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World Wrap

Fashion Business

Wholesalers/Importers

India Canvas

CONTENT Vol. XIX ISSUE 22 FEBRUARY 16-28, 2017US malls go for a change post holiday season The year started with Macy’s announcing the closure of 63 stores and eliminating 10,000 jobs as the departmental store chain continued to grapple with weak sales during the holiday season...p12

From Furs to Florals: Trends F/W 2017-18 The fabrics and prints always form the bare bones of every season’s underlying mood and silhouette. The coming Fall/Winter season will see another wave of reimagining the nostalgic shapes of bygone eras.

A strong segment of buyers from India When talking about buyers, more often than not, we think of the retailers and brands that source from the country. Gap, H&M, Walmart, Zara, Tommy, Esprit, M&S…

An AO investigation… Why Jaipur exporters are struggling to even reach Rs. 100 crore-mark? Some years ago, one well-known Jaipur-based exporter having 3 factories, approached Tesco, H&M and few other such top brands/stores to work with his factories....p44

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SustainabilityGreen Factories: Why is India lagging behind its competitors? One of the most commonly used terms in the apparel industry since the last few years has been ‘green’, but when it comes to having a green factory...p14

H2F700 Indian exporters participate in Heimtextil, Domotex and Maison & Objet p30

FFT TrendsFall / Winter 2017-18: Key Menswear Trends from New York & Paris p33

Export StatisticsApparel imports by US conclude with negative trend in 2016 2017 is shaping up to be another uncertain year for clothing industry and its supply chain for the US as Trump factor is still playing crucial role in clothing imports...p46


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Sometimes I feel that the word ‘sustainability’ is becoming a mere catchword, with almost every player in the apparel supply chain using the term to describe the way forward. But how many people/companies actually understand the term, is something that is debatable.

The more I talk to the industry, the more I am convinced that the understanding of sustainability is still very shallow for most, and while compliance is equated to labour issues, sustainability is equated to environment concerns!

There are so many dimensions to the topic and so much is happening around the world, both in direct relation to the industry and in general, that to apprehend the depth of the topic is not easy… But one thing is for sure that sustainability touches all aspects of business – from people to planet to profitability, and even if one aspect is left behind, there cannot be true sustainability.

I am always fascinated by the passion that people who work in this area have their compassion for the environment, for the workers in the field and on the shop floor, which in fact is palpable. There are companies which are living this dream, and for whom there is no compromise; but then there are others for whom it is a tool for marketing.

That is not to say that those using their sustainable initiatives as a marketing tool are less serious, because at the end of the day unless profits are made, all efforts are hollow and no one gains. But what I do feel is important, is the basic intent behind the efforts… If the management is 100% behind the cause, the seriousness of the goal is conveyed downward and everyone becomes a part of the movement; it no longer remains a conscious effort, but a way of life and doing business…

What is however encouraging is that companies are talking about it and from being just a concept, sustainability is now a route to be successful! The faster the companies accept this and seriously look at how best to get started, the better placed they will be in the future. Of course, every company cannot have the same level of commitment or capacity to invest, but making a start is what is important.

I am convinced that we need to talk more about sustainability and also move beyond the cliché… Apparel Online is committed to give relevant information on the topic, discuss issues that influence business and also present benchmark companies and practices in sustainability.

The world is moving fast in this direction and the country cannot afford to remain behind, which goes for the industry too… This year, sustainability as a topic is a major agenda – from small measures like LED lights to big commitments of Green factories will be under the spanner. Concepts that support sustainable thought and new directions will be discussed, and experts shall be invited to give fresh perspectives.

I also invite my readers to share their experiences, concerns and queries on sustainability…; collectively we can explore the depth and find different ways to walk the route. Indian exporters cannot afford to be left behind in a world where competitors are already awakened!

FROM THE EDITOR-IN-CHIEF’s DESK… EDITORIAL TEAMEDITOR-IN-CHIEF Deepak Mohindra

EDITOR Ila Saxena

COPY EDITOR Veereshwar Sobti

ASST. COPY EDITOR Sahil Sehgal

ASST. EDITOR-NEWS Dheeraj Tagra

ASST. EDITOR Neha Chhetri

SR. CORRESPONDENT-TEXTILES Sanjogeeta Ojha

SR. CORRESPONDENT-FASHION Kalita Lamba

SR. EXECUTIVE-ADVERTISING D K Chugh

CREATIVE TEAM Raj Kumar Chahal Peeush Jauhari Satyapal Bisht Deepak Panwar

PHOTO EDITOR Himanshu Kumar

OPERATION DIRECTOR Mayank Mohindra

PUBLISHER & MANAGING DIRECTOR Renu Mohindra

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MIND TREE

What were you expecting from the Union Budget 2017-18 and what is your reaction on the announcements made by Finance Minister? How do you see its impact, both in the short- and long-term on Indian textiles and apparel industry?

Q-and-A

Raja M Shanmugham, President, Tirupur Exporters’ Association, Tirupur

Our expectations from the Union Budget were specific to textiles and apparel industry, but the aspects covered were in general. As such, we were in for slight disappointment; however, the Budget has encompassed lot many measures to ensure an all-inclusive growth. Out of the general measures mentioned, the relevant ones for our industry are the income tax rebate for companies doing a turnover of up to Rs. 50 crore, and Tirupur has clusters where SMEs are in large numbers. Likewise, the micro units (companies with up to Rs. 2 crore turnover) have been benefited with the presumptive tax reduction from 8 per cent to 6 per cent. Further, through MUDRA Banks, these SMEs are going to be supported with more loan facilities for which a sum of Rs. 2.44 lakh crore has been earmarked. Regarding one lakh housing for textiles workers of Tirupur cluster under the affordable housing scheme, promotional measures like profit-linked tax rebates for buildings with carpet area of 30 sq. metre and 60 sq. metre have been announced. Under the banner of ‘Industry Ready Skilling’, an allocation of Rs. 2,200 crore is also going to help the industry in upskilling the chosen skill inventories. Overall impetus has been for infrastructure development for which Rs. 4 lakh crore has

been allocated. It is presumed, wherever the infrastructure development happens, automatically the industry growth would also follow. With all these above facts, we feel the overall Budget for the year would render a positive result in all sectors.

Ashok Rajani, Chairman, AEPC, Gurgaon

Firstly, I would like to share my happiness on the The Economic Survey, which has re-emphasized on apparel sector for generating jobs that are formal and productive, and recommended reforms in labour and tax policies to make the apparel sector globally competitive. I did not have a long wish list for Budget 2017. All we wanted is full roll out of the ‘special package’ benefits. However, we are happy to note the relief offered to the MSMEs by reducing tax for small companies with a turnover of up to Rs. 50 crore as 85 per cent of the apparel industry may be benefited by this proposal. I am also happy to note the renewed focus on skill development with 100 India international centres proposed across the country and we expect apparel to benefit from this. Besides, the industry was awaiting further details on the GST roll out. AEPC has requested for clarifications that the taxes are fully reimbursed without blockage of working capital and the

industry is not laden with paper work and procedural delays due to the multiple city/location transactions that it has. Hope this will also be looked into.

Dr. A. Sakthivel, Regional Chairman, FIEO Southern Region, Chennai

Showing more focus on Government investment in infrastructure is the right move and in right direction as private investment is showing slow growth. The extension of Pradhan Mantri Kaushal Kendras to 600 districts will help the industry to employ skilled workers which is one of the major issues faced by these units. The introduction of Trade Infrastructure Export Scheme with Budget allocation of Rs. 3.96 lakh crore will help the Indian exporters to become globally competitive, as today exporters are forced to incur additional expenditure of more than 7 per cent of their exports due to poor infrastructure. Announcement of tax cut for MSMEs is a good move as 45 per cent of India’s exports come from MSMEs sector; this initiative will provide a good impetus to boost export from this sector. Initiatives taken in Railway Budget will help the Government to focus on development of Multi Modal Transport facility and reduce dwell time for movement of cargo which can be revolutionized by participation

of all public and private players. All these measures will help the exporting sector to reduce transaction cost amongst our competing countries. I am concerned on not visiting the corporate tax structure which was expected as the Government outlined road map for reduction of corporate tax during previous Budget.

Deepak Chiripal, CEO, Nandan Denim Ltd., Ahmedabad

It is an inclusive Budget with a clear focus on agriculture, infrastructure, digitization and employment generation. Tax cut for the MSMEs with an annual turnover of Rs. 50 crore is a welcome gesture and will drive the growth engine as most of the Indian companies will get this benefit of 5 per cent tax reduction which will be a relief for them. Expanding tax net by increasing tax limit slab of up to Rs. 5 lakh will give more money into low-medium income groups. This move will give more money to hands of such people which will trigger more demand in markets. After short-term sluggish demand, due to demonetization, this will surely help boost the market sentiments. Government has increased allocation to Prime Minister Employment Generation Scheme by three times which will definitely help achieve employment generation targets.


MIND TREE

Almost every state, whether already having an established garmenting hub or one desirous of becoming a hub, is coming up with incentives to lure the industry to invest… Given a choice, would you prefer the state which is giving good incentives, but has yet to develop the eco-sphere, or would you prefer to go for the established hub, even if the incentives are not as attractive…? Please share your thoughts…

N E X T M I N D T R E E Q U E S T I O NP O S T Y O U R C O M M E N T S

[email protected]

Ranjit Routrav, Aar Fashions, Noida

Overall it is a satisfactory Budget. Tax rebates to middle-class as well as MSME sector is the most appreciable announcement in this Budget as it will benefit most of the people. Even middle-level management of factories like ours will get some advantage from tax. Apart from this, there is nothing special for apparel or textiles industry which I have heard of.

Vikram Gandhi, Director – Sales, Mint Clothing Co., Bangalore

I feel that it is a neutral Budget as there is nothing, neither negative nor positive, with regards to our industry and that too for exports as well as domestic manufacturing. Our major share is in domestic market and we are trying to grow in exports also; so whatever general announcements have been made in the Budget, will not

have major impact on either market segment, be it tax rebate on individuals or MSMEs. Honestly speaking, we didn’t have much expectation from this Budget.

CK Tirumeni, Managing Partner, Abirami Exports, Coimbatore

To the best of my knowledge there is nothing special for our apparel industry in this budget. Whatever announcements

have been made, are routine or minor. But in general, this Budget is good and will benefit overall industries. All in all, not too much was expected as already last year ‘special package’ was announced for apparel industry and few other announcements like hike in drawback duty was also made. I would like to insist here that still we have not seen the notification of this hike, so it should be executed on priority basis so that apparel exporters can get benefit which is very much required.


Many famous malls such as Fairlane Town Center in suburban Detroit are replacing departmental store space for Ford Motors, converting 2,40,000 sq. feet of former retail space into product-planning centre. Many such malls across the US are signing on non-traditional, high-traffic tenants as mall vacancies rise due to brands shutting shop. According to the Green Street Advisors, there are approximately 200 US malls that are at risk of shutting down in the coming years. The analytics firm also estimates that retailers will need to close about 800 locations, or a fifth of total mall anchor spaces to achieve the sales productivity of the mid-2000s.

There have been hundreds of store closures including Macy’s, Walmart, etc. with a few announcing bankruptcies like Sports Authority, Sports Chalet, and more. in 2016 with 2017 being a year in which retailers are treading their path carefully, while experts believe that the future is e-commerce. “It’s going to be a year of transition, a year of

reckoning, and a year of awakening for retailers,” believes Marshal Cohen, Chief Industry Analyst, NPD Group. According to MasterCard’s SpendingPulse, retail sales excluding autos and gasoline rose 4 per cent from 1 November to 24 December 2016, suggesting a stronger than expected holiday season. Although digital sales continued to boom with Amazon grabbing an even larger e-commerce share, brick and mortar locations saw declining trends.

The heavy discounts and promotions during the holiday sales while favouring a few retailers, did not work for many. According to Retail Metrics, outside of a few busy hours on the weekends, the 2016 holiday season was somewhat eerily quiet at the malls. The firm observed a handful of people at Foot Locker (FL), Abercrombie & Fitch (ANF) brand Hollister, American Eagle Outfitters (AEO) and Macy’s, L Brands’ (LB) Bath & Body Works, where there always had been a buzz in the last few years. In its latest report, NPD has reported that during the week ending

10 December, dollar sales in the first six weeks of the holiday retail season were lagging the prior year period by 4 per cent, while Prodco Retail Traffic Index reported brick and mortar traffic falling about 10 per cent at stores through December 2016.

According to industry experts, almost 70 per cent of holiday sales went to retailers that have both a physical and an online presence – highlighting the importance for retailers to “keep pace with technology”. What seems to be happening is an increasing base of consumers, especially the millennials shifting to online and mobile spending for experiences rather than products itself, and add to that the online players, such as Amazon, innovating and introducing strategies through heavy discounts and promotions that were witnessed during this holiday season. Although luxury malls housing luxury brands such as Dior, Louis Vuitton, Chanel, Tiffany’s continue to perform well, average malls with mid-level brands are experiencing the biggest hit due to a shift from offline to online.

WORLD WRAP

According to the Green Street Advisors, there are approximately 200 US malls that are at risk of shutting down in the coming years. The analytics firm also estimates that retailers will need to close about 800 locations, or a fifth of total mall anchor spaces to achieve the sales productivity of the mid-2000s.

ESSENTIALS

The year started with Macy’s announcing the closure of 63 stores and eliminating 10,000 jobs as the departmental store chain continued to grapple with weak sales during the holiday season. Many experts are relating the store closures to the growth of digital platform and also to retailers falling behind in implementing new strategies with time. The growing influence of millennials, who are accustomed to digital stimulations rather than physically visiting a store themselves, is also weighing down upon many stores. This has also led to a lot of retail mergers and consolidations that leave only a few departmental store options.

IS IT THE END OF THE MALL?

US MALLS GO FOR A CHANGE POST HOLIDAY SEASON


Irrespective of this, there are a few brands such as Home Depot, Lowe’s, TJX, Ross Stores, Burlington, and Ulta Beauty that have displayed a strong performance. Others, such as Nordstrom are also doing so by being an “omnichannel” retailer that knows how to engage its customers across all platforms. Unlike Macy’s or Kohl’s that compete with Amazon and everyone else on the internet, Nordstrom has differentiated itself by catering to more affluent shoppers through a highly curated selection. “Retail omnipresence is the key. Instead of simply giving customers a way to buy products both in-store and online, it would behoove retailers to latch onto shoppers before, during and after the transaction. Educate them and anticipate their needs ahead of potential transactions, allow them different ways to buy, and then stay in touch via product reviews or other methods following the purchase. The goal that the store becomes the epicenter for the entire process,” informs Marshal.

WORLD WRAP

Although many experts are relating the strength of online sales as a reason for recent store closures, many also believe that these two channels – offline and online – can also have simultaneous successes. Mostly store closures are announced at the start of the year as retailers wait to close stores after holiday season ends so that they can squeeze in the last bit of profit or use the season to measure whether the store can make a rebound. Experts believe the closure of under-performing retail stores is a cost-cutting measure adopted by retailers, therefore reflecting on the performance of the individual retailer rather than the whole retailer. According to CoStar and JLL Research, the market as a whole is strong, indicated by the national retail vacancy rate that dropped by 5.1 per cent, a full percentage point lower than it was before the recession. It is the time when only those retailers would survive who are making shopping an experience for their consumers, whether in a mall or online.


Looking at our neighbours, the record on green factories is indeed impressive. There are 35 garment factories in Bangladesh that have received Leadership in Energy and Environmental Design (LEED) certification from the United States Green Building Council (USGBC) while another 133 garment factories have applied for the certification and many more are planning or have initiated the process for this certification. Today, the top three environment-friendly garment and textile factories in the world are located in Bangladesh.

Sri Lanka is the home of the flag-bearer of sustainability in the garment manufacturing sector – Brandix. Besides, the country also has many other companies like Bodyline that are truly green. Comprising four factories, Bodyline was the first Sri Lankan apparel manufacturer to be certified as CarbonConscious, with the company’s third plant located in Pimbura, is setting a new benchmark by being the first in the group of factories to be certified CarbonNeutral. Another company Star Garment’s obsolete factory building has been transformed into a green product development centre. There are many more such examples in Sri Lanka.

