece since
it is considered exquisite,” states Mr Mathur.
Talking about trade opportunities, Mr
Mathur also highlights that, “India and Chile
share a Free Trade Agreement that makes it
much easier for us to export to the region.
Additionally, their import duty is only three
per cent.”
Additionally,
India is known
for its great
fashion sense
and its elaborate
sequined work.
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India’s export manufacturing map is quite
diverse. Most of the embellished blouses,
embroidery, heavy prints, handwork and
zardozi work is crafted in North India,
especially Jaipur. Gurgaon, Noida and
21
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
Faridabad are also the key markets. Knitted
cottons come from Tirupur and Bengaluru,
while knitted woollens are made in Ludhiana
predominantly. Woven outerwears, like
plain blouses, are the most popular from
Bengaluru, while both Mumbai and
Bengaluru are popular for denim wear. Kids’
garments come from all over India, with a
chunk of them emanating from Jabalpur,
Indore and Kolkata. Institutional garments
like uniforms and church wear are primarily
manufactured in Kolkata. Mumbai is home
to a majority of the manufacturing of lingerie
and body-fitting apparel which require a high
degree of packing also. Accessories like stoles
and slacks come mainly from Meerut.
Knowing this, it is important to understand
the markets from where exports to South
America originate from.
0VS"EWBOUBHF
South America has a long coastline. As a
result, it is a popular tourist destination too.
And this tourist population, mainly from
the United States and the United Kingdom,
comes with a huge propensity to buy fashion
apparel. In fact, most brands now have huge
chains of shops across the region. Observes
Mr Magu, who has been doing business for
more than three decades with the region,
“Chile is a big market with big brands and
big networks such as Riple and Falabella.
Men’s, women’s and kids’ wear, all find an
enormous appetite in these stores.”
So strong is the demand that Falabella has,
in fact, set up an outpost in Gurgaon. They
earlier had an office in Hong Kong only that
APPAREL MARKET FOCUS
$IBMMFOHFTGBDFE
The distance between India and South
America is vast, and this brings with it a host
of problems. The factory to rack time taken
for Indian apparels is very big. As a result,
many brands are unwilling to wait that long
to get supplies from us; they would rather
go with other regions even if they charge
a premium.
“Our primary export is of fashion
garments. Transporting the consignment by
sea takes months, and time is a luxury in this
business. However, air transport turns out to
be a very expensive proposition since the fee
for air transport is almost 5250 per kg. Due
to the nature of work undertaken on Indian
apparel with its embellishments, the weight
of each apparel exceeds that. The landing
cost of each unit thus shoots up, making the
proposition unviable,” opines Mr Mathur.
Additionally, there are challenges of
language also faced. “Spanish is the most
often spoken language in both Chile and
Uruguay. Hence, we have to be accompanied
by a translator, no matter where we go. While
the Chambers of Commerce do help us in
this regard, it limits our conversation with
our buyers. Even trade delegations face the
same problem,” says Mr Magu.
Our manufacturers are typically quite
unorganised in all aspects other than
manufacturing itself. Most international
norms have strict parameters laid down
for their suppliers. Compliances are to be
followed from a regulatory standpoint, laws
to be adhered to such as minimum wages,
standard working hours and so on. Service to
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serviced the entire subcontinent. This only
proves the relevance of the Indian market in
their business strategy.
The distance
between India
and South
America is vast,
and this brings
with it a host of
problems.
the buyer is also a major lacuna in our system.
When an international buyer works with
suppliers, they expect multiple designs and
varieties to be shown. Sending a salesman’s
sample is an international norm that is never
followed here. Strict adherence to deadlines
is also expected. In such cases, small timers
cannot often compete with more established
players in the global space.
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One of the areas where manufacturers seek
government intervention is to provide a levelplaying field through the easy availability
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of credit and interest equalisation scheme at three per cent.
Currently, they receive loans from banks at 12 per cent. Their
request to the regulatory authorities is to underwrite three
per cent of interest, so that Indian manufacturers get it at
nine per cent, bringing them on par with their Bangladeshi
counterparts. Banking facilities for Export Credit Guarantee
Corporation at lower premiums and a relaxation of norms is
another presentation before the current government.
And the final request they have presented is the
Government’s support for exports. Their submission is that
state taxes should not be levied and that minimum wages
not be pushed up. This would help make their wares more
affordable and competitive in the international markets
through the reduced cost of production.
$IBOHFTXJUOFTTFEJOUIFQBTUGFXZFBST
Newer markets are also emerging. Columbia used to be
very unsafe earlier with high drug usage. However, things
have now changed and trade has received a huge fillip, thus
notching up the export numbers to those markets too.
“We are expecting some good news from the event also in
the form of good orders. With its five trillion US dollar debt
going bad, the Chinese economy is bracing itself for tough
times ahead. Its labour wages have also shot up, thus setting
off their entire production cost and standing in the valueconscious market thereby. The two countries stepping into
its shoes are Bangladesh and India. Bangladesh is traditionally
known for apparel like t-shirts, shorts and so on, whereas the
ornate, embellished and creative designs from India are always
sought after,” he concludes.
Thus, India has been slowly and steadily biding its time
on the South American apparel market map too. And
the horizon seems to be widening some more with
the changes seen. Q
APPAREL INSIGHTS
MAKE IN INDIA:
AN OVERVIEW
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In September 2014, the Indian Prime Minister Narendra Modi launched the
national Make in India initiative that focuses on transforming India into a global
manufacturing destination. Under this programme, the process of clearance of
manufacturing projects is being smoothened, suitable infrastructure is being
developed and steps are being taken to make it easier, more efficient and quicker
for local and foreign companies to invest, manufacture and do business in India.
Thus, the Make in India initiative aims to facilitate investment, innovation,
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Make in India
Week Fashion
Show titled
Weaves of
Banaras.
entrepreneurship, manufacturing of infrastructure, and result in the growth of
the Indian economy in terms of manufacturing and employment. The Make
in India initiative has a special significance for the textile and apparel industry
as this sector is India’s second largest employer, the first being agriculture.
Further, its market size is estimated at US$ 116 billion, and is expected to reach
US$ 141 billion by 2021. The Government has formulated a number of export
promotion policies for the textile sector and has allowed 100 per cent FDI in the
Indian textiles sector under the automatic route.
Make in India
Week Fashion
Show titled
Weaves of
Banaras.
.",*/(*5)"11&/
The Government is keen to develop India as the easiest country to conduct
business in and to achieve this aim, new initiatives are being undertaken.
Twenty-five key sectors were identified under the Make in India programme;
CONFEDERATION OF INDIAN INDUSTRY
APPAREL INSIGHTS
textiles and garments is one of these sectors.
To implement the initiative, several steps have
been taken. These include the launch of a
website for information and queries (www.
makeinindia.com); social media (www.
facebook.com/makeinindiaofficial);
the
setting up of an Investor Facilitation Cell
by Invest India (www.investindia.gov.in),
the agency is the first point of contact for
foreign investors; and eBiz (www.ebiz.gov.
in/home)—a single window online clearance
portal. Since the announcement of the policy,
there have been substantial investments in
different sectors, including textiles.
"%7"/5"(&*/%*"
Given India’s rich and varied heritage of
textiles, along with the more recent growth of
stitched garments, there are several advantages
of manufacturing textiles and garments
in the country. According to the Make in
India website, India has the second largest
manufacturing capacity globally. The website
also mentions that the Indian textile industry
accounts for about 20 per cent of the world’s spindle capacity;
10 per cent of global rotor capacity; the highest loom capacity
(including hand looms) with 59 per cent of the world’s market
share; about 13 per cent of the world’s production of textile
fibre and yarn, is the largest producer of jute and cotton, and
the second largest producer of silk.
Other advantages listed are the country’s strong production
base of a wide range of fibre/yarn from natural fibres like
cotton/jute, silk and wool to synthetic/man-made fibres like
polyester, viscose, nylon and acrylic; increased penetration of
organised retail, favourable demographics and rising income
levels to drive textile demand; a comparative advantage in
terms of skilled manpower and cost of production over major
textile producers; abundant raw material and the increasing
demand for exports to boost fibre production; and the
abundant availability of raw materials such as cotton, wool,
silk and jute. All these factors make the country attractive for
manufacturing of textiles and garments. With manufacturing
being liberalised, the benefits for the textiles and garments
sector will be significant.
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Several schemes and steps have been taken to boost growth
in the textile and garment sector. According to the Make in
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
26
India website, the Technology Upgradation
Fund Scheme (TUFS) has infused investment
of more than 52,687 billion in the industry.
Support has been provided for modernisation
and upgradation by providing credit at reduced
rates and capital subsidies. Fift y-seven Textile
Parks have been sanctioned with an investment
of 560 billion. By 2017, 25 more textile parks
are to be sanctioned. Five billion rupees have
been earmarked for the Integrated Processing
Development Scheme for sanctioning
processing parks. The Integrated Skill
Development Scheme has provided training to
1.5 million people to cover all sub-sectors of
textiles such as textile and apparel, handicrafts,
handlooms, jute and sericulture.
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The theme of the event was innovation,
design and sustainability, and it was held
from February 13-18, 2016, at the MMRDA
Grounds, Bandra Kurla Complex (BKC),
Mumbai. Prime Minister Narendra Modi
inaugurated the Make in India Week in
27
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What stands out with Gap is its
thrust on innovation and change;
its classic denim is an ever-popular
range and is doing extremely well.
Mumbai on February 13, 2016, that saw the participation
of Indian and foreign companies, delegates and visitors.
