27th September 2021, Mumbai:

COVID-19 accelerated the growth of the Indian online fashion industry. From April 2020 to March 2021, the industry grew 45 percent, reveals a technology platform Unicommerce study.

And it was not just established domestic e-commerce players like Ajio and Myntra which recorded growth, Indian fashion ecom space saw the rise of several Chinese fashion platforms like Club Factory and Shein.

Shein first launched India operations in 2018 and crossed five million orders in just a year. The platform generated $10 billion in revenues globally in 2020. However, tensions along the India-China border led to it ban alongside 58 other Chinese apps in 2020. It has since made a return to India through Amazon, much to the pleasure of a large customer base in the country. The platform is especially popular amongst young Indians.

Growth driven by competitive prices, quick turnaround

As per a MIG report, one main reason for Shein’s massive popularity is the competitive prices and deep discounts they offer. Also, Shein has the ability to create and release the latest styles on demand. It also offers better size options and patterns than most offline stores.

Though numerous cases of fraudulence make online shopping a risky business, the facility of easy returns and pick-up services add to its attractiveness amongst consumers.

Another reason is the quick turnaround time offered by these platforms. These apps launch new collections faster than conventional fast fashion brands like Zara and H&M that release about 16-24 collections a year what’s more most of the cost of their collection below Rs 1,000.

However, clothes sold on such platforms are mostly made with unethical fibers. Their speedy turnover has an extremely negative impact on the environment, leading to 10 percent of the world’s annual carbon emissions. Hence, consumers are hugely critical of Shein’s return to India and are urging the company to switch to more ethically sourced and eco-friendly materials.

Increased awareness leads to rise of new brands

Most clothes sold on the platform are polyester-based and cause microplastics pollution and carbon emissions, says Anya Trivedi, Sustainability Consultancy Firm, Environment Sciences, and Business. They release around 40 percent of synthetic microfibers on disposal.

The industry releases around 1.4 million trillion plastic fibers into the ocean every year, with catastrophic effects on marine and human life.

Indian designers have, therefore, launched sustainable brands such as B Label, which uses hemp to make clothes, and No Nasties, an organic fashion label that offers a wide range of vegan apparel. These brands are benefitting from growing awareness about sustainability among Indian youth. They often use regular Indians on social media to promote their clothes.

This helps them foster a feeling of relatability and inclusivity amongst consumers. Most of these sustainable shopping sites offer durable pieces that can be customized as per consumers’ needs.

From $46.2 billion in 2020, the Indian online fashion market is expected to grow to $111.40 billion by 2025. As per an IBEF report, this growth will largely be led by e-commerce giants such as Flipkart and Amazon. However, will these companies be able to sustain the growth, or will they have to alter their unethical production processes, will largely depend on consumers?

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25th September 2021, Mumbai:

India’s leading designer-wear brand, Ritu Kuma has added a new store in Guwahati City Centre Mall, Assam. The new store spans across 840 sq ft and houses comfortable, designer wear with a wide range of styles.

The use of luxe fabrics, the work of local artisans, and the design sensibilities of her make this one-of-a-kind store a welcome addition to the fashion landscape of the city.

Amrish Kumar, Managing and Creative Director, says, the new store offers the brand’s signature collection, curated for the discerning Ritu Kumar patron. The store takes the brand’s total store count across India to 60. Besides the new store, the brand presently retails through its website, ritukumar.com, Myntra, Tata Cliq, and Nykaa Fashion.

Ritu Kumar is the largest and most respected designer-wear brand in India, Established in 1969, the brand has developed a unique style of its own, reflecting the ancient traditions of Indian craftsmanship in a contemporary vocabulary.

The company is renowned for its distinctive use of colors, quality of fabrics, intricate embroideries, and a gloriously rich Indian aesthetic. Since the company was built on the patronage of craftspeople, it has made a significant impact in creating employment in underdeveloped areas.

Over the years it has patronized several organizations working in these areas and helped in developing skills and taking them to the market.

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23rd September 2021, Mumbai:

Reliance Brands has devised a two-pronged strategy to set up a dedicated webstore as well as a new brick-and-mortar chain of high-end cosmetics products similar to LVMH’s Sephora.

The company has been consistently building skincare, beauty and fragrance offerings within the portfolio of brands they sell. Reliance Brands markets more than four-dozen of high-end international labels in India including Armani, Burberry, Canali, Diesel, Gas, Hugo Boss among a host of other brands.

The company offers a wide range of skin and hair-care products of Japan-based Mujibesides fragrances of Tiffany & Co., Armani, Zegna and Diesel.

