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8 Apparel Online India | MAY 16-31, 2016 | www.apparelresources.com

A surprise visit by Faruque Hassan,Senior Vice President, BGMEA and MD of Giant Group, Dhaka to my office led to an interesting discussion on many issues the industry inthe region is facing and also how we could collaborate for growth.While I have always maintained that there is no competition with Bangladesh and both countries have very distinct and individual strengths that are in no way overlapping, it was heartening to hear a reflection of this thought from Faruque also. He agreed that the two countries could grow together, complementing each other’s strength.How can Bangladesh even think of producing the huge range of fashion fabrics and yarn dyed fabrics that India is known for, a strength that has been built over centuries of expertise…,he questioned, and argued why should they even attempt to?Giant Group buys yarn from India and is happy doing business with manufacturers in Ludhiana. The relationship created with the suppliers over these years far outstrips the so-called advantages of sourcing locally! IfBangladesh exporters grow, so will the business opportunities for fabric and yarn suppliers in India…; it’s an obvious link.Can we in India ever think of the huge scales that most Bangladeshi companies are known for...? India is and will, by and large, remain a manufacturing destination for small quantities and ‘complicated’ designs. Buyers understand each manufacturing base and plan programmesaccordingly; some even attempt to move out of this comfort zone unless the temptation is too good to ignore. Volumes at competitive prices are what Bangladesh specializes in, and as Faruque says the exporters are mostly working to improve the quality of stitching and productivity… Products with value adds, like India, are still a faraway dream; so where is the competition?Compliance and willingness of the industry to meet international standards was another area that we both found agreement in thought… Motivation has to come from the industry and no NGO or Buyer should be allowed to push beyond reasonable and viable implementations. Bangladesh has seen some bad press in the past and Faruque complimented Apparel Onlinefor being positive and believing in responsible reporting… It gave me a sense of achievement to know that the industry on both sides ofthe border understands and appreciates our philosophy.

Another current perspective that we discussed was the unjustified fear of the adverse impact of TPP advantage to Vietnam on Bangladesh.Faruque was of the opinion that the TPP would not impact business in the near future as it would be very difficult to comply with the condition of ‘rule of origin’ that necessitated building of yarn and fabric capabilities in a very short time. He alsofelt that Bangladesh as a garment manufacturing destination was far ahead of Vietnam and the gap was too wide to be narrowed down any time soon.I completely agree with him; in fact from my interactions with people working in Vietnam, it is obvious that the labour there is educated and wages will continue to rise, and that garments which require ‘cheaper labour’ to remain competitive will not attract the workforce after a point of time. In this scenario, how can Vietnam expect to grow in garmenting at the level that is being projected by some analysts?However, a country that could pose a challenge is Ethiopia, as buyers like PVH and H&M are very keen to develop the region as a manufacturing source for tariff advantages that it providesto the US market. Faruque shared that PVH was sponsoring delegations of Bangladeshi entrepreneurs to Ethiopia and also dangling thecarrot of guaranteed work for at least 18 months, in addition to the advantages and concessions that the Government of Ethiopia is providing,if they agreed to set up units in the region. He argued that their desperation to get Bangladeshi exporters to set up units in the region only highlights the reliability of the exporters from Bangladesh in the global garment trade… He has a very valid point here!Though Bangladesh is secure in the knowledge that business for them will continue to grow for many more years, Faruque did voice his concern with regard to the gap in education. He invited Apparel Online to help the BGMEA to organize training sessions to impart industry-focused education to the upcoming generation and also hold focused sessions for the industry on various topics… Education is an area that I am also very passionate about and I firmly believe that not only Bangladesh, but India too needs a fresh look at its institutes and training initiatives.While we exchanged notes, it became exceedingly more obvious that at the end of the day wewere all serious businessmen looking at ways to enhance business opportunities and what a better way than moving forward together in a collaborative effort!

FROM THE EDITOR-IN-CHIEF’S DESK…A VISITOR FROM DHAKA REITERATES BY BELIEF THAT WE NEED TO CREATE REGIONS AND NOT COUNTRIES FOR SOURCING



having lakhs of workers all in the space of 1 or 2 streets. As happened in this case…, some unknown leaders made this issue in a couple of factories and the whole agitation soon spread like a wild fire. And whereas on the first day there was no violence, but on the second day some ‘outside’ elements took advantage of the situation to create disturbance.