In India, companies like Orient Craft, Bhiwandi; Madura Clothing, Bangalore; Mahajan Overseas (Barhi Industrial Area), Sonepat; Genus Apparels, Faridabad; International Trading Company, Tirupur; SNQS International,

Tirupur; Zodiac Clothing Company Ltd. (ZCCL), Mumbai (corporate office building); Mainetti (India), Chennai (manufacturer of garment hangers and associated products) are having green factories. Names of some other green factories in the making are Click Clothing Company, Faridabad; Fine Lines, Noida (which is being constructed with an investment of Rs. 15 crore), expected to be completed by December 2017. Another Noida company Fashion Makers Group, is also planning for a green factory. Even in Ludhiana, KG Exports is also planning to make its upcoming factory green. One can say that Indian exporters are also growing in this regard; but surprisingly among the top 20 Indian apparel export houses, not even a single has been certified as a green factory, while some of them are continuously starting new facilities too.

A commonly asked question is, “What is the need for a green garment factory when it overall costs almost 1½ times more as compared to a normal unit.” On analyzing the same it is obvious that there are many benefits that come from going green. For one, there is possibility of reduction in energy consumption by more than 24 per cent and water consumption by 50 per cent. Despite such obvious benefits, there are many reasons for India’s lacking in this regard. The first and foremost being lack of awareness and interest, while the second biggest reason being the current market

pressures forcing exporters to refrain from extra investment, more so as buyers still don’t pay any premium to such exporters. Also there are difficulties as well as cost involved to convert old factories into green ones, and Indian exporters don’t have the ‘willingness’ to expand further in apparel industry, as they are happy in their ‘comfort zone’ or prefer to look at opportunities in different sectors that are more lucrative.

Industry is upfront in acknowledging the problem areas. “While customers are asking for green factories and such initiatives, but they are not willing to pay premium. These initiatives are initially expensive and there is no surety of returns. Indian exporters also lack knowledge and awareness of implementation and

G r e e n F a c t o r i e s

One of the most commonly used terms in the apparel industry since the last few years has been ‘green’, but when it comes to having a green factory, Indian apparel exporters are far behind their neighbours Bangladesh or even Sri Lanka, which have set new benchmarks in walking on the green path whether it is the number of green certified factories or the level of commitment in the direction. As for India, there are around 15 garment factories/offices of stakeholders in the apparel industry, which can be called ‘green’. Should it not be a reason of worry for the industry, encouraging more garment manufacturers to come forward in this regard? Apparel Online gets to the bottom of it and probes the reasons why Indian factories are not interested in green factories, and what could be the solution…

Why is India lagging behind its competitors?

A LEED certificate requires factories to meet its prerequisites, mainly use of construction materials that create less carbon emission, hi-tech machinery for production, saving electricity, preserving rainwater, having enough space for constructing other buildings and ensuring housing facilities, schools, bazaars, and bus stands for the workers within 500 square miles of the factory.

ESSENTIALS

New green factory of Click Clothing, Faridabad

SUSTAINABILITY


The term ‘green factories’ is still not clear to a majority of the textile people at grassroot levels. Industry needs to be well-informed through media,

seminars, etc., on what ‘green factory’ means, and what needs to be done in addition to existing structure and investments to make this happen.

benefits,” says Rajesh Kumar, COO, Laguna Clothing, Bangalore. “The term ‘green factories’ is still not clear to a majority of the textile people at grassroot level. Industry needs to be well-informed through media, seminars, etc., on what ‘green factory’ means, and what needs to be done in addition to existing structure and investments to make this happen. Exporters are grossly involved in day-to-day management of their operations, attending their buyers, fulfilling Government norms for recovery of duty drawbacks, networking with various agencies, etc. The thought-process needs to change where we individually become more sensitive to the needs of the environment and act responsibly for making a difference,” adds Arvind Arora, TaurusTex, Delhi.

Jas Mahindru of Mega Brands, Delhi agrees that more awareness is required among exporters. “Rather than market sentiments, it is lack of knowledge that results in less interest and if this becomes similar to compliance norms, one will see things change fast.” He further adds that if the benefits of going green can be more emphasized upon and more advertised, things will change. As far as buyers’ priority for such factories or premium to such exporters is concerned, even the companies running green factory believes that though they do not get any premium on products, it’s more to do with their own commitment to make a green factory and willingness to pay back to the environment.

Pranab Mahajan of Mahajan Overseas, who has the credit of having the first green factory in the home furnishing segment as well as first in apparel/textile industry in Haryana, opines, “In today’s world, everyone has the awareness and in reality, it’s the costs involved that people are scared of, considering the current market pressures.” Kiran Panchal of Amber Home, Mumbai also disagrees that awareness is lacking. “The green concept is everywhere and if exporters deal with major stores or brands or private labels, they all ask for green products. Hence awareness is there but the procedures to make a green factory are very cumbersome, and even though buyers give priority to green products without extra premium, it does not become viable.” Pranab however feels that it is not about premium, but remaining a preferred supplier. “Every customer is bringing down their vendor base; so more focus is on how to retain the customers by serving them better, and hence this can be an oversight as it is not mandatory.”

Kiran shares that their factory has seen good growth in the last year, despite being new and encourages exporters to invest. “I believe there

is enough scope for large format garmenting in India as China is very fast losing its core competence due to cost advantage and buyers are turning towards India,” he says. The lack of Government support however is a concern. “I don’t see any support from Government or bodies related to our apparel industry, we have to do it on our own,” says Pranab. Even AEPC or any other apparel body is not active in this regard compared to BGMEA (Bangladesh Garment Manufacturers and Exporters Association), though OGTC (Okhla Garment & Textile Cluster) is supporting its members for carbon emission.

So, what is motivating companies to establish green factories. “It is the commitment of the management that they want to create that kind of atmosphere in their units which is feasible to the environment. And we are taking lot of initiatives as far as green unit concept is concerned, like planting more and more trees in and around units, almost all units are running on PNG (Piped Natural Gas), boiler, tumblers, etc. which will be beneficial for environment. Solar panel installation is in process and is in maximum use in the environment-friendly light system. Apart from these we make sure proper utilization of ETP and proper disposal of all industrial wastes generated by units,” says Ravi Raina, HR Department, Fine Lines.

Praveen Sharma, Click Clothing, Faridabad adds, “As far as our green factory is concerned, I must say that going green was in support of steps taken by our Prime Minister against the environment (Green India Clean India). This is just a small step taken from our side. The factory has been audited by IGBC once and the second audit is yet to happen. Hopefully we will have the certification by the end of February. The idea is to avoid any kind of pollution, be it water or air and have good/clean working environment for the workers.”

“At this point of time, business offers a green factory no advantage except to help a factory grand stand its sales push. Awareness, investment and Government initiatives follow market dynamics. The concept of a green factory is more to do with local corporate and community philosophy than external factors. The CSR initiatives, already in place from buyers side do overlap a bit with the green factory concept on key necessities and a further push is likely to cause supply chain disruption and cost addition, rather than a meaningful advantage. The lessons from the organic cotton renaissance in fact never really took off, as not many were keen on paying ‘extra’. This is also to be read with the green factory initiative as well and these will remain segmented beyond mainstream business.” – Jayakumar. C, CEO, Fedmac India, Tirupur

ESSENTIALS

SUSTAINABILITY


The popular outdoor clothing retailer, Protagonist, is planning to initiate its Worn Wear garment repair and re-utilization programme in April 2017, while adding an online platform for resale. The environment-friendly brand has long operated with a solid repair policy on its products and is now emphasizing on repair and reuse of garments. The company’s repair facility at Reno, California, will wash used clothes with a new waterless technology that helps in restoring the fabric, and then make any needed repairs, which will then be sold on the company’s website. Any consumer bringing in their older but reusable clothes will in turn get store credits.

“If we can make really durable products, and we can work with our customers to keep them in service and in good repair, then we’re providing a solution to the environmental crisis,” explains Rick Bridgewater, Protagonist Vice President of Environmental Affairs. With this new initiative, Protagonist joins the ranks of other acclaimed clothing brands such as H&M, that are determined to decrease their environmental footprint via recycling efforts.