The Government took the major initiative of planning and
launching the Make in India Week with the aim of attracting
more FDI into the country.
%&%*$"5&%4&.*/"34
Exhibits, interactions, discussions and seminars were
organised to highlight the potential of the textile and garment
industry during the Make in India Week. The Textiles
Department, Government of Maharashtra, organised a seminar
on ‘Textiles in Maharashtra: Golden Weave for Economic
Growth’ to highlight the importance of the textile sector in
the state’s economy and the opportunities the sector offers.
The seminar also highlighted the impact of the textile sector
in terms of output, exports and employment as the sector is
a huge employment generator for both, skilled and unskilled
labour, and accounts for 11.4 per cent of India’s textile and
apparel output. The prominence of textile parks across the state
was discussed.
Another seminar was organised on the textile and apparel
industry titled ‘Showcasing India’s Strengths Across the
Value Chain’. The session spelt out the niche opportunities
in the emerging areas such as technical textiles, investment
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
CONFEDERATION OF INDIAN INDUSTRY
CONFEDERATION OF INDIAN INDUSTRY
CONFEDERATION OF INDIAN INDUSTRY
APPAREL INSIGHTS
.BLFJO*OEJB8FFL'BTIJPO4IPXUJUMFE8FBWFTPG#BOBSBT
Make in India
Week Fashion
Show titled
Weaves of
Banaras.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
28
opportunities in textile hubs, clusters and
integrated textile parks; and presented the
success stories of the private sector in India.
There was a panel discussion on the subject
of India as a major sourcing hub for garments
and home textiles.
5&95*-&)6#4'03
(-0#"-1"35/&34)*14
During the Make in India Week, the
Maharashtra government unveiled its new
textile policy to tap domestic and global
investments based on the theme ‘Cotton to
Cloth, Farm to Fashion’. The policy offers
incentives of up to 25 to 30 per cent to selffinanced investors and is aimed at providing
better financial remuneration to three lakh
farmers in the cotton belt spread across the
14 districts of Maharashtra. On the anvil are
plans to establish at least 20 textile hubs across
the cotton growing districts of Vidarbha,
Marathwada and north Maharashtra. These
efforts would also address the agrarian crisis in
the state.
Domestic and global investors coming
forward to invest in these belts will be offered
special incentives of up to ten per cent. Selffinancing for textile hubs that are not relying
on major bank loans would also get special
incentives for investment in these backward
regions. The Swedish multinational retail
clothing company H&M has expressed
willingness to tap into the textile potential
through partnership with the state
government. Maharashtra Chief Minister
Devendra Fadnavis said the state is willing to
provide all the facilities for textile hubs. He
added that Maharashtra, with the maximum
cotton cultivation, can help India become a
textile leader in the world.
065$0.&0'5)&.",&*/
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According to an official post-event report, the
Make in India Week was successful in showcasing
India’s manufacturing prowess. The event was attended
by 8,90,000 visitors; had 215 exhibitors; 150 events; had a
representation of 102 countries; and over 8,000 B2B, B2G and
G2G meetings.
Investment worth 515,20,000 crores was committed. One
of the key deals was Raymond Industries committing to
invest 51,400 crores for manufacturing linen yarn and
fabric facility.
8&"7&40'#"/"3"4
As a part of Make in India Week, the Department of Industrial
Policy & Promotion (DIPP), Ministry of Commerce
and Industry, in collaboration with the Fashion Design
Council of India (FDCI), presented a fashion show titled
‘Weaves of Banaras’ at the ITC Grand Central, Mumbai.
The show presented the beauty of Banaras weaves in attire
designed by twelve veteran designers who showcased three
ensembles each. The designers were Sabyasachi Mukherjee,
Rohit Bal, Rohit Gandhi and Rahul Khanna, Rajesh Pratap
Singh, Namrata Joshipura, JJ Valaya, Ashish N Soni, Arjun
Saluja, Anju Modi, Anita Dongre, Abraham and Thakore, and
Abhishek Gupta.
Addressing the audience before the show, Mr Amitabh
Kant, Secretary, Department of Industrial Policy & Promotion
(DIPP), Government of India, said, “This initiative will help
promote our rich heritage and the artisans of Banaras, who
have strived to take forward this legacy. We want to put
the focus back on the weavers, promote this sustainable art
and bring it back to mainstream fashion. We are delighted
to receive such an overwhelming response for the Weaves
of Banaras.”
Sunil Sethi, President, FDCI, said, “Tonight, fashion was
seen as one of the industries in the Make in India context.
This is the biggest satisfaction that FDCI’s designers have
put our fraternity on the international scene. I would like to
thank Mr Amitabh Kant, Secretary, Department of Industrial
Policy & Promotion, Government of India, for giving us an
opportunity to collaborate with them. I would also extend
my heartfelt gratitude to the ITC Hotel management for the
perfect venue and hospitality.”
The show highlighted the span of possibilities for the Make
in India initiative in the textile and garment sector. Thus,
extended support and investment, the textile and garment
sector could be one of the biggest success stories of the Make
in India initiative. „
For further details, please visit http://ZZZPDNHLQLQGLDFRP/sector/textiles-and-garments or email the Make in India team at PDNHLQLQGLD#QLFLQ
29
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
APPAREL IN-FOCUS
THE
EXPORT
GROWTH
STORY!
SHUT TERSTOCK .COM
#*/%6(01"-3"0HJWFT
JOTJHIUTJOUPUIFBQQBSFM
FYQPSUTTDFOBSJP
Indian textiles
and apparel
have a
history of ³ne
craftsmanship
and global
appeal. The
Indian textile
and apparel
industry is one
of the largest in
the world with
an enormous
raw material and
manufacturing
base.
India will most likely achieve just over 90
per cent of its garment exports target in the
current fiscal, despite the sector putting up
a better show than textiles and many other
merchandise segments. The country’s apparel
exports may just about cross US$ 17 billion
in 2015-16, as outbound shipments to key
markets like the US and Europe remained
lower than expected due to the economic
slowdown. Indian textiles and apparel have a
history of fine craftsmanship and global appeal.
The Indian textile and apparel industry is one
of the largest in the world with an enormous
raw material and manufacturing base. In spite
of the previous year being a little slow, the
apparel exports have been doing great and this
year looks even better.
1016-"3$"5&(03*&4
India has an edge in value added garmenting,
which should remain partly insulated due to
the lack of readily available similar capabilities
in other competing countries. Cotton,
synthetics, wool, silk and denim are highly
popular abroad, and with the upsurge in
Indian design talent, Indian apparel, too, has
found success in the fashion centres of the
world. Cotton is also known as the fabric of
India. “India’s fabric range is vast and diverse,
from the fashion fabrics like voiles, prints and
embroideries to a variety of shirting, heavy
bottom weight and denim fabrics, a wide range
of home textiles and industrial fabrics. India
has them all. Knits are also a huge success in
the export world. India’s strength in knitting
has grown consistently over the years and
has earned global recognition. India offers a
variety from yarn to knitwear and world-class
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
30
LATIN QUARTERS
LATIN QUARTERS
LATIN QUARTERS
LATIN QUARTERS
LATIN QUARTERS
APPAREL IN-FOCUS
53&/%$)&$,
India is the first in global jute production and shares 63 per cent of the global
textile and garment market. India is second in global textile manufacturing and
also second in silk and cotton production. “With the influence of globalisation,
technology and demographic changes, the European market for apparel is
changing rapidly. European consumers have become more fashion-conscious.
They are seeking a greater western variety, becoming more aware of sustainability
and increasingly using the Internet and social media to follow trends and order
online,” says Rahul Bhalla, Co-founder and CEO, Latin Quarters. Innovation of
functionality of fabrics, cuts and styles has the potential to improve the image of
smart apparel. Apparel that is comfortable and affordable is what the consumers
are inclined to buy. Also, products which are of one region can actually be opened
up for global consumers.
5)&$)"--&/(&'"$503
One of the major challenges is the competition from other developing countries,
especially China. “Low cost imported fabrics are an issue and the industry is
highly dependent on cotton which is dependent on crop. The cotton textile
products also suffer the disadvantages of differential duties in major markets,” says
Jaggi. While a slowdown in exports widens the gap in the trade deficit, the surplus
capacity finds an outlet only through the channel of exports. Therefore, there is
a need that the textile industry is given interest rates subvention, re-calibrated
product market matrix to include exports to emerging markets, as exports are
growing in developed markets from the countries with preferential access. As
outbound shipments to key markets like the US and Europe remained lower
than expected due to an economic slowdown. Already, the garment exporters
are concerned about Vietnam, a key competitor, likely getting duty-free access to
the EU market from 2017 under a Free Trade Agreement concluded between the
two parties late last year, while Indian exporters have to pay a 9.6 per cent duty,”
avers Bhalla.