Obviously this is a lesson for the Govt. not to tamper with legislation involving millions of workers without adequate understanding or study. The same lack of foresight madethem change the interest rates, followed by a hurried retraction.

Frankly speaking, the entire question of labour reforms is a story of mishandling. The word ‘labour reforms’ has begun to mean, “Taking away workers’ rights, hire and fire, and a change to capitalistic and rightest view of politics”. This needs not be so. There area number of amendments required in the factories act and other labour legislation which are necessary, both in the interest of workers and management and modifications of these would be a win-win situation. No attempt should be made to politicize these changes. These add relevance to dusty laws which are no longer pertinent, and neither the

Jagadish Hinduja, Chairman, Gokaldas Images, Bangalore The recent disturbance in Bangalore pertaining to PF is an indication of how little research and study is done by the Govt. when they bring in legislative changes. Apparently, the Finance Ministry found a very convenient way of holding these huge PF funds in their hands by bringing about these amendments. Workers have been making use of PF funds when they face financial difficulties for education of their children, emergent health situations, family loss, etc. To ask workers to forego these funds and wait till they are 58 years, to draw them, was insensitive to say the least. One should not overlook that workers in this industry draw Rs. 7,000/- to Rs. 10,000/- per month, whereas salaries of workers in multinational

companies or large automobile companies may range from Rs. 30,000 to Rs. 40,000/- a month. Hence, they have no safety net and PF savings is their last resort.

Why should this happen in Bangalore? There is an ease of movement for workers from onejob to another. There is also huge shortage of workers in the garment industry in Bangalore, so workers use the opportunity of completing 5 years in service so that they can draw their gratuity and withdraw their PF by change of job. They have no hesitation to do so as jobs are available in the next door factory, in fact at higher wages. The ease of job availabilityis a big characteristic of the garment industry in Bangalore which enables drawing of PF funds at regular intervals. There are number of compliant factories paying PF regularly and

Recent developments on EPF (Employees’ Provident Fund) issue have many perspective/angles… While it instigated violence in the apparel manufacturing industries of Bangalore, there was little or no reaction in other parts of India. Why and what could be the reasons?How do you view the stand of the Central Government on EPF…? It hiked contributions just two years ago, followed by new amendments of withdrawal, and then a sudden U-turn; also there has been fluctuating rate of interest on the same. How do you see the entire issue?

TOPIC OF DEBATE

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www.apparelresources.com | MAY 16-31, 2016 | Apparel Online India 11

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party in power or position should play games on these changes. Transparency, consultation should be the watch word for change.

Sudhir Dhingra, CMD, Orient Craft, GurgaonMany actions have been taken by the Govt. with good intent; in this issue the intent of the Govt. was clear – that the people should save their money for their retirement. But this decision was not practical because nowadays, on and off every body, and especially workers’community, need money. If anybody’s money is blocked, agitation will be there. It is good that Govt. realized itself. It is a very sensitive matter, at the end of the day individual have to make a choice that what does he/she want to do with his own money and Govt. have no business to intervene.

J D Giri, Director, Shahi Exports, FaridabadThe Govt.’s intention on this issue is very good, but look at the kind of our industry and the workforce’s expectations. Today almost 20 per cent of the wages are going into the PF. Workers are forced to go to the moneylenders and borrow money, so what needs to be done in this regard…? I feel that for salaries of up

to Rs. 15,000, there should be no deductions of PF amount; beyond that the Govt. can do whatever they want to do. I feel if a worker wants to withdraw full amount, he/she should be allowed.

Animesh Saxena, CEO, Neetee Clothing, Gurgaon It was a decision with good intention as Govt. wants to secure thepost-retirement life of the workers. There is requirement to change the model of social security in our country as the current PF system does not seem very good. There can be something for social security like CSR. We look to garment industry, and especially to the workers in Bangalore, there are several women workers; they need money after every four tofive years for their different personal needs, and they find that withdrawal from PF is an easier way to get the money. But now the conditions of withdrawal at the age of 58 years only was something totally against their need. In North India, we have to do counselling of the workers as they are not willing to deduct PF and withdraw the money immediately after leaving their job. The Govt. should allow them to withdraw some amount from time to time and keep the balance funds for their social security.

