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.

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage

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.

Return to homepage

22nd September 2021, Mumbai:

China and Vietnam have remained static in their denim apparel shipping to the US market as compared to July '20, as seen by US denim clothing imports for July '21. Bangladesh, Mexico, and Pakistan appear to be receiving orders! According to OTEXA data, the United States imported the US $ 374.36 million in denim garments in July of this year, an increase of 21.26 percent year over year. Bangladesh, the top denim clothing exporter to the United States, recorded the US $ 78.73 million in July '21, up 23.63 percent on a year-over-year basis, topping Mexico's number of US $ 66.65 million, up 58.09 percent from July '20.

Mexico was followed by Vietnam, which sent the US $ 48.69 million in denim apparel to the United States, increasing its value by 0.72 percent year over year. Pakistan's denim apparel exports to the United States increased by 139.65% on July 21 compared to July 20 and totaled the US $ 37.96 million. It drew closer to China's export value of US $ 43.59 million, which had dropped by over 11% in July of this year.

In terms of denim apparel exports, Pakistan and Bangladesh are expected to perform well in the remaining months of 2021. The reason for this is that China's economy has been declining for years, whereas Vietnam's economy has been resurgent for over a quarter.

Return to homepage

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.

Return to homepage

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.

Return to homepage

22nd September 2021, Mumbai:

A program has been launched to onboard weavers and craftsmen on the GeM site so that they may sell their products directly to Government departments, in order to give them better market access. Under-served seller groups, such as artisans, weavers, micro-entrepreneurs, women, tribal entrepreneurs, and self-help organizations engaged in handloom and handicrafts, will benefit from this. According to an official announcement, the platform has 28,374 craftsmen and 1,49,422 weavers registered as of August 30, 2021.

With the help of authorities from the Office of Development Commissioner Handloom and Development Commissioner Handicrafts, GeM began seller registration and onboarding of weavers and craftsmen in July 2020. Officers from 56 Handicraft Service Centers and 28 Weaver Service Centers, in particular, were taught and involved in the seller registration process. Handloom items have been divided into 28 distinct product groups. For handcraft items, 170 unique product categories were established at the same time. For Indian handloom, dedicated web banners and market pages have been created.

This initiative will assist market handloom and handicraft items to government customers while also allowing weavers and craftsmen to sell directly to the government. Handloom and handicraft goods have their own product categories at GeM. Weavers, artisans, cooperative societies, SHGs, and producer businesses capable of selling such items to various Government customers have developed dedicated web banners and market pages for India handloom and India handicrafts.

Return to homepage

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

TOP 5:

1. 'CMAI' urges government to review GST rates increase on fabrics and garments

2. Raymond launches new collection with designer 'Suket Dhir'

3. Amitabh Bachchan roped in as 'VKC Group’ new brand ambassador

4. 'Manyavar-Mohey' receives flak for advertisement featuring Alia Bhatt

5. GOVERNOR OF MAHARASHTRA HONOURS KAPIL PATHARE WITH BUSINESS EXCELLENCE AND VIP INNERWEAR AS BEST BRAND 2021-22

Return to homepage

22nd September 2021, Mumbai:

E-commerce marketplace Flipkart is on track to have 4.2 lakh sellers on its platform by December 2021. Currently, the marketplace supports digital commerce for 3.75 lakh sellers. The company has already onboarded 75,000 new sellers on its platform over the last few months as MSMEs, and small business entrepreneurs continue to be enthused by the potential of e-commerce ahead of the festive season.

The new sellers and MSME base predominantly come from Tier II and III markets such as Agra, Indore, Jaipur, Panipat, Rajkot, Surat, and many others. Flipkart also plans to kickstart its biggest flagship sale, The Big Billion Days, from October 7 to 12, 2021. The six-day event by Walmart-owned e-tailer will host new launches, games, interactive videos, live streams and rewards throughout The Big Billion Days. It will also enable customers to gain early access by redeeming 50 earned SuperCoins on the Flipkart app.

Kalyan Krishnamurthy, Chief Executive, Flipkart Group says, over the past year, the e-commerce group has worked in collaboration with its ecosystem partners to create opportunities to revitalize consumer sentiment in these challenging times and revive India's economic growth. The Big Billion Days is the e-tailer’s way of giving back to the community and enthuse the festive spirit across the nation.

