07 April 2022, Mumbai:

Sector executives are on their toes looking for a solution as the Indian textile and garment industry continues to struggle owing to increasing raw material prices. A team from the National Committee on Textiles and Clothing (NCTC), which represents practically the entire textile supply chain, met with Union Textiles Minister Piyush Goyal and presented him with a unified agreement.

They advocated for the elimination of the 11% import tariff on cotton, as well as a strategy to assist MSMEs in overcoming financial crises in order to preserve the whole textile industry. Importantly, the Minister has said that the matter will be addressed.

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Piyush Goyal met with a delegation that included Raja M. Shanmugham, President, Tirupur Exporters' Association; T. Rajkumar, Chairman, Confederation of Indian Textiles Industry (CITI); Manoj Patodia, Chairman, Cotton Textiles Export Promotion Council (TEXPROCIL); Narendra Goenka, Chairman, Apparel Export Promotion Council (AEPC); and Ravi Sam, Chairman, Southern India Mills' Association (SIMA).

The delegation demanded that the Minister intervene immediately to safeguard the textile sector and the employment of tens of thousands of people employed in it.

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The garment sector is presently in a precarious position as a result of an extraordinary surge in cotton costs, which are hovering around Rs. 95,000 per candy in March, and the industry anticipates that if this trend continues, the price would reach Rs. 1,00000 per candy in a few months.

As a result, on April 1, 2022, the spinning mills raised the yarn price by Rs. 30 per kg, causing a spiraling impact in the value-added knitwear garment sector.

The delegation believes that the fortunes of cotton farmers are inextricably linked to the fortunes of the textile industry, and that, unfortunately, the cotton traders' game is disrupting the entire textile industry, accessories, dyes, and chemical suppliers, exports, and employment, including banks.

RELATED NEWS In 2021, India's domestic textile exports would generate US $ 6.68 billion in income

Buyers are not willing to increase prices, thus garment-exporting units must fulfill committed export orders at the same price of garments.

Furthermore, purchasers have the option of sourcing garments from our competitors, such as Bangladesh, Vietnam, Cambodia, and Turkey, which have tariff-free access to the EU market.

In addition, due to the impact of the Russia-Ukraine war, knitwear exporting factories are already receiving fewer quantity orders from clients than in the same period last year.

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Immediate measures included removing the 11% cotton import duty and allowing the duty-free import of 40 lakh bales to stabilize cotton prices without affecting cotton farmers; imposing mandatory cotton stock declaration with all stakeholders to curb hoarding and speculation by traders on the MCX and NCDEX; and announcing a specific scheme for MSMEs like ECLGS to bailout the knitwear garment sector, which accounts for 95% of the industry.

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CREDITS: Apparel Resources.

05 April 2022, Mumbai:

Ind-Aus ECTA to ensure full capacity utilization of Indian apparel factories, says AEPC Chairman.

Indian apparel factories' capacity will be utilized in full with the Economic Cooperation and Trade Agreement (ECTA) signed between India and Australia, stated the Apparel Export Promotion Council (AEPC) Chairman Narendra Goenka on Sunday.

ALSO READ Prime Minister Narendra Modi's 4 points strategic pathway aiming at $400Bn exports in FY22

Goenka welcomed the ECTA that was signed between India and Australia on Saturday and stated that it offers duty-free access to 96 percent of Indian goods including the labour-intensive apparel sector.

Goenka said, "Australia is the largest apparel importer in the southern hemisphere. Indian apparels currently face an average tariff of 4.8 percent in Australia as against zero-duty apparel from China and Bangladesh.

RELATED NEWS India may become the world’s garment factory in 3 years: Chairman, AEPC

Duty-free access to Indian apparel will bring us at par with global competitors and make our products competitive."

Australia is majorly dependent on China for its apparel imports.

However, India has been able to retain its share of around 3 percent of total apparel imports in Australia despite a shrinkage in import orders from across the globe including Australia during the Covid-19 pandemic.

It was 3.22 percent with an import of 203 million US dollars of Indian apparel in 2020.

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CREDITS: ANI News The Print Just-Style (The news article has not been edited by DFU publications staff).

02 April 2022, Mumbai:

Apparel production is reviving, and nations like India, Bangladesh, and Pakistan have been busy filling orders from buyers for months. The same can be seen in data supplied by China's General Administration of Customs on sewing machine exports (GACC).

In January and February of this year, China exported sewing machinery worth $535 million, up 15.15 percent over the same period the previous year.

READ MORE CISMA 2021's main activity has been postponed

The percentage of industrial sewing machines in total values is US $ 289 million, up 37.30 percent year on year.

In the first two months of 2022, the top three export destinations for Chinese sewing machinery were India, Vietnam, and the United States.

Furthermore, India has once again surpassed Vietnam as China's top export market.

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Sewing machines from China were shipped to India for $ 53.67 million, up 20.87 percent from the previous year and accounting for 15.55 percent of the sector's global export.