MINDTREE

Competition is getting fiercer, and exporters are finding it difficult to survive… In this scenario we hear people talking about some exporters undercutting and lowering prices to get the orders, ‘killing’the market for all.Have you ever faced such a situation; and what do you feel is the best solution to keep prices at a reasonable level and yet getting orders?

Be a part of our latest discussions...Post your comments on www.apparelresources.com




Setting benchmarks in fast fashion, Inditex has exceeded analyst’s expectations with the retailers profit growth in 2015 aided by the opening of 330 new stores in 56 markets last year bringing its total number of stores to 7,013. Apart from offering fashion clothing, thecompany has focused equally on e-commerce and brick & mortar stores to clock in profits, making e-commerce the gateway for consumers to enter the stores. “The business is integratedfrom every point of view. Two- thirds of returns are in-store because our customer prefers to go to the stores. In many cases this is an online return but at-store sale, because the customer goes to the store and is changing the size,” reveals

Pablo Isla, CEO, Inditex. Recently, ZARA has opened a new three-floor store in the heart of SoHo, designed entirely by ZARA’s architecture team having original cast iron facade, brick wall, airy interior that features beauty, clarity, functionalityand sustainability.Continuously, Inditex is expanding its integrated store and online sales strategy globally by opening ZARA’s online store in Spain, France, Germany, the UK, Italy and Portugal, andmore physical stores in markets such as Vietnam, New Zealand, Paraguay, Aruba and Nicaragua in 2016. As the company’s new sales rose by 15.4 per cent,with ZARA chain posting a 17.5 per cent rise to ¤ 13.6 billion, Bershka sales were also up

12.7 per cent to ¤ 1.87 billion, making it the second-biggest chain for Inditex, followed by Massimo Dutti with sales of almost ¤ 1.5 billion, up 6 per cent, and Pull&Bear jumped by 10.4 per cent to ¤ 1.41 billion. The trend also continues in the new financial year with 15 per cent increase in sales in 2016 as of now. Moreover, the company had 1,52,854 full-time equivalent staff last year, up from 1,37,054.What attracts the customers to the company’s wide array of brands, specifically ZARA andBershka is its weekly distribution of limited new products toshops worldwide, creating an environment of buy now or miss out for consumers. This is much in contrast with GAP’s business model that lets its seasonal

I N D I T E X R E A C H E S NEW H E I G H T S WITH G LO B A L S U C C E S S IN 2015 Z A R A A N D B E R S H K A U N S T O P P A B L E


The Inditex juggernaut is getting bigger and better as the Spanish company that boasts of brands like ZARA, Bershka, Pull&Bear, Massimo Dutti,etc. has logged its highest sales growth in the past three years mainly due to additional physical stores, rising Spanish consumption andits expanding online presence worldwide, resulting in 2015 sales increasing by 15.4 per cent to US $ 22.9 billion. Specifically, ZARA and Bershka’s steady stream ofon-trend fast fashion clothing has kept sales robust against other clothing retailers such as GAP, J.Crew, Urban Outfitters, A&F, etc.

WORLDWRAP


in terms of infrastructure, size and scale, it is still an issue in apparel manufacturing, whereas this is the only sector where size and scaleis possible in very short span of time. Raising the concern of Indian companies moving into Bangladesh and Ethiopia, he pinpointed that the ability of size and scale andto a much greater level of ease of doing business at such ports, are main reasons for movement in that direction. “Every single hour matters…; why it should take us 3 to 4 days more in comparison toBangladesh in export of goods? This is no rational at all. We need far better integrated solutions. Address whatever is holding back our exports in terms of custom clearances; we need to cut entire paper work. We should need just one document and it should take maximum three hours. Turnaround times at ports, giving efficiencies at much greater levels will resonate economic efficiency,” said Amitabh.Answering to the admission of limitations of Indian Government on TPP raised by Sushmita Dasgupta,Economic Adviser, Ministry of Commerce, Dhingra was of the opinion, “When they (othercountries) can sell us their choppers, luxury cars or wine…, why can’twe force them for our apparels?” He regretted that the Government never had focus on garment export industry, and similarly the industry too never ever talked strongly as a group to the Government. “Indian apparel entrepreneurs have done their best as individuals, but what can they do if there is no demand. The customers do not want to pay more, buyers are completely under