Beauty and cosmetics is one of the fastest growing segments of India’s $850 billion retail market. Online sellers like Myntra, Nykaa and other smaller players have been gaining momentum over the years in the space.

Last month, Nykaa filed draft red herring prospectus to raise capital in an initial public offering at a valuation of $4 billion.

A 2021 report by financial services firm Avendus has predicted the online personal care and beauty market in India to touch $4.4 billion by year 2025. Online beauty and personal care shoppers are likely to increase in numbers by over four times — from 25 million in FY20 to 110 million in FY25

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27th September 2021, Mumbai:

Propelled by growing demand for fast fashion, the global textile industry has seen unprecedented growth in the past few years. Valued at $1.9 trillion in 2019, the industry is expected to reach $3.3 trillion by 2030.

Most of this growth is being fuelled by increasing use of synthetic fibers that currently constitute nearly two-thirds of the fiber mix used by textile industries.

Most of these fibers use large amounts of chemicals during processing that are extremely harmful to the environment. Even the cultivation of natural fibers like cotton involves high water and intensive land use.

As per a livemint report by Parvathi Preethan, Senior Project Associate, and Nambi Appadurai, director, climate resilience practice, at World Resources Institute (WRI India), cotton is grown in 2.4 per cent cultivated land but leads to the use of16 percent insecticide and 6 per cent pesticide.

On an average, the textile industry consumes 300 million tons of non-renewable inputs, takes up 26 per cent of the carbon budget associated with 2 degrees Celsius pathway outlined by the Paris Agreement, and adds 22 million tons of synthetic microfibers to the world’s oceans.

Seeking new bio-based materials

This ecological impact of the industry is encouraging stakeholders to look for new alternatives that are eco-friendly and cost-effective. Leading brands like Adidas, Nike, Tommy Hilfiger are seeking innovative and bio-based alternatives.

However, most of them continue to face scale and cost issues, making new investments necessary to become a viable and attractive alternative to existing textile production systems.

Preethan writes abuot one such untapped option for such brands and that is agricultural waste, or agro-residues. India generates over 140 mt surplus crop residue a year. Of these, about 92 mt crop residues are burnt annually. This leads to heightened pollution levels, especially in cities like Delhi.

Income generator for Indian farmers

Indian farmers can find an additional source of income by converting these residues into sustainable textile fibers for the fashion industry. The fashion industry needs to also incorporate climate-smart solutions in sectors like textile manufacturing, as per the recently released report by the Intergovernmental Panel on Climate Change.

It needs to implement carefully planned strategies to counter climate impacts along the entire agri-value chain.

A recent report says, agro-residues including husks and straw from rice and wheat, trash and bagasse from sugarcane, empty fruit bunches from palm oil and other fruit-based residues like pineapple leaves and banana pseudo stems, are most suitable for textile fiber production, especially in India and seven other countries in South and Southeast Asia.

The report identifies transportation, processing capacities as potential areas of development for agro-residue based fiber production. It marks states like Andhra Pradesh, Maharashtra, Punjab, West Bengal and Uttar Pradesh some of the most suitable locations for these hubs.

Further focus on environmental threats

To understand the trade-offs between competing uses and incentivize farmers, India needs to step up research on agro-residues. Researchers need to focus on the various environmental threats and effects of climate change on several of these crops.

This can also help attract future investments. The industry also needs to collaborate with farming communities to develop strategies for a transition from fast to sustainable.

While catering to these needs, consumers also need to be responsible towards the planet. Rather than fast fashion, they need to focus on sustainable fashion, which can save the earth from this environment crisis.

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24th September 2021, Mumbai:

Meesho, India's top social commerce platform, has introduced a 30-week gender-neutral parental leave policy as part of its commitment to creating an employee-centric workplace.

The industry-leading strategy was created with the goal of providing rewarding work experiences while taking into account the challenges of caring for and raising a family.

The firm stated in a statement that it is moving away from gender-based distinction in parenting and is providing equal advantages to men, women, LGBTQA+ people, and live-in partners.

The new parental leave policy includes delivery, adoption, and surrogacy, among other things.

Women, men, heterogeneous or same-sex couples are all eligible for the 30-week leave policy, which eliminates the distinction between natural delivery, adoption, and surrogacy and allows them to be there for their children.

If the employee is a primary caregiver, they can take up to a year off (30 weeks fully paid leave + 25% salary for the next three months), and if they are a secondary caregiver, they can take up to 30 days off (applicable up to 1 year from adoption or childbirth).