In the first two months of 2022, Vietnam imported the US $ 45.96 million worth of sewing machines from China, up 51.91 percent year on year, while shipments to the United States totaled the US $ 25.27 million, up 13.11 percent year on year. 

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CREDITS: Apparel Resources.

07 April 2022, Mumbai:

The signing of the long-awaited India-Australia Economic Cooperation and Trade Agreement – "IndAus ECTA" – has boosted the Indian garment industry's spirits.

The sector also praised the swift succession of such trade agreements, citing the India-UAE pact as an example. "Australia is the largest garment importer in the southern hemisphere," said Narendra Goenka, Chairman of the Apparel Export Promotion Council (AEPC), who hailed the ECTA struck between India and Australia.

In Australia, Indian apparel now has an average tariff of 4.8 percent, compared to zero percent for clothes from China and Bangladesh. Duty-free access to Indian garments would enable us to compete with global rivals and improve the competitiveness of our products."

ALSO READ India-Australia Historic ECTA: AEPC Hails

According to Raja M. Shanmugham, President of the Tirupur Exporters Association (TEA), this would strengthen our exporters' confidence and assist us to attain our goal of $1 trillion in goods exports by 2030.

For garment imports, Australia is heavily reliant on China. Despite a drop in import orders from all around the world, including Australia, India was able to maintain its share of roughly 3% of overall garment imports in Australia during the Covid-19 epidemic. In 2020, it was 3.22 percent, with the US $203 million in Indian clothing imports.

The reduction of the tariff disparity with China, according to Narendra Goenka, will assist the Indian garment sector take advantage of the China Plus One approach, which is being adopted by several nations.

RELATED NEWS India may become the world’s garment factory in 3 years: Chairman, AEPC

Because identical goods are created in India at similar price points, Australia is a key region for Indian garment exports. India has the ability to export knitted jerseys, pullovers, and T-shirts of man-made fibers (MMF), which is a large piece of Australian garment imports.

MMF's jerseys, pullovers, cardigans, waistcoats, and similar knitted/crocheted products were the most popular clothing imports last year. Cotton T-shirts comfortably occupied the second spot.

The Indian garment sector excels at generating spring and summer items, but not so well at manufacturing winter items. As a result, when making winter items, Indian manufacturers do not use their maximum potential. When Indian garment companies are experiencing a slow season, Australia, which is located in the southern hemisphere, will want spring and summer items.

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"A zero-tariff agreement with Australia in the southern hemisphere will keep Indian manufacturers busy throughout the lean season with orders for our best-selling spring and summer items."

This will allow the facility to operate at full capacity throughout the year. In three years, zero-tariff access would more than treble Indian clothing exports to Australia, according to Narendra Goenka. Raja claimed that India's knitwear exports to Australia were anticipated to be around Rs. 925 crore in the previous financial year, 2021-2022, with a meager proportion of 2%, and he was hoping that the agreement will assist grow exports to Australia swiftly.

In the past financial year, 2021-2022, Tirupur alone exported knitted items worth roughly Rs. 630 crore to Australia, a figure that is expected to quadruple in the following two years.

Raja is hopeful that the Tirupur Knitwear Cluster units would seize this newfound opportunity and work hard to meet buyer demands and increase exports.

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CREDITS: Business Line & Apparel Resources (The news article has not been edited by DFU publications staff).

05 April 2022, Mumbai:

Listed apparel firm, Go Fashion (India) aims to expand its retail presence by opening around 130 new stores year on year besides growing omnichannel retail for smaller towns and cities.

A seller of women's bottom-wear clothing under Go Colors, Go Fashions aims to offer a seamless customer experience by building on a technology-driven growth strategy to reach consumers in Tier-I to Tier-III cities and realizing its expansion plans for current and emerging markets

ALSO READ Go Fashion to invest in omnichannel steadily

The company aims to launch more designs while providing more brand destinations for consumers, says Gautam Saraogi, CEO. Founded in 2010, Go Fashion has an 8 percent share in the branded women's bottom wear market.

The women's bottom wear business is expected to grow 35 percent from Rs 13,500 crore in FY20 to Rs 24,300 crore by FY25.

Tapping into this significant growth potential, the D2C brand Go Colors aims to extend its market share.

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The brand adopts a sharp pricing strategy and offers products across various colors and styles.

According to a recent ICICI Securities report, the organized sector in the women’s bottom wear market is expected to grow at 24.3 percent CAGR to reach Rs 92.4 billion by 2025.

The fragmented nature of the industry and lack of organized players and limited branded competition will enable Go Colors to benefit from the growth in the bottom-wear segment, the report adds.

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CREDITS: ICICI Securities report.

02 April 2022, Mumbai:

Businesses and B2B events are being impacted by China's COVID-19 crisis.

The 2021 edition of the China International Sewing Equipment Exhibition (CISMA) has been postponed once again due to the abrupt reappearance of COVID-19 cases in numerous provinces, posing a major threat to national pandemic control efforts.