Return to homepage

21st September 2021, Mumbai:

With the pandemic and recurrent lockdowns re-emphasizing the importance of outdoor vacations, demand for resort wear in India has surged in the last year and half. Many international brands like Fendi, Louis Vuitton, Dior and Versace launched their resort wear collections earlier this year, as per a Vogue International report. Though the segment in India has few established players like Savio Jon, James Ferreira and Wendell Rodricks, it is nonetheless a booming market.

Poised for big role in ready-to-wear market

The segment is poised to play an important role in India’s ready to wear market in the coming decade, says Narresh Kukreja, Creative Director, Shivan & Naresh, a homegrown resort label. No longer a niche category, it is likely to become an inevitable offering for long-term survival of Indian brands in future, he adds. Brand Studio Verandah, which opened its first store in Goa, received a huge number of orders during the three-month gap between the first and second waves. The designers saw a huge pent-up demand for resort wear owing to customers’ long-pending vacations, adds Reby J Kumar, Guapa Resort Wear.

There was also a huge demand for kaftans in all variations including co-ord sets, relaxed shirts, swimwear, kimonos and maxi dresses. Resort wear served as transitional dressing style during the lockdowns, says Anjali Patel Mehta, Studio Verandah. Now, it has become a part of people’s everyday dressing, she adds. The segment has also moved from niche to mainstream audience. The pandemic gave resort wear seasonless look with consumers’ changing lifestyles accelerating this shift, opines Kukreja.

Bridal wear overlap

Resort wear in India may not rake in as much profit as bridal wear. However, the gap in revenues generated by both segments continues to narrow as sales overlap. Resort wear has influenced many Indian bridal wear designers to expand to kaftans, says Patel. Consumers are also being experimental with their wedding wardrobes and mixing relaxed styles with Indian jewelry. They are likely to further shift to kaftans and statement shirt-and-pant sets with their traditional outfits, adds Patel. Indeed, the growing popularity of easier and fuss-free dressing is likely to surge demand for resortwear in India over the next few months.

Return to homepage

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.

Return to homepage

22nd September 2021, Mumbai:

The import of brassieres (base garments and shapewear) into the United States remained positive from January to July of this year.

The value of imports into the United States in this category reached the US $ 1.60 billion in the first seven months, an increase of 54.34 percent year on year. All of the top five exporting nations in the brassieres category have had double-digit increases to the United States, while Honduras, the seventh largest exporter, has seen triple-digit growth.

China's cargo was valued at $525 million, up 54.36 percent year over year, which is perfectly in line with the increase that the United States has tapped. Vietnam's exports increased by 55.43 percent on a year-over-year basis from January to July of this year, totaling the US $ 313.14 million.

Sri Lanka, Indonesia, and Bangladesh sent brassieres worth US $ 149.22 million, US $ 147.85 million, and US $ 93 million to the United States, respectively, with an annual increase of 39.40 percent, 70.59 percent, and 46.58 percent.

Honduras more than quadrupled its brassieres exports to the US $ 52.75 million, representing a staggering 107.12 percent annual growth in the US market.

In the months ahead, demand for a wide range of goods such as control camisoles, corsets, body shapers, singlets, and body briefs is expected to increase market growth even more in the United States.

Return to homepage

21st September 2021, Mumbai:

Sportswear brand Six5Six has signed an agreement with Roundglass Punjab Football Club to sponsor the team’s merchandize for three years. Six5Six will provide match-wear, training-wear, and travel-wear for team. The brand will also develop and promote an exclusive Roundglass Punjab FC-licensed merchandise range, which will be available for purchase for fans based in India and internationally on the brand’s official website.

The partnership will add intrinsic value to both. It will help Six5Six support Roundglass Punjab FC’s vision to grow and develop football in the region, say Ambar Aneja and Avni Aneja, Co-founders, Six5Six. Launched in 2018, sportwear firm Six5Six aims to tap the athleisure fashion segment with its sportswear and streetwear offerings. The brand has already collaborated with the Indian National Football Team, NorthEast United FC (ISL) in addition to Estoril in Portugal.

Return to homepage