/6.#&3$36/$)*/(
During April-December 2015, India’s total apparel exports rose by a mere
2.8 per cent to US$ 12.5 billion, lower than 14.7 per cent growth during the
same period a year ago. Largely attributed to the sluggish demand from Europe
and the devaluation of Chinese Yuan (¥) against the US dollar, India’s apparel
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
32
SHUTTERSTOCK.COM
*OEJBJTBMTPBUB
EJTBEWBOUBHFBTUIFIJHI
DPTUPGFYQPSUꗅOBODF
XIJDIJTBSPVOEQFS
DFOUBTDPNQBSFEUP
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DPNQFUJOHDPVOUSJFTMJLF
7JFUOBN#BOHMBEFTI
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DPNQFUJUJWFOFTT
LATIN QUARTERS
solutions in circular knitting, warp knitting, flat knitting and jacquard,” opines
Aanchal Jaggi, Aakarshan, a Dubai-based Fashion label. Virendra Bardia, CEO,
Ethnic Dukaan.com, says, “Designer saris in which we have expertise since the
last three decades, and handloom are the two ranges that are doing very well. Our
products are exactly as shown on the site, in fact, even better, which results in over
60 per cent of repeat customers for us."
exports have become less competitive. However, the demand for apparels from
the United States remained steady and the exports to UAE also grew at a robust
pace, making India the second largest destination for apparel exports. With
apparel exporters witnessing a spike in orders during the March quarter, India’s
total apparel exports is set to grow by seven per cent to US$ 18 billion in 201516. In 2016-17, growth in outbound apparel shipments is set to accelerate. Also,
apparel exporters are looking to tap newer markets such as Middle-East, Latin
America and Africa to boost their revenues. It is also estimated that India’s apparel
exports will grow by 12.6 per cent in 2016-17 and the export value is likely to
stand at 520.3 billion during the year. India's apparel exports are set for a boost
in the next two years despite a slowdown in the demand from China. Credit
rating agency ICRA forecasts that India’s apparel exports will rise by 20 per cent
in the next two years to US$ 20 billion by the calendar year 2016 as against an
estimated US$ 18 billion in 2015 and US$ 16.5 billion in 2014. The domestic
apparel market has grown at a CAGR of around 10 per cent over the last five years
with growth in the economy and rising income levels, and is expected to maintain
the growth rate over the medium term. While there could be short term blips on
account of moderation in economic growth and increase in inflation or interest
rates as witnessed in FY ’09 and FY ’12, the long term prospects for the industry
are favourable. India exported US$ 41.4 billion worth of textiles (including raw
cotton) out of which US$ 18 billion was apparel in FY ’15. US is a key destination
for textile and apparel exports, and US import duties range between 15 to 50 per
cent, depending upon woven or knit textiles, or the type of raw material used.
SHUTTERSTOCK.COM
(07&3/.&/5*.1&564
The government has also initiated several steps to boost apparel exports during
2016-17. The new Merchandise Export from India Scheme (MEIS scheme)
introduced in the Foreign Trade Policy of 2015-20 has included exports of
very few products to select markets. Many important markets like African
countries, South Korea, China and Vietnam have been left out of the scheme.
Non-coverage of exports of mainstream products to leading markets under the
MEIS is having its own impact on India's textiles exports as the margins have
shrunk due to price pressure from competing countries. The enhancement
of market coverage under the MEIS, two per cent upward revision of duty
drawback rates for ready-made garment exports and three per cent interest
equalisation on pre and post shipment of rupee export credit are expected to
help Also the Amended Technology Upgradation Funds Scheme (A-TUFS)
in place of the existing Revised Restructured Technology Upgradation Funds
Scheme (RR-TUFS) where 15 per cent subsidy would be provided on capital
investment, subject to a ceiling of 5300 million for projects under readymade
garments is expected to help. This scheme would ease the financial burden
on the ready-made garment manufacturers and enable higher investments in
the industry. „
33
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
MALIN BOBECK / YANN HOULBERG ANDERSEN,
THOSE WHO AFFECTED ME
APPAREL DESIGNER SPOTLIGHT
MALIN BOBECK / JAN BERG, FLOW
"/63*."%"4TQFBLTUP
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XJUIBEJGGFSFODFCBTFEJO
4UPDLIPMN4XFEFOBOEDPNFT
CBDLJODSFEJCMZJNQSFTTFE
MALIN BOBECK, TEXTILE DESIGNER.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
34
MALIN BOBECK / YANN HOULBERG ANDERSEN,
THOSE WHO AFFECTED ME
APPAREL DESIGNER SPOTLIGHT
MALIN BOBECK / JAN BERG, FLOW
"/63*."%"4TQFBLTUP
.BMJO#PCFDLBUFYUJMFEFTJHOFS
XJUIBEJGGFSFODFCBTFEJO
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CBDLJODSFEJCMZJNQSFTTFE
MALIN BOBECK, TEXTILE DESIGNER.
"11" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2016
34
MALIN BOBECK / YANN HOULBERG ANDERSEN,
THOSE WHO AFFECTED ME
MALIN BOBECK / YANN HOULBERG ANDERSEN,
THOSE WHO AFFECTED ME
MALIN BOBECK / YANN HOULBERG ANDERSEN,
THOSE WHO AFFECTED ME
MALIN BOBECK, TEXTILE DESIGNER.
35
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
Ablaze with creativity,
radiant with ideas and
spirited with positivity, 29
year old Malin Bobeck,
a textile designer and
artist, based in Stockholm,
Sweden, is a designer with
a difference. The only word
that fits as a descriptor for
Malin Bobeck’s work is
magic. Weaving light into
textiles, the designer has
given birth to an illusion
that is futuristic in terms
of the technology used.
There is fluidity in her art
and concrete determination
in every theme, backed
by a long heart-warming
background story. Her
recent work ‘Those Who
Affected Me’ is a stunning
interactive light emitting
textile art installation,
and was exhibited at the
Gothenburg Museum of
Art. Amidst making textiles
interactive and making them
glow on touch, the young
designer spoke straight from
her heart, about her craft and
turned the pages of her life
too. Read on...
APPAREL DESIGNER SPOTLIGHT
Textile and art, how and when did it
all start?
MALIN BOBECK: I guess it all started
when I was a kid; crafting was one of my
favourite hobbies. Creating new things
out of random materials was always
exciting for me. But if you ask my mum,
she would say it started when I was in her
tummy. While she was pregnant with
me, she had a big handloom on which
she crafted textiles. In high school, I
studied industrial design but I felt that it
was too much computer work and too
little hands-on work, so after high school,
I chose to focus on textiles. Since then I
have studied in different textile schools
for seven years and have been working
with fashion, theatre costumes and textile
puppets, amongst other things.
“When the
viewer stands
underneath it
and touches
the textile,
it sends out
colourful ripples
up and down
the fabric. It’s
named ‘Those
Who Affected
Me’ because,
I think of it as a
self-portrait, a
tribute to those
who affect me
as touch affects
the piece. The
piece is right
now on view at
the Gothenburg
Museum of
Art, Sweden.”
Light emitting fabrics, what inspired
you to fuse the two media?
MALIN BOBECK: I was studying at
The Swedish School of Textiles and we
had a weaving course that encouraged us
to use new materials. There I found that
optical fibre could be used in weaving
and it was a perfect match for me. I got
to really work on the weave bindings,
the patterns and the materials to create
just the effect I wanted. It also sparked
my fascination for lights, and triggered a
curiosity in me of what could be done.
I enjoy doing things I have never done
before, sometimes it seems hopeless but
all of a sudden, it works, and that brings
happiness and satisfaction.
Tell us a little about your recent
textile installation exhibition.
MALIN BOBECK: The idea of that
project was the hypothesis that I could
craft interactive textiles. The project got
funding from a foundation and I worked
with it for about a year. I started trying
out different materials in handloom to
see how they worked out when you make
a textile out of them. Some materials
that I use are not at all made for weaving
so sometimes they can behave totally
different when I use them in the loom.
The final textile for the art piece is
woven on a huge two-story-high jacquard
loom in a weaving mill in Sweden. The
textile is woven in three layers with a
combination of optical fibre, conductive
copper treads, cotton, polyester and
shrinking yarn. The copper threads are
connected to touch sensors and create
touch-sensitive areas inside the fabric.
The optical fibre is mounted to 500
addressable colour LEDs connected to a
microcomputer. The fabric is mounted
with steel rods around a cylinder and
suspended in mid-air. When the viewer
stands underneath it and touches the
textile, it sends out colourful ripples up
and down the fabric. It’s named ‘Those
Who Affected Me’ because, I think of
it as a self-portrait, a tribute to those
who affect me as touch affects the piece.
The piece is right now on view at the
Gothenburg Museum of Art, Sweden.
How has the show been received?
MALIN BOBECK: Really well! It was a
big opening, and I invited all my friends
and encouraged them to put on their best
costume with LED lights. It was a success.
And now the museum tells me that
there are a lot of people appreciating and
interacting with it every day.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
36
37
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
MALIN BOBECK / YANN HOULBERG ANDERSEN,
THOSE WHO AFFECTED ME
MALIN BOBECK
MALIN BOBECK / YANN HOULBERG ANDERSEN,
THOSE WHO AFFECTED ME
MALIN BOBECK / YANN HOULBERG ANDERSEN,
THOSE WHO AFFECTED ME
MALIN BOBECK
MALIN BOBECK / JAN BERG, DROPLET
MALIN BOBECK / YANN HOULBERG ANDERSEN,
THOSE WHO AFFECTED ME
APPAREL DESIGNER SPOTLIGHT
A QUICK RAPID FIRE
YOUR FAVOURITE FABRIC?
Difficult, if I have to pick one,
I would say wool jersey.
IF NOT TEXTILE, WHICH DESIGNER
WOULD YOU HAVE BEEN?
Jewellery, I also do silversmith work.
YOUR DESIGN INSPIRATION?
Creepy underwater animals.
WHAT/WHO LIGHTS UP YOUR DAY?
Coffee.
When you plan your projects, what
inspires or nudges you to choose
your next?
MALIN BOBECK: Usually what inspires
me is the idea of creating something that I
have never done before, and do not know if
it will work or not. I really like the problemsolving that comes with working like that. It
also creates some anxiety when I hit a bump
on the road but that is part of the process.