ALSO READ CISMA 2021's main activity has been postponed

According to a statement from the China Sewing Machinery Association (CSMA), the event's organizers, have taken into account all relevant opinions and suggestions and have made the difficult decision that CISMA 2021, which was scheduled to take place from April 27 to April 30, 2022, at the Ningbo International Conference and Exhibition Center, will have to be rescheduled, with a new date and venue to be determined.

This postponement is made "in order to comply with necessary national pandemic prevention instructions, as well as to ensure the health, rights, and interests of all exhibitors, visitors, and stakeholders."

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"Hopefully, the decision will offset the negative influences exerted by the pandemic on the show, and reduce its damages to the show's image to the smallest extent possible," the CSMA continued, adding, "We are terribly sorry for any inconvenience incurred by this, and hope that exhibitors and visitors can take advantage of the extra window of opportunities to refine their attendance plan, and strive to hold a CISMA with unblemished splendor."

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CREDITS: CISMA & Apparel Resources.

06 April 2022, Mumbai:

Tiruppur Exporters’ Association (TEA) has emphasised on promoting the Tiruppur cluster model across 750 districts of India stating that it will help India clock USD 3 trillion in exports in the near future.

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Among the top garment hubs of India, Tiruppur contributes 1.06 per cent to India’s overall exports and has transformed itself into a major hub for the textile industry.

Highlighting the achievements of Tiruppur, Raja Shanmugham, President, Tiruppur Exporters’ Association told KNN, “A small cluster like Tiruppur which largely constitutes MSMEs contributes USD 4.3 billion to the country’s total exports.” 

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He suggested that the Tiruppur cluster model must be developed across all the districts on a particular chosen product line which will easily help India achieve USD 3 trillion in exports in the future.

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CREDITS: KNN India (The news article has not been edited by DFU publications staff).

02 April 2022, Mumbai:

Vuori, a popular activewear brand in the United States, has expanded into the United Kingdom, Ireland, France, Germany, the Netherlands, Canada, and Australia, marking the brand's first international growth.

According to reports, the fashion house will open specialized online boutiques in each of the aforementioned areas, much to the joy of brand fans around the world.

"We are happy to introduce Vuori's innovative take on performance gear to these regions," Joe Kudla, Founder, and CEO of Vuori said of the company's first global growth.

ALSO READ Domestic activewear brands gain traction as pandemic fuels desire for fitness

The company has also signed physical and online distribution agreements with fashion stores in the United Kingdom, Ireland, and the Netherlands.

Vuori items will be available in the UK at Selfridges and Cotswold Outdoor (20 stores and online).

It will also be available in the retail shops at all 11 Barry's Bootcamp locations across the country.

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Vuori will be available through Brown Thomas in Ireland (two locations and online), as well as Bever in the Netherlands (20 locations and online).

Vuori's decision to expand abroad comes after the company raised $400 million in late 2021.

Vuori, which is known for its premium performance clothes, presently has ten stores and an e-commerce site, and now solely operates in the United States.

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CREDITS: SGI Europe & Apparel Resources.

06 April 2022, Mumbai:

Brand Finance Ranking Report: Nike Retains Top Spot As Most Valuable Brand.

As a result of increased consumer demand for sportswear, brands in the sector achieved significant brand value growth: Nike (brand value up 9% to $33.2 billion), Adidas (brand value up 2% to $14.6 billion), Puma (brand value up 13% to $4.5 billion), and Lululemon (brand value up 28% to $4.2 billion).

ALSO READ Lucy Rouse has been named the new leader of Nike's SNKRS program

The new report finds that amongst the top 50 apparel industry brands, the aggregate brand value of luxury apparel brands has grown 21% this year (from $103 billion to $125 billion), sportswear brands have grown 10% this year (from $68 billion to $74 billion) while fast fashion brands have dropped 7% (from $44 billion to $41 billion).

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Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries.

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CREDITS: Trade Arabia SBG Online Write Calibre (The news article has not been edited by DFU publications staff).

02 April 2022, Mumbai:

The transfer of Raymond Apparel business to parenting company, Raymond, has been approved by the National Company Law Tribunal (NCLT).

The Raymond board had approved the demerging of the B2C business in September 2021 including apparel, of Raymond Apparel (RAL), on a going concern basis to merge with the company itself.

ALSO READ Apparel retailers Raymond, Snapdeal, Uniqlo restructure boards

In a filing on September 27, 2021, Raymond said its focus on fast-tracking recovery post-pandemic will help consolidate its B2C business by transferring of apparel business into Raymond Ltd.

The move brings all major apparel brands including Park Avenue, Colorplus, and Parx into Raymond Ltd.

RELATED NEWS Apparel retailers Raymond, Snapdeal, Uniqlo restructure boards

Incepted in 1925, Raymond is a diversified group with majority business interests in textile and apparel sectors as well as a presence across diverse segments such as FMCG, Realty, Engineering, and Prophylactics in national and international markets.

Having enjoyed the patronage of over a billion consumers, Raymond is reckoned for delivering world-class quality products to its consumers for the past nine decades. 

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