‘Protagonist' to initiate garment recycling efforts

The European multinational luxury goods conglomerate, LVMH, has informed that the brand has ceased all trading with Vietnamese farms that mistreat crocodiles. According to the company statement, “The LVMH Group and its suppliers ceased all trading in 2014 with the farms named by Beta,” adding that it sources its crocodile skins from other Asian suppliers. This comes in the wake of the animal rights activist group Petals (People for the Ethical Treatment of Animals)

Among one of the largest and most modern knitwear manufacturers of Central and Eastern Europe, Stenos Troikas has recently joined the Greenpeace Detox campaign. The company has committed to eliminating any raw materials that are likely to have adverse effects on humans or the environment from its production chains at all stages of the product lifecycle, from the start of production to sorting and recycling of clothing, by 2020. Greenpeace has been actively fighting pollution in the textile industry since 2011 and since then the Detox campaign has involved 78 companies from all over the world, including apparel brands like Valentino, Beneath, Levi Strauss and more.

The knitwear manufacturer is the first Lithuanian company to join

recently released video showing poor conditions of crocodiles at farms whose skins are used to make handbags and other accessories.

this campaign. “Ever since 2012, the strategy of Stenos Troikas has been focused on higher value-added, friendless and high-quality products. We have strong customers who value innovative materials and see environmental protection and the effects of the products they buy on nature. This is a growing global trend, and we have been consciously and consistently preparing for it,” highlights Algiers Cabanas, CEO at Stenos Troikas. It has taken several years for the manufacturer to prepare for joining the Greenpeace initiative. Since 2014, the manufacturer has invested in a variety of laboratory tests and trials, with its professionals devoting a lot of time to reviewing all the production chains and carrying out regular comprehensive assessments

Louis Vuitton ceases all trading with Vietnamese crocodile farms

Stenos Troikas joins Greenpeace Detox initiative

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SUSTAINABILITY


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Exporters getting value by working with wholesalers/importers

Since last few years, as market conditions have become more difficult, many of the Indian apparel exporters are just focusing on one agenda, ‘machines chalti rehnee chaahiyen’ – machines should not remain idle. And this is one of the main reasons that most of the exporters are working with wholesalers and importers as they have better orders than individual retailers since they are further associated with many retailers/stores. But it is certainly not a cakewalk to work with such buyers. On the other side, there are many challenges to work with this segment of buyers. Whereas the industry is unanimous in their opinion, on some points, the views are divided as usual. Apparel Online talked with some exporters working with wholesalers and importers to know their stand and their way to tackle the issues that comes when working with such buyers.

Exporters claim that compared to orders with retailers/stores, prices remain 25 to 35 per cent less in the case of orders being placed by wholesalers and importers as they have their

own expenditures and they need the margins to sell further to the retailers/stores. But this is not the only challenge for exporters working with these buyers. In some cases, this segment of buyers does not issue any LC which creates payment risks. It takes at least 4 months to rotate the payments from wholesalers/importers to vendors. In some other cases, there is a ‘catch 22’ situation with wholesalers, if his pre-confirmed orders get cancelled, as he will not even listen to exporters.

Earlier, working with this segment did not require too much of concern with regard to compliance, but now day-by-day wholesalers are asking for compliance audits and certifications as they are also under pressure from their clients in this regard. Despite that working with them is comparatively easy as some of the exporters are of the opinion that wholesalers and retailers have better understanding, be it of their associates or overall market conditions in both the selling and sourcing market. On the vendor’s side, they are also not as ‘strict’ as retailers or brands are on many issues, be

When talking about buyers, more often than not, we think of the retailers and brands that source from the country. Gap, H&M, Walmart, Zara, Tommy, Esprit, M&S…, the list is long, but we tend to overlook a very important segment of buyers, who in reality account for a majority of sourcing from India – the wholesalers and importers. Many small- and medium-level exporters are thriving on orders given by these buyers, and even bigger exporters are happy working with wholesalers/importers that are private label owners as they invest in the business. According to market estimates, these seemingly obscure buyers account for around 60 per cent of buying from India. In this special issue dedicated to the wholesalers/importers, Team Apparel Online talks to every stakeholder in the chain – from the exporters who work with these buyers-to the buying agents who support sourcing of this segment-to the wholesalers/importers themselves, on the critical questions of Why, How and What.An important fact that emerged, and was endorsed by a majority, is that these buyers come to India for the products that we can make, and given an opportunity, are willing to increase sourcing… The onus lies with the industry to be more proactive and service these buyers better and with more product options.Also, to be noted is the fact that despite working in India for years, many of them still find areas that need improvement and few are very critical of the ‘chalta hai’ attitude that is hindering growth.In the following pages, Apparel Online decodes the supply chain in sourcing for wholesalers/importers…

A strong segment of buyers from India

WHOLESALERS/ IMPORTERS

WHOLESALERS/IMPORTERS


it delivery schedule or even in some cases quality issues, they adjust while it can’t be even thought of in the case of retailers or brands.

But to avail these things, an exporter must be backed by good financial strength as wholesalers offer good credit period to their buyers; so they prefer vendors having strong financial strength who can manage even in case of long credit period and continue with sourcing of fabric, etc. Vendors do try to verify wholesalers/importers’ financial condition through their bank accounts before starting to work with them. Even after having reasonably good relations over a period of time, some of the vendors make trips 3-4 times a year to these wholesalers/importers as it is necessary to sit with them to get feel of their business scenario and payment follow-ups. “Normally it takes one trip in a year if you have better understanding

with retailers but when it comes to the wholesalers/importers, we have to travel 3 to 4 times which in fact increases our overheads,” says one of the exporters working with wholesalers only and who did not want to be quoted.

None of the exporters accepted that wholesalers ever asked for third-party audit regarding quality. Despite all these odds or positive aspects, some of the exporters are of the view that there is less trust factor in working with wholesalers and it is like ‘lala’ culture. Apart from exporters, there are also many buying houses working with this segment. Many exporters are of the opinion that the scenario becomes worse if working through a buying agent as they get more pressure on price due to commission of buying house/buying agent. Also, they have to bear all the ‘diktats’ of buying houses.

Exporters’ speak…

“We are working with wholesalers from the last 30 years and to be safe about payments, we prefer to work within our limits and there are no major issues when an exporter is working at smaller level and with known/long-term reliable wholesalers.” – Rajiv Kapoor, MD, Affordable Exports, Delhi

“Our 30 per cent business is with wholesalers based in Italy, US and UK and they offer nearly 10 per cent less price to us. Sometimes there are issues when further pre-approved orders get cancelled, but I don’t see any issue working with wholesalers through buying houses as price should get fit in our minimum pricing, all other things don’t matter. There is risk regarding payments in this segment and we have never noticed that any wholesaler has asked us about compliance.” – Uday Sehgal, Director, Mariko, Noida

“We get bulk orders from wholesalers, never work without LC and don’t work at all if there is even a small risk regarding payments. We follow our standard lead time, be it wholesaler or any retailer.” – Animesh Halder, Proprietor, Halder Garments, Kolkata

“We are working with wholesalers from almost a decade and it is comfortable to work with them. We prefer to serve with quality products but it depends on given price too as value for money is always there.” – Rajesh Kumar Gupta, Director, Megha Overseas, Jaipur

“Our way of working is a little different as we have partnership with one wholesaler and working mostly for him only.” – Udayan Kapur, Good Earth India, Noida

Earlier, working with this segment did not require too much of concern with regard to compliance, but now day-by-day wholesalers are asking for compliance audits and certifications as they are also under pressure from their clients in this regard.

ESSENTIALS



Calliope Grigorea of Queen Calliope, Athens, a wholesaler/retailer, sourcing goods worth Euro 50,000 from India, even in the backdrop of the Greece crisis says, “I like the embroidered cotton garments for ladies with hand block work, it is appreciated by my buyers and sells well.”

Ilze Ports, CEO, Wandering Sage Inc., California, who besides being a wholesaler also owns 3 stores and a brand, is annually sourcing from India products worth US $ 300,000. Her preference for variety of handwork is something that has driven her to source from Delhi, Varanasi and recently from Jaipur.