Take us through this journey, what is
the path you tread?
MALIN BOBECK: I see myself as a mix
between a designer, an artist and a maker,
and I am hoping my work will inspire others
to create things themselves. I believe that
you should follow your heart and give room
to your imagination, and then magical
things can happen.
You have fought a personal battle too.
How far has the same influenced your art?
MALIN BOBECK: Quite a bit, I would
say, if I hadn’t gone through that tough
period in my life, I wouldn’t have dared to
work the way I do. Going through Cancer
made me quite daring, and today, I don’t
fear my failures anymore. That goes for the
work of creating art but also of running my
own business.
Tell us about a work of yours that you
are too proud of.
MALIN BOBECK: I designed a light
emitting fabric for Volvo a couple of years
ago. They did a conceptual car with a focus
on lights. They placed the fabric between
the driver and the passage seat and it started
to glow when the car accelerated.
Can you shed some light on the awards
and accolades that have come your way
till now?
MALIN BOBECK: I have received funding
for my project from Innovativ Kultur
which is a Swedish foundation that supports
innovative cultural projects. Last year, I also
got awarded with the ‘Encouragement of
Culture’ from Sten A Olssons Foundation.
What is your new project? Give us a
sneak peek into what’s in store for us.
MALIN BOBECK: I am working on
making my art mobile, to be able to put
it on the human body and have people
walking around as moving art pieces.
Any plans to bring your work to India?
MALIN BOBECK: I haven’t got anything
planned yet, but if there is an opening I
would love to show my work in India. In
2014, I had spent five months in Rishikesh,
Uttarakhand, working with a NGO called
Bhartiya Gramotthan Sanstha; they teach
textile techniques to women in rural areas.
So, I have a lot of friends in India and have
also thought about possible production
when I get bigger orders. „
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
38
APPAREL TREND TALES
ALES
COLOUR
AND
PRINT
TREND
FORECAST
A/W ’16l17
"MPPLBUUIFUSFOETGPSFDBTU
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8JOUFSѳTFBTPO
As we look forward to A/W ’16-17, the global trends authority, WGSN,
predicts the key men’s wear colour and print stories that are expected to
be big this season.
39
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
APPAREL TREND TALES
TOMATO
TO RED: Tomato
ibrant accent this
red is a vibrant
season, worked in a solid,
saturated colour and is the most
cially viable for knitwear.
commercially
ailored outerwear styles
Classic tailored
rnised through the bold
are modernised
on of this colour, further
application
ting the importance of
accentuating
fluenced tailored styles
sports-infl
that look great when paired
with the season’s intense blues.
vely, opt for a flash of
Alternatively,
rough layered styling
colour through
that will give a contemporary feel
ry looks.
to military
GREENS HOG
THE HEADLINE:
Rich core colours prioritised
d this
autumn for men’s wear; the biggest
story focuses on the growingg
importance of greens, essential
ial for
tial
military looks and the potential
upied
contenders for the space occupied
by blues which we have seen
saturate the market.
n in
Greens have gained traction
core outdoor levels as well as in
hionthe introduction of more fashionfocused pale sage and clay. A
miliar
lighter shade of the more familiar
khaki that we are so used to seeing,
m
pale sage carries through from
ith it
Spring/Summer, bringing with
tated
clay as a cooler, more understated
brown-cast alternative that will add
n’s
a modern appeal to the season’s
outdoor and military looks.
DEEP DARK BLUES:
Dark blues return for
autumn, as they continue
to drive the men’s wear
market with their universal
appeal overriding black
as the core dark colour.
Intense, inky levels
are influenced by the
onslaught of indigo in
the recent seasons, most
commonly seen across
tailoring and outerwear.
Depth is brought through
with the introduction
of plush velvet or tactile
fabrics for added intensity
on collars or lapels. Lighter
denim levels feature for
transitional deliveries while
ultra-blues shift this palette
into the fashion arena.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
40
CAMOUFLAGE AND SHADOW
S
CHECKS DOMINATE PRINT STORIES
Safe seasonal options such as camouflage
and shadow checks are an easy sell, featuring
strongly in the A/W ’16-17 print stories. It is
no surprise that camouflage is set to make its
return as military and utility influences gain
traction. This staple pattern is updated with
an understated quality, with camos becomingg
hazy through the use of tonal colourways
and tactile or plush fabrics. „
This article is provided by WGSN,
for more information, log on to the
website: www.wgsn.com
For further details,
contact: TMTIBSNB!BFQDJOEJBDPN
41
" 1 1" 3&3& - EXPORT
EXP O RT PRO
PROMOTION
M OT I O N C
COUNCIL
O U N CIL MAG
MAGAZINE
AZINE APRIL 2 0 1 6
APPAREL BUDGET BUZZ
REVIEWING
THE BUDGET,
EXPLORING THE
POSSIBILITIES!
1"/,"+"#"-"+*SFQPSUTPOUIF6OJPO#VEHFUPGBOEJUTJNQBDUPOUIFBQQBSFMFYQPSUJOEVTUSZ
SHUTTERSTOCK.COM
The Union Budget of 2016 presented by Finance Minister Arun Jaitley has,
in broader terms, given hope to the sector for easier and cheaper trade but
the push for domestic textile manufacturing under Make in India has raised
some concerns.
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Even among the highlights of the Budget, which are many, the cut in excise duties
for textiles from five per cent to 2.5 per cent has definitely gained attention of the
positive kind. Furthering the ease of business, in addition to this, the government’s
move to exempt one per cent of Free Over Board (FOB) value of exports in the
preceding financial year for specific fibres is indicative of the government’s push
to make smaller and medium scaled enterprises more competitive in the export
sector. This would provide additional finance to the tune of 55,000 crore to
garment exporters, added Mr Rajani.
Further impetus for exports was the continued zero excise on trimmings and
embellishments for export garments to the extent of five per cent of FOB. This
would provide additional finance to the tune of 55,000 crore to garment exporters,
added Mr Rajani. This substantial financial windfall means that there is increased
liquidity in the market and the chance for further business to be transacted, which
will only be improved upon by the announced opportunity for deferred payment
of excise duties for exporters with proven track records.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
42
SHUTTERSTOCK.COM
5"9"5*0/0'
"/05)&3,*/%
The increased liquidity
in the sector, however,
might not lead to greater
opportunities in light of the
increased service tax from 14.5 per
cent to 15 per cent. Adding to this cost is the
proposed new imposition of two per cent
excise duty on branded garments above 51,000
and the 60 per cent of the retail sale price be
made eligible for excise or countervailing duty,
doubling of the previously fixed 30 per cent.
Dr A Sakthivel, President, Tirupur Exporters
Association, who quantified the budget as
being largely positive, addressing the demands
of the Association, nonetheless, felt that that
the proposed two per cent excise duty while
being difficult to administer, would also have
an adverse effect on the much needed growth
trajectory of the sector.
Mr Rahul Mehta, Chairman, Clothing
Manufacturers Association of India (CMAI),
was also of the same opinion, “It is disastrous
for (the) textiles industry. At a time when
the government is talking about the
implementation of the goods and services tax
(GST), what is the need for bring in new levy,
especially when the textiles industry is passing
through a rough phase,” said Mr Rahul Mehta,
President, CMAI.
43
The eight Mega
Clusters which
have been
allocated 5300
crore, have
seen more than
doubling of their
allotment from
previous year’s
allocation of
5136 crore.
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
#6%(&5"3:"--0$"5*0/"/%
5)&*3*.1-*$"5*0/4
In the Union Budget this year, the Finance
Minister Mr Arun Jaitley has allocated 53,350
crore for the textile industry, including 51,400
crore for the amended TUFS and 5300 crore
for the development of Mega Clusters, and
5200 crore for rural development.
The allocation of funds comes on the heels
of the Amended Technology Upgradation
Fund Scheme but is worryingly still lower
than previous years. The TUFS is expected
to attract one lakh crore rupees of investment
by 2022 and create 30 lakh jobs. With one
of the major objectives of the TUFS being
to promote exports, any fund allocation is a
positive sign and an opportunity to expand
India’s technical textile export portfolio
and volume.
The eight Mega Clusters which have been
allocated 5300 crore, have seen more than
doubling of their allotment from the previous
year’s allocation of 5136 crore. During the
announcement of the launch of the textile mega
clusters in the Union Budget of 2014-15, the
Powerloom Development Export Promotion
Council anticipated tremendous growth of
almost 50 per cent in India’s share in the global
market by 2017-18. They further estimated a
growth of exports to 51,76,000 crore by end of
2017-18. With the date looming close, it will
be interesting to see the role the mega clusters
play in expanding the sector’s growth.
The allotment of 51,700 crore for
setting up of 1,500 multi-skill development
centres is another feather in the government’s
National Skill Development Mission, a
multipronged national scheme to improve
labour market skills.
Overall, the budget this year has not made
any sweeping changes but has continued
on the previously laid tracks. There are still
many more changes to be expected before
anything can be finally said about the impact
of the Union Budget 2016-17. „
APPAREL BRAND PROFILE
REALISING
THEAMERICAN
DREAM!
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The Greek philosopher, Heraclitus very rightly said, “The only thing that
is constant is change”. And fashion is synonymous with change. Given the
quirkiness of contemporary fashion, the business of new brand launches and
the reinventing of old ones, innovation abounds. Niche areas are discovered
and brands created, with enough product differentiation and brand awareness.
Forever 21 is a brand that focuses on the most contemporary and quirky
designs and fits, keeping in mind the trends in the market. It has the uncanny
ability to zero in on the sartorial habits of millions across the world. No one
wants to be bothered with the baggage of expensive, out of fashion clothing.