pressure. The only solution is FTA with bigger markets like EU and US which can eliminate this duty difference of 12 to 29 per cent. TPPis going to kill us,” said Dhingra and criticized the aspects/obstacles in forging and sealing FTAs. “We have issues regarding productivity, labour laws, manmade or cotton…, but still our industry can grow four times despite all these if we get the FTAs with US and EU,” he emphasized.“We are talking about job creation and the recent Jat agitation in Haryana was all about reservations so that their kids can get jobs in the future. What percentage of overall people, are truly qualified for the jobs that are coming up through education…? It is only our apparel industry which can give jobs aftera little training. Export of every US $ 1 billion of apparels can add2.2 million jobs,” added Dhingra, saying further that buyers are lined up to work with Bangladesh and waiting for almost 6 months as Bangladesh is already full. “It iswrong that Bangladesh is only doing basics, they are doing embroidered garments also and that too with the help of Kolkata which is known for its finest work. So India is goingto lose more and more business. When Sushmita sought suggestion to improve the apparel export, Dhingra also insisted that the Government should offer women hostels as there is acute shortage of proper housing, especially where the job opportunities are. Babni Lal, Economic Advisor,Ministry of Textile (MoT) assured that upcoming textile policy will have focus on job creation intextile industry.

Vijay Mathur, Additional Secretary General, AEPC insisted that industry strongly needs an increase in the overtime working hours from 50 hours a quarter to 50 hours a month to increase the overall production. He also said that Government needs to change its view regarding R&D in apparel sector. Few amongst the audiencesraised the question that demand has to be created on the basis of strong products and we can’t depend on the Government to generate demand. “Who is bothered about job creation in India, initiatives like MNREGAis not something that is really helping the society or the industry in particular,” pointed out Mehmood Khan of Janm Foundation, a civil society organization working in Haryana and Uttrakhand to support the marginalized. Rajat Kathuria, Director, ICRIER, in his concluding comment, was of the opinion that the report of the World Bank will definitely help Indian apparel industry to grow further, as it gives deep insight into grey areas and also highlights the opportunities.

(L to R) Sudhir Dhingra, CMD, Orient Craft; Chandrima Chatterjee, Advisor, AEPC; Sushmita Dasgupta, Economic Adviser, Ministry of Commerce; and Dr. Saon Ray attending the seminar

Babni Lal, Economic Advisor, Ministry of Textiles (MoT) explained about the initiatives taken by the MoT as Mehmood Khan (L) of Janm Foundation raised questions

Chairing a consultation meeting (organized by Research and Information System for Developing Countries) with economists and media observers on ‘FTAs & India:The Way Forward’, Commerce and Industry Minister Nirmala Sitharaman blamed the EU for showing little interest in the trade pact. She brushed off suggestions that the Government hasn’t been proactive enoughto clinch the FTA. According to her, “India has written (after the latest India-EU summit in Brussels onMarch 30) to EU trade negotiators for dates to resume trade talks, but there has been no response yet.” The Minister also said that the perception of India beinga laggard on global trade negotiations needs to be fought both by the Government and other stakeholders.