Not only value-added garments, but few of the buyers are also importing unique fabric from India. Marina, Owner/Designer, Rosarito, Argentina who is having 15 shops and is also selling women accessories to multiple brands, is sourcing a lot of summer garments from India as she likes the styles and cotton fabric. “For eight years we sourced Indian products through other importers but now we are sourcing directly from manufacturers and that too Pushkar, Jaipur and Delhi. Pure white dresses with embroidery and multi-colour dresses are very impressive in India,” she says.

For some of the buyers there is no limitation of products as they are sourcing variety of products, though orders size may vary as per products. Interestingly, these wholesalers/

These are some of the common statements that small- and medium-level exporters, who are mostly working with wholesalers/importers, give when questioned about their product capabilities… But are these statements really true; and are buyers happy with the products available with the Indian exporters, is another story altogether. Of course, there are also many companies that are doing only niche products from day 1 and wish to continue with the same as they are enjoying the edge of being niche. Apparel Online talked to some wholesalers/importers on what works for them and how happy they are with products offered by Indian exporters…

No doubt majority of wholesalers/importers prefer India for womenswear and accessories which include fancy Tees as well as kaftans apart from regular range of blouses, skirts, tops, evening dresses… The push for sourcing of such products is the strength as well as niche that Indian exporters have within the womenswear category. Many of the buyers are sourcing from Jaipur mainly due to hand-block, hand-printed based garments; also handwork value additions like embroidery are considered specialities of apparels from Delhi-NCR and Varanasi. Same importers are also sourcing some amount of home products as they have clientele for the same also. Corroborating the same,

importers are adding new product categories too. Mona K. Gyllenhammar, Manager, Peter Korseth AS, Norway (agent and associated with most of the buyers in Norway) is sourcing mainly ladies’ garments from India, and also picks up some kids and men’s wear when she finds something new. A year back she started sourcing all kinds of bags, which is a new product category for her. “In one of my visits to India I found a rainwear manufacturer which currently is not our focus but we may start sometime in the future,” she said.

Despite all limitations and challenges some buyers are not hesitant to source such products categories from India which is neither India’s strength, nor is India manufacturing at good levels. This is definitely an opportunity, that exporters should look at. Of late, many buyers have shown interest in winterwear and even difficult items like skiwear. Marina Potemkina, Head of Purchase Department, Fashion-Sport, Russia having 17 stores and sourcing mens and womens wear is keen to expand sourcing from the country, provided exporters increase their product offerings. “Indian exporters should also increase focus on products like jackets and skiwear. Many buyers are very comfortable sourcing from India, but get limited by the range of products on offer,” she concludes, throwing a challenge to the industry… Any takers!

“We can do whatever product/technique any buyer demands from us.”

“We are like a one-stop solution for our buyers.”

“We keep adding new product categories as our buyers push us for the same.”

“We want to serve our buyers better, so we are trying to offer them maximum product categories.”

Wholesalers/importers looking for very wide range of products

Calliope Grigorea of Queen Calliope, Athens

Ilze Ports, CEO, Wandering Sage Inc., California

Marina, Owner/Designer, Rosarito, Argentina

Mona K. Gyllenhammar, Manager, Peter Korseth AS, Norway



tops for its core customers, including American department stores, such as Macy’s, Dillard’s, etc.

Some are disappointed that there are only few vendors interested to invest in this area. One of them is Kuldeep Singh of Mahadev S.A. DE C.V., working in Mexico from the last 22 years and sourcing mostly from India. Kuldeep says that he is not getting any new vendor who can focus more on research and development in his products. Search of better designs is motivating them to explore pan-India. One of the wholesalers who does not want to be quoted informed, “I was earlier sourcing for the southern corner (Karur) of India but due to good PD skills, I moved to northern region (Jaipur).” Theodore Aleksov COO, Macedonia, working with department stores, is sourcing 75 containers per year from Delhi for the past five years, but recently nice printing capabilities forced him to source from Jaipur. These buyers also added that manufacturers should do some fusion of traditional styles with western culture.

Manijeh Khodadoust, Dastchin Mina, Iran, associated with more than 100 stores, insisted that product is the key in deciding an order or even in

Indian exporters often say that day-by-day buyers’ expectations from them are increasing and these expectations are hard to fulfil. Apparel Online questioned wholesalers/importers on what they are expecting from Indian vendors and how capable and willing are the exporters on these parameters. Most of the expectations of these very important India’s customers seem necessary and something which must be fulfilled.

Product development and innovation in designs is one of the biggest expectations for any wholesaler/importer from an Indian exporter, and they know that India has strength in cotton base only, but new designs and different value addition techniques are something everybody is looking for. “A lot of PD by companies is just about showing us what everyone else has produced. If I have the same style every season it doesn’t work; to blend a signature style and present it in a different way every season, doesn’t happen in India. Twice a year I come to India and I find that 95 per cent of the stuff is the same,” claims Joel Ratner, Executive Vice President of Sales, IDG, a private label manufacturer that caters to the US market for woven bottoms and

W h o l e s a l e r s / i m p o r t e r s ’ e x p e c t a t i o n s f r o m I n d i a n e x p o r t e r s

Theodore Aleksov, COO, Macedonia

Ralph Goodstone, Director, Le Cashmere, UK

Manijeh Khodadoust, Dastchin Mina, Iran

Kuldeep Singh of Mahadev S.A. DE C.V.



continuing to work with vendors, while price is a secondary consideration. “It is true that people want to buy more but at less price, but before that it is the look of the product which attracts the consumer into the store, so we follow the same principle,” said Manijeh whose priority is womenswear suitable to the Iranian market. Dora Popova, Proprietor Manager, Harmonia Ltd. Bulgaria (retailer/wholesaler) says that Indian exporters should think beyond summerwear also. No doubt, India has great designs, fabrics and patterns but sometimes exporters don’t put them together in a perfect way.

To work in a given price point is another strong expectation of all buyers, though they accept that it is not always easy to fit into their price requirement, but they too are helpless, as global market conditions are depressed. Sourcing from Bangladesh and China, Ralph Goodstone, Director, Le Cashmere, UK, which caters mainly to 250 medium- to large-level retailers in UK admitted, “There are good suppliers in India having better products and good quality, but still I need to negotiate on price.”

Some of the wholesalers have individual but interesting expectation from Indian exporters and they happily want to be associated with such things. Ilze Ports, CEO, Wandering Sage Inc., California (wholesaler/retailer, owns 3 stores and a brand) sourcing handwork-based garments, is also interested in women empowerment which personally attracts her. “It is good if we can together help women operators/homeworkers through our business,” she said.

Improvement on ways of communicating, like proper and prompt reply to queries was another area where these wholesalers/importers expect better service, while some of the importers are of the opinion that Indian exporters should know more and more about business practices in the country they work with, it will help them to deliver better. However, some of the wholesalers are fully satisfied with their Indian vendors as Rafael Yarto, Commercial Director, Mexico sourcing garment as well as fabric from India says, “Everything is okay, I don’t have more expectations or suggestions as such.”

In the present scenario when ‘reshoring’, ‘nearshoring’, ‘offshoring’ are the buzzwords, and it has become important for buyers to justify why they are sourcing from a particular destination, consolidation of vendors as well as exploring of new vendors is continuously going on. In the processes, wholesalers/importers are facing many challenges when sourcing from Indian vendors; and though these clients of Indian exporters loudly appreciate the improvements being made by their

vendors, they admit that there is still a lot of scope for improvement. In conversation with Apparel Online, these buyers share their ‘pain’ areas, while some of the issues are routine, few are real irritants that need immediate redressal.

Limitation of raw materials… Raw materials base is something which emerges as a strong challenge for wholesalers/importers and limits their sourcing activities. Some of the fabrics are not available in India, or they take

Tracey Farrington, MD, Bondi Beach Bag Co., Fiji

Sadrettin Coka, Asude (Armanda/Kroren), Turkey

Dora Popova, Proprietor Manager, Harmonia Ltd., Bulgaria

too much time to be procured, so some buyers prefer to work on ready or easily available fabrics. “I wish to shift some orders of hats which we are doing from China to India, but the country does not have many of the required raw materials, and I am forced to continue sourcing it from China,” says Tracey Farrington, MD, Bondi Beach Bag Co., Fiji – a wholesaler & importer of fashion apparel & accessories.