This is an affordable, trendier alternative. Gap, the all-American company with
the inimitable jeans, has transcended jeans to include performance-oriented
clothing today; it is in the forefront of fashion, yet retaining the classic jeans
and denim formula. Comfortable, with the times and innovative; these are the
key words that come to mind when one thinks of Forever 21. Its stable of solid
brands with inimitable style and embracing futuristic technology, keeps it at the
top of the ladder.
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44
With an inspiring
history, Forever
21 is a huge
motivation
³rst-generation
entrepreneurs. It
was set up in 1981
by Do Won Chang
and his wife Jin
Sook Chang.
45
'03&7&3
Promising to make you feel forever 21, the much-loved brand is frequented
by the young and old alike. With an inspiring history, Forever 21 is a huge
motivation for first-generation entrepreneurs. It was set up in 1981 by Do Won
Chang and his wife Jin Sook Chang. Emigrants from South Korea, Chang used
to work in a gas station. Here, he realised that all those who came in luxury cars
were associated with the apparel industry. Making that observation, he decided
that the apparel industry is the place to invest in. With enough motivation, the
first store called Fashion 21 was set up in Los Angeles, California, spread over
just 900 sq. ft. The name was subsequently changed to Forever 21. The company
has grown from strength to strength, with a new store being opened every six
months. Today, the American retail chain is amongst the largest privately-held
companies. It had a ranking of 95 in Forbes’ list of America’s largest private
companies in 2015. As Forbes puts it, “Fast-fashion retailer Forever 21 operates
over 600 stores under the Forever 21, XXI Forever, For Love 21, Heritage
1981, and Reference banners. Forever 21 sells men’s and women’s clothing and
accessories. Stores can be found throughout the US and in Canada, Europe,
Japan, Korea and the Philippines.”
Affordable fashion, this has been the focus of Forever 21. The initial
store set-up also sold affordable women’s fashion wear. The business is
essentially a family-run one. If one was to look at a branding strategy or the
niche segment which Forever 21 targets, there is no particular one. The
tagline usually used to describe the company is a ‘one-stop destination for
fashion’. “Forever 21 wants to inspire all customers’ shopping experience by
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
APPAREL BRAND PROFILE
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providing a captivating and an exciting store environment
with a never-ending flow of fun and on-trend fashion at a
great value. Forever 21 is not about a particular age, it is for
anyone who wants to be trendy, fresh and young in spirit.
Forever 21 carries the brands that cater to the individual styles
of everyone, every size, and every phase of life. Under Forever
21, the brand also has 21MEN, Love21, Forever 21+, Forever
21 Girls and Love & Beauty,” the company states.
Turning the usual concept of having a brand identity or
focus, the company has essentially remained fluid, almost
like a supermarket where everything is available; only that
the ‘everything’ is chic, affordable luxury fashion, suitable
for all genres. There are no target customers, there is no
compartmentalisation, like only sportswear, women’s wear or
lingerie; Forever 21 takes pride in its wide spectrum of clothing
for all age groups. The target customer segment is wide, from
toddlers to adults. Fashion accessories are another big hit. By
not focusing on anything in particular, the store is considered
easily accessible by customers who want something which is
up-to-date, latest, yet not bogged down by prices. The USP of
the company has been its ability to spot fashion trends and offer
the same to customers at reasonable prices. It offers products
which do not need huge financial investments, but are still
‘hip’ and ‘happening’. It is this ‘on your toes to spot fashion,
turn it into merchandise and get it into the stores at a lightning
speed’ attitude which has resulted in the remarkable growth of
this company.
As the company’s website puts it, “With the goal to become
an eight billion US dollar company by 2017, and open 600
stores in the next three years, it will be exciting to see the
company achieve in three years, what it initially took 30 years
to achieve. The average Forever 21 store is 38,000 sq. ft, the
largest is approximately 162,000 sq. ft and the original Fashion
21 store is only 900 sq. ft. Fashion 21 rung up US$ 700,000 in
sales in its first year. ”
("1
If one were to look at a quintessential American company with
a typical American product, it is Gap. Blue jeans, America and
Gap go hand in hand. An entrepreneurial dream story which
became a runaway success is how it can be actually described
as. The tag line—The right fit since 1969—was the dream
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
46
What stands out
with Gap is its
thrust on innovation
and change; its
classic denim is
an ever-popular
range and is doing
extremely well.
of Doris and Donald Fisher. The name Gap was in
reference to generation gap. What they founded was a
specialised retail chain. The first store, and their journey,
came into being when Don could not find a pair of
jeans that fit him perfectly. From then on, Gap literally
transformed retail. An iconic brand, it has withstood
fashion dictates and fancies; for Gap, as the website puts
it, “American optimism is our attitude.” The brand
focus and strategy: “Casual style is our aesthetic. Clean
and confident, comfortable and accessible, classic and
modern, it’s the quintessential expression of Gap brought
to life through iconic clothing. Our collections are a
modern interpretation of our denim roots and signature
pieces that are a staple for every wardrobe. Gap embraces
a youthful, infectious spirit and the freedom to express
individual style.”
Donald Fisher wanted to sell comfortable clothing
to the youth and open a retail chain for apparel. They
sold jeans and the first store was near the San Francisco University. Despite the
proximity to the University campus, it was difficult selling. On the verge of a
closedown, he marked down the prices to get rid of the stock. The sales were
terrific and everything sold out. He went through the experiment again with
jeans and lower prices and the sales were good. The concept was established
and there was no looking back. The 70s saw the brand create its own labels and
designs; It went public in 1976. Though it was selling a few niche products like
jeans and jackets, in the mid-1980s, only Gap’s own brands were put to sale.
What stands out with Gap is its thrust on innovation and change; its classic
denim is an ever-popular range and is doing extremely well. The classic fit,
retrograde from 69, fits in well. The next in line is marrying technology with
apparel or accessories. Gap is partnering with Intel for wearable technology
range; Remarkwool—a blend of natural wool and man-made fabric polyester—
to create a range of apparel which remains cool in summers and warm in winters.
Advanced technical fabrics have resulted in creating performance-oriented
apparel, for example, the unsinkable t-shirt.
The company now has 1,700 company-operated and franchise retail locations
all over the world; a global fashion business with five brands—Gap, Banana
Republic, Old Navy, Athleta and Intermix. Gap's clothes are available in 90
countries worldwide through 3,300 company-operated stores and almost 400
franchise stores. There is an online presence in around 70 countries.
Both the brands have used their highly successful franchisee model for India.
It will enable the brands in question to expand their footprint in India. Q
ALL IIMAGES: SHUTTERSTOCK.COM
47
" 1 1" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
APPAREL TRADE TALK
J C PENNEY:
UN-REINVENTING
ITSELF
+"/*$&(07&"4%ѳ406;"FYQMPSFTIPXBSFUBJMTUPSFDIBOHFEUIFXBZJUEJECVTJOFTTBOEUIFODPSSFDUFEDPVSTF
J C Penney Company, more commonly
known as JCP, is a chain of American midrange department stores based in Texas.
Operating 1060 department stores across 49
US states, the stores often house several leased
departments like Sephora, portrait studios,
salons, optical centres, amongst others. The
stores are located in suburban shopping malls.
As shopping malls got more popular, JCP
followed the trend of relocating its stores
from downtown areas, to developing stores to
anchor malls.
In the recent years, the chain has continued
to follow consumer traffic, echoing the retailing
trend of opening some freestanding stores,
including some next door to competitors.
The company has also been retailing on the
Internet since 1998.
The reshaping of JCP could serve as a case
study for several retail giants in India as they
face a tough environment with a growing
e-commerce market and a corresponding
stagnation in the brick and mortar retail sales
because of the shopper traffic falling.
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Under Ron Johnson who was hired as the
company’s CEO in 2012, JCP’s stocks
plunged. The company’s stores were struggling
before Johnson came in. From 2006 to 2011,
JCP has had the worst performance amongst
its peers. Johnson took the company from a
period of gentle decline to a downright freefall during his tenure.
Earlier in April 2015, JCP fired him but
Johnson did a lot of things right. Firstly,
he brought in a new team, to send out a
strong message that innovation needs to start
from the top. Secondly, he took the sales
staff off commissions to create a culture of
collaboration and teamwork. He ignored the
quarterly results and focused on the long term,
introducing dramatic, radical innovation
with the goal of reinventing JCP as more
than a department store. This included a ban
on discounts and a store within a store that
focused on the customer experience.
So, why didn’t Johnson’s approach work
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
48
DREAMSTIME.COM
49
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
APPAREL TRADE TALK
at JCP? Johnson’s new strategy offended
long-time customers, who were seeking
discounts, and they left in droves taking
their business to Macy’s and Kohl’s. And the
rebranding strategy didn’t work fast enough
to attract the high-dollar customers who
don’t care about finding the lowest price.
Yet, transforming a mid-level brand like
JCP into a classy, high-end brand was going
to take years, no matter who was in charge.
Maybe Johnson just wasn’t given enough time
to do a nearly impossible job.
In retrospect, Johnson didn’t quite get
the balance right; the challenge of creative
transformation is to maintain sufficient
revenues from the existing business model, to
buy time to roll out the new business model.
5)&6/3&*/7&/5*0/
JCP’s sales are back on track now that the
department store chain has un-reinvented
itself. Sweeping changes initiated by former
CEO Ron Johnson, including killing
coupons and reconfiguring the home goods
department, have been reversed in the past
two years. Since the fourth quarter of 2013,
the retailer has had three straight quarters of
sales growth. Same-store sales are up by 6.6
per cent so far this year, gross profit margin is
up by 430 basis points, and the chain’s number
of active customers for the trailing 12 months
is within one percent of its 2011 number.