“We are extremely enthusiastic about the future - because we are looking at the policy not as a paper alone, but as a tremendous resource that Meeshoites can tap into for guidance, assistance, and empathy as they navigate their careers and lives,” said Ashish Kumar Singh, Meesho's Chief HR Officer.

Most importantly, we've utilized this policy overhaul to streamline benefits and flexibility based on caregiver function rather than gender, so Meeshoites may be fully present for their families.”

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23rd September 2021, Mumbai:

At the Export Conclave in Chennai, Tamil Nadu Chief Minister MK Stalin announced the Tamil Nadu Export Promotion Policy. To attain this goal, the State will use a two-pronged approach: export promotion and diversification.

To guarantee a balanced increase of exports across the state, Tamil Nadu would establish two Economic Employment Enclaves in Manaellore and Thoothukudi, according to the policy.

The state has selected ten export hubs and would support export-related common infrastructure projects in these hubs by reimbursing 25% of project costs up to Rs. 10 crores per export hub. Textile and garment clusters would also benefit from this.

The initiatives designed to give specific package incentives to stimulate the production of value-added products would be more helpful to Tirupur's knitwear exporting facilities.

The publication of the Tamil Nadu Export Promotion Policy was long overdue, according to Raja M. Shanmugham, President of the Tirupur Exporters' Association (TEA). He expressed confidence that the strategy will assist Tamil Nadu in meeting its objective of US $ 100 billion in exports by 2030, up from the present level of US $ 30.53 billion.

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27th September 2021, Mumbai:

Bollywood actor ShanayaKapoor has been named as the new brand ambassador for Designer Ritu Kumar’s eponymous lable. Kapoorendorse the brand’s latest collections in a series of campaigns across digital platforms.The brand plans to diversify its portfolio this season by launching new categories and collections targeted at young urban Indian women. The new collections will be available across India and internationally in Label Ritu Kumar stores and its online store.

Designer Ritu Kumar launched her eponymous brand in 1969 and has become known for her championing of Indian heritage textiles. Kumar runs labels like Ritu Kumar, Label Ritu Kumar, RiRitu Kumar, and new line Ritu Kumar Home.

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24th September 2021, Mumbai:

The Clothing Manufacturers Association of India (CMAI), has criticized the government’s move to increase GST on fabrics and garments up to Rs 1,000 from the current 5 percent to 12 percent. CMAI says, the domestic garment industry is still struggling to revive post-pandemic – with most of the industry still at 60-65 percent of pre-COVID levels.

The massive price increase of raw materials such as yarn, fabric, fuel, packaging materials, transportation, etc, has already increased product prices by 15-20 percent. The pandemic has also led to a shutdown of 15-20 percent of garments units across the country.

CMAI strongly urged the Central and State governments and GST Council to review their decision and find alternate solutions to address the Inverted Duty Structure problem.

CMAI has in the past recommended a flat 5 percent GST across the entire value chain – which will resolve the Inverted Duty Structure, boost consumption and hence production, employment, and will cost the government a negligible amount of revenue.

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22nd September 2021, Mumbai:

Value fashion retailers such as V-Mart Retail, and Cantabil Retail expect festive sales to surpass the pre-COVID levels.

As per a money control report, Shivendra Nigam, Chief Financial Officer, Cantabil Retail says, the company witnessed strong sales growth momentum in August and this will continue to grow in October and November.

V-Mart Retail too hopes for a good festive season. As per Vineet Jain, COO, the company’s same-store sales grew 90 per cent of pre-COVID levels in July and August.

Both companies clock in about 35-40 per cent of overall sales of the year during the festive months. V-Mart, operates 282 stores in the country, mostly in Northern and Eastern India.

Over 75 per cent of its stores are in Tier II cities and beyond.

The company recently acquired 74 stores of brand Unlimited from Arvind Lifestyle Brands in South and West India. Cantabil Retail has over 300 stores in the country.

According to a recent survey by the Retailers Association of India, retail sales recovered as much as 88 per cent of pre-pandemic levels in the country aided by festive shopping.

A recent report by Kearney projects the value fashion retail market will reach $215 billion market by 2030, driven by households earning less than Rs 10 lakh per annum, and predominantly from Tier II and beyond cities.

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25th September 2021, Mumbai:

Chief Minister MK Stalin unveiled the Tamil Nadu Export Promotion Strategy 2021 (EPS 2021) on Wednesday, with the goal of increasing the state's exports from $26 billion to $100 billion by 2030.