“My enthusiasm for learning and the passion to do things differently has brought me where I am today. Whenever I go to any exhibition, I insist the machine providers to show me their factories, which widens my learning experience,” asserts Tajinder.Such is the case that taking inspiration from global benchmarks, the Mercury factory in Bawal (Haryana), on the outskirts of Delhi-NCR, has been built on the lines of a European factory. The most stringent and quality-conscious buyers like H&M, C&A and M&S, have accredited the factory and appreciated the effort gone in to making it a world-class facility; no wonder its customers include big names in the export arena such as Shahi Exports, Orient Craft, Richa Global, etc. “I listen and take corrective actions around thesmallest of complaints that come to me. That’s how you earn respect. Seeing me working like this, my coming generation is also equally sincere. What else do you want?” reasons Tajinder, whose sons Rahul and Pranav are deeply involved with Mercury Fabrics.Equipped with the latest technology, Mercury is also providing better price in comparison to China in certain qualities with the help of a trained technical team,who not only understand knitted fabrics, but also the technology installed. “I am completely satisfied and happy that I have a good team consisting of people who have many years of experience in this field and have been with me for a very long time, to man the unit,” states Tajinder. The facilities at the factory also includes Reggiani Mezzera washer, a pre-requisite for

Tajinder Sachdeva, MD, Mercury Fabrics with his core team from marketing and production at the Bawal factory on the outskirts of Delhi-NCR

Being one of the largest knitted fabric manufacturers in India, Mercury Fabrics is a significant supplier to many leading fashion labels of the world including H&M, C&A, M&S, etc. A fully furbished R&D lab accredited and approved by leading international fashion labels together with the best of technology from around the world like Italy, Japan, Germany and Korea, and teamed up with lean manufacturing processes, enables Mercuryto deliver unmatched quality and high-value products. In conversation with Apparel Online, Tajinder Sachdeva,Managing Director, Mercury Fabrics shares the journeyof becoming a market leader today and the future ahead…

M E R C U R Y F A B R I C S : P R O V I D I N G H I G H -Q U A L I T Y K N I T T E D F A B R I C S T H R O U G H A T E C H N I C A L L Y - E Q U I P P E D S E T U P


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INFLUENCE ROMANTICIZING SPRING SILHOUETTES

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Tory Burch

Alexander McQueen Oscar de la Renta

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Burberry Christian Dior

in the fashion scene over the last few seasons, abundance of beautiful blooms were seenon the Fall/Winter ’16 runways. Dolce & Gabanna opted for bright and beautiful, Mulberry unveiled a moodier graphic floral and Dior showcased delicate silk and embroidered micro-petals.Surfaces appear to have been sourced from the home- furnishing archives andcharacterized by interior-look patterns. Antiqued aesthetics with aged upholstery effects are the key to this value addition trend. Ornate jacquard and brocades with enlarged floral tessellations find interesting interpretations. Muted colourway tone vintage-look florals and wallpaper prints,as also touches of jewel shades or metallics add richness to the entire look. Lavishness and opulence were missing from the previous seasons, owing tothe requirement of minimalistic designs and straight cut silhouettes, but these luxurious yet substantial upholstery- inspired motifs are comingout as the best counter trend.S S Luthra, Creative Director, Textile studio, discussing about his collection said, “We are into embellished garments and now we are trying to do different fabrics, satin, polyester, and different embroideries, and different kind of work, compared to other suppliers. Interior motifs are being done on styles using hand thread work, sequin, mix embroidery mainly on jerseys, and viscose.”Burberry and Dolce & Gabbana went for metallic brocades for their respective collections – the former presented pleated skirts with a boxy top adorned with olive and silver threading, whereas the latter wentfor an all-gold with a black surface for their luxe coats. The most interesting twist to this flowery tale is that the motifs can be translated onto apparels using multiple

caught the eye. Another titan of floral prints, Oscar de la Renta, showed appliqués so big, they were virtually life-size.Interior motifs are mistaken for only floral motifs, breaking this misconception,Manish Khurana, MD, Shivam Terene Pvt. Ltd. says, “Interior motifs are majorly florals but are not bound only to them.Interior motifs have elaborated