Penney has also hired former Executive
Vice President of stores, Home Depot, Mr
Marvin Ellison as the new CEO. Ellison
became the CEO in August 2015, with a
mandate to plug the store’s countless leaks
in operations, strategy, and technology,
problems left over from the chain’s nearly fatal
attempt to reinvent itself four years ago. He
and Penney’s board are betting that such small
but meaningful improvements will add up to
a full recovery.
The company has a slew of new plans to
grab more dollars from its existing customer
base. Penney’s plans now include:
Growing sales by adding more Sephora
boutiques to existing stores. A Sephora
customer comes more often and is the
second most shopping inclined customer
in the store.
Continue its relationship with Disney
which opened about 500 in-store
boutiques in Penney stores last year and
additional 116 stores are planned.
Upgrade and rebrand 900 in-house
beauty salons. In-house beauty salons
present a growing business opportunity
for the chain.
Fashion accessories, jewellery and
footwear merchandise segments where
Penney has an opportunity to grow and
grab market share.
Revamping its struggling home
goods department, reinstalling brands
which were left out in the earlier
rebranding round.
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Penney plans to convert more of its shoppers
into omnichannel shoppers who visit the store
and shop on their website while using their
Smartphone app. Omnichannel shoppers are
more and spend three times more than the
store only customer, says Mike Rodgers, who
looks after JCP’s omnichannel strategy and
execution. Same-day delivery, in-store pickup,
and ship-from-store capabilities are all a part
of the retailer’s plan to make omnichannel
shopping as seamless as possible, Rodgers said.
To aid this transition JCP has closed
approximately 40 stores in 2015, about four
per cent of the chain’s total stores. About
2,250 jobs were lost, according to Joey
Thomas, a spokesman for the company. Most
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
50
stores close around April 2015. This would bring the stores
fleet down to 1020 locations. This is the second year in a row
for the company shutting down its stores.
Store closings might be a sign of trouble for a retailer but in
JCP’s case, this could count as good news. Comparable sales
rose by 3.7 per cent in November and December last year,
positively affecting the company’s shares as well. With many
malls shutting down and e-commerce expected to grow, there
is a strong case for downsizing Penney’s footprint. The future
is about being a smaller, nimbler and a more profitable retailer.
Too many Penney stores are in dead malls: Penney
operates nearly 700 mall based stores but half of them are
in so called ‘B’ malls which have a weak traffic and a 25
per cent of them are in ‘C’ malls which are in undesirable
spots. Only a quarter of the stores are in prime location
malls. With 20 per cent of US malls slated to close in a
few years, most of the Penney store closings are in the
dead malls.
Sales per square foot and overall sales don’t justify a
big fleet of store: It was ok for JCP to have 1,100 stores
when its sales hovered around US$ 20 billion in 2006.
The company lost customers for good, in the latter half of
2012 and first half of 2013 under the aegis of Ron Johnson,
when he failed to reinvent the store to appeal to a changing
audience. Penney said in October 2015, it expects sales to
only reach US$ 14.5 billion by 2017, despite all its efforts
to bring back the in-house brands and discounts its loyal
customers wanted, suggesting many customers have
been lost for good, and making it hard to justify the same
number of stores as before.
Upswing in its e-commerce business: E-commerce
could eventually hit 20 per cent of the company sales (from
about 10 per cent now) said Mike Rodgers, hired to fix
its e-commerce business, further diminishing the need
for so many stores. While it is true that retailers will need
stores to help e-commerce, so that they can function as
showrooms and distribution centers, it is not true when
it pertains to unattractive stores in malls no one goes
to anymore.
Stored leased locations would be the ones to close:
While Penney owns an unusually large amount of its
stores (about half), the ones it is closing are, for the most
part, leased stores. So, that takes no assets off their balance
51
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
sheets (it would in the case of a lease in
a good mall and with several years to go)
and allows Penney to gradually shrink
its footprint as needed without paying
penalties.
8)"5*/%*"/4503&4$"/-&"3/
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The case of JCP under the leadership of Ron
Johnson is a cautionary tale for retailers about
how changing the in-store strategy will not
necessarily drive sales, if all the other pieces are
not in place. Here are some areas to watch out
for if the retailers are planning on a reinvention
like JCP:
Prepare customers for change:
Changing too quickly could alienate the
existing customers. It is important to
make sure customers are well prepared for
the changes, both demographically and in
terms of the shopping experience.
Training staff: Any new change requires
a whole lot of training investments so that
the people who work for you are on the
same page and singing the same tune as
the company is going through the change.
Gradual roll out: Thoughtful tests
that are rolled out over a period of time
against growing consumer bases tend to
be successful. For example, the one way
to prepare customers for using mobiles to
enhance the customer experience is with
a gradual roll out that involves testing and
learning along the way.
A test and learn approach always works better
when your brand and the stores associated
with the brand have been in business for
as long as JCP was. It is easier to lose your
existing customers than it is to gain new
ones. Setting low expectations for a business
is the best approach when the company is
changing course. It gives the company time
to readjust. „
APPAREL TRADE TALK
THE
QUALITY
CONUNDRUM
BIZPLUSS.IN
The plethora of apparel stores are seen
in most Tier 1 cities, and a common
criterion to judge the standard of the clothing
is to simply refer to them as ‘export quality.’ Naturally,
what that means is that the garments need to pass
stringent quality checks before they can actually be
exported. Again, if you look at two similar garments†
one that is to be exported and the other that it is to be
sold locally†it is hard not to miss out the differences
in colour, fastness, the fabric quality and other similar
aspects. Dr Subrata Das from the Consumer Testing
Laboratories (India) Inc., Bengaluru, has done extensive
research on the topic and says, “Assurance of international
standards, product innovation and adaptability to the
changing tastes of consumers are some of the areas of
interest. To win over apparel consumers, manufacturers,
brands and retailers are struggling hard to identify the
product value. Undoubtedly, fashion sells, but only to a point,
beyond which many consumers are searching for more values
in apparel. Traditionally, ‘value’ has been defined as a function
" 11" 3&- EXPORT
E
PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
52
SHUTTERSTOCK.COM
#*/%6(01"-3"0FYQMPSFTUIFXPSMEPGFYQPSURVBMJUZBQQBSFM
APPAREL TRADE TALK
THE
QUALITY
CONUNDRUM
BIZPLUSS.IN
The plethora of apparel stores are seen
in most Tier 1 cities, and a common
criterion to judge the standard of the clothing
is to simply refer to them as ‘export quality.’ Naturally,
what that means is that the garments need to pass
stringent quality checks before they can actually be
exported. Again, if you look at two similar garments†
one that is to be exported and the other that it is to be
sold locally†it is hard not to miss out the differences
in colour, fastness, the fabric quality and other similar
aspects. Dr Subrata Das from the Consumer Testing
Laboratories (India) Inc., Bengaluru, has done extensive
research on the topic and says, “Assurance of international
standards, product innovation and adaptability to the
changing tastes of consumers are some of the areas of
interest. To win over apparel consumers, manufacturers,
brands and retailers are struggling hard to identify the
product value. Undoubtedly, fashion sells, but only to a point,
beyond which many consumers are searching for more values
in apparel. Traditionally, ‘value’ has been defined as a function
" 11" 3&- EXPORT
E
PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
52
SHUTTERSTOCK.COM
#*/%6(01"-3"0FYQMPSFTUIFXPSMEPGFYQPSURVBMJUZBQQBSFM
53
"%)&3*/(5045"/%"3%4
Many garment properties are important for the
final customer. Some are highly specialised in
nature, but there are a core series of tests that
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
XSTOK
The clothes
exported are of
a far superior
quality and are
actually even
better than
what the
pictures show.
26"-*5:."55&34
Again, when we talk about good quality
apparel, there are some fundamental questions
that need to be answered. This includes some
fundamentals like does the garment shrink?
Will the fabric lose colour? Is it durable and
will the garment torque? While one may want
to focus on the aesthetics of apparel, the same
cannot be done while compromising on the
durability and the performance. How the
garment will perform after use and wash can
only be ascertained through comprehensive
quality evaluation. The export apparels are
made under strict quality parameters set by
foreign brands. “Each and every aspect of
quality is defined in great detail, including
thread, trims, zippers, and the wash and wear of
fabrics, dyeing standards and the environmental
impact. Quality standards vary from buyer and
‘Country of Sale’ requirements,” says Sanjiv
Khandelwal, Founder and CEO, XSTOK.
The clothes exported are of a far superior
quality and are actually even better than what
the pictures show. “Whether the product has
any manufacturing defect, it is the same as the
image or not, if it has any hole or any stain,
the quality of the material as mentioned or not.
For exported goods, there is special care as we
have to ensure that there are no issues there
since, in such cases, it is very expensive and
difficult to get it back,” says Virendra Bardia,
CEO, Ethnic Dukaan.com
BIZPLUSS.IN
of price and quality. There is a section of
this niche market that is price-conscious, but
largely, this section is also brand-aware and
would not mind spending more to buy good
branded apparel. Thus, today’s consumers are
redefining value to include the reliability of the
product performance, they are asking whether
the product is assured in actual use or not.”