This corresponds to the state's goal of reaching a $1 trillion economy by 2030. In 2020-21, its GDP was $300 billion. According to EPS 2021, the state's export strengths and established export infrastructure serve as a "bedrock" for recruiting investors.

This, in turn, works as a trading stimulus. An export promotion plan that focuses on export diversification and dispersion - designating districts as export centers - is required. The export basket of the state is diverse, with the top 10 goods accounting for 70% of total exports. According to research, the state has an unrealized export potential of Rs. 1.6 lakh crore.

The State government's strategy to encouraging exporters will be through channels that promote dispersion of export centers in the State and diversification of the State's export basket.

Export marketing efforts will supplement it. Soft and hard interventions such as marketing help, yearly export prizes, policy support, and infrastructure development would be included. Textiles, automotive, leather, electronics & electrical equipment, general machinery, and food processing have also been recognized as export champion industries by the state, according to the EPS 2021 unveiled at the Tamil Nadu Exports Conclave.

The state's administration wants to achieve balanced regional growth by combining infrastructure upgrades in current export centers with the creation of new economic employment enclaves.

The government would supply shared infrastructure and utilities in these enclaves and guarantee they have "good" infrastructure connections in a coordinated effort with different ministries, including roads and ports, transportation, energy, housing, and urban development.

The State Industries Promotion Corporation of Tamil Nadu would establish two such enclaves in the first phase, at Manellore (6,000 acres) and Thoothukudi (5,000 acres), based on internationally recognized eco-industrial park frameworks.

They will be intended to improve the home manufacturing units' socioeconomic, economic, and environmental performance.

The enclaves will be defined by district boundaries that are 60 kilometers away from the main export gateway. They would have industrial parks covering at least 5,000 acres, with an annual export worth at least 10,000 crores and the capacity to employ 1 lakh people. By supporting infrastructure development, the state would boost export centers in locations like Chennai, Kanchipuram, Hosur, Tirupur, Karur, Madurai, Ambur, Thoothukudi, and Pollachi.

With a ceiling of ten crores per export hub, each hub will be eligible for reimbursement of 25% of the cost of establishing export-related common infrastructure projects or infrastructure projects servicing export-oriented industrial clusters such as industrial housing, skilling centers, and testing centers.

On or after January 1, 2021, export organizations that achieve the threshold level of value addition by creating new/additional export capacities will be eligible for value-added payroll assistance in the form of reimbursement of 5% of annual payroll costs for employees for a three-year period in proportion to the value addition (capped at 1.8 crores per annum).

Up to a cost of 2 crores, 50% of the cost of quality certifications such as ISO that are necessary particularly for exporting would be reimbursed. According to the EPS 2021, the state would establish an exports site to give a complete answer for exporters' problems and concerns.

In his speech, Stalin stated that while Made in India products are already available worldwide, it is now time for products under the Made in Tamil Nadu brand to be available as well.

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24th September 2021, Mumbai:

American apparel and accessories brand Tony Burch has forayed into the Indian market with a new Exclusive Brand Outlet in New Delhi. As per a Lifestyle Asia the brand has opened the DLF Emporio store in partnership with Reliance Brands. It offers collection of shoes, bags, ready-to-wear and accessories with its digital presence and iconic styles.

The new boutique entices with its floor-to-ceiling windows and cosy interiors. Its oak panelled walls, cane tables, and aged brass étagères add a vintage quality to the space. The store houses unique furnishings like a blue bamboo patterned wall covering, leopard print rugs, and a floral couch juxtapose the neutral backdrop to create an interesting visual picture.

The store displays the brand’s Fall Winter 2021 collection featuring 151 Mercer hobo, classic Ella tote, crisp cotton shirts, feminine poplin dresses, men’s suiting and Reva ballet flat.

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22nd September 2021, Mumbai:

Inverted duty charges, likely to be levied by the GST council on readymade clothes from January 01, 2022, will increase garment prices by 7 per cent. As per the Clothes Manufacturers Association of India (CMAI), a change in duty charges will raise the cost of garments above Rs 1,000 per piece.

The Council also plans to increase GST for readymade garments costing less than Rs 1,000 to 12 per cent. The reason behind this surge is the GST of raw materials such as fabric or yarn that is fixed at the rate of 12 percent at the present which is a matter of concern. Rahul Mehta, Former Chairman and Mentor, CMAI adds the government should reduce the high GST rates on raw materials if it plans to fix the inverted duty structure. The levy of inverted duty charges will impact manufacturers’ business greatly.

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