“India is pulled back by its lack of good textiles and innovations in the textiles industry,” adds Joel Ratner, Executive

Vice President of Sales, IDG. I think that’s the biggest limitation. So, buyers like us have to utilize India in what it is good at – cotton, rayon, etc. products in these fabrics can be done competitively. It’s a global world, and you need to source the strength of each country.”

Another buyer claimed that exporters are limited by raw materials even in products that they are strong in. “We are looking at partnerships for shawls and scarves as we already have some partnerships in Turkey and China; our priority is something different and special compared to other countries.

CHALLENGES FOR WHOLESALERS/IMPORTERSDespite improvement, much scope to gear up for Indian vendors



Roger Kohli, Creative Cute Options, US

Alison Otway, Marketing Vision sa, Panama

Natalie Centaine, Azure, Australia Paolo Zani, Art Director, Warli, Italy

From design perspective, India’s products are good and the variety is really interesting, but we fail to find what we want, especially when we consider the fabric base. Indian exporters are reluctant to work in different fabrics, as it involves too much of hard work at various levels,” states Sadrettin Coka, Asude (Armanda/Kroren), Turkey (Importer).

Another exporter, Dora Popova, Proprietor Manager, Harmonia Ltd., Bulgaria who is sourcing for many formats: retailer/wholesaler/online

sales, strongly recommends, “Material which is being used by Indian exporters now needs to improve and the range also needs to be widened.”

Need to be more organized…Another challenge faced by such buyers, mostly because they work for small- and medium-level exporters, is the lack of process-driven systems. Most of the buyers agreed that Indian exporters need to be more focused and organized to give better attention to order execution. Speeding up things

is the need of the hour not only for delivery, but even for sampling also. “Ideal sampling time should be a maximum of 2 to 3 weeks, but some Indian exporters take double the time than this,” claims Natalie Centaine, Azure, Australia, adding that many orders are lost because of this. Azure is a design-based wholesale company, sourcing from India from the last 6 years. A common irritant so as to say for most wholesalers/importers is the fact that if they show interest in some design of an exporter, the company starts pushing for final orders. Paolo Zani, Art Director, Warli, Italy (a designer firm) says, “Exporters should not expect orders in two days, as we need time to develop our designs; by pushing for orders, we lose interest.”

Lack of organized operations has also affected deadlines, which is again a major concern with many wholesalers/importers. Sourcing from India since last 30 years, Roger Kohli, Creative Cute Options, US says, “I feel that even in these difficult times, exporters do not understand the importance of being responsive and timely delivery is still an issue. There is no dearth of business but it is all about delivery and price point.”

Quality challenges persist…It is more than clear that quality is not more than something that buyers will have to ask for or insist upon, as it is a mandatory requirement. Yet at the same time there are still plenty of quality challenges for the customers… Almost each and every buyer was of the opinion that quality issues are required to be addressed on priority basis. Often buyers say that quality of Indian products is not always the best but is acceptable too; sometimes there are even issues in basic stitching also.

“India is pulled back by its lack of good textiles and innovations in the textiles industry. So, buyers like us have to utilize India in what it is good at – cotton, rayon, etc. products in these fabrics can be done competitively. It’s a global world, and you need to source the strength of each country.” – Joel Ratner, Executive Vice President of Sales, IDG

A challenge faced by buyers, mostly because they work for small- and medium-level exporters, is the lack of process-driven systems. Most of the buyers agreed that Indian exporters need to be more focused and organized to give better attention to order execution.

ESSENTIALS



There are many buying houses/buying agents in India who are working with wholesalers and importers. Some of them do have apprehensions and admit that on some point working with this segment is even difficult for buying houses. But they vehemently deny that compromises are made in quality, as suggested by some exporters.

None of the buying house representatives acknowledged that wholesalers/importers ever accept any lacking on quality. Following all the standard parameters of quality, they said that third-party inspections are always conducted and there is nothing like value for money or that quality moves according to given price. At the end of the day product has to be sold by retailers and why would any retailer take chance on quality. Even the wholesalers sell the product under their own clothing line/label, so he will also not take risk with his own clientele. In fact, buying agents claim that such exporters who compromise on quality are losing orders as wholesalers come to them only when there is no other option for him. Yes, price is always less when working with wholesalers/importers

but most of the time they have good order sizes, so it does not remain a very big issue. Buying agents also admitted that wholesalers never act strictly for their given delivery date and most of the time little margin is built in as wholesalers generally place their orders well in advance.

On the issue of compliance, there is a twist, one of the buying houses representative adds, “I have noticed that wholesalers don’t ask for compliant factory even if he is sourcing for a reputed brand while if the same brand is sourcing directly from us, he is very particular about the compliances and proper documentation/certification of the same. In case of sourcing through wholesaler, these brands just ensure verbally that factories are fulfilling basic norms/law of the land.”

There is strong opinion among exporters that working through buying houses with this segment adds more pressure on price as well as working norms. “I completely disagree that scenario becomes worse when any exporter works with wholesalers/importers through buying houses. The value added by a buying house is worth the little extra that they pay

Alison Otway, Marketing Vision sa, Panama – sourcing from India since the last 14 years still faces quality issues. “Some suppliers are still lacking on quality control which is in fact very sad,” he says. Another buyer raises concern about the discrepancy in quality of samples and actual goods, as sometimes they are different. “My sales girls always ask me why there is invariably a difference between what we approve and what we get! Even in small lots, of say 300 pieces, the goods are not the same when compared to the sample,” bemoans Koki Veber, Director, Sariko, Slovenija (Central Europe). The company has 10 stores and has been sourcing from India for more than two decades. She adds that though Indian exporters are fast improving their approach to global business and the situation is much better than a decade ago, still they need to be more professional, because ‘we also have a business to satisfy’. “Their production teams also have to be more efficient, and many times we feel that the follow-up on our order is not proper,” avers Koki.

Other issues…Very surprisingly, some importers felt that Indian exporters are only interested in bigger orders, which is an impediment to work here. “I am facing a challenge regarding small orders as I need maximum 100 pieces of any style and for them I am ready to pay a price accordingly, because I know my order size is too small, but Indian exporters are not too enthusiastic for this,” informs Karine Dupouy, Fashion Designer, Seychelles, who as of now is sourcing from Italy and Turkey and has its own small factory. She has five stores with own brand and specializes in resortwear.

There is also an open talk that many of the wholesalers/importers are very reluctant to work with India, and those who do work here agree on this, though shying away from sharing the reasons. A buyer says, “I know of some fellow buyers who are reluctant to source from India, but reasons are not known to me.” One importer however did share that many such buyers have either had bad experiences working in India because of the lack of professionalism or prefer to work in their comfort zone instead of exploring options, which takes a lot of time and money.

BUYING HOUSES WORKING WITH WHOLESALERS/IMPORTERS BRINGING REGULAR BUSINESS TO THE COUNTRY



and how can they disregard the fact that they are getting orders sitting at home without putting much efforts, otherwise it costs them at least Rs. 2-3 lakh for one overseas trip to finalize an order. Most of the exporters never accept their mistakes,” says one of the buying house owners working majorly with wholesalers/importers. Even in the condition of order cancellation, wholesalers/importers are in better condition as they try to serve shipments/products to their other clients. If in a particular case any wholesaler/importer is forced to get an order at a very tight price, he tries to accommodate it by giving a better price on a further order.

As far as opinion of buying houses on new vendors’ selection is concerned, they are of the opinion that wholesalers ask for new vendors only when more orders are there, or existing vendor base lacks resources for something specific that the wholesaler is looking for. Apart from this, innovation at various levels, including on washing and printing, do matter a lot for wholesalers/importers. How capable a factory is in terms of sourcing of fabric and allied material too matters a lot.