APPAREL TRADE TALK
SHUTTERSTOCK.COM.COM
are applicable depending on the end use of the product. “There exist
internationally recognised standards applicable to Europe and the
US and broadly denoted as ISO, BS, EN, BSEN, DIN, ASTM, and
AATCC. In addition, many retailers around the world have their
own standards and test methods. Methodology and equipments vary
but the basic objectives remain the same,” opines Dr Subrata. China
is the biggest market for textiles, accounting for over 70 per cent of
India’s cotton and 40 per cent of yarn supplies, while the US and EU
are the largest markets for Indian apparel, making up for around 65 per
cent of the country’s garment exports. “Considering the destinations
which have educated customers who are quality-conscious and are
aware of regulations and strong consumer laws, the companies go in for very
serious quality checks. None of the buyers compromise on the quality since they
do not want face losses in returns. The cost of reverse logistics is too high. Also,
the liquidation of surplus inventory becomes a painful process. Hence, they
insist on very high quality checks. Quality means that the customer needs are to
be satisfied. Failure to maintain an adequate quality standard can, therefore,
be an unsuccessful story for the brand,” says Yasharth Verma, Executive
Director, Bizpluss.in
XSTOK
4QFDJBMJTFERVBMJUZ
DIBSBDUFSJTBUJPOJOBQQBSFM
JODMVEFTꗆBNNBCJMJUZꗅCSF
DPNQPTJUJPOSFTUSJDUFE
IBSNGVMTVCTUBODFTBOE
QFSGPSNBODFUFTUTTVDIBT
XBUFSBOEPJMSFQFMMFODF
TUBJOSFTJTUBODFCBDUFSJBM
SFTJTUBODFCSFBUIBCJMJUZ
ZFMMPXJOHJOTUPSBHFBOE
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5&
5&453*()5
Th
The export lot goes through a strict visual inspection along with a laboratory
test for wash and wear. Using the appropriate testing methods is of utmost
importance in establishing the suitability of the apparel intended for a
imp
spec
specified end use. “Conditions required for testing ‘fashion apparel fading’
whe
when exposed to light are different when compared to testing the fading of
up
upholstery in a car’s interior. These different end uses need to be accounted
for during quality evaluation, even though the fading of either product
under their normal conditions of use will cause a problem,” explains Dr
Subrata. “Out of which, the consumer product testing of flammability
and restricted substances are important from the point of view of safety
and health. If the risk involved in the wearing of a garment is known
beforehand by the flammability performance testing or clothing is
qualitatively and quantitatively analysed for potentially harmful substances
such as formaldehyde, harmful azo dyes or carcinogenic and allergenic dyes,
heavy metal content, phthalates, PCP or TeCP and organotin compounds, it
definitely protects the interests of the consumer. The fibre composition test,
on the other hand, is more of a protective regulation against dishonesty. The
consumer paying a high price for a silk garment would be most unhappy to
discover that it was made of polyester. Protection of the consumers’ interests
is surely supplemented by determining the fibre composition as per the
international standard methods of testing. In the above context, salient features
of different testing protocols for apparel and related accessories are indicated.
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
54
XSTOK
Various essential standards and regulations associated with
quality evaluation of apparels for the export market have
been discussed. The role of retailers, agents, vendors and
the laboratory has also been highlighted in the quality
programme of the clothing sector,” adds Dr Subrata. The
protocol in apparel testing encompasses the requirements
of performance, safety, quality and labelled claims. In
India, the brands have a different perspective. Some brands
maintain the same quality for India as well for the exportoriented market but some have different quality standards
for the export market and the local market. They do that by
launching designs exclusively for exports. Such designs are
not available in India. Quality needs to be defined in terms
of a particular framework of cost. “In the garment industry,
QC is practiced right from the initial stage of sourcing raw
materials to the stage of final finished garment. For the
textile and apparel industry, the product quality is calculated
in terms of the quality and standard of fibres, yarns, fabric
construction, colour fastness, surface designs and the final
finished garment products,” says Mr Verma.
55
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
XSTOK
-00,*/(")&"%
“The difference between apparel available in India and apparel
exported is fast narrowing down and Indian garments made by
leading brands now conform to many of the global standards.
However, the level of fault and checking for the exports are
stricter for the fear of cancellation, returns or claim from
the brands,” says Khandelwal. The Indian textiles industry,
currently estimated at around US$ 108 billion, is expected to
reach US$ 223 billion by 2021. The Indian textile industry
has the potential to reach US$ 500 billion in size, according
to a study by Wazir Advisors and PCI Xylenes & Polyester.
The growth implies domestic
sales to rise to US$ 315 billion
from currently US$ 68 billion.
"2-"$$&15&%26"-*5:-&7&-
45"/%"3%4
At the same time, exports are
This is a standard quality level.
implied to increase to US$ 185
Higher the level, better the
quality standard...
billion from approximately US$
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41 billion currently. To ensure
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APPAREL AEPC NOTIFICATIONS
EXPORT PERFORMANCE CERTIFICATE - 2016-17
Reference is invited to the Notification No.
12/2016-Customs dated 01.03.2016 of Government
of India, Ministry of Finance (Department of Revenue)
thereby making further amendment in the Principal
Notification No. 12/2012-Customs dated 17.03.2012.
As per the latest Notification dated 01.03.2016, the
five per cent Export Performance Scheme applicable for
ready-made garment exporters is continuing.
Since five per cent Export Performance Scheme is
continued, accordingly, applications are invited from
eligible manufacturer exporters and merchant exporters
(having tied up with the supporting manufacturer of
textile garments) for the issuance of Export Performance
Certificate (EPC) for the purpose of importing eligible
items as per the description of the goods given in the
Notification for use in manufacture of textile garments
for exports.
Applications will be received only from the exporters
who are registered as manufacturer exporters
and merchant exporters (tied up with supporting
manufacturer of textile garments) having a valid
membership of the Council. The applications in format
at Annexure-I along with prescribed documents and fees
may be addressed to Deputy Secretary General, Apparel
Export Promotion Council, Apparel House, Institutional
Area Sector-44, Gurgaon-122003. The application
can also be submitted in Council’s offices at Okhla
(New Delhi), Naraina (New Delhi), Noida, Tirupur,
Chennai, Bangalore, Kolkata, Mumbai, Ludhiana
and Jaipur.
As per the Notification, the import of Lining and
Inter-lining materials shall be restricted to two per
cent of the FOB Value of the garments exported and
value realised during 2015-16, within overall Export
Performance Certificate issued at five per cent of the
FOB value of the garments exported and realised during
2015-16.
In view of the above, the Export Performance Certificate
may be obtained for the purpose of importing eligible
items of goods as detailed in Principal Notification
No. 12/2012-Customs dated 17.03.2012 of Govt.
of India, Ministry of Finance (Dept of Revenue) and
amended from time to time, and last amended vide
Notification No. 12/2016-Customs dated 01.03.2016.
The details to be furnished in the application
(Annexure-I) should pertain to the FOB value realised
in (foreign currency equivalent to Indian Rupees) on
exports of ready-made garments during the preceding
financial year 2015-16 i.e., between April 1, 2015 and
March 31, 2016.
Please note that shipments of free sample
consignments are not considered as export performance for this purpose.
Therefore, please do not include any details of free samples in the
statements. Exporters should quote actual and full export value realised in
Indian Rupees.
Applicant-exporters are required to give correct and complete information
strictly following the formats supported with Chartered Accountant's
endorsement and certified Bank Certificate(s) towards realisation of export
proceeds equivalent to claimed export performance. There should be a
certificate that all the bills referred in the format pertain to ready-made
garments only.
The detailed circular can be seen at http://www.aepcindia.com/
Sub-Committees for the year 2016
As authorised by Executive Committee in its meeting held on 30.12.2015 and
19.01.2016, Chairman, AEPC, has constituted various Sub-committees for the
year 2016, as detailed below:
1. ADVISORY COMMITTEE
Mr Premal Udani
Mr Vijay Mathur
Mr Sanjiv Malhotra, Dy Secretary General
- Chairman
- Ex-officio Member
- Member Secretary
2. EXPORT PROMOTION COMMITTEE
Mr Ashok G Rajani
Mr Amit Goyal
Mr R K Sharma, Sr Director (F&E)
- Chairman
- Vice Chairman
- Member Secretary
3. EXHIBITION ADVISORY COMMITTEE
Mr Ashoi G Rajani
Mr Lalit Thukral
Mr Rajiv Bhatnagar, Director (F&E)
- Chairman
- Vice Chairman
- Member Secretary
4. APPAREL MARKET DAYS - CORE COMMITTEE
Mr Ashok G Rajani
Mr Amit Goyal
Mr K S Bisht, Jt Director (F&E)
- Chairman
- Vice Chairman
- Member Secretary
05. APPAREL HOUSE COMMITTEE
Mr H K L Magu
Mr G P Madhwal, Director
- Chairman
- Member Secretary
06. IGFA SOCIETY COMMITTEE
Mr Ashok G Rajani
Mr Pritam Goel
Mr Vijay Mathur, Addl Secretary General
- Chairman
- Vice Chairman
- Member Secretary
07. STAFF COMMITTEE
Mr Ashok G Rajani
Mr Puneet Kumar, IAS, SG, AEPC
Mr Vijay Mathur, Addl Secretary General
- Chairman
- Ex-officio Member
- Member Secretary
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
56
08. FINANCE AND BUDGET COMMITTEE
Mr Narendra Goenka
Mr Vijay Mathur, ASG, AEPC
Mr Kundan Srivastava
- Chairman
- Ex-Officio Member
- Member Secretary
09. KNITWEAR TECHNOLOGY MISSION
Mr V.Elangovan
Mr D G Reddy, Advisor
- Chairman
- Member Secretary
10. STATE PARTNERSHIP SUB-COMMITTEE
Northern Region
Mr GautamNair
Mr Ravish Srivastava, Senior Manager
- Chairman
- Member Secretary
Western Region
Mr Raju B Goenka
Ms Saeeda Patel, Manager
- Chairman
- Member Secretary
Southern Region
Mr B Shanmugasundram
Mr D G Reddy, Advisor
The following will be Annual Subscription charges w.e.f.
financial year 2016-17.