techniques. Placement prints in folkloric styles, botanical landscapes and delicate florals presented in strong elements of digital printing and advancedengineered printing techniques. The application of hand-drawn, hand-painted, hand-dyed,hand-cut and hand-beaded forms are anticipated to grace the collections directly picked up from the runways. Coming summer, artists would be hand painting on apparels, as well as accessories and then use sketching or drawing over it to create deep textures. This is a good sign for Indian exporters, as handwork has always been the strength of collections presented by the community.The interior motifs observed can be classified into three forms – romantic, intricate and experimental. Romantic floral motifs are usually seen on free flowing dresses or garments of light colours. They are the most classic version of flower power – feminine and flirty. The intricate motifs are usually the most nuanced version of high fashion.These are mostly couture and include embellishments that are detailed and fine in appearance. Rajesh Kumat,Director, Ganga Exports, very rightly mentions, “In the initial flush of petal fashion this year, renowned designers took to experimenting with the flower motifs in black and white prints for women, while on the other hand, colourful flowers travelled to men’s wardrobes.”And it’s not only clothing that will be witnessing the influx of interior trends, the interior motif has also found its way to socks, undergarments, accessories, and shoes. Whilethe floral print trend has been in full bloom for as long as we can remember, S/S ’17 collections are bringing with it oversized floral motifs that even include 3D designs. On S/S ’16 runways, Erdem, king of the floral print, adapted his signature print in sorbet hued 3D appliqués that

damask patterns, sujani designs, modern flometric patterns and many more interpretations.” For those who are less willing to live in full bloom all season long, the interior motif trend will continue from last season with printed pants, mini-dresses, skirts, etc. for exporters to put a motif on.Interior motifs are all about having fun with scaling, sizing and techniques to induce joy and romance into spring.

The agency has gone a step ahead by launching a consumer and retail services testing laboratory in Bangalore that will cater to the regulatory and voluntary needs of consumer products such as textiles and apparel for the southern and western regions, which are prominent base for textile and leather industries. Building on the ‘Make in India’ vision, UL has emphasized its credibility as an organization with the capacity and capability to develop standards relevant to the Indian market.In a constant endeavour to support the ‘Make in India’ programme, UL is helping Indian manufacturers to expand and sustain their businesses by facilitating global market access. “The Indian market is fuelled with growing impetus for quality assurance, coupled with the increasing awareness for the need for consumer and product safety.Our new laboratory is an extension of the company’s commitment to be ‘In Indiafor India’ while striving towards a safer living environment for all. UL will continue to enable manufacturers to comply with environmental standards and regulations by providing an efficient, cost-effective third party testing services,” informs Suresh Sugavanam, Vice President and Managing Director, UL South Asia.Using research and standards to continually advance and meet ever-evolving safety needs, the agency partners with businesses, manufacturers, trade associations and international regulatory authorities to bring solutions for the global supply chain. Its new lab will be such a solution for consumer

products, which is the second facility to be established in India after the Gurgaon lab. The new state-of-the-art lab is spread over 4,000 sq. ft., comprising of separate units for analytical, colour fastness and physical testing as per global standards, withlatest cutting edge equipment. It becomes beneficial for consumers as they will be able to benefit from UL’s global expertise to widen their international market access by helping to ensure compliance to a host of safety standards, while addressing product performance and quality.Already, Bangalore is home to UL’s sprawling 40,000 sq. ft. NABL accredited laboratory that housesadvanced facilities for varied sectors like consumer technology, photovoltaic, HVAC, photometry, electrical products, medical devices, and drinking water testing. “UL’s quality and time-bound service has resulted in our customers requesting us to expand our services in southern India. While catering to our existing and new clients, the laboratory will also help our clients to optimize their product performance with UL expert solutions that mitigate potential risks and help protect their brands,” concludes Sarbajeet Mukherjee, General Manager – Consumer and Retail Services, UL South Asia.With the new lab in place and the second one in India, UL is continuously working towards supporting the production and use of products which are physically and environmentally safe and putting efforts to prevent or reduce loss of life and property.

UL, a global independent safety science company, has more than a century of expertise in innovating safety solutions from electricity to new breakthroughs in sustainability, renewable energy and nanotechnology. Throughout its 120 years of journey, UL has been dedicated to promoting safe livingand working environment, which helps in safeguarding people, product and places by facilitating trade.

Laun ch es Consumer and Reta i l S e r v i c e s Testin g Labor atory in Banga lore ULSUPPORTS ‘MAKE IN INDIA’ VISION

Prof. V Sivalingam, Director NIFT Banagalore inaugurates UL’s new Consumer and RetailTesting Laboratory at Bangalore as Suresh Sugavanam, Vice President and Managing Director, UL South Asia, looks on


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