Take on PD…“We are working with 7 wholesalers/importers of the US. Working with wholesalers/importers is a little more challenging than working with retailers directly, as they ask our inputs on many things right from fabric, PD and quality. While retailers usually give a tech-pack kind of work, so involvement at that level is far less.” – Jitendra Sodhi, CEO, India Buying Consultants, Gurgaon

Take on payment security and compliance needs…“Among the wholesalers, the NRI ones are most unreliable and apart from few established NRI wholesalers, most of them have least credibility about payments. They never issue an LC and it is hard to trace them; today they are in the market strongly, placing reasonable orders but all of a sudden disappear. There is no support by our law or any such platform to raise such issues.” – Rakesh Saigal, MD, Precision Design and Sourcing, Gurgaon

“We are working with wholesalers of US and Canada who further work with prestigious companies like Walmart, Woolworth, Truworths. We work with 30 per cent advance, as working with such buyers can be risky, as one never has a security of payment. I have noticed that day-by-day more and more wholesalers are asking about compliance and one must accept that sooner or later, there is no survival without compliance.” – Anand, MD, Dean Textiles Buying Services, Tirupur

Working with importers is no different than working with retailers…“I feel price is workable with wholesalers, as it is balanced by order size. Be it matters related to quality or lead time, wholesalers are equally ‘tight’ as retailers are. Same is true with the growing need of compliance with them. More and less payments with them are also safe.” – Sameer Thapar, MD, Montrose Knitwear, Delhi

Secret of successful business with wholesalers/importers – innovative product at competitive price

Already sourcing products worth over US $ 5.5 million from the country, the company is exploring options to expand their market reach to more countries including the US. “We are putting in efforts to enter the US market. India, however, still has some distance to cover when compared to countries like Bangladesh, Sri Lanka, and Indonesia, especially with regard to labour and price,” averred Dr. Loganathan. He emphasized that in today’s scenario, the wholesalers and importers are looking for only price to win the competition in their markets. “Most of the buyers prefer to work with India rather than other competitive countries, but they expect the price of those countries in India. Also, implementation of technology is still in slow phase compared to many other competitors,” mentions Dr. Loganathan.

For a buying house working with wholesalers/importers, emphasis on product inspection and ensuring deadlines are

Working with several wholesalers and importers across 3 European countries, Dr. G. Loganathan, Managing Director, The Imperial, Tirupur in an exclusive interaction with team Apparel Online, details the challenges, pluses and relevance of commitment in today’s business scenario, while sharing the enriching experience he has had working closely with wholesalers/importers and retailers.



imperative. “Commitment is the key and nothing can substitute it,” believes Dr. Loganathan. While inspecting a product, in addition to meeting all the required customers’ specifications, the appearance and look of the product are also key areas, as it is always the appearance of the product that first captivates a buyer.

With competition getting tougher among wholesalers and retailers worldwide, the gap between price and quality is increasing each day. “One of the key differences

Dr. G. Loganathan, Managing Director, The Imperial, Tirupur interacting with his customers

The variety of products offered by India in cotton is very wide

of working for retailers and with wholesalers/importers is that while the importers choose the price, when narrowing into a vendor, the retailers prefer working with standard factories. Hence, the importers would never think twice before changing factories if any factory quotes lower price,” states Dr. Loganathan. Building and, more importantly, maintaining a good relationship is key to doing great business, be it with retailers, wholesalers or exporters. “If there is anything that one really needs to invest in, it is relationships

● It is buyers’ market where the price is the predominant factor.

● Demand in high quality standards are escalating day by day.

● In the recent years, the gap between price and quality is increasing due to hectic competition among the wholesalers and retailers at importing countries.

● The buyers’ expectation with regard to product, technology, service is tremendous.

● Garment being a consumer product, everyone wants to fish in the ocean across the globe, making the competition for good bargaining and getting it at lower price, more confused.

● Most of the buyers prefer to work with India than any other competitive countries, but they expect the price of those countries in India.

● Candidly, buyers are not so comfortable with our production because, implementing technology is still in slow phase in comparison to Bangladesh.

● Buyer feels our competitive markets are improving faster in terms of technologies, quality satisfaction and timely deliveries than Indian exporters.

● In today’s scenario, buyers are looking for only the PRICE to win the competition in their markets.

ESSENTIALS – A trait that surges forward any business,” reasons Dr. Loganathan. This is even more important in the case of wholesalers/importers as they have a very hands-on approach to business.

One of the biggest pluses of working with wholesalers/importers is that one always remains updated with international fashion as they ask for regular developments. However, the biggest challenge is that the wholesalers/importers are constantly on the lookout for new sourcing destinations, offering products at a cheaper price. “Indian exporters need to ensure optimum production to achieve the competitive price,” said Dr. Loganathan. If the exporters work on this shortcoming, the challenge of losing importers could be arrested.

On a scale of 1-10, while determining the relevance of product, price, infrastructure, types of buyers/markets already working with, compliances and lead times for any buyer, Dr. Loganathan was quick to give 10 to product. “Product is the one that finally sells,” said Dr. Loganathan. Infrastructure was rated 8. He also gave 8 to type of buyers/markets as there is now big competition among buyers too and they are always exploring new markets at less price. Compliance was rated 7 and lead time, significantly 9.

Although the role of the Government is improtant in supporting the industry, exporters too should upscale themselves – it’s time to wake up. “If the issues regarding labour and the failure to achieve optimum production are eliminated, then India could rule the market and be a force to reckon with in the years to come, especially with the huge talent that India has,” concluded Dr. Loganathan.

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TEX-FILE

Indian dye industry to take the ‘green route'

Minister's assurance to address issues of powerloom sectorSubsidy for solar plants installation underway

Department of Scientific and Industrial Research (DSIR) has granted Rs. 4 crore to Indian Institute of Technology Gandhinagar, to set up a Common Research and Technology Development Hub (CRTDH) on Chemical Processes at its campus to help dye industry meet the pollution norms and take an environmentally safer growth path.

The CRTDH will develop a Chemical Process Technology Lab along with a pilot plant facility which will demonstrate the process intensification, waste reduction and enhanced effluent treatment technologies developed at the campus. The centre will also help MSMEs in the dye sector for research, training and testing of the raw materials and products to give them an advantage in the competitive market.

Union Textiles Minister Smriti Irani has assured the powerloom sector that their issues would be addressed soon, though she expressed her inability to announce what she is having in store for them, as currently elections are taking place in a few states.

Known for providing livelihood to millions of rural people across the country for centuries, the sector is a focus area for the ministry. While responding to a question raised in Rajya Sabha, the Upper House of Parliament, the Textiles Minister said that the matter has been discussed with

support in the form of buyer-seller meet, yarn banks and setting up of common facility centres.

In the meanwhile, the Textiles Minister of Textiles has approved a new financial scheme to aid small powerloom units, hit hard due to frequent power cuts, for installation of solar photovoltaic (SPV) plants. “The funds requirement for the three years (2017-18, 2018-19 and 2019-20) would be Rs. 19.95 crore, covering 480 powerloom units in the country,” informed Smriti Irani.

The subsidy is expected to make power cost economical for

Several faculties from chemical engineering, chemistry, biological and materials science and engineering department of the institute will be jointly working in the project. In addition, the institute will put

industry stakeholders, but Model Code of Conduct is refraining her from making any announcements on it. It may be mentioned here that the Government has already introduced multiple schemes to accelerate the development of the powerloom sector which include In-Situ Upgradation Scheme for plain powerlooms, Group Work-Shed Scheme to help in the construction of work-sheds, Group Insurance Scheme for social security, Integrated Skill Development Scheme (ISDS) for skill upgradation, and Integrated Scheme for Powerloom Sector Development (ISPSD) for extending

the looms and make the units self-sufficient on the power front while the Government can supply grid power to other industries. The decentralized powerloom sector, which has a share of nearly 55 per cent in the total clothes produced in the country, plays a vital role in the employment generation in the country. Currently, there are 25 lakh powerlooms among which only less than 2 lakh are technologically upgraded. The powerloom sector employs 65 lakh people, most among them have high input costs and reduced purchase of fabrics.

in about Rs. 2 crore to help the dye and dyestuff clusters in the Gujarat region to become more sustainable.

Prof. Chinmay Ghoroi, Principal Investigator – Project, IITGN said, “The CRTDH will help

chemical industries to improve their existing chemical processes and waste treatment. The initiative will be helpful to the MSMEs in and around Gujarat who do not have proper lab and technical expertise.”

HAVE YOUR SAYTell us your news by emailing at [email protected]

BREAKING NEWSTo read the latest sustainability news, go to http://news.apparelresources.com/sustainability-news/


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As per the organizers of Heimtextil, despite snowfall and storm, on the first and last day of the event, it witnessed almost 70,000 visitors that is a little higher compared to last year (2016: 68,277). Similarly, this year there were 2,963 exhibitors from 67 countries as against 2,864 in 2016. One of the nearly 350 participants from India, Amber Home, Mumbai continuing its focus on sustainability, displayed a wide range of products made from sustainable dope dyed yarn (80 per cent cotton and 20 per cent polyester). Its products were selected for display at the trend area of the show. The company has a goal of sustaining the future with sustainable products by adding functionality to them with added special finishes, and make it hydrophilic and antimicrobial with fragrance added to it. The company’s inclusion in green directory with green leaf accreditation itself is proof of its achievements in this area. The company also created new theme of ‘denimology’ bringing denim philosophy into home textiles, adding to it batik and tie & dye effect using 3D concept, besides fragrance and antimicrobial finish.

According to Pranav Ghelani, Marketing Director, Sumangalam Exports, Mumbai, Heimtextil 2017 had a higher number of exhibitors but the same number of trade visitors as last year. “At the beginning of the fair, the Pakistan Government announced an additional 6 per cent subsidy for the textile made-ups sector. This enthused the Pakistani companies but added to the price pressures that Indian companies already face on account of zero duty imports in EU from Pakistan and Bangladesh. The volume, price-sensitive business has moved to Pakistan and Bangladesh. India is reliable in terms of deliveries and quality so in those terms we have moved up the value chain,” said Pranav. Apart from having meetings with regular customers he made some good contacts in non-traditional markets of Eastern Europe, South America and Australia. “Presentation of good, trendy designs and value prices attracted customers to our booth,” he added.

For some, the event proved much better than expected and they were quite happy. Riddhi Jain, Studio Medium, New Delhi informed, “The fair was very promising this year. We

met a couple of buyers interested in our products; most of them were store/boutique owners. As the company participated for the first time in Heimtextil, we were enthusiastic, and the event turned out to be very promising.” The collection showcased by the company was called ‘re-’. It is an upcycled collection of home textiles made out of discarded cotton yarns. The colour palette included bold pastels inspired by the irregularities of natural textures. There were ranges of cushions, futons and wall arts.

The fairs as a whole highlighted that there was no recovery in most European markets; weakened pound and uncertainty of the effects of Brexit have also negatively affected sentiments. Likewise, in USA with the new President focusing on “Make in America”, there are possibilities of higher duties on imports. This year is again going to be challenging for Indian companies so it is important to develop markets other than Europe and USA. Interestingly, some Indian participants were of the opinion that they didn’t find much issue with the enthusiasm of the buyers. “Buyers were looking for new things and price was not as big a consideration as many were making

As usual, January witnessed major home furnishing fairs, Heimtextil, Domotex and Maison & Objet wherein more than 700 exporters from India participated. Though their experience at these events was mixed on issue of buyers’ footfall, there was unanimity on the fact that Europe has still not shown any major recovery sign. Another point that stood out strongly was the increased focus of Indian companies on product development as most of the participants with whom Apparel Online talked presented collections with unique designs/blends in their products.

700 INDIAN EXPORTERS PARTICIPATE IN HEIMTEXTIL, DOMOTEX AND MAISON & OBJETE U R O P E W I L L TA K E T I M E F O R S T R O N G D E M A N D

‘Sleeping’ is emerging as a lifestyle and combination of bed linen with accessories (lamps, baskets), and this was highly appreciated at Heimtextil. Many innovations were seen in the bed segment like Mediflow from Hamburg, displayed an improved version of its water pillow capable of full adjustments for firmness and supportive effect.

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Studio Medium, New Delhi Studio Medium, New Delhi


it out to be,” said Riddhi Jain, adding, “We realized that now is the time when retailers are ready to experiment with new and bold collections as their main focus is on providing new products to their buyers. They were also on the lookout for products that are sustainable for our surroundings and this really fitted well with our upcycled collection, at Heimtextil this year.”

For many exporters, the Heimtextil Trend Park was particularly very inspiring, taking them through the upcoming trends in technology and textiles. As Germany is a very important country for Indian home furnishing exporters, EPCH organized

the participation of the stakeholders of the Narsapur Mega cluster and members in Heimtextil, through India pavilion with 15-member exporters.

DOMOTEX 2017 Organizers of DOMOTEX 2017 claimed that this dynamic event puts fresh wind in the sails of the global floor coverings industry with substantial growth in number of exhibitors and size of exhibition. It witnessed a total of 1,409 exhibitors from more than 60 countries, and out of them nearly 350 exhibitors were from India. As far as visitation is concerned, it was on a par

with the last comparable DOMOTEX, staged in 2015 with 43 per cent coming from EU countries. From the nearby Middle East, it was up by 9 per cent, while East and Central Asia increased by 16 per cent. More visitors came from the US and the UK, in particular. The latest trends revealed a strong focus on sustainability and natural-looking designs. There is strong demand for eco-friendly designer products, as well as for laminate and designer flooring with surfaces of such deceptively natural appearance that they can hardly be discerned from real wood.

One of the Indian participants Ravi Chabbra, MD of Chhabra Home Concepts, Panipat shared his opinion, “Overall, the fair was okay and we met 4-5 good buyers. Generally I think Europe is picking up the daily use or basic products, but not for exclusive or luxury kind of things.” The company offered regular range of bath mats at the event. Pradeep Singh, Director, Zoya Home, Panipat too had a similar view as he said, “Fair was mostly dominated by European visitors and business was almost the same as last year or even little less than that.” Floor covering in natural fibres like jute, hemp, wool was displayed by the company. Pradeep also added that exhibitors like him participated in such international events through Indian Government agencies/councils, which should make more effort to get proper locations so that more buyers can visit their stalls.

Maison & Objet In Maison & Objet, Paris there were almost 23 Indian participants like Shingora Home, Ludhiana; Kanodia Global, Delhi; Condor, Gurgaon and few designer brands. There were in total 2,871 exhibiting brands while more than 1,35,000 visitors visited the show. Amit Jain, MD, Shingora Textiles shared, “Fair was just okay; I would give it a 5 out of 10 as there were visitors but business was missing. Still Europe seems to be slow.” The company displayed its blankets which were made by cotton rather than wool. On the contrary, Anil Sharma, Senior Merchant of Noida-based Janavi shared, “For us the event was reasonably good and we are satisfied with it.” The company highlighted its strength in cashmere art in wide range of designs, while products included blankets and shawls.

Sustainability was as usual highlighted under the title ‘Sustainability, Mindset, Responsibility’. Participating for the first time at Heimtextil and dealing in organic home furnishing products, Storyfabrics, a Switzerland-based company, sourcing home products from Indian company Rajlakshmi Cotton Mills, was happy with the fair. Martina Unternaehrer, Founder of the company said, “I met potential customers from Switzerland and with whom I couldn’t get a meeting back in Switzerland. Small companies like ours have to go to the big fairs to be taken seriously.”

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Amber Home, Mumbai Studio Medium, New Delhi

Sumangalam Exports, Mumbai


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DIRECTIONS BY

The whirlwind brought about by the biannual menswear fashion weeks at New York and Paris, has recently settled, giving way to future trend predictions that would signal what the approaching season looks like.

This season saw utility and comfort being given an edge of importance over avant-garde fashion. Loose tailoring and a fresh approach to the classic double-breasted jacket made a case for the men of the 21st century, who are more inclined towards experimentation and functionality going hand-in-hand. Gone are the days when the colder months summoned darker hues; this season designers go all out to incorporate bright pops of colour into their winter wardrobes and go big on details such as prints, patterns and surface textures.

In this issue, FFT reveals key trends from the runways of New York and Paris for Fall/Winter 2017-18 as showcased by ready-to-wear designers and labels.

FALL / WINTER 2017-18

Key Menswear Trends From

NEW YORK & PARIS


DIRECTIONS BY

BOMBER BACKLASHBomber jackets continue experiencing a surge, with every label offering its own version of

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