Particular
- Chairman
- Member Secretary
Eastern Region
Mr Anil Bhuchasia
Mr Ranjan Das Gupta, Additional Director
- Chairman
- Member Secretary
11. DISHA RESIDUAL COMMITTEE
Mr Ashok Logani
Ms Sneh Lata Sharma, Jt Director
- Chairman
- Member Secretary
The detailed list along with the members is uploaded on AEPC website i.e
http://www.aepcindia.com/
Payment of Annual Subscription for the FY 2016-17
We would like to take this opportunity to thank you for being a member of
the Apparel Export Promotion Council and allowing us to serve you. Further,
as per the communication received from DGFT for grant of benefits under
Exim Policy Schemes, RCMC issued by the Council is one of the Mandatory
Documents. All Councils would now issue RCMC online and RCMC issuance
details would be incorporated to the DGFT server through the digitally-signed
message exchange.
The Apparel Export Promotion Council provides various financial benefits
and works closely with the Government of India on issues related to Policy
Matters in the Apparel Sector. The Members of the Council received the
following financial benefits during the Financial Year 2015-16:
Export Performance Certificate for duty free Import worth 5 954.80 crore
during 2014-15.
51.50 crore proposal sent to MOT/MOC, Government of India for
distribution to the members under MDA Schemes for participating in
different AEPC’s Overseas Fairs for the year 2016-17.
Market Access Initiative of 512.10 crore approved by the Government of
57
India to subsidise the cost of industry participation in
Domestic and Foreign Fairs.
Approximately 58,500 crore of Duty Drawback is
being distributed to the Apparel Exporters by the
Ministry of Finance on the basis of data submitted
by AEPC.
The membership benefits also extend to the recognition
by way of Export Awards.
Secondly, AEPC is publishing its monthly magazine,
Apparel India, containing information on policies and
initiatives by the Government of India with regards to the
Apparel Industry.The magazine gives valuable information
regarding fashion trends, trade statistics, specified market
reports and other topical study reports for the benefit of
the Apparel industry.
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
Annual
Subscription
(w.e.f. financial
year 2016-17)
8,500 + Service
Member
Exporter having Tax 14.5 per
registration no 1 cent *
to 10,000 and
above 1,00,000
and below
2,00,000
8,000 + Service
Registered
Tax 14.5 per
Exporter
cent *
registration
no. other than
member exporter
Remarks
Inclusive of
the charges for
Apparel India
Magazine and
RCMC revalidation
charges
Inclusive of
the charges for
Apparel India
Magazine and
RCMC revalidation
charges
Present applicable Service Tax is 14.5 per cent
Further, it may be noted that last date for making payment
for annual subscription for the year 2016-17 is May 31,
2016.
It may also be noted that presently service tax is being
charged at 14.5 per cent which shall be enhanced to 15
per cent w.e.f 01.06.2016.
In view of the above, it is requested that payment
towards annual subscription for the financial year
2016-17 may be paid immediately on or before May 31,
2016, to avail the above facility and avoid extra burden.
Therefore, we are enclosing self-addressed
communication for sending your Annual Subscription for
the Financial Year 2016-17.
The detailed circular is uploaded on AEPC website, i.e.,
http://www.aepcindia.com/
APPAREL FASHION CALENDAR
FAIRSACROSSTHEWORLD
International Lingerie
Show-Las Vegas
Apr 46, 2016
Apparel and Clothing
USA
The National Women
Show-Ottawa
Apr 1617, 2016
Apparel and Clothing
Canada
Clothing Machinery Fair
Apr 2730, 2016
Apparel and Clothing
Turkey
Monday and Tuesday
Mini-market
May 2-3, 2016
Apparel and Clothing
USA
Accessorie Circuit
May 2-4, 2016
Apparel and Clothing
USA
Intermezzo Collections
May 2-4, 2016
Apparel and Clothing
USA
White Gallery London
May 15-17, 2016
Apparel and Clothing
UK
Moda Prima
May 2022, 2016
Apparel and Clothing
Italy
Swimshow
July 1619, 2016
Apparel and Clothing
USA
Atlanta Apparel
June 25, 2016
Apparel and Clothing
USA
Project New York
July 1719, 2016
Apparel and Clothing
USA
Milano Moda Uomo
June 1821, 2016
Apparel and Clothing
Italy
India International
Garment Fair
July 1820, 2016
Apparel and Clothing
India
Premium International
Fashion Trade Show
June 28-30, 2016
Apparel and Clothing
Germany
Premiere Vision New York
July 19-20, 2016
Apparel and Clothing
USA
Interfiliere Paris
July 4-6, 2016
Apparel and Clothing
France
Pure London
July 2426, 2016
Apparel and Clothing
UK
ApparelSourcing
July 12-14, 2016
Apparel and Clothing
USA
Chicago Collective
July 31-Aug 2, 2016
Apparel and Clothing
USA
Texworld
July 12-14, 2016
Apparel and Clothing
USA
Life Instyle and Kids
Instyle Melbourne
Aug 4-7, 2016
Apparel and Clothing
Australia
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
58
West Coast Trend Show
Aug 6-8, 2016
Apparel and Clothing
USA
Couture Fashion Week
Sep 9-11, 2016
Apparel and Clothing
USA
Helsinki Fashion Fair
Oct 21-23, 2016
Apparel and Clothing
Finland
Home and Giving Fair
Aug 6-10, 2016
Apparel and Clothing
Australia
Metropolis Momad
Sep 9-11, 2016
Apparel and Clothing
Spain
Greensboro Coliseum Complex
Nov 25-27, 2016
Apparel and Clothing
USA
Sourcing at Magic
Aug 14-17, 2016
Apparel and Clothing
USA
HanseLife
Sep 10-18, 2016
Apparel and Clothing
Germany
Clothes Show
Dec 2-6, 2016
Apparel and Clothing
UK
CurveNV
Aug 15-17, 2016
Apparel and Clothing
USA
Profile Show
Sep 11-14, 2016
Apparel and Clothing
Canada
Parousies
Jan 11-15, 2017
Apparel and Clothing
Greece
Magic Las Vegas
Aug 15-17, 2016
Apparel and Clothing
USA
Premiere Vision-France
Sep 13-15, 2016
Apparel and Clothing
France
TrauDich - Stuttgart
Jan 14-15, 2017
Apparel and Clothing
Germany
Men's Collective
Aug 15-17, 2016
Apparel and Clothing
USA
Kind Plus Jugend
Sep 15-18, 2016
Apparel and Clothing
Germany
HKTDC Hong Kong Fashion
Week for Fall/Winter
Jan 16-19, 2017
Apparel and Clothing
Hong Kong
Pool Tradeshow
Aug 15-17, 2016
Apparel and Clothing
USA
Off Price Show
Sep 18-19, 2016
Apparel and Clothing
UK
China International Hosiery
Purchasing Expo
Aug 24-26, 2016
Apparel and Clothing
China
APLF Fashion Access
Sep 22-24, 2016
Apparel and Clothing
Hong Kong
Premiere Classe Tuileries
Sep 2-5, 2016
Apparel and Clothing
France
59
Love Vintage Clothing
Show And Sale Melbourne
Oct 20-23, 2016
Apparel and Clothing
Australia
" 1 1" 3& - EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
Womens Fair Wichita
Feb 17-19, 2017
Apparel and Clothing
USA
Houstex Expo
Feb 28-Mar 2, 2017
Apparel and Clothing
USA
Techtextil Frankfurt
May 9-12, 2017
Apparel and Clothing
Germany
APPAREL AEPC EVENTS CALENDER
The proposed Export Promotion Events up to March 2017
1
JULY 2016
3
2
Hong Kong Fashion
Week, Hong Kong,
July 2016
28-30 SEPTEMBER 2016
India Trend Fair Tokyo,
Japan (ITF) September
28-30, 2016
18-20 JULY 2016
(Under MAI Scheme)
(Under MAI Scheme)
4
AUGUST 2016
Sourcing at Magic,
Las Vegas, USA,
August 2016
7
57th India
International
Garment Fair,
July 18-20, 2016
at Pragati Maidan,
New Delhi
(Under MAI Scheme)
6
JANUARY 2017
NOVEMBER 2016
5
06-11 OCTOBER 2016
Buyer Seller Meet at
Barcelona and Madrid,
Spain, October 6-11, 2016
(Under MAI Scheme)
JANUARY 2017
International Sourcing
Expo Australia (ISEA),
Melbourne, Australia
November 2016
8
(Under MAI Scheme)
9
MARCH 2017
India International Fair
at Pragati Maidan,
New Delhi, January 2017
(Under MAI Scheme)
Hong Kong Fashion Week,
Hong Kong, January 2017
(Under MAI Scheme)
Buyer Seller Meet at
Monte Video, Uruguay
and Santiago, Chile, March
2017 (Under MAI Scheme)
" 11" 3&- EXPORT PROMOTION COUNCIL MAGAZINE APRIL 2 0 1 6
60
RNI No. HARENG/2012/45083
Postal Regn. No. GRG/37/2014-2017
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