Vietnam: Encouraging female entrepreneurship in the garment & textile industry

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4. CONTENT World Wrap When size matters: How plus-size fashion is shaping up retail It is hard to imagine the irony of a woman, who has a great sense of dressing and is ready to splurge, but can’t find a clothing that she wants to wear for an occasion at any store... p10 Vol. XXII ISSUE 5 June 1-15, 2019 44 Domestic Update A ‘Parfait’ Affair: Bringing an all-inclusive lingerie collection to India Sustainability Have you checked your SROI? Good health, financially stable and growing, socially well-appreciated, emotionally strong, result-oriented (high efficiency), better relations with colleagues and enough time for family as well as self…p14 FFT Trends Materials in Focus: Fall/Winter 2019p26 Lead Story Towards Transparency In India, even today, many sewing operators who are working in apparel manufacturing units for months, or for even years, do not know the name of their factory...p18 24 Tex-File Birla Cellulose sets new milestones with developments @Liva Resource Centre Hong Kong Fashion Week: Stage set for 1,000 exhibitors Focusing on the latest fashion collections and market intelligence, the 26th Hong Kong Fashion Week for Spring/Summer is expecting around 1,000 exhibitors from across the globe. p56 Fashion Business You Snooze, You Lose: What’s trending in the thriving Sleepwear Market? p32 4 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

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6. FROM THE EDITOR-IN-CHIEF’s DESK… Integrated industry is the answer to the growth path for textiles and apparel Well, now that we are assured of policy continuity and political stability, the industry has no fear of any further ‘surprises’ from the Government. In fact, the mood is quite positive as there is hope that the many things which were promised just before the elections will now be fulfilled. So, we can assume that all the investments that were put on hold, due to the uncertainties that elections bring in, will be put back on track in the next few months… or can’t we? If the scenario shapes up the way it should, the industry, in all probability, will be looking at growth… But one cannot discount the external factors that can rock the boat. Global markets are not what they used to be earlier and emerging markets are not yet giving the volumes that garment manufacturers are accustomed to. It is a Catch-22 situation; if factories don’t add capacity, how will they grow and capitalise on shifting sourcing trends? On the other hand, can they optimise production with increased capacity…? This is indeed a difficult question to solve. Most industry watchers believe that business can never move out of India, mostly because of the ‘value’ content that the country is giving, which in reality no other country, including Turkey, can offer. The sad truth is that though India is perhaps the only sourcing destination that has every ingredient a retailer/brand of fashion needs to create designs that are truly different, manufacturers are still struggling and competing in the mass market. The three major elements that make India unique – textile capacities, numerous techniques and small compliant factories – are underutilised and work in isolation. There is no coordination between these three streams to develop and offer products that no retailer/brand looking for eye-catching products can ignore. The strength of an integrated supply chain is an area that not even the policy makers have dived into for growth of the textile industry. Handlooms and handcrafts are considered a separate segment, with no integration into the mainline industry. Though all the elements of this unique textile industry come under one Ministry, but the approach has never been consolidated. Each segment is left to fend for itself. There was talk of an integrated textile policy, even before the current Government began its first term in 2014, but the same has still to see the light of day. Is it very difficult to formulate such a policy which could help the Indian textile industry find its deserved place in the global scenario? This is the same Government that had the conviction to implement GST to completely revolutionise the business tax system. No doubt, issues remain and it will take some time for the country to become comfortable with the system, but at least the first bold step has been taken! Unfortunately, no one who has been in-charge of the Textile Ministry till date has been strong enough to take a decisive call on the factors that could turn around the industry 360 degrees – be it an integrated textile policy, an updated labour law that matches the needs of today, a fresh look at export promotion activities or even a way to enhance employment interest in an industry that is losing its way. Can we hope for a change this time? EDITORIAL TEAM EDITOR-IN-CHIEF Deepak Mohindra EDITOR Ila Saxena COPY EDITOR Veereshwar Sobti ASST. EDITOR-NEWS Dheeraj Tagra ASST. EDITOR - FASHION Anjori Grover Vasesi ASST. EDITOR - RETAIL Tanya Krishna FASHION CORRESPONDENT Shubhi Srivastava FEATURE WRITER - FASHION & BUSINESS Shraddha Gupta SUB EDITOR Priyanka Mishra CREATIVE TEAM Raj Kumar Chahal Peeush Jauhari Satyapal Bisht PHOTOGRAPHER Vishal Chaudhary OPERATION DIRECTOR Mayank Mohindra PUBLISHER & MANAGING DIRECTOR Renu Mohindra HEAD OFFICE Apparel Resources Private Limited B-32, South Extension-1, New Delhi-110 049 (India) Phone: 91-11-47390000, E-mail: editor@apparelresources.com Web associate: www.apparelresources.com PRINTING TARA ART PRINTERS PVT. LTD. B-4, Hans Bhawan, B.S. Zafar Marg, New Delhi-110002 Tel: 23378626, 23379686 SUBSCRIPTION RATE Yes, I wish to subscribe to Apparel Online *This rate is valid only for subscription in India INR 2400.00 24 issues Subscription within India – Send Cheque/DD to Apparel Resources Pvt. Ltd. B-32, South Extn. Part-1, New Delhi-110049, INDIA International subscription (in Dollar) - Credit Card using www.apparelresources.com Telegraphic transfer to Bank Account No. 03192320003806 (Swift No:HDFCINBB) with HDFC Bank, D-9, South Extn. Part-2, New Delhi-110049. INDIA SUBSCRIPTION ENQUIRY 82-62-880-880 subscribe@ apparelresources.com ADVERTISEMENT ENQUIRY +91-9811088666 rani@ apparelresources.com GENERAL ENQUIRY +91-11-47390000 contact@ apparelresources.com 6 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

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8. MIND TREE Q-and-A Apart from price, competitiveness comes from many factors… quick turnarounds, product development capabilities, higher efficiencies, well managed factories, trained manpower, strategic positioning and so on. How do you see competitiveness and what is your focus with regard to this? Rakesh Kumar Surana, Director, Sabnam Exports, Mumbai productivity gets killed day by day. Even if we try to work for more than eight hours, we are not able to put in our best as we get tired after spending long hours in the traffic. Then there are labour issues too. Very few people want to work as labourers in Mumbai as it is an expensive city for them. days, buyers are preferring small orders and that too at a lesser price. Due to this, we are facing huge losses. Irrespective of whether orders are small or in bulk, we are bound to pay development charges. So basically, our margins have narrowed and our profits are getting negligible day by day. We are not earning anything now. Then there are other miscellaneous charges which we have been bearing from time to time. And on top of that, ever since the GST got implemented, our money is also getting blocked as we are not receiving timely refunds. For big orders, buyers are approaching big certified processing houses. And when they fail to make timely delivery, then they approach us but with small orders. Full compliances are not getting fulfilled. challenges because of quality supply and training of our manpower. The orders that we are generally getting are not bulk. The competition is too high to sustain. We have been aiming at three most basic things, which I guess is essential for any other business as well -- pricing, quality supply and timely delivery. I absolutely agree on this fact that there should be price competitiveness in the market. It shows that there is healthy competition around. There is one set of buyers, who are ready to pay but expect reasonably superior quality products. They don’t want to compromise on the quality part and are ready to pay according to the market. But then, there is another set of customers also, who are price- conscious. They want the best of both the worlds – best quality products at a reasonable price. That becomes a big challenge for us. Since we put in a huge amount of money on quality goods, we don’t want to compromise on that part. But then we suffer because of price- conscious customers. At the same time, we are also facing other hurdles. Being a Mumbaikar, we are paying a good price to sustain here. The cost of living is reasonably high here when you compare with any other city. We even end up wasting a lot of time travelling. People are staying far away from the main town and everybody on an average spends 4-5 hours daily in commuting and this way the Manoj Meena, Proprietor, Mahima Fashion’s, Jaipur Raj Kumar Bansal, Proprietor, Rameshwar Textiles Mills, Surat We have been focusing on three pillars – employment to everyone, making quality products and selling them at a reasonable price – since we started our business. And this is proving to be a success mantra for our business. We are aiming to train the maximum number of villagers and engage them in our factory work. We never compromise on quality; it has always remained a focus area for us and finally selling products at a reasonable price is again a priority for us. We believe if the quality of our products is good but the price is high, then nobody will buy the product. In India, price is an important factor! That’s the reason our products have affordable pricing so that maximum people can buy them. Our factory’s workers are in a ratio of 70:30 for men and women. With the help of the Government, we are also running an NGO for the villagers known as ‘Tribes India’. Apart from men, we are trying to engage maximum Price was and will always remain a competitive factor for everyone in the market. These days, buyers have started concentrating more on smaller orders, rather than focusing on bulk orders. And they are expecting us to sell these smaller orders at a relatively low price. We are facing a lot of challenges to sustain our business further. Training our workers, making them efficient, managing the factory, strategically positioning them, cost controlling and making quality products simultaneously are some of the few factors that are hindering our productivity somehow. We are working on these factors. Let’s see how we succeed! Arunabha Dutta, Proprietor, Creation, Dum Dum (West Bengal) Pricing is one of the most sensitive issues in our country. People here are not willing to pay much and want things at affordable pricing. On the other hand, measuring ‘price sensitivity’ is again a tough task. At how much low can you sell your product? At the end of the day, you have to make your business profitable and take a stand on pricing. At the same time, we are also facing Nirmal Saboo, Proprietor, Basant Knit Fab, Hissar Quality is one of the main challenging factors for us. These 8 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

9. MIND TREE numbers of women in NGO activities. And for that, we are training them for almost one month and engaging them in the work of their interest. We also make all kinds of products in womenswear and menswear. We have efficient workers to fulfil our customers’ demand. with new innovative designs. And for that, we have been increasing our efficiencies from time to time. We always believe in serving the best to our clients. Also, we try to upgrade ourselves as per the latest trends and designs, so that we don’t feel left out in this race. Every day is a competition as the designs change regularly. And the second competitive factor for us is productivity. We also believe in timely delivery. For the same, we keep training our workers on a regular basis. important aspects of the market. You will agree on this that there are infinite numbers of sellers in the market, selling similar kinds of products all over the world. Then, what is the thing that makes one different from all the other buyers -- pricing! If the pricing is as per the market and the buyers, then you win half battle! And second comes production. Producing the right quality products at the right time give you an edge in the market. Mayur Patel, Proprietor, Creative Design Studio, Valsad (Gujarat) Anil Varghese,General Manager – Marketing, Clifton Export, Tirupur Pricing and production are the two most competitive factors for our business. We have always felt that the ‘pricing’ factor can change the whole game of our business, as buyers see pricing as one of the most For us, designing is a competitive factor. Every time, our buyers come up N E X T M I N D T R E E Q U E S T I O N POST YOUR COMMENTS Now since the Modi Government is back in power again, hopes are flying high and everyone is geared up for a better, promising future. Being a stakeholder of the textiles and apparel industry, what do you think should be the top three priorities of the new Government for industry’s betterment? Are you hopeful that things will improve from now on? www.apparelresources.com contact@apparelresources.com www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India9

10. WORLD WRAP WHEN SIZE MATTERS T of shops changed a bit and retailers started considering the plus-size apparel as a standalone category. But it was only recently, when the same retailers started seeing the plus-size fashion as an inclusive category. In terms of value, the global plus-size women’s clothing market stood at US $ 165.2 billion in 2017, expanding at a CAGR of 4.4 per cent during the forecast period from 2018 to 2026. Asia-Pacific dominated the market and is expected to display a similar trend in the coming years. And retailers have started waking up to this fact, which they mostly ignored for years. Simultaneously, they have also realised that there are millions of such women – two-thirds of US women alone, who are collectively bulging with US $ 46.4 billion to spend on apparel each year. More than half of US women aged between 18 and 65 wear a size of 14 or higher, according to statistics cited by Walmart. And analysts expect that the number will swell further. A surge in feminist empowerment – spurred most recently by the #metoo movement – and the independent nature of social media have given voice to stylish influencers who display confident images of themselves, call out brands refusing HOW PLUS-SIZE FASHION IS SHAPING UP RETAIL hen there came a time, almost a decade earlier when the situation to cater to them and hail those that successfully do. At the same time, increasing body confidence among the plus-size women has also increased the demand for such apparels that suit the latest fashion trends. Now for plus-size female consumers, a dearth of fashion options in a neglected niche has now morphed into a plethora of new and legacy retailers not only getting into the segment, but also offering an inclusive size range available to all, or at least to many more women. It’s becoming easier for those who don’t fit into what is known as ‘straight’ sizes to not only find apparel, but also see themselves in marketing and on the runway. It is hard to imagine the irony of a woman, who has a great sense of dressing and is ready to splurge, but can’t find a clothing that she wants to wear for an occasion at any store. There is no store where she can buy anything that she feels is fun or lovely for her — whether it’s to wear to a club, a gym or a job interview. What springs from clothing manufacturing’s history is the relegation of sizes like plus and petite to specialty retailers for years together notably, but being sparsely present in case of mainstream retailers and conspicuously absent at couture brands. The industry has been hesitating all throughout to be more size-inclusive because it places a premium on skinny bodies. For decades, retailers have treated women, who wear plus-sizes, as an entirely different species of shoppers. There was even a special set of rules for selling to them like avoiding bright colours! Besides, horizontal stripes have been a total no-no for them! Slow And Steady Steps Top retailers are racing to strengthen their selection to capture new shoppers and meet increasing demand for trendy women’s clothing in a broader range of sizes. A major amount of people, of course, still don’t wear custom-made clothing, and the average retailer offers limited to no options in the plus-size category. But the situation is changing. Last year alone has witnessed several retailers – from cool-girl brands like Reformation to big-box stores like 10 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

11. WORLD WRAP many major retailers, but when 68 per cent of American women wear a size of 14 or larger, neglecting to offer 14-plus options in-store seems at odds with logic, as well as with the values of inclusivity and diversity that so many brands like to espouse for woke points. What appears to be happening, then, is that brands like Madewell and LOFT want to have it both ways; they want the good press that comes with body inclusivity, without having to make the financial commitment of offering inclusive sizes in-store at all their locations. As more fashion brands step into plus-sizes, they’re bucking a common excuse that the industry has long fallen back on when defending their lack of plus-sizes -- cost and resources. It’s undeniable that the demand is there. The plus-size apparel is growing at a faster rate than other apparel categories, at 6 per cent year- on-year. And now that size inclusivity is trending, thanks to vocal customers, e-commerce’s limitless aisles and the industry’s upward growth trajectory, brands are finally putting dollars behind fashion that can work for 67 per cent of the population. Walmart – extend the sizes they offer, to varying degrees of success and public reception. And when Rihanna’s Savage x Fenty launched in May last year, the collection included plus-size lingerie, along with undergarments in straight sizes. After years of ignoring customers bigger than a size 12, the industry is not just recognising that shoppers of all sizes exist but is actively courting them. Inclusion, however, is more than just selling clothes in larger sizes, say members of the plus-size community. It’s about offering quality clothing to these shoppers in an array of styles and price points offered to their straight-size counterparts. It should also showcase women of all shapes and sizes as models. Last but not the least, inclusion should even address the issue of how the rise of fast fashion deters corporate retailers from taking this approach and offering clothing to anyone, regardless of size. As straight-size retailers introduce plus-size collections, some retailers that started out as plus-size are branching out in both directions by adding both larger and smaller sizes. Universal Standard, in 2015, launched clothes that range from sizes 10 to 28, extending it further from 6 to 32. And the company is now serving women sizes from 0 to 40, a greater range that nearly any other retailer in the market offers. In the same year, Charlotte Russe launched its first plus-size line, extending sizes offered from 0-14 to 0-26. Plus-size clothing now represents 25 per cent of its online ready-to-wear inventory. Today, stores such as Madewell, J. Crew, H&M, Ann Taylor LOFT, Anthropologie, Nordstrom, Adore Me and many have expanded their size range over the last year, in what Madewell earlier stated as ‘a larger initiative to reinvent the standard of fit to reflect the real, diverse spectrum of the American customer’. All this sounds great – but why; then, can you buy only up to a size 14 in Madewell’s stores, and the rest of its ‘expanded size range’ is available online only? Madewell isn’t the only store that touts its size inclusivity; the same is true for Ann Taylor LOFT, J. Crew and Anthropologie that are similarly forcing shoppers over a size of 14 to go online. Even adding extended sizing options online is a fairly new development for Bryant have long offered as a salve to women’s perceived body woes.) Still, buying clothes isn’t just about the act of purchasing, it’s about shopping as a bonding exercise and self-care ritual, confessed one of the shoppers, requesting anonymity. “If I go shopping with a straight- size friend, she can try something on and buy it right then and there, whereas I have to go home, order it, hope there’s no shipping fee, hope it fits… It’s a way for brands to say they’re doing things fairly, but they’re not creating an equal shopping experience,” she added. The question that arises then is if size-inclusive women’s clothing is the fastest-growing sector of women’s apparel, then why aren’t mass-market brands making a good-faith effort to provide women who wear over a size 14 with an in-store shopping experience? It might be somewhat cynical, but it’s hard not to question if stores like Madewell and Anthropologie see their ideal target customer as closer to a size 8 than size 28. Some of the other major players operating in the field of plus-sized women’s clothing are Ralph Lauren Corporation, Hennes & Mauritz (H&M), Hanes Brand, Philips Van Heusen Corporation, Carmakoma, Mango Brand, Forever 21, Adrianna Papell, Torrid, Evans, Old Navy Plus, Monif C., American Rag, Ashley Stewart, City Chic, Fashion to Figure, Lucky Brand Plus, Lane Bryant, Pure Energy, among others. A surge in feminist empowerment – spurred most recently by the #metoo movement – and the independent nature of social media have given voice to stylish influencers who display confident images of themselves, call out brands refusing to cater to them and hail those that successfully do. Online Curve Filling the gaps in the size-inclusive clothing market are online retailers like Cundiff’s CoEdition, Eloquii and ASOS Curve, which are catering to a wide variety of sizes (and not just in the old-school, ‘slimming’ darks and neutrals that stores like Lane www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India11

12. RETAIL CURRENT APPAREL RESOURCES NEWSLETTERS To subscribe, send us an email at subscribe@apparelresources.com FACEBOOK FRIENDS Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resources at https://www.facebook.com/apparelresources/ Burberry shares fall owing to weak sales in China the second half of year too, the sales growth across all regions was mere 1 per cent, a drop of 3 per cent from the first half. According to analysts, while the fashion brand expected flat revenues and margins at constant exchange rates in its existing financial year, currency movements would shave about £ 7 mn off full-year profit. In fact, not all is negative. The new designs from creative director Riccardo Tisci have included more influence from streetwear styles and a new logo and monogram. And this is now paying off after Burberry reported a rise of 2.3 per cent in comparable revenue for the last financial year. The company has increased its cost-saving target to £ 135 mn every year by 2022, and announced another £ 150 mn share buyback. However, it warned that the present year’s results would be unusually weighted towards the second half. Burberry, the British luxury fashion brand, saw a fall in its shares on 16 May owing to poor sales growth especially in Mainland China. to overall economic slowdown which kept the consumers away. Chinese consumers constitute 40 per cent of earnings globally. In Notably, in the year that ended in March 2019, the sales in the Asia-Pacific region saw low single- digit growth. This was mainly due Ascena Retail Group rejuggles senior management as its CEO retires On behalf of the Board, I want to thank David for his many years of service to Ascena’s customers, associates and communities. During his watch, the company built solid organisational and functional capabilities as well as a deep executive bench. We are pleased that David will continue to serve Ascena as a member of our Board. I also want to thank Carrie Teffner for stepping into the role of Interim Executive Chair. Carrie will work closely with Gary to accelerate and amplify execution of the company’s strategic initiatives.” – KATE BUGGELN, Lead Independent Director, Ascena Ascena Retail Group has announced a change in its senior management structure. David Jaffe, CEO and Chairman of the company has stepped down, though he remains on the Board of Directors’ list. Gary Muto, currently President and CEO of Ascena brand, has since taken over as the company’s CEO and will join the Ascena Board of Directors. In addition, Carrie Teffner has been named Interim Executive Chair of the Board of Directors. “Leading Ascena over the past 27 years has been a privilege. David, Carrie, the Board and I are working together to ensure the leadership transition is smooth. I am eager to lead and work with our Ascena associates, who share my deep commitment to our customers, brands and shareholders. Together we will realise Ascena’s potential as the Board and management continue to execute on our previously announced strategic initiatives, including a comprehensive assessment of Ascena’s portfolio brands, operations, assets and continued cost savings,” said Gary. As the company continues its transformation, the Board of Directors and I mutually agreed that these decisions are right for the business and its shareholders. I am extremely confident in Ascena’s future under Gary’s leadership and look forward to continuing to serve Ascena as a member of the Board,” said David Jaffe. “I am both honoured and excited by this new challenge. 12 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

13. RETAIL CURRENT Gucci faces Twitter ire for selling ‘Indy Full Turban' at US $ 800 calling them, ‘Indy Full Turban’. The product is explained as, “A gorgeously crafted turban is ready to turn heads while keeping you in comfort as well as trademark style.” They are also delivering it for free and offering in only one size. Twitter is upset beyond limits at the atrocity and wants Gucci and Nordstrom to take down the turbans. People have taken to the micro-blogging website to show their anger. After the backlash, Nordstrom declared that it was pulling the turban from its website and stores, and apologised to those who were offended. Nordstrom tweeted an apology and announced that it would no Luxury fashion brand Gucci is again on fire for selling designer turbans on Nordstrom at US $ 800. The members of the Sikh community have zeroed in once again accusing the brand of cultural appropriation. Last year in February, a royal blue turban in particular from the brand’s fall 2018 collection caught the attention of Twitter users both for its high price and for hurting the community sentiment. But it seems the brand has not learnt anything from it. Gucci has started selling the Sikh turbans and that too at a price of Rs. 56,076 (US $ 800), which is absolutely insane. Online fashion store, Nordstrom, is selling these Gucci turbans by to disrespect this religious and cultural symbol. We sincerely apologise to anyone who may have been offended by this,” they wrote. longer sell the turban. “We have decided to stop carrying this product and have removed it from the site. It was never our intent La Chapelle witnesses decline in sales; closes down over 1,800 outlets The Hong Kong-based fashion retailer La Chapelle witnessed its sales dip by a worrying 21 per cent in Q1 of 2019 to record US $ 352 million. 2018 had seen the retailer shut down as many as 1,877 outlets owing to poor sales and inefficiency. The number of closed stores now stands at 9,540 (till the end of March 2019). With one of its every 5 directly operated stores shutting down, the retailer is going through one of its worst phases. The net earnings ascribed to shareholders too fell by 94.4 per cent to clock US $ 1.4 million. sales of apparels, shoes and hats in the mainland China region increased by paltry 3.3 per cent year-on-year, which is actually 5 percentage points less than the growth rate of all consumer goods sales. Besides, in 2019, the Chinese New Year holidays were 11 days earlier compared to what it was in 2018, which also significantly impacted the sales of winter items in Q1 of 2019. Also in Q1, the earnings of ladies’ apparel brands like La Chapelle, Puella, 7 Modifier and La Babite saw a Y-o-Y slump of 26.6 per cent, 29.7 per cent, 22.9 per cent and 23 per cent, respectively. increase in apparel expenditure on a continual basis and also the fast receding confidence of the shoppers. Reportedly, the La Chapelle added that the poor Q1 was mainly due to negligible www.apparelresources.com | JUNE 1-15, 2019 | Apparel Online India13

14. SUSTAINABILITY Have you checked your SROI? Poonam Nanda, Shahi Exports G result-oriented (high efficiency), better relations with colleagues and enough time for family as well as self…, do your workers have all these? If not, it is high time for top management to change its thinking, working and consider its Social return on investment (SROI). Though industry leaders (top companies) have taken up many initiatives in this regard, but when it comes to the entire Indian apparel manufacturing industry, the scale of these initiatives is very less. Not only this, the motive behind such initiatives to achieve ‘happy and healthy workers’ should not be set by the Western world. Indian textile industry should think and work beyond compliance and CSR. This constituted most of the crux of the brainstorming workshop on ‘Promoting Employee Well-being and Impacting Business at Workplace’, organised by The Federation of Indian Chambers of Commerce and Industry (FICCI) and Swasti Health Catalyst. Poonam Nanda joined Shahi Exports 17 years ago. She was intermediate at that time and started working as a Helper. Two years ago, she completed her LLB (Bachelor of Laws) and now she is working in the HR Department of the company. “Apart from personal growth, Shahi Exports made my life easy by various training programmes. I was unable to give enough time to my husband; so our company organised training for couple too. I wish to work my whole life for the same company,” she shared proudly amidst a full house of industry stakeholders during this workshop. Kalyani Pandey started working with Shahi Exports when her first baby was just of three months. Her journey is also remarkable as she got promoted from time to time and is now handling store and feeding material for a team of 720 people. “I have also started my own finishing work as side business and I call it Chhoti (small) Shahi; now I am giving employment to 28 people. I never played in school, but while working, I won at district level sports” she informed happily. ood health, financially stable and growing, socially well-appreciated, emotionally strong, To get better results, factories’ management have to develop a habit to listen to workers seriously. Training increased acceptance of women in supervisory roles. Earlier even some of the female operators were not happy to work under women supervisors. Kalyani Pandey, Shahi Exports These are just two examples shared by workers themselves, but it is not only that workers remain in benefit or gain by training. Vijendra Gupta, GM – HR & Compliance, Richa Global, Gurgaon informed, “After proper training, attrition rate remained 7 per cent, while earlier, it was around 20 per cent. Now fewer workers go to the medical room; previously, this number was quite high. There are many such good examples which helped our factories.” Similarly, Bharathy Yadav, AGM – Compliance, Orient Craft (Knits) also added: “Our attrition rate reduced drastically. Compared to 18 per cent earlier, it is now 7 per cent.” Both companies have various worker-focused initiatives like HERproject and many more. Bharathy Yadav, AGM – Compliance, Orient Craft (Knits) SHISHIR JAIPURIA CMD, Ginni Filaments “Along with continuous efforts for high productivity, use of robotic, AI…, challenges regarding workforce are also increasing. For solution, the industry has to go beyond the systems. It needs to be taken care of right from the education level, so that young professionals can deliver in this direction too… If the industry will not take up such efforts seriously, factories will be closed down.” Vijendra Gupta, GM – HR & Compliance, Richa Global 14 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

15. SUSTAINABILITY Explore pulse of the fashion industry… SHAONLI CHAKRABORTY Associate Director, Swasti Health Catalyst “Through various programmes, we are working for the industry and getting good results too. Definitely scale for such efforts need to be increased, and this is only possible when industry will come forward.” I grown between 4 per cent to 5 per cent. In line with these projections, the annual growth by 2023 will be of approximately 5 per cent. At the same time, the industry has also improved its social and environmental performance in the year 2018, but at a slower rate than the previous years. Companies are not implementing sustainable solutions fast enough to counterbalance the negative environmental and social impacts of the rapidly growing fashion industry. Published by Global Fashion Agenda, Boston Consulting Group and Sustainable Apparel Coalition (SAC), the annual Pulse of The Fashion Industry report measures and scores the industry’s actual sustainability performance and has some eye- opening updates to make. As per the report, the small-size players in the mid-price segment, and medium and large-size players in the entry-price segment have contributed majorly towards the improvements. In fact the efforts being taken up among the smaller companies in the entry-price segment are encouraging to see. As the report reads: “Adopting sustainability strategy development and governance, setting targets, implementing best practices and aligning their association affiliations. These important preparatory changes will take time – typically around two years – to translate into trackable success further along the Pulse Curve.” On the other hand, frontrunners displayed lower measurable progress, as their work in scaling up solutions and bringing n the last two years, the global apparel and footwear industry has proven initiatives deeper into the value chain does not necessarily translate into Pulse Score gains. As far as Pulse Scores by value chain step is concerned, management, and target setting & supply chain show strongest scores of 56 and 42, respectively. On the other hand retail stores and transportation have minimum scores of 28 and 30, respectively. So, the leaders of the industry have also reaped good results out of the training modules. But what about SMEs or the unorganised sector where such initiatives are very much required but most of them have not done much in this direction? This point was highlighted by Apparel Online in the workshop. Majority of stakeholders agreed upon this. Rajesh Bheda, Principal and CEO, Rajesh Bheda Consulting (RBC), Gurgaon shared his view that in such a scenario, focus is needed at the entry level as it will be comparatively easy to implement training. Besides, maximum sharing of information about positive outcomes of various initiatives is another reason. Shankar AG, Associate Director, Swasti Health Catalyst, Bangalore informed that they are also focusing on cluster levels and taking collective efforts along with various industry trade bodies. Through all this discussion, what came out to be more motivational was the positive impact of such initiatives which is also beyond workers and factories. A large extent of society, which has nothing to do with the textile or apparel industry, is also getting advantage due to the well-being efforts of the industry. Some of the workers of apparel and home furnishing manufacturing units are being invited to the schools of their sons and daughters to guide other parents about proper nutrition and healthy food. Thanks to the training programmes of factories with a focus on holistic approach about health. Before joining the apparel industry, one of the female workers had a dream to become a singer but could not do anything. After attending a training session on leadership, she got motivated and learned music. Now apart from working in the factory, she teaches music to the nearby youth and sings in various cultural events. Therefore, the obvious question is no matter whether big or small units, are you doing enough in this direction? After all, SROI initiatives are meant for the betterment of factories for sure! Pulse score (created in 2017) growth slowed by one-third in 2019 32 38 42 year year year 2017 2018 2019 Awareness regarding sustainability is highest among younger people (especially millennials). There is a shift in importance regarding sustainability considerations which represents a strong signal for the industry. This clear trend will continue to grow. It is just a matter of time before responsible practices become pivotal for decision-making factors when purchasing a product. Despite all this, consumer considerations of sustainable practices are not yet powerful enough to be the most important drivers of purchasing behaviour. www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India15

16. SUSTAINABILITY HAVE YOUR SAY Tell us your news by emailing at news@apparelresources.com BREAKING NEWS To read the latest sustainability news, go to https://apparelresources.com/business-news/sustainability/ CONSUMER UNDERSTANDING It is pertinent to mention here that the Sustainable Development Goals (SDGs) estimated that global carbon emissions need to be reduced by 45 per cent from 2010 levels by 2030 if global warming is to be limited to a 1.5°C increase and net zero-carbon emissions are to be reached around 2050. The report says that even under optimistic assumptions, the industry’s existing solutions and speed of progress will not deliver the impact needed to transform the industry. Importance of sustainability when purchasing fashion Not at all important 4 3 The Pulse Curve showcases a five-phase trajectory of the industry’s social and environmental performance, providing guidance for fashion companies as they assess their current standing, locate themselves against their peers and map out their next steps. Each phase defines a set of priorities and milestones for companies to focus on. Somewhat important 18 33 Very important Neutral 42 VARIOUS PHASES Extremely important Pre-Phase Taking Uncoordinated Actions Even the most advanced brands face limits to what they can achieve in isolation. To master the significant roadblocks lying ahead, a strong ecosystem of collaboration is required to drive impact by identifying best practices and inspiring innovative solutions. Two of the key players in the eco-systems are Governments and policymakers. While there is much to be done, there is also increased momentum to create a supportive regulatory framework, which the industry should seize and seek to further develop. Phase-1 Triggers of sustainability Building the Foundation Phase-2 50 49 50 Implementing the Core 44 Phase-3 40 Expanding to Scale 32 Phase-4 29 30 Climate change awareness efforts Unlocking the Next Level Natural disasters in the world Reading about sustainability Flooding in many countries Watching a documentary on 20 About 40 per cent of the industry has not yet reached beyond Phase-1 of the Pulse Curve which shows that if the industry does not implement changes at a faster rate, it will not be able to achieve the UN Sustainable Development Goals (SDGs) or meet the Paris Agreement. Similarly, 60 per cent of the industry should focus on scaling up core priorities and accelerate efforts on transformational priorities of the CEO Agenda*. 16 Tsunami in Asia 13 Factory fire in 10 sustainability Bangladesh Others 4 0 * Global Fashion Agenda (2019). CEO Agenda 2019. Retrieved from https://www.globalfashionagenda. com/ceo-agenda-2019/# (Proprietary research by Boston Consulting Group in America, the UK, France, China and Brazil) 16 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

17. SUSTAINABILITY Denim giant Arvind Limited joins Fashion for Good stakeholders are gaining in-depth knowledge and support from a unique pioneer in manufacturing. We are delighted to see entire fashion eco-system come together in order to implement and scale innovative solution across the entire fashion value chain,” disclosed Katrin Ley, Managing Director, Fashion for Good. Apart from Arvind Limited, German E-commerce giant Otto, Stella McCartney, PVH Corp, Adidas, C&A, Galeries Lafayette, Kering, Target and Zalando are among the companies in Europe, North and South America as well as Asia to be associated with the initiative so far. In addition to this, Fashion for Good has also revealed about its collaboration with Amsterdam-based social enterprise Circle Economy on a new global project that aims to speed up the uptake of re-commerce and rental business models in the global apparel industry. Popular Indian denim manufacturer, Arvind Limited has become the latest to join Fashion for Good, a global initiative that is trying to make fashion more sustainable. Fashion for Good, launched in March 2017 by C&A Foundation, is the corporate foundation affiliated with global retailer C&A. Fashion for Good is an industry-wide platform that helps brands, retailers and manufacturers find more innovative and sustainable solutions for producing fashion. “Sustainability and innovation are our key strategic growth pillars and we have always attempted adoption of innovation in textile manufacturing. We are pleased to partner with Fashion for Good and are committed to promote the sustainable technologies originating from the Fashion for Good platform. We are looking forward to working with these technologies to fuel the next set of growth in manufacturing for us with the aim of growing with drastically less environmental impact,” said Punit Lalbhai, Executive Director, Arvind Limited. Arvind, a US $ 1 billion textile company, operates with a focus on textiles, advanced materials, environmental solutions and omnichannel commerce. “By having Arvind on-board with Fashion for Good, all of the innovators and Otto, Stella McCartney, PVH Corp. Adidas, C&A, Galeries Lafayette, Kering, Target and Zalando are among the companies in Europe, North and South America as well as Asia to be associated with the initiative. Denimsandjeans Vietnam 2019 to focus on sustainable development industry but also share his first- hand experience of sustainable denim at Prosperity’s mills in Vietnam and China – ranging from source of raw materials and new recycling methods to next generation denim business models. The event will also bring several denim experts from USA, Europe and Hong Kong who will discuss varying topics on sustainability in denim, including ‘Sustainable denim production – a comparison between China and Vietnam’ and ‘Growth through sustainable denim production’. Over 40 denim companies from across the world will be showcasing the best of their sustainable denim collections at the event that is expected to get visitors from many continents and countries including China, Japan, Korea, US and Europe. knowledge-sharing sessions. One of the major highlights of ‘Denim Talks’ will be a discourse by Joanne Swift, Ex-Creative Director, Mamiye Brothers. She will be speaking on current trends in retail sector as well as sustainability for consumers, buyers and manufacturers. Leo Gu, GM, Prosperity Textile, will not only discuss opportunities and challenges in the denim After the resounding success of the third edition, Denimsandjeans. com show in 2018, Vietnam’s international denim exhibition, will be back with its fourth edition in June this year with a focus on sustainable growth and development. The two-day event, which will begin on 12 June, is themed ‘My Earth, My Denim’ and will feature interesting and informative talks, seminars and www.apparelresources.com | JUNE 1-15, 2019 | Apparel Online India17

18. LEAD STORY TOWARDS TRANSPARENCY In India, even today, many sewing operators who are working in apparel manufacturing units for months, or for even years, do not know the name of their factory. The address of their factory and the name of their supervisor is the maximum that they know about. On the other hand, H&M is the first retailer of the world to list individual supplier details for each garment on its website to increase transparency in an industry with high risks of slavery and labour abuses. There are many more such examples at local as well as global levels which have direct or indirect relation with sustainability and transparency aspects of the fashion industry. From decades, industry experts strongly believe that there is no sustainability without transparency. Amidst all this discussion, where does India stand… What is the opinion and experience of the Indian apparel industry on transparency? Apparel Online explored this issue with various stakeholders from the industry. As expected, there is a difference of opinion on this topic, but all of them agree that transparency is the best policy for sustainable business and for a better tomorrow. Transparency in Indian apparel industry Director, Methods Apparel Consultancy, Gurgaon. The company supports apparel manufacturers with its integrated software packages and industry-specific training. In some cases, there are some grey areas which need to be taken up on priority. Gurminder Matharu, Country Manager, Colveta India (Gurgaon) feels that the only hidden part sometimes is the longer working hours or no holiday in a week and that too when buying houses stress them to work overnight to get their merchandise out as supplier is running late; also hidden many times is the true cost paid to the labour involved. for focusing on labour abuses and factory- related dangers, and advocates critical information about where to turn to for problems. This makes workers believe that brands profiting from their labour will hear about their struggles and intervene. “It is better than what it used to be but the industry has a long way to go; on one hand, we have examples of Toyota, Fast Cap and Suzuki which have dedicated certain days of the month for people to go and see their practices, and on the other hand, many doors of our industry are so tightly closed that even for their own benefit, they are not willing to open,” bemoans Sunaina Khanna, As per experts, though Indian industry is a cut above China, Bangladesh and Vietnam, overall Indian apparel industry (the majority of giants as well as SMEs) is not in a strong position. Most of the larger players in the industry and also the medium and smaller ones involved in exports have moved towards adopting transparent practices as it has become the need of the hour but the industry as a whole is yet to cover lots of ground in this regard. Transparency is a powerful tool 18 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

19. LEAD STORY To a large extent, manufacturers of the domestic market are yet unware of the concept of transparency, as they are by and large in the transition phase of getting into the organised sector from an unorganised one and this shaping-up process may take another 2-3 years or more. In the meanwhile, more companies are moving towards transparency mode. TARUN BAKSHI CEO, Triburg “Transparency is an open way of working which promotes collaboration between all stakeholders. Triburg has always shared relevant information with all stakeholders. We run one of the most transparent supply chains with a few key European accounts. It’s taken years of work on the ground to get to where we are.” Buyers’ efforts from a suppliers’ viewpoint RAJIV DEWAN President, Garment Exporters Association of Rajasthan International brands and retailers have adopted a practical, optimistic and solution- driven approach towards transparency. To a large extent, their vendors feel comfortable discussing issues with them, instead of hiding it as some of the apparel manufacturers are of the view that this has really helped them in improving the system and work culture. “Buyers do expect statistics that they can use to compare companies. As a manufacturer/ supplier/marketer, if you can provide an explanation of your statistics, you justify your company and become memorable,” says Rajiv Dewan, President, Garment Exporters Association of Rajasthan (GEAR), Jaipur and MD, Ma’am Arts, a well-known export house. Many other exporters strongly appreciate that buyers across the continents are pushing factories to be transparent and are true business partners in their growth story. With respect to the domestic market and looking from a holistic view rather than just sustainability aspect, Vivek Lakra, Director, Superfine Knitters (Ludhiana) feels that as buyers are getting big, they are becoming dominating and are asking suppliers to furnish details that are no more in closed doors like those relating to purchase, open costing, transaction details of four stage back-end suppliers. Superfine Knitters is the only company in the Indian apparel industry (producing for Indian brand and retailers) with state-of-the-art infrastructure, doing business of around Rs. 100 crore. “Transparency embodies honesty and open communication because to be transparent, someone must be willing to share information when it is uncomfortable to do so. As a concept, it is often most visible in the realm of social responsibility and compliance; its real benefit is when it’s seen as a business priority.” buyers and ensuring law of the land, transparency is also a way of engaging employees. If transparent, management trusts staff and workers with information, and in turn, they reward the company with loyalty. Overall, organisational transparency creates trust among stakeholders, assists in informed decision-making and fosters greater participation. “We have gained credibility, long-lasting relationship, better compliance ratings by being transparent. Being transparent is more than a good policy,” says Archana Tomar Mann, VP – Compliance, CSR, Training & Development, Orient Craft (OC), Gurgaon. OC is one of the largest export houses of India. Adding different views to the same and including important factors like pricing, Vivek Saxena, Director, Moissanite Apparels, Noida says, “We have gained, especially when it comes to ethical pricing, and buyers in return trust and respect us for that. But, at times, we have lost a lot when it comes down to being transparent in adherence to social practices. It is because most of the auditors are concerned only about the ‘paper’ values instead of looking at things with practical values. We are in an industry where the turnover of labour is extremely high and unfortunately 90 per cent of them come from an almost zero educational background.” Moissanite Apparels is a growing export house working with several global brands and retailers. There are companies like Superfine Knitters which claim to be transparent right from the beginning. Before GST and demonetisation, the company was losing a lot to the unorganised sector, but now, everybody has come to be on a transparent platform, so now it has got an edge. With regard to the buying community, not only brands and retailers, but also the buying houses strongly claim that they always gain by being transparent. According to Triburg, openness is always appreciated and gets due response, while what Colveta India has gained the most from transparency is the trust of the suppliers and customers. For buying houses as well as suppliers, one of the main reasons for losing business due to transparency is the counter-partner not being transparent. Collective and collaborative efforts on ground level Indian apparel industry is vast and spread over more than 15 cities and each city has separate specialisation and big to small players… All this makes collective and collaborative efforts difficult, especially on the ground level. But being more vocal and open on such things, manufacturers can also learn and join hands to promote such initiatives. CXOs of various companies have shared on various platforms as well as with Apparel Online about how there is a lot of talk about good practices, but in reality, nothing is happening, especially as far as Being transparent – loss or gain Even medium-level apparel manufacturers which don’t even have a dedicated Product Development (PD) department are fearful of getting their design copied. In such a mindset/scenario, is being fully transparent easy? Interestingly, apart from satisfying www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India19

20. LEAD STORY TO ADVERTISE Contact Rani Mahendru +91-11-47390000 (512) rani@apparelresources.com GOING TO A GOOD EVENT? Send your industry gossip, photos and news to isaxena@apparelresources.com customer relationship is concerned. Though on many fronts like interaction with the Government and policy-making bodies, the industry’s collective and collaborative efforts are much more effective and evident. Rajiv has a strong point to make here. He states, “There is indeed a need for ‘Collective Governance’. Currently, the world is characterised by globalisation and stakeholders increasingly find themselves unable to govern. Corruption is everywhere, natural resources are being exploited, the environment is damaged, markets are distorted, etc. Certain challenges cannot be addressed by entrepreneurs alone. Increasingly, collective governance ‘beyond governments’ is seen as part of the solution, with state and non-state actors working together. The trick is to communicate in ways all understand and allow incremental growth and refinement.” This aspect becomes important as transparency is about sharing information not only with own brands, partners but with all. There are very few companies who are on the collaborative mode, else the majority is always on the secretive mode and very reluctant to be transparent. And this needs to change for sure. Industry challenges are common like low efficiencies, high absenteeism, poor labour turnover, poor middle management and inadequate HR practices. The collaborative approach will help tremendously and make India more competitive in the world forum. As far as buying side is concerned, there are very few examples in this regard. “Triburg has moved way above and beyond the concept of a typical ‘buying house’. We believe we are a full-service provider, akin to a ‘direct supplier’. We take complete responsibility for business deliverance,” says Tarun Bakshi, CEO, Triburg, adding, “Industry has been very vocal about a host of issues in the past as well, but personal agendas override collective goodwill. It doesn’t mean we stop trying, but this point needs further deliberation.” According to Gurminder, “The ultimate goal for both our suppliers and also for us is to have a successful business with a satisfied customer base.” Therefore collective and collaborative efforts is the only way to survive in the market or any business and that too for the long term; for short term, one can always cut corners and do it their own way. COMPREHENSIVE TRANSPARENCY Tarun Bakshi CEO, Triburg “Transparency should be a two-way street. If brands expect suppliers to be more open and accountable to elucidate their supply chain, so should the brands be especially in terms of their commitment levels to support such an environment.” Disclosing buyers as well as suppliers’ names No doubt that having buyers as well as suppliers’ names and addresses on own site and other manufacturing sites is a vital part of transparency. Besides, traceability and adherence to international norms for human rights throughout the supply chain have become a very critical factor for maintaining transparency. Experts feel that as the digital revolution has already taken place in India, companies are sweeping vast quantities of data about customers’ activities, both online and offline. In the future, customer data will be a growing source of competitive advantage; gaining consumers’ confidence will be the key. Companies that are transparent about the information they gather, give customers control of their personal data, and offer fair VK Jha Founder, Aider NGO “Suppliers have to be transparent with their clients, but they should similarly be transparent with their workers and staff. With regard to the workforce, there are many such issues where manufacturers have to be more transparent. Things should not only be in papers, but they also should be executed on the ground level and reflect clearly. The factory management should distribute an ‘Employee Handbook’ in local languages to all workers, which should contain all relevant HR information, policies, workplace rules, wages and benefits in detail. Why can’t apparel manufacturers have their workers’ records?” ARCHANA TOMAR MANN VP – Compliance, CSR, Training & Development, Orient Craft Vivek Saxena Director, Moissanite Apparels “Transparency implies openness and accountability, accompanied by the availability of full information required for any collaboration or decision making. It helps to build credibility with not only customers but every stakeholder, be it employees or society. We are fully transparent with our buyers and ensure that we share sustainability reports, internal audit reports, annual compliance progress status with our buyers on a timely basis.” “Transparency and allied collective efforts are a state of mind and flow from top to bottom. If the leaders of the industry will take this forward, soon all will follow. Those who will not, will be left out of the industry.” 20 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

21. LEAD STORY value in return of which they win trust and will earn ongoing and expanded access. Those concealing how they use customers’ personal data, fail to provide value to the customers’ and lose their goodwill and eventually business. Triburg shared with Apparel Online in this context that they don’t see a need for such type of disclosures. Even Gurminder is of the view that such transparency is not taken in a positive light as no one wants to share their customers’ names to the whole trade. SUNAINA KHANNA Director, Methods Apparel Consultancy “Being transparent is equivalent to being trustworthy; transparency implies openness, communication and accountability. Right from the beginning, our organisation has been genuinely transparent about the business practices that we follow. In our organisation, even the last link of the value chain has solid trust in the company and its practices.” On same pitch or not It is very important that buyers and suppliers should be on the same pitch regarding transparency. There is a strong perception that buyers are on the higher side as they demand the transparency from the suppliers. But in case of suppliers, they support this concept if they are doing volume business but don’t show adequate interest when they are handling small business. The pitch for the supplier is business-driven. Tarun feels that Indian suppliers are quite cooperative. Both buyers as well as the suppliers understand the ground realities, but still, there is lot more to be done to be on the same pitch. Again, according to Gurminder, www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India21

22. LEAD STORY THE LATEST NEWS For the latest news on apparel and textile, make sure that you visit https://apparelresources.com/top-news/ HAVE YOUR SAY Write to Apparel Resources, B-32, South Extension-1, New Delhi (110049), India or email: editor@apparelresources.com it all depends on the suppliers’ eagerness. She further adds in order to motivate Indian suppliers for transparency, her team does CSR visits, conducts remediation meeting and discussion with suppliers but ultimately business is what drives the suppliers to make efforts. JasMahindru, Proprietor, Mega- Brands shares that in 80 per cent of the cases, both are on the same pitch, especially where there is inter-dependency. the combination of reluctance to regulate companies and overall Government apathy has meant that there have been no strong legislative efforts worldwide to address human rights’ concerns in the garment industry,” adds Rajiv. Tarun sees this from a broader perspective and asserts, “We need to increase our lobbying on this front with EU and US counterparts. It’s our strength, but we haven’t leveraged it well enough.” Gurminder suggests that there can be a centre where all information is provided and which helps the suppliers to go hand-in-hand to reach the required goal. There are many manufacturers and buying house who think they are not doing something extra for transparency as it comes naturally to them. “Transparency comes with individuals’ attitude to conduct business…; it has more to do with one’s personality,” says Jas. In view of Vivek Saxena, it will be a mandatory process very soon and everyone will have to join hands in this endeavour. “Corrective action plan should be abolished and continuous improvement plan should be in place,” he adds. VK Jha, Founder, Aider NGO, Delhi feels that there is a need to conduct a multiple awareness programme for the manufacturers, brands and stakeholders to understand transparency in the systems and their impact on business. “The industry has been gearing itself up for these challenges. Further, the industry shall be required to have an effective compliance function capability to meet its legal and regulatory obligations and promote and sustain a healthy transparent culture of compliance and integrity. Suppliers should step out of their comfort zone and join the transparency trend group. They should commit to sustainable transparency standards. Multi-stake holder initiatives should also endorse transparency,” he corroborates. Steps to increase transparency Beyond transparency! With the changing scenario, India has the opportunity to grow now as China is getting expensive. Being transparent is one trait which India can follow to grab opportunity for growth in textiles. Seminars, open forums, workshops should be conducted on a timely basis to ensure an increase in transparency. Aggressive market forces will pressure companies to be more transparent. Multi-stakeholder initiatives, such as brands and international NGOs, can play a more important role in moving the industry towards basic transparency. The Governments should also enforce transparency and other mandatory human rights processes in an apparel company’s supply chain and set standards that truly level the playing field for businesses and workers. “Tragically, Apart from sustainable activities, disclosing of business strategy, order booking situation, efficiency rate, overall turnover should be a part of transparency or not? Rajiv is of the opinion that organisations practising full transparency are open to attack and are vulnerable to those groups that feel under represented or alienated. He accepts that it can be difficult to learn to balance transparency keeping some information private, such as competitive trade secrets or other unique information. “These practices must be transparent but many times business strategies are the USP of the organisations; hence in some scenarios, if everything is too transparent, people can take undue advantage of the available information in the short term. I feel if we find ways to collaborate rather than compete, it can create a win-win situation often,” says Sunaina. Gurminder too agrees on the same and avers, “Absolutely, this should be part of transparency for buying house as well, as when we do this, our supplier base also understands our structure of work , the cost involved and value that we add in-between them and customer-hidden agenda is anyway not good for either party.” On the contrary, Tarun disagrees with this as he states, “We are in a commercial world and putting commercial information in public domain is not in anybody’s interest.” Jas gives a mixed opinion, “We do discuss strategies with our associates and are quite open to a very large extent, but within the practical understanding of each side. Percentage (commission) and profits are personal and I believe one should not discuss this until and unless there is a situation GURMINDER MATHARU Country Manager, Colveta India “Transparency is the overall view of our product with regard to where it is produced, printed, processed, taking care of the labour involved on the human ground level and open sharing of the movement of our product at all stages. Our organisation has always been transparent and our supplier base is a strong vote for this.” VIVEK SAXENA Director, Moissanite Apparels “Transparency is honestly fulfilling social compliance requirements and ethical business practices, which includes ‘pricing’ policies also. We are committed to be transparent in hour business and impart the same values to our staff too.” 22 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

23. LEAD STORY where negotiations or expenses need to be understood by others. Yes, it is evident there is no business without this commission or service charge.” VIVEK LAKRA Director, Superfine Knitters “Transparency means that all business transactions are accounted for, and all Govt. statutory departments are well linked with the company, and there is a minimal scope of any deviation or tax/ entry evasion. We are a public limited company and we are extremely transparent in all respects.” Starting point Apparel manufacturers who have not yet moved towards transparency, can start by exploring Transparency Pledge. As per Human Rights Watch:World Report 2018 in 2016, Human Rights Watch joined eight international labour rights groups and global unions advocating for a basic level of transparency in the garment industry. The coalition developed a ‘Transparency Pledge’, a uniform minimum standard for transparency, drawn from industry good practices. The pledge is a modest starting point for company disclosure. Companies can do far more than what the pledge seeks. As usual, industry stakeholders have different opinions, observations or experiences on similar issues and things will keep moving in their organisations as per them, but as a whole, no one can deny that transparency is the best policy in order to move further for sustainable business and for better tomorrow. Leonardo A Bonanni, Founder CEO of Sourcemap strongly believes that committing to supply chain transparency is usually the most effective way to drive the new business processes needed for mapping and traceability. www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India23

24. TEX-FILE Birla Cellulose sets new milestones with developments @Liva R another leap for enhancing the sustainability quotient of its brand and the fashion industry at large with the introduction of a new eco- enhanced variant, Livaeco, that promises to be more sustainable and environment-friendly. In an exclusive conversation with AO, Manohar Samuel, Senior President -- Marketing & Business Development, Birla Cellulose reflects on the journey of Liva so far and the way forward. In its endeavour to be as sustainable as possible, the latest offering within the Liva family, Livaeco, has got certain enhanced credentials of sustainability as compared to end buyer trace the origin and journey of the garment he/she is buying, focusing mainly on sustainability and high fashion to delight the customers,” said Samuel. Tapping Potential iding high on the success of its ingredient brand Liva, Birla Cellulose has taken yet regular Liva. It is made from raw materials sourced from forests that are certified by the Forest Stewardship Council (FSC), which ensures the conservation of biodiversity, saving of endangered forests and an increase in the green cover overall. Livaeco also promises minimal usage of water vis-à-vis other natural fibres in its manufacturing process and lower greenhouse gas emissions. “We have come out with Livaeco in partnership with W, to give an eco-enhanced version of the highly fluid fashion fabric Liva. Consumers will be able to identify the fabric through the Livaeco green tag on the garment. Moreover, every Livaeco garment has a unique molecular tracer, which helps the For a wider reach and with an aim to strengthen its supply chain by facilitating a platform where garment manufacturers and yarn/fabric manufacturers can meet, Grasim Industries started Liva Accredited Partner Forum studio-cum-library. Till date, it has four studios – Noida, Mumbai and Tirupur -- across India, and one in New York. The studio serves 24 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

25. TEX-FILE as a one-stop customer experience centre for innovation, technical, product and marketing solutions and has a collection of more than 2,000 fabric innovations of viscose, modal and excel. It has a dedicated technical team, which helps the visitors to know about technical specifications, companies which manufacture yarns/fabrics and minimum order quantity. “Through Liva Studio, we are reaching to a wider audience in the value chain with innovation. But India is not yet agile from the supply side and there are many gaps; we are trying to fill those gaps. The awareness of innovation is much more with the global brands and they push the boundaries. Near home, a lot of work still has to be done by the Indian brands in fabric innovation,” asserted Samuel. He further confessed, “With Liva Accredited Partner Forum, we wanted all the fabrics to have a minimum quality guarantee forever; we also wanted them to be innovative and distinctively different. As far as innovation is concerned, I feel that the progress has been good, and through huge strides being made in the quality area, there is scope for more to be done. Overall the mission with which we set out is much higher than what we have achieved, but the journey has been fruitful.” LAPF Studio is not just about searching out and buying interesting fabric, it is also a hub to connect with over 650 garment manufacturers and exporters, 50 local and international brands, 50 international buying houses, agents and traders and 100 fashion design houses. To be more global, last year in January, the umbrella brand Birla Cellulose opened the design studio in New York to connect with international fashion brands and to know the international trends. It is also planning to open studios at other global destinations such as London and Hong Kong for its collections. Aspiring All Manohar Samuel, Senior President -- Marketing & Business Development, Birla Cellulose Birla Cellulose last month launched a plantable garment tag for its eco- enhanced variant Livaeco, which is now attached to each garment across the retail stores of W. The plantable tag wishes to create a positive environment footprint by introducing and engaging consumers in eco-friendly practices right from sourcing to the final degradation of the garment. The tag is created using seed paper which is made from recycled biodegradable fibres. Post soaking in water for 5-6 hours, it gets ready to be sowed in soil and needs to be placed under sunlight to ensure it sprouts in 5-6 days. for a particular brand, and every season, they get some options from us and innovate according to the profile of the brand they work for; the other level is when a designer works closely with us, he/she creates a unique fabric in line with his/her concept,” averred Samuel. Aiming High Following Aditya Birla Group’s philosophy of being at the forefront of sustainable business practices, Birla Cellulose is expanding its portfolio further in various other categories such as home furnishing, menswear, kidswear and even within womenswear. The company in December 2018 launched Liva Home with the brand partner Portico. The joint collaboration offers a beautiful range of bedsheets, comforters and duvets in floral and geometric designs. Eventually, Liva Home will also extend into different home textile categories, including bath linen, floor rugs, kitchen linen and living room linen. With an objective to bring sarees back in vogue, Liva is all set to launch its sarees in the next few months pan-India. “We are working with different types of stores-cum- brands, handlooms stores and the big brands in sarees. Our view is to see the brand, which is a high premium brand, get maintained,” added Samuel. Simultaneously, the brand has been associating with creative minds, designers and students to bring out their best through Liva Protégé. The unique platform is for the best of budding fashion designers across India to showcase their creativity and make an indelible mark on the fashion circuit across the country. At the same time, it aims to tap into the great Indian talent pool and ensure that promising fashion designers in India get their rightful place under the sun, and help India keep shining across the global fashion landscape. “We have quite a few designers, who have been using Liva fabrics. There are two levels. The running level is where the designers work Liva is also looking to foray into menswear segment. The company is already supplying to major kidswear retailers and sells through brands like Max Fashion, Allen Solly Junior and Gini & Jony. Concluding on a positive note, Samuel said, “We are enthusiastic. Earlier we used to concentrate on global brands but Indian brands are fantastic and we have created our own brand space with Liva. And it’s really good to see the volume of business we are able to get. The biggest positive for the future of Indian retail is that the Indian brands know what they want today.” www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India25

26. MATERIALS IN FOCUS FALL/WINTER 2019 The influence of streetwear has an undeniable effect on the fashion industry, and the same is translated into gender- neutral fabric choices and silhouettes for the upcoming Fall/Winter 2019 season. Less is more as refined luxury emerges as a prevalent theme with designers and high-fashion brands experimenting with premium quality materials. The attention is on construction – textures, clean-lined silhouettes and minimal detailing. Eco-friendly fabrics including cotton, linen and wool, are treated with varied textures, paying attention to the look of the end product. Modest colorways channel the natural feel, whilst soft curves in the simple silhouettes and neat lines lend feminine vibes. The approaching season focuses on premium quality materials such as silk, Tencel and soft leathers – the handles are tactile, lending a tangible sense of comfort and ease. Apparel Online conducts an in-depth analysis to present to you an exclusive look of the top 8 material trends that will be driving Fall/Winter 2019’s apparel choices. Nylon | Luxe Leather | Silk Route | Teddy Fabric | Cotton & Linen | Woollen Coats | Artisanal Knits | Fur Craft 26 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

27. Gabriele Colangelo Balenciaga Givenchy Cedric Charlier Fendi Craig Green Luxe Leather Nylon I and highly resistant nylon fabrics are value added with waterproof and chillproof finishes. For the approaching Fall/Winter season, designers and brands are experimenting with colour blocking, exaggerated word prints and embroideries, over nylon outerwear pieces. C with leather this winter, translating into a luxurious feel. Outerwear pieces and suiting are reworked in premium skins with an attention to smooth, anti- grain finishes, and fine, lightweight handles to give a clean and sleek look. Available in a variety of colours, the updated pieces are pared down, and come in understated silhouettes. ntegrating technology with fashion, lightweight lassic wardrobe staples are updated Phillip Lim Bottega Veneta www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India27

28. Teddy Fabric T successfully managed to steer out of public wrath by abandoning fur, and at the same time, introducing novel iterations of the luxe fabric. Texture imitating bear fur ‘teddy fabric’ is up on the rise especially under the outerwear category. Think coats, jackets and fluffy knits! As per Edited, there has been a 42 per cent increase in Teddy fabric apparel sell-outs since Fall 2017 – proof backed by data. he bigwigs in fashion have Burberry Alberto Zambelli Ann Demeulemeester Silk Route G appeal to loose shirts for men, and slip dresses and wrap dresses for women. This ultra-sheeny fabric is the second material trend to be tapping on the luxe feel, this season, after soft leather. lossy and sleek silk fabrics lend a retro GCDS Boss Cyclas 28 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

29. Jacquemus Cividini Isabel Marant Mazarine The Row Agnona Woollen Coats Cotton & Linen T stronger… fast-paced, high-stress lifestyles are urging people to get back in touch with the roots and make mindful purchases. Breathable fabrics such as cotton, linen and silk merge comfort with a relaxed feel, brought about by the softness quotient of these magic materials. W the Autumn/Winter season. And this year around, they are making their presence known in solid colour palettes, stripes and check patterns for men’s coats. Colourful shades, cobalt blues and China red add a brilliant touch to coats. he connect with nature has never been ool is an indispensable part of Uma Wang Jamie Wei Huang www.apparelresources.com | JUNE 1-15, 2019 | Apparel Online India29

30. Fur Craft F this season. Designers and brands are playing with colours, finishes and lengths in both regular and irregular forms. Bright fur trims line hems and edges of garments, while spliced front and back fur, soft fur and tough leather are gathered together to interpret modernity and individuality. Fur mashed up with denim and colour blocked fur is a huge trend, especially in the Chinese market. ur poses as a decorative material Thom Browne Tory Burch Ports 1961 Artisanal Knits S influences created using contemporary handcrafting that makes one reimagine the artisanal techniques. Details such as extreme fringing, Aztec and tribal patterns and monochrome graphics over free-flowing and oversized silhouettes lend a nomadic, wanderer vibe providing movement at the same time. easonal statement knits channel tribal Area Akris Dennis Basso 30 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

31. 19FWSS013 India-Apparel Resources Output.pdf 1 9/5/19 5:23 pm Fashion Springs Fashion Springs to Life Hong Kong is the famous trendsetter, gathering international fashion brands and designs. Boasting around 1,000 international exhibitors in 2019 edition, the fashion week is a one-stop shop for sourcing and merchandising. It offers buyers a fantastic spread of the latest trend in garments and accessories from high-end fashion to mass merchandise. A Vivacious Market for Business Some 20 product zones in the Fashion Week. Highlighted product zones include Fashion Accessories, Fashion Gallery, Menswear, Fabrics & Yarn and Clothing with Corporate Fashion and Uniforms returning in high demand. Once again the hktdc.com Small Orders zone caters to buyers with low volume orders of five to 1,000 pieces. Event Excitement The great atmosphere of this internationally renowned fashion week is created by the full array of parade shows. There are also trend forecast seminars by Fashion Snoops and buyers’ forum. Networking events facilitates the cozy environment for buyers to expand the business with industry peers. C M Y CM MY CY CMY K Exclusive offers for NEW Overseas Buyers! We offer 2 Options of Buyer Travel Incentive at your CHOICE! Option 1 : Hotel Sponsorship of up to 3 nights Option 2 : Travel Reimbursement For query, please contact the HKTDC Mumbai Office (91 22) 4333 6333 or by email to south.asia.consultant@hktdc.org *Terms & conditions apply Register Now for Your Register Now for Your FREE e-Badge! FREE e-Badge! hkfashionweekss.hktdc.com/ex/pre-reg Website: hkfashionweekss.hktdc.com/ex/09 Fair Date: 8-11 July 2019 Venue: Hong Kong Convention and Exhibition Centre Apparel Online India31

32. FASHION BUSINESS YOU SNOOZE, YOU LOSE Sleepwear now offers attires that can be worn outside the homes too! WHAT’S TRENDING IN THE THRIVING SLEEPWEAR MARKET? L comfortable silhouettes, luxe materials and edgy fashion. Analysis by Technavio forecasts the global sleepwear and loungewear market to grow at a CAGR close to 9 per cent by 2023 and several industry experts are swearing by the segment due to the ripe opportunities it holds for all market players right from luxury to mass retail. “Sleep and loungewear represent one of the biggest non- core product opportunities for fashion brands and retailers right now, with the most dynamic growth occurring at the affordable luxury level,” says Emily Gordon-Smith, Director of Consumer Product at Stylus, a research agency for the industry. “More time being spent at home and a desire for ultimate comfort, all day, every day are two key drivers behind this trend.” eaving the confines of the hours between the after- work and the morning alarm, sleepwear has come a long way to become one of the fastest growing segments since 2018. The sleepwear/ loungewear wave struck the consumer groups As the pants translated to sweats, a further step forward brought forth silk pyjamas, an inevitable progression that reflected luxurious nonchalance instead of careless disregard. The luxury market was quick to pick up the transition, as Dolce & Gabbana put forward its ‘pajarmy’, followed by Louis Vuitton, Gucci, Alexander McQueen and Fendi – with modified Peter Pan collars and luxe fabrics. This also led to several affordable luxury brands to explore this category cleverly as brands such as Desmond & Dempsey, Sleepy Jones and Pour Les Femmes made big bucks in the segment. The numbers are emblematic of the same as research agency Stylus says sales of luxury sweat pants rose 300 per cent year-on- year in 2017, while high-end department store Harrods revealed cashmere joggers in sleepwear being the bestseller for the past two years. The segment is also diversifying keeping utility in mind, giving rise to categories such as bridal sleepwear, right from bachelorettes, his and her collections to lingerie-based sleepwear; travel sleepwear spanning soft fabric joggers and sweatshirts coupled with eye masks and scarves and featuring advanced technology, restorative sleepwear – think Under Armour’s athlete recovery sleepwear range that uses bioceramic print to regulate temperature. Yet, the trends for the sleepwear category run a little slower than their counterpart categories such as corporatewear and streetwear, as mainstream retailers such as H&M and ASOS carry about 10 per cent and 13 per cent sleepwear items respectively, making it clear that the popularity of the segment still has a long way to go. Yet the blurring lines between loungewear and nightwear, coupled with the sudden push by an increased number of celebrities adorning sleepwear items are helping consumer groups mix and match ensembles that go from the bed to the streets. Best instances arise from pairings such as tropical print silk-shirts, high-waist pants and frill-trimmed white cotton night dresses street- styled with sneakers, as per Edited.com. During our research of the sleepwear market in India, Mumbai emerged as the biggest hub for the category as several trend-led brands and retailers, addressing all tiers of the market, are thriving in Maharashtra. We talked to several manufacturers and retailers from the domestic market dealing in this category to identify the major driving forces for the category to come up with trends that will dictate the sleepwear market for the upcoming season. as athleisure and streetwear came ashore to normality, being a complete package of 32 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

33. FASHION BUSINESS Transitional sleepwear is where the sleepwear stakeholders are placing their bets, and luster translates chic for nightwear in and out of the house effectively. Silk and satin are proving to be the most popular choice of material to join the glossy trend, Ruffle detailing over sleepwear coordinated set Luster Luxe owing to their soft tactile properties and luxurious aesthetics. Silk’s easy drapeability allows it to be a good fabric option for tie-up robes, midi-dresses and sleepwear sets. Yet, in tropical countries like India, retailers are opting for alternate silk blends with cotton and linen in order to maintain the breathability factor of the pieces. On the other hand, satin swept aside the velour rage the bygone seasons witnessed. Nightwear silhouettes are now inclining towards the boxy, leggy fit and satin blends are replacing velvet, as the latter tends to stick to the body of the wearer. Monica Jain, Founder of the Mumbai-based quirky nightwear brand Velveteen, talks about how these fabrics are the top choices for the consumers. She asserts, “Customers are very particular while selecting materials that will construct their nightwear. Someone who wants his/her skin to feel easy with no irritation will prefer cotton. Nowadays, nightwear is worn even outside the house, so the fabric choice is also changing. People who want elegant drape will go for fabrics like lucent satin. Cotton satin has matte yet luxurious finish and is a coolant as well, thus preferred by majority. Other fabrics in trend are rayon, velvet, silk, jersey, knit, etc.” Detailing at its Peak To keep up with the buyers’ demand for ostentatious nightwear, several brands and manufacturers are paying keen attention to value addition and design details, whether in fabric, prints or most commonly, overall pattern of the silhouette. Fabric manipulation such as gathers, knots and draped bows are the top runners of the lot. As per Akriti Kochar, Director of Perch, a brand that champions in maintaining the design and comfort balance, the classic suit style pyjamas have seen a very welcome transition towards more fashion-forward and feminine styles. To put it in her own words, “People are not really willing to give up on comfort to look fashionable. Thus, nightwear and athleisure loungewear are taking center stage. The classic suit style pyjamas now have many additions – pleated sleeves, peplum tops, fringed robes, tapered shirts, lightweight cotton, eccentric tapes, bold motifs. A night suit is an item of night time luxury; what’s more important than sleep?” Siddharth Vithlani, Founder of Rajkot-based Tirupati Nightwear also shares similar opinion, as he explaines how smaller design and pattern details are now in demand as per various consumer groups, on the basis of age, gender and purpose. According to him,“We at Tirupati cater to categories of menswear, womenswear and kidswear essentials. The silhouettes are now branching out and moving away from conventional traits. We provide styles right from classic suit top and bottom sets to the newly trending ones such as dungarees, jumpsuits and T-shirts with cold shoulder sleeves. These tend to evolve with time, as our male customers demand pockets with zippers while our female customers who are expecting, demand suits that have button up closures.” To this, Heenal Jain, Co-founder of Velveteen Nightwear adds, “Introducing collar neck in tops and night dress enhances the entire look of the night apparel and is the trendiest. Fancy embellishments like pearl buttons, ruffles, laces, drawstring, appliqué, fur are used to give a more feminine look.” Dolce & Gabbana silk transitional nightwear www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India33

34. FASHION BUSINESS Hues & Prints With the inclusion of print-friendly fabrics such as satin, silk and linen blends, all-over prints with large motifs are determined for the print and pattern choices for Fall/Winter 2019. Moving away from stripes and nautical motifs, bold florals, scarf prints and animal patterns are the top choices. Domestic players such as Kritika Jain, Founder of Velveteen swear by casual, vacation- inspired prints like that of flamingos, unicorn, nutella jars and characters, with a strong inclination towards oriental florals and chain prints. On the colour front, brighter motifs are on the memo, as Akriti states, “It’s the era of classics – nudes, neons and everything subtle and classic is fashion. A wide range from pink to blushes to beiges and with that a stark contrast of neons are making a comeback as well with Perch’s next collection.” Adding to these will be cooler shades, as Mitesh suggests, “I think the main colours for the approaching season would be colours with a pinch of coolness in them. Like there would be a shift from Red to Coral, Green to Lava Green/Teal Green. These colours bring coolness, which breaks away from the old standing colours. In addition, these colours add a youthful touch as well.” E-commerce champion Clovia, already known for its vibrant aesthetics, recently joined the bricks-and-mortar game and has made successful strides in the segment. Suman Chowdhury, Co-founder of Clovia, further sheds light on the same, “The prints we do are according to themes and floral motifs; vintage, summer chill, travel are few of the collections we have been working on. These prints and stories attract the consumers and buyers, while being extremely wearer-friendly. The category entails maximum comfort, thus, we use fabrics that are good to skin and are breathable such as cotton and cotton blends, modal, viscose spandex, satin and premium stretchable laces. On the Silhouettes’ Front Pyjama sets with contrast piping collars by Lilysilk Nightwear silhouettes are leaving their conventional ‘ugly comfort’ form and function to adopt shapes and cuts that are more fashionable. Classic suit sets have remained a constant in the segment, but the trend of lustrous coordinated sets - either in solids or a shock of prints in deep tones, with the top sporting contrast piping collars, are very common. Another trend that is peeping through various kinds of sleepwear styles are wrap- arounds and tie-up belts. Overlapping shawl collars placed on the necklines of suit sets right from shirt and shorts to shirt and pants, along with wrap tie-up kimonos, night robes, outerwear sets etc., are the buyer’s choice for the next season. Kolkata-based nightwear brand clts (an acronym for Cute Little Things), works on Indian body shapes and provides sizes that range from XS to XL. Mitesh Baheti, Business Developer of clts avers,“The front open nightsuits continue to be the favourites among the buyers across. Oversize tees (boyfriend shirts and tees) might see some great demands as well. We also identify long shirts (sleepshirt) as an upcoming trend that has not yet caught up and has tremendous potential. Variation in front open nightsuits has tremendous scope and market and we want to be the first one to offer products that are fresh, new and work for all generations.” The market will be ACCELERATING growing at a CAGR to close Courtesy: Technavio Prints offered by Perch nightwear for the next season 34 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

35. FASHION BUSINESS Combos for All Pairing nightwear with different street and outerwear essentials is definitely a micro-trend for the season ahead, which is pushing the key mass retailers such as Zivame, Clovia and PrettySecrets to include combination featuring 4, 5 and 6-piece sets. Neha Kant, Co- founder of Clovia says, “Our sleepwear range is very thought-out and customer-led, as we take into account what the wearer is looking for. We think of a girl who lives in a joint family, unmarried girl who lives in a dorm or with her parents or in a joint family and all of them have different sleepwear requirements. Thus, we go for combination sets to cater to them all. We started with a single solution 11-piece combo, that has individual garments from conservative pieces such as long nighty, long robe, top, full length pyjama to more progressive elements such as short nighty and a matching string bra brief set that can be worn, or paired with each other for different situations.” Thus, sleepwear as a segment is bound to make big bucks and has opened avenues for technological advancement as apparels can actually be used for therapeutic purposes by improving sleep. Furthermore, mixing and matching is the trend that never changes as we might see sleep attire being transformed to formal and occasionwear as well, and this is what the nightwear segment is taking advantage of – bridging the gap between bed and streets to enable an easy life for the wearers. Clovia 11 pcs satin nightwear set The year-on-year growth rate for 2019 is estimated at www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India35

36. FASHION RESOURCE Rihanna to launch her brand Fenty House with LVMH R create an original brand for the group. Called the Fenty Maison, as announced by LVMH, the brand is “centered on Rihanna, developed by her and takes shape with her vision in terms of ready-to-wear, shoes and accessories, including commerciality and communication of the brand,” stated a press release. The first collection has been reportedly debuted on May 22. As per Rihanna herself, “I couldn’t imagine a better partner both creatively and business-wise, and I’m ready for the world to see what we have built together.” The Chairman and CEO of LVMH, Bernard Arnault, said Rihanna would be supported with a team and resources. ihanna is going to be the first-ever woman of colour to lead an LVMH house and the first woman to “Fashion is a business of change,” the memo, obtained by CNBC reads, “We must evolve and change to grow. With that in mind, we have decided to rethink the traditional Victoria’s Secret Show. Going forward, we don’t believe network television is the right fit. In 2019 and beyond, we’re focusing on developing exciting and dynamic content and a new kind of event – delivered to our customers on platforms that she’s glued to, and in ways that will push the boundaries of fashion in the global digital age.” Victoria’s Secret will not air its annual show T on the television henceforth, as per a memo distributed by Les Wexner, CEO of L Brands, which owns VS. The television ratings for Victoria’s Secret’s annual televised fashion show last year were the worst in its history. he famous Victoria’s Secret annual show will not be aired Celine debuts e-commerce in Asia F e-commerce vertical in the Asian market. Offering the label’s full range of women’s and men’s ready- to-wear, the site will retail accessories, footwear, leather goods and collaborative collection items. The site also offers facility for the customers to check stocks of products available at their nearest Asian store with an option to pre-order items from the website. The website’s client service desk is also on hand to support users. The country options available on this e-commerce portal are China, Hong Kong (China), Japan, Macau (China), Singapore and Taiwan Region. The site also has Europe, North America, Middle East and Oceania sections, the last of which includes ‘International’. or the very first time, LVMH-owned French luxury fashion brand Celine has launched its 36 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

37. INDUSTRY LIVE Brands making money on IPL pitch A elections in the country, Indian cricket fans still made it a point to enjoy the Indian Premier League (IPL) this season and now all their eyes are on Cricket World Cup. IPL and such other sports events have proved to be a good opportunity for apparel companies, especially to create and increase their visibility, reach in the market. This perception gets strengthened by the fact that eight teams of IPL have around 12 sponsors from the apparel industry. Not only IPL, but also the Indian Super League, The Pro Kabaddi League, Premier Badminton League and many emerging sports events are witnessing a good number of apparel brands or retailers as sponsors or associates. So what attracts well established brands as well as upcoming brands towards such events and what they gain out of these? what exactly is their strategy… Apparel Online tries to find out answers to these sought- after questions by talking to some of these companies and arrives at some interesting observations. As far as sportswear brands are concerned, it is normal for them to get associated with any sporting event as it is a good opportunity for them to target the key market directly, and especially in case of IPL which is one of the most in demand sports leagues in India. Alcis, a high-quality sportswear brand, is associated with Rajasthan Royals. Roshan Baid, MD and Founder of the brand said, “IPL is the most watched and premium sports league in India. It is but natural to get associated with the best event in India and have the ability to provide kits to international cricketers who are competing at the highest level of competition.” But why was team Rajasthan Royals the choice for Alcis? To this, Baid emphatically midst the commotion and disquietude surrounding general ROSHAN BAID MD and Founder, Alcis “IPL is the most watched and premium sports league in India. It is but natural to get associated with the best event in India and have the ability to provide kits to international cricketers who are competing at the highest level of competition.” Besides apparel brands, home furnishing giants like Welspun have invested in IPL. It collaborated for the first time with IPL and focused on QUIK DRY towels fan base in the Northern part of India. He further added, “IPL is the biggest sporting event in India and to be associated with this event is a great sense of achievement for us. Kitting for the franchise is such a crucial thing and implementing it successfully itself is a great motivation for us.” Alcis measures ROI by the brand awareness that gets created in terms of eyeballs and viewership. The viewership of this year IPL was at an all-time high and Alcis logo was made visible heavily during prime time matches, as well as in the print and social media. “Our logo was also present on giant match screens during all home games which also created brand recall with the crowd,” said Roshan. The brand targeted branding as well as an increase in sales through IPL. It also created a whole range of fanwear merchandise which was put up at strategic locations at the Jaipur stadium and it generated good sales. The brand has been selling a lot of match jerseys on its own website and also runs answered: “Our brand ethos display challenger brand characteristics which also happens to be the DNA of the Rajasthan Royals as IPL has been dominated by Mumbai Indians and Chennai Super Kings over the years. Secondly, Rajasthan is a very important market for us as we have opened five stores in the state recently, and hence the fit and brand alignment was very natural.” Though brands are not willing to share how much they invested in sponsorship, but they are very much clear about what are their expectations and what they exactly get against their investments. “Delivering to the IPL teams is proof of our organisational capabilities in terms of providing world-class quality, design, quantity, service, etc. Since we partner also the merchandise part, it also proves our selling and merchandising capabilities,” said Bijesh Todi, Mentor and Advisor, T10 Sports. T10 Sports is a growing brand based at Gurgaon, so it connected itself with Kings XI Punjab to encash www.apparelresources.com | JUNE 1-15, 2019 | Apparel Online India37

38. INDUSTRY LIVE Beyond IPL Domestic brands are not just limited to IPL or cricket. TT Garments, Delhi has announced its association with leading Indian wrestler Bajrang Punia. Punia is the brand ambassador for TT innerwear. Alcis garners attention of television viewers and gets good scope for marketing brand, we take these challenges as opportunities to grow ourselves,” says Bijesh. Then there are some brands that associate with the team or players for the long term while few do not. Apart from getting expected results or strategic priorities and other financial considerations, team performance, increasing cost of sponsorship are other important issues as these grow substantially along with the growing viewership and overall popularity of IPL. “Sometimes, brands take a strategic call to exit from cricket as has been the case with Nike recently where they have not continued their investment of being the official Indian team kit partner,” said Roshan whose current tie-up with Rajasthan Royals is for three years and he is positive about future too. While Bijesh sees it as an opportunity to associate with the event and at the same time make his brand visible to the client base, his company will continue to partner with national and international level tournaments in future also. Brands investing in IPL Peter England Welspun Alcis T10 Sports Lux Cozi Rupa Performax TYKA Fabindia Flying Machine Ed Hardy Shiv Naresh various in-store retail contests. With the help of its e-commerce partners, overall uptake has been seen in both Royal merchandise and Alcis sales. In-between this race for branding, reach and increasing sales, there are different kinds of risks and challenges involved when an apparel/textile-based company becomes a sponsor. For a brand, the major risk is from fake and cheap products that compete with IPL sponsors generally. Alcis was able to mitigate this risk of counterfeit products by producing high quality and attractive yet highly affordable fanwear merchandise which forced the fans to buy from the official merchandise partner. “Obviously while partnering with the franchise in IPL, where stakes are so high, risks and challenges come along. Delivery of kits on time becomes such a crucial thing for us as the sponsors’ logos come at the last moment. Secondly, we have to make sure that sponsors’ logo are as per guidelines and come out well on Jerseys, as they invest a lot of money for same. But, as a sportswear 38 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

39. INDUSTRY LIVE Pressure on placements Institutes face heat of slow market A technology institutes are also feeling some heat of the same. When Apparel Online asked some institutes about their present placement scenario, only a few of them were enthusiastic about it. Some of them even refused to say anything on record about the same while few shared that the process is still going on and data is yet to be compiled, so it will take at least two months to confirm the final outcome. India’s premier institute NIFT has hundreds of companies in its placement schedule which include some global apparel manufacturing companies like Classic Fashion Apparel Industry, EPIC Group, Must Corp, besides leading Indian players. This time, however, many top Indian apparel manufacturers especially exporters were missing. “There are some Indian companies that have freezed their fresh hiring, for the simple reason that at the same or little higher amount, they are getting experienced professionals, so they are not keen to hire freshers,” shared an industry- informed person and a NIFT alumni who didn’t want to be quoted. Faculty taking care of placements informed that their final report will be available only by July 2019. It is pertinent to mention here that as per the official report of NIFT (2017-2018) in 2017, 433 companies had registered themselves for campus placement, while for 2018, there were 352 companies which is 18 per cent less. On the other hand, placement/pre-placement expenses are increasing with Rs. 14.55 lakh spent in the year ending March 2017, while for March 2018, the same was Rs. 19.41 lakh, which is an increase of 25 per cent. However, in 2017, the highest package offered was Rs. 7.5 lakh per annum which is around Rs. 12 lakh this year as told by insiders. On the other hand, like every year, this time too, DKTE’S Textile and Engineering Institute, Ichalkaranji witnessed companies from across the supply chain. Students of this well-known institute were hired by India’s top apparel exporter, Shahi Exports; similarly Pearl Global, yarn manufacturer Century Enka, vertical integrated and home furnishing giant Welspun, GHCL and Kusumgar Corporates, leading in technical textiles, also hired from here. Besides, top companies also selected fresh talent for internship and offered a good stipend. Trident Ltd. finalised 8 students out of the shortlisted 60 students and offered Rs. 1 lakh to each for an internship of two months. As far as packages are concerned, the maximum package this year remained around Rs. 9.5 lakh which was offered by CGM Group, Maseru (South Africa). Overall 5 overseas companies came for campus placement. “We don’t have any impact of slow apparel export on our placement as our students of apparel related courses have strong knowledge of textiles and get the benefit of the same; overall our placement is going extremely well,” informed SB Akiwate, Training & Placement, DKTE. organisations have visited the campus or offered placements to the graduating batch of ASFT. “As we are offering creative programmes backed by skill development initiatives, hence a good number of students are either opting for entrepreneurial ventures or further studies after completion of their graduation. Placements in the exports’ sector have not seen much increase salary- wise and even the opportunities have been rather less,” informed Prof. (Dr.) Pradeep Joshi, DG, Amity Directorate of Applied Arts/Fine Arts/Performing Arts/Visual Arts and Director, (ASFT, ASFA & ASPA), Amity University, Noida. He further added that they are looking forward to continuous industry support to strengthen the curriculum(Education 4.0) for providing cutting edge programme(s) in the fashion or apparel industry. s the Indian apparel industry’s, exports is in a slow phase, placements at fashion At Amity School of Fashion Technology (ASFT), the salary offered this year varied between Rs. 3 lakh to Rs. 5 lakh per annum. Approximately 50 leading apparel EXPERT’S TAKE “There is big difference between what NIFT was at the start and what it is today. The number of centres, courses offered by NIFT have increased, so the number of students coming out have also grown substantially. From this point of view, many people say that the overall quality of the students is relatively lower at present which is a matter of market dynamics. Secondly, our industry was earlier a good employer in terms of payment, so it used to attract a lot of people, which is not the case now. So, it is likely to affect the outcome. From our point of view, we try to see how out of a larger group, we can spot the right talent, and great talent is available as long as you are able to spot them and groom them. The institute still continues to have good faculty members.” – Rajesh Bheda, CEO and MD, Rajesh Bheda Consulting, Gurgaon. (He also served as Professor and Chairperson, NIFT from 1990 to 2006) www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India39

40. INDUSTRY LIVE INDUSTRY EUPHORIC OVER MODI WIN! On the other side, institutes which are offering courses beyond fashion technology and are having niche in design and business-oriented programmes have seen good placements as well as packages too. Pearl Academy and few other private institutes’ latest placement data confirm the same. As per the data, 130 students from business specialisation and 52 students from design domain got placed. About 65 per cent of the students who will be graduating in 2019, participated in the campus placements, out of which 55 per cent are already placed as of now (Out of 832 students who opted for placements, 450 students have been placed till date). The maximum package offered for all courses has been Rs. 8,50,000 per annum while minimum package has been around Rs. 3 lakh. Most of the top international, national brands hired students from fashion business and fashion design courses. Students from School of Design were also hired by tech and business process multinational companies like Accenture, Capgemini, L&T, TCS and IBM. As far as impact of slow apparel market is concerned, Anup Sasidharan, VP – Operations, Pearl Academy informed, “Garment exporters and export houses have reached out to Pearl Academy for being part of campus hiring for many years now. Since recently, some of the export houses have relocated to the outskirts of the main cities due to work costing and other reasons; there are not many students who are willing to work at remote locations such as Greater Noida, Manesar, Noida Extension etc… Also, public transport to commute to such locations is not so convenient.” This is the reason that Fair Lady Exports, Simon & Cailand, Richa Global hired few students this year. However, Prof. Shankar Sahay, Professor-Marketing, IILM University, Gurgaon has shared that his institute had a good experience in placements this year. He informed,“Various reputed fashion and apparel companies considered our management and design and fashion students for final placements and summer internship offers. The companies selected the management students for final placements with salary offers ranging from Rs. 4 lakh per annum to Rs. 16.05 lakh per annum and for a summer internship at a stipend of Rs. 10,000-Rs. 30,000 per month. Amazon, Aditya Birla Fashion & Retail Ltd, Puma, Tommy Hilfiger, Varija Design Studio, Lifestyle Retail were among the few which offered jobs or internship to our students.” SAYS ECONOMIC TAILWIND, POLITICAL STABILITY WILL INFUSE GROWTH F Minister of India as National Democratic Alliance (NDA) is going to form its Government for the second successive term. Majority of Indian textiles and apparel industry is happy with the way Bharatiya Janata Party (BJP) has won with absolute majority, as it is a common belief that a stable political and economic scenario inally, once again Narendra Modi will be the Prime will go a long way in supporting the industry. It is well known that the Indian textile industry has not been performing as per expectations for the last few years and apparel export too has become quite stagnant. So in this scenario, a stable Government will definitely be a good factor for the industry. Immediately after the trend was clear that India is going to have Fashion designers are now looking at design students who are proficient in not only fashion design, but also in graphic design, social media and digital marketing, visual merchandising and e-commerce areas. They prefer students who understand fashion in true business sense, can interact with clients, create commercial designs and are comfortable with various softwares... B.K. Goenka Chairman of Welspun India, Mumbai and President, Assocham Raja M. Shanmugham President, Tirupur Exporters’ Association (TEA) Rahul Mehta President, Clothing Manufacturers Association of India (CMAI) “An aspirational India has reposed its faith in Modi’s leadership. A strong and stable Government would enhance the investment climate and propel the economy towards higher growth and inclusive development.” “We are confident that under Narendra Modi regime, the country will see peace, prosperity, pride and growth in the industry, including exports. Tirupureans stand by their mission of Tirupur knitwear business reaching Rs. 1 lakh crore by 2022 from the current level of Rs. 50,000 crore and contribute effectively for making ‘New India’.”  “I am hopeful that more FDI will come to Indian textile and clothing industry as our country has strong stability, be it political or financial. I wish that Smriti Irani becomes Textile Minister again as she has a better understanding of textile and apparel industry and especially of the domestic market, which is the main concern of CMAI.”  40 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

41. INDUSTRY LIVE the same Government, Apparel Online approached some reputed Indian apparel manufacturers and explored their opinion about this mandate. 90 per cent of them made it loud and clear that this mandate will bring in more positivity to the industry. Apart from stability, another important point that is a cause of happiness for the industry is that the Modi Government and the entire system is very much aware about the industry’s issues, as well as the current status of the industry, and when you have the same ecosystem, it is comparatively easier to take quick action. The strong and positive image of Prime Minister at the international level is also an advantage for the segment, focusing on export as other countries are now looking towards India. The industry is now divided on the question as to who will get the portfolio of the Textile Minister. Some industry leaders believe that it really does not matter as whosoever will be the minister, he/she will be representative of the Prime Minister and other concerned ministries. A leading exporter shared on request of anonymity that irrespective of political aspect, the Prime Minister will also keep in mind the previous performance of a minister. Some of the apparel manufacturers across the country shared that it hardly matters if the Government doesn’t take the industry on priority, as so far none of the previous Governments too considered the textile industry as their prime focus. The focus was always on handloom, or artisans. BJP or NDA candidates have already won from the major textile and apparel hubs (except from South India) like Surat, Ahmedabad, Delhi-NCR, Bangalore and Jaipur. Industry leaders believe it is also in favour of the industry as things become comparatively easier when local representatives belonging to the ruling party are in power. RAJA M SHANMUGHAM, President, TEA “I congratulate Tirupur’s elected MP, K. Subbarayan. I remember an incidence that happened a decade back when Tirupur knitwear exporters including other exporters from various parts of the country were perplexed after facing losses by entering into a derivative contract. K. Subbarayan, then MP, came forward and arranged for a meeting with RBI Governor and later with Finance Minister to find a solution for it. I also recall Subbarayan’s efforts for reduction of sales tax in the knitwear garments.” Indian textile and apparel industry has high hopes from ‘new’ Modi Government HKL Magu Chairman, Apparel Export Promotion Council (AEPC) Rajiv Dewan President, Garment Exporters Association of Rajasthan (GEAR) Sanjay Jain President, Confederation of Indian Textile Industry (CITI) “Apparel export community strongly believes that with the Modi Government again, the ease of doing business in India will improve. No doubt, Modi Government has brought better systems and more transparency into the working culture.”   “We welcome Modi Government and expect that the industry will get proper support. Before elections, we had met Prakash Javadekar, a senior BJP leader, and he assured to support and improve the overall industry. Even a plan is scheduled for the same.”  “Definitely the point of stability is making industry happy. At the same time, it needs to be addressed that the industry is not performing good. We hope that the textile and apparel industry should not be neglected more.”  www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India41

42. INDUSTRY LIVE 30% of Bangalore road accidents involve garment workers; police launches awareness programmes In another such initiative in Mysore, the District Legal Services Authority (DLSA), with the support of Mysore Bar Association and Labour Department, addressed workers about labour laws and Indian Motor Vehicles (IMV) Act. Authorities said that the passengers, travelling in goods vehicles, won’t get any kind of relief if they get injured in accidents or other mishaps. Bangalore is one of India’s biggest apparel manufacturing hubs where over 4 lakh garment workers work in around 1,000 garment manufacturing facilities. And like any other metro city, Bangalore traffic is also an issue. A recent study confirms that the city witnesses major accidents everyday with most of them occurring near factories in areas like Nelamangala, Bannerghatta and Hosur Road, that are home to many apparel manufacturing units. These accidents take place especially during peak hours of the morning and evening, when workers are rushing to and back from work. Taking note of this point, now the city’s traffic police is creating awareness programmes for garment workers. These programmes were recently personal safety from anti- social elements. We shall try to educate at least one lakh employees so that traffic rules are followed,” said P. Harishekaran, Additional Commissioner of Police, Bangalore. “Around 30 per cent of the road accidents involve apparel factory workers. Through awareness programmes in clothing factories, we aim to educate employees on road and travel safety, and their organised at various garment factories and guided the workers about road safety. During such sessions, the police officials also instructed the factory management not to allow workers to commute by goods vehicles. SLCP begins operations in India and 3 other countries The Social & Labor Convergence Program (SLCP) is starting its operations in India, China, Sri Lanka and Taiwan. A series of launch events will take place for the same across India in partnership with export promotion councils like The Cotton Textiles Export Promotion Council (Texprocil), Apparel Export Promotion Council (AEPC) and India’s biggest apparel manufacturer Shahi Exports. In India, it will be launched at various apparel manufacturing hubs like Delhi, Bangalore and Tirupur. stakeholders and interpreted according to their interests and criteria. This eliminates the need for repetitive audits to be carried out on the same facility. DR. K. V. SRINIVASAN Chairman, Texprocil “The issues of social and labour compliance become highly relevant in industries which are labour- intensive, and the textiles and clothing industry is one such sector. Texprocil is privileged to be associated with the SLCP operations’ launch in India.” The benefits of SLCP for facilities are that it addresses audit fatigue by reducing the number of social audits and facilitates measuring employment practices, thus improving working conditions and employee relations. Besides, it also redeploys resources towards improvement actions and fosters trust and collaboration between supply chain partners. SLCP will be holding a series of free one-day seminars in four centres to introduce facilities and their business partners to the SLCP process. The Converged Assessment Framework is a tool developed by the SLCP which provides a data set with no value judgement or scoring. It is, however, compatible with the existing audit systems and codes of conduct. This means that the same data set can be used by a wide range of is an initiative led by various industry stakeholders like world’s leading manufacturers, brands, retailers, industry groups (inter) governmental organisations, service providers and civil society organisations. SLCP started two years ago, with its head office at The Netherlands. To eliminate audit fatigue by replacing current proprietary tools with a standard-neutral Converged Assessment Framework, SLCP 42 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

43. INDUSTRY LIVE Kitex Ltd. achieves Rs. 1,000 crore; targets Rs. 3,000 crore by 2025 24 overseas buyers visited India International Knit Fair India’s number one and globally third largest manufacturer of kidswear, Kitex Ltd., has achieved a total revenue of Rs. 1005 crore (US $ 143 million) in FY ’19. Enthusiastic with the achievement, the group is now targeting a revenue of Rs. 3,000 crore (US $ 430 million) by 2025. There are hardly 15 such apparel manufacturers in India having a turnover of more than Rs. 1,000 crore. Kitex Ltd. total turnover includes Rs. 630 crore (US $ 90 million) by the Kitex Garments Ltd. (growth of 12.38 per cent in the fiscal) and Rs. 375 crore (US $ 53 million) by Kitex Childrenswear Ltd. Not only in terms of turnover, the group has attained good profit also for the quarter ended 31 March 2019. Kitex Garments’ profit after tax (PAT) has been Rs. 24.37 crore (US $ 3.4 million) against Rs 10.32 crore (US $ 1.42 million) last year. Its PAT for the whole year has been Rs 81.45 crore (US $ 11.63 million) which is a growth of 16.32 per cent. The group is also planning to increase the manufacturing capacity to 2.2 million pieces per day by 2025 which is currently 0.6 million pieces per day. Manufacturing of some new products, allied with kidswear, is also at the planning stage. Being mainly into exports and that too in the US market, Kitex is working with many global brands and retailers. Jaya Chandran A, receiving best exhibitor award from A. Sakthivel SABU M. JACOB MD & CEO, Kitex Group The recently concluded 46th India International Knit Fair (IIKF), Tirupur, again witnessed very less number of overseas buyers. Organised from 15-17 May 2019 by India Knit Fair Association (IKFA), this event witnessed around 27 garment manufacturers and most of them were not happy with the buyer visitation. Spokesperson of the IKFA informed that 24 overseas buyers and around 127 Indian buying agents visited the show. “The participants have reported that they could get good business enquiries more from the buying agents and overseas buyers and the expected business deal is around Rs. 300 crore,” claimed A. Sakthivel, Chairman, India International Knit Fair. Some of the top apparel manufacturers of the Tirupur also displayed their latest collections in the event like Eastman Export Global Clothing, Meridian Global ventures, SCM Garments, KG Denim Ltd. – Apparel Division, to name a few. Some of the exhibitors at the fair shared that despite challenging market conditions, they are geared up for growth and are taking up necessary steps in this direction. “We are adding new buyers into the US market and increasing our focus on sustainable initiatives, interesting packaging etc., besides many more such initiatives so that we can get more orders,” shared Jaya Chandran A, Creative Head-Design, Clifton Export. The company offers a wide range of products including kidswear, womenwear and undergarments. “By 2025, our target is to attain a total revenue of Rs. 2,165 crore from Kitex Garments Limited and Rs. 1,000 crore from Kitex Childrenswear Limited.” A. SAKTHIVEL Chairman, India International Knit Fair “The participants have reported that they could get good business enquiries more from the buying agents and overseas buyers and the expected business deal is around Rs. 300 crore.” www.apparelresources.com | JUNE 1-15, 2019 | Apparel Online India43

44. DOMESTIC UPDATE A ‘PARFAIT’ AFFAIR BRINGING AN ALL-INCLUSIVE LINGERIE COLLECTION TO INDIA T change in the past few years due to various factors. The segment stood at around US $ 3 billion in 2017 and is projected to grow at a CAGR of around 14 per cent to reach US $ 6.5 billion by 2023 on the back of factors like women losing inhibitions and trying trendy lingerie products, growing demand, increasing number of independent women, technical advancements in lingerie manufacturing, manufacturers using luxurious and delicate fabrics and designs such as mesh and lace apart from the growing e-commerce industry. While this category is growing with each passing day, there is a new addition to the overall lingerie market, and that is of size inclusivity or plus-size innerwear. Most of the full-busted women usually do not get the right size bra and this number stands at a disappointing 90 per cent in India. Taking strides in the right direction, Parfait, a US-based size inclusive brand, has entered the Indian market right in time to fill the gap with its expansive range of sizes. he Indian lingerie market is seeing unparalleled growth and has undergone a transformational The neglected category Even as the country is witnessing need and demand in this domain, a lot of brands have a very narrow view of their consumers. The notion says that plus- sized customers do not want to spend as much as the common sized ones. But that’s untrue and the only truth in this is that plus-sized customers have less clothing options to choose from, which gives them fewer opportunities to spend their money. A major percentage of women in India wear plus-sized garments and the buying power of the plus-sized market is also growing at a faster pace than the rest of the apparel industry, which makes them the bigger group of spenders or contributors to the retail sector growth. 44 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

45. However, the unwillingness of retailers to embrace the plus- size category and their fickleness which makes only a few to introduce the segment and then reduce or eliminate them has driven the plus-size consumers to opt for e-commerce, which has turned out to be a haven for them. Parfait offers sizes ranging from 28 to 52 band sizes, A to K cup sizes and XS-4XL bottoms, making it a natural fit for India’s growing plus-size market. The segment and the need for a holistic brand Plus-size fashion apparel has already become popular and now it is the time for plus-size lingerie. Plus-sized women across the country are demanding lingerie that would suit their body type and would also fulfil the latest fashion trends. “I can foresee Parfait making history in India’s lingerie market as an exclusive plus-size lingerie storefront retailer that caters to the underserved plus-size market with stylish and supportive pieces. We see a huge gap in this segment in terms of size and comfort and Parfait aims to bridge this gap with its unique offering. We hope to bring comfort, style and confidence to plus-sized women living throughout India. We will be the first exclusive premium plus-size lingerie brand that will bring Indian women fashionable plus-size lingerie with good quality, fit and comfort,” informs Akhil Srivastava, Managing Director, Parfait India. From petite to plus-size, Parfait understands that one’s size doesn’t fit all. The brand offers sizes ranging from 28 to 52 band sizes, A to K cup sizes and XS-4XL bottoms, making it a natural fit for India’s growing plus-size market. As Akhil states, “We offer all sizes available in silhouettes, from bras to sports bras, boyshorts to high waist briefs, babydolls to bustiers. It is a complete 360-degree change as women now can learn the right technique of choosing the right size (band and cup). There is extreme ignorance that prevails among women when it comes to buying lingerie. Most women don’t know their correct sizes and usually buy uncomfortable and unappealing innerwear.” Besides, having an online presence for a brand like Parfait helps the consumers to shop freely and without inhibitions. The consumption in the category has grown multi-fold with the privacy being offered with the use of technology. The brand caters to top actresses and performers around the world including Sofia Vergara, Sharon Stone, Nicki Minaj, Nicole Scherzinger, Gabrielle Union and Alicia Silverstone. Behind the scenes Parfait has plans to launch 50 collections this year which would be in line with the Indian weather conditions for plus-size women. “Considering the Indian weather, we are planning to source around 30 per cent of the merchandise from India next season onwards. For now, we manufacture our products at our in-house manufacturing unit in China, whereas designing and innovation happens in Los Angeles, US. Our average lead time varies between 60- 90 days,” asserts the Managing Director of Parfait India. Besides, Parfait gives extra attention to maintaining the brand authenticity wherein it works to comply with the international standards, and all of its collections – whether manufactured in China or anywhere else – are in line with the brand aesthetics. Moving Forward… With presence in 20+ countries around the globe through 700 stores and online presence worldwide in countries like USA, Canada, Australia, New Zealand, UK, Ireland, France, Spain, Poland, Greece, Czech Republic, Germany, Turkey, Russia, South Africa, Portugal, Latvia, Ukraine, Belarus, Malta, Gozo, Finland, Sweden, Belgium, Austria, Switzerland, Slovakia, Eire, the Middle East, and now India, Parfait is planning to open shop-in-shop models in association with leading retailers across the country along with partnerships with leading online websites and company website. “We are present on Myntra, Nykaa, Lifestyle, Last Inch, Xmex Clothing among other retail formats. For the current financial year, we are planning to have 150 shop-in-shops across Tier-1 and Tier-2 cities of India,” concludes Akhil on a positive note. Considering the Indian weather, Parfait is planning to source around 30 per cent of the merchandise from India next season onwards. www.apparelresources.com |JUNE 1-15, 2019 | Apparel Online India45

46. DOMESTIC UPDATE Hummel,Denmark’s fashion brand ventures into India Hummel. “Hummel appeals to my style sensibilities, and is bold, fashionable, creative and youthful,”said the young actor at the store launch. Though Hummel offers 6,000 stock-keeping units for men, women and children worldwide, in India, it will be starting with 850 stock-keeping units for men and women. Soumava Naskar, MD, Hummel India, said, “Three months back, we listed our merchandise on Amazon and Flipkart through our partner ND Commerce, which manages our online stores as well as handles pricing control.” He added, “This would mean that if the shoppers get discounts on their end-of-season products on Amazon or Flipkart, they will get same discounts on retail outlets as well. This is the first promise Hummel is making to Indian shoppers.” The brand has already opened 5 stores in the cities of Bangalore, Chennai, Pune, Surat and Amritsar. The company will be investing US $ 5.5 million (Rs. 38.5 crore) in the first year of its entering in India and will very soon open 10 more stores in the country. Hummel, the Denmark-based sportswear label, announced its entry into the Indian market by signing Bollywood actor Kartik Aaryan as Hummel’s Chief Ambassador in India. The brand has already opened 5 stores in the cities of Bangalore, Chennai, Pune, Surat and Amritsar. The company added that it will be investing US $ 5.5 million (Rs. 38.5 crore) in the first year of its entering in India and will very soon open 10 more stores in the country. The 17,000 sq.ft. Bangalore store was the first store to be launched by Hummel recently where Kartik Aaryan too made his debut as Hummel’s Ambassador. A delighted Kartik said that he sees a perfect fit in Adidas India appoints Neelendra Singh as new GM Sportswear major Adidas India has announced the appointment of Neelendra Singh as the General Manager of the company. Neelendra will succeed Dave Thomas, the company said in a statement. “Neelendra will report to Dave, Managing Director of emerging markets,” Adidas said in a statement. Board Member, responsible for global sales. Dave replaced Martin Shankland, who has been elevated to the Adidas Executive Board responsible for global operations effectively. In his new role, Dave is handling emerging market portfolio at Adidas, which comprises growing regions such as the Middle East, Turkey, India and Africa. He has been working as the Managing Director of Adidas India from October 2014 and has been with the Adidas Group since February 1998. Adidas, which also owns the brand Reebok, had clocked a revenue of around Rs. 1,530 crore in India during the last fiscal ended March 31, 2018. Neelendra has been with Adidas for over 14 years, most recently as Senior Vice President of Global DTC & Franchise. He also has prior experience of working as the Vice President for Retail & Franchise at Adidas and Group Retail Director in South Korea. He first joined has moved to a new role as Adidas Managing Director of Emerging Markets effective from April 1, reporting to Roland Auschel, Adidas in India in 2005 after working in various roles in the Indian retail teams of Orange, Arcus and Shoppers Stop. Dave 46 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

47. DOMESTIC UPDATE Myntra in talk with Under Armour to run its offline stores in India Flipkart-owned e-commerce firm Myntra is in advanced stage of discussion to run offline stores of the top US sportswear brand Under Armour in India, people aware of the matter said. If the deal materialises, Under Armour would be the first international brand to be on-boarded for offline store management under Myntra’s new management that came in place after Walmart acquired 77 per cent stake in Flipkart Group last year. Myntra is looking to manage its offline stores in high- footfall shopping malls, targeting young shoppers. After the exit of CEO Ananth Narayanan and subsequent changes in the firm, Myntra opened a 3,200 sq. ft. store in Bangalore that is smaller than the flagship Myntra’s Roadster store (4,000 sq. ft.) which was shut earlier this year. People aware of the matter said that Myntra is focusing on managing stores Myntra has also inked a pact with H&M to sell its products across Myntra and Jabong, in March. Typically, under such agreements, Myntra would open 10-12 offline stores and those products will be available exclusively on Myntra-Jabong. in high-footfall shopping malls targeting young shoppers, instead of high-street locations. “The talks should fructify in a formal arrangement in a couple of months. There is aggressive focus on getting international brands to open 10-12 offline stores and those products will be available exclusively on Myntra-Jabong. Incidentally, Under Armour first entered India two years ago by selling exclusively on Amazon India. work with Myntra as exclusively as possible,” the person said. Myntra has also inked a pact with H&M to sell its products across Myntra and Jabong, in March. Typically, under such agreements, Myntra would Arvind witnesses sluggish revenue growth in Q4 Arvind Limited, a pioneer among denim manufacturers, recorded a sluggish revenue growth for the fourth quarter of 2018-19 at Rs. 1,859 crore. This is one per cent rise from Rs. 1,843 crore in the corresponding period of the last fiscal. “Denim volumes were lower by 30 lakh metres in the year-on-year period, although they grew by the same number compared to sequential quarter,” the company mentioned in a statement. “This was offset by 52 per cent surge in revenue of advanced materials business,” it also added. Besides, the company said that the earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 4 per cent to reach Rs. 184 up 8 per cent from Rs. 59 crore. In October 2018, Arvind received a nod from the National Company Law Tribunal for demerging its branded apparel and engineering businesses into separate entities. Since 2011, Arvind has been instrumental in bringing some of the biggest global fashion brands to India, including the likes of Calvin Klein, Tommy Hilfiger, Gap, Ed Hardy, Hanes, Nautica and Elle. Sanjay Lalbhai-led Arvind is a billion dollar (about Rs. 7,000 crore) diversified Indian conglomerate with business interests in fabrics and apparels, brands and retail, real estate, engineering, internet, telecom, environmental solutions and advanced materials. by 14 per cent to Rs. 68 crore from Rs. 60 crore in the fourth quarter of FY ’18, whereas PAT after exceptional items was Rs. 63 crore, crore from Rs. 176 crore in the same period. Notably, profit after tax (PAT) before exceptional items increased www.apparelresources.com | JUNE 1-15, 2019 | Apparel Online India47

48. DOMESTIC UPDATE E-commerce in India to witness drop in sales growth to 26% The e-commerce market in India could see a marginal slowdown in its annual sales growth due to the fall in consumers’ spending and recent Government policies, according to the latest data from Forrester. The estimates say that the industry would grow at a rate of 26 per cent in the next four years as compared to an earlier prediction of the annual growth rate of close to 30 per cent. According to Forrester’s previous estimates, the online retail market would have been US $ 73 billion in size by 2022. The revised growth estimates predict the segment to grow to about US $ 69 billion by the same period. India will, however, retain its fastest-growing online marketplace tag as China is witnessing a slowdown too. Forrester predicted that China, which is a bigger market than India, would grow at an annual rate of 13.7 per cent even as India would clock nearly 26 per cent. “It’s a mix of reasons that has led us to revise the estimates. First, consumer spending across segments is slowing down and recent policy changes have caused an additional dent to e-commerce sales,” said Satish Meena, Senior Forecast Analyst, Forrester. The revised growth estimates are of significance as both Walmart and Amazon are trying to win India, the only major market left outside the US. Alibaba dominates China. Talking about market share battle, both basis. Forrester said a bigger worry for both the US retail giants is Reliance Retail’s upcoming entry into the online commerce business. Amazon and Flipkart continue to be at a neck-and-neck level with gross sale market shares of 31.2 per cent and 31.9 per cent, respectively, on a standalone Status Quo to open 8 EBOs in Punjab and 18 in Delhi-NCR Launched in 1998, Status Quo has come a long way and is now one of the fastest growing men’s fashion brands in India. The brand has been retailing through multi-brand outlets and has recently planned on expanding aggressively offline through exclusive brand stores. The management has cohesively strategised to enter the EBO vertical this financial year starting with 8 store launches in the Punjab region and 18 stores in Delhi-NCR region for the year 2020-21. With such largescale expansion plans, the brand has appointed Kunal Mehta as Senior VP – Business Development and Marketing. Previously Kunal Mehta was the Vice President Business Development and Marketing at Being Human Clothing and was instrumental in leading the growth and building the brand there. As a Senior VP, with his great understanding of the retail industry and a proven record of brand building is the perfect fit to lead our retail store expansion and spearhead the brand building.” Commenting on his new role, Kunal Mehta said, “My new role at Status Quo is thrilling as I am ready with newer thoughts for the expansion at Status, Quo. The brand has an inspiring evolution and becoming a part of its future endeavours is a great opportunity.” Status Quo has grown into a global fashion brand for the youth in the casualwear category and is available at over 2,000 point of sales through various large format chains, online platforms and multi-brand stores in India. The brand has also set its retail footprint in Africa, Middle East, Philippines & Sri Lanka. STATUS QUO HAS GROWN INTO A GLOBAL FASHION BRAND FOR THE YOUTH IN THE CASUALWEAR CATEGORY... Kunal Mehta will be responsible for leading the EBO expansion and brand marketing promotions for Status Quo. Speaking on the expansion plans, Bobby Arora, Director, Status Quo said, “We at Status Quo have grown exponentially since its inception. The brand has scaled up from 35,000 units in 2004 to 3.5 million units in 2018. We will reach 5 million units by the end of this year and it seems the right time to scale it up to the next level. Kunal 48 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com

49. DOMESTIC UPDATE Replay opens first store in India Leading Italian premium denim brand Replay in partnership with Reliance Brands Limited has opened its first store in India at Ambience Mall, Gurgaon. The brand also plans to launch three more stores in Mumbai and New Delhi this year, with a flagship store scheduled to be launched in Maker Maxity, Mumbai. Replay has also introduced its premium super-denim collection Hyperflex+ and will be offering a wide range of denims, casualwear, footwear and accessories for men and women in the Indian market. Notably, the brand will also be available online exclusively on AJIO.com. Manu Sharma, Business Head – Replay India, Reliance Brands said, “Replay is an iconic brand and we are proud to launch the first store here in Gurgaon. We are thrilled to introduce Hyperflex+, premium super- denim that allows complete freedom of movement. We are sure this revolutionary denim Fashion Box is a leading international company in the denim segment. Headquartered in Asolo (province of Treviso), the Italian group creates, advertises and distributes casualwear, accessories and footwear for men, women and children with the brands Replay, Replay & Sons and We Are Replay. space and confirms Replay’s constant focus on new trends. Replay is one of the major players in the international denim styling and production, and is known for its innovative flair, characteristic Italian design and excellent quality. Matteo Sinigaglia, CEO of Fashion Box said, “I am excited about Replay’s first store opening in India range along with the striking casuals offered by the brand, rooted in its classic, vintage styling will excite our discerning customers.” The 1,200 sq. ft. store combines the historical and iconic elements of the brand both for its materials and for its furnishings, which is integrated into a completely renewed architectural at Delhi-Gurgaon. I am confident that our constant striving to deliver qualitative and innovative products will be in line with the consumers’ appetite for the highest standards in denim. Furthermore, it is a real pleasure to join forces with Reliance Brands and we truly believe that we are starting a wonderful journey together.” ABFRL Q4 net profit zooms 79% to Rs. 203 crore crore, compared to Rs. 501 crore it posted last year, while revenue rose 13 per cent to Rs. 8,118 crore. The company has reported 173 per cent higher net profit of Rs. 321 crore for the full year, including deferred tax asset of Rs. 194 crore, compared to Rs. 118 crore net profit it posted last year, including deferred tax asset of Rs. 69 crore. Madura, which consists of fashion brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, Forever 21 and People, recorded a 14 per cent jump in revenue in the fourth quarter to Rs. 1,320 crore, compared Aditya Birla Fashion and Retail (ABFRL) posted a 79 per cent jump in net profit to reach Rs. 203 crore for the fourth quarter of the financial year 2018-19 ending March 31, 2019. ABFRL had posted a net profit of Rs. 113 crore during the same period last year, the company said in its earnings announcement. The company reported a 9 per cent surge in revenue from Rs. 1,754 crore to Rs. 1,915 crore, with a decline in EBITDA in the fourth quarter of FY ’19 due to rise in marketing spends. On full year basis, the EBITDA increased 24 per cent to Rs. 619 to Rs. 1,161 crore during the corresponding period last year. Other businesses continue to showcase strong performance with 65 per cent growth in revenues over the fourth quarter FY ’18 and EBITDA losses at Rs. 24 crore. Innerwear business continues to scale at a rapid pace expanding its footprint and now touches approximately 14,000 outlets across the country, the company said. ABFRL has a network of 2,714 stores, presence across approximately 18,000 multi-brand outlets with more than 5,000 point of sales in department stores across India. ABFRL HAS A NETWORK OF 2,714 STORES, PRESENCE ACROSS APPROXIMATELY 18,000 MBOs WITH MORE THAN 5,000 POINT OF SALES IN DEPARTMENT STORES ACROSS INDIA. www.apparelresources.com | JUNE 1-15, 2019 | Apparel Online India49

50. BEYOND INDIA Rupee devaluation against USD worries Pakistan garment makers The devaluation of Pakistan’s currency against US Dollar is emerging as a major concern for the country’s value-added textile sector. Voicing their concerns on the same, Pakistan’s Value Added Textile Export Association has reportedly underlined that the current over 3.6 per cent devaluation of Rupee against US Dollar in 24 hours can prove extremely disastrous for the nation, as such devaluation will increase the cost of doing business. The Central Chairman of Pakistan Hosiery Manufacturers & Exporters Association (PHMA) Jawed Bilwani, Chairman Council of All Pakistan Textile Associations (CAPTA) Zubair Motiwala, Zonal Chairman All Pakistan Textile Processing Mills Association (APTPMA) Arif Lakhani, Chairman of Pakistan Knitwear & Sweater Exporters Association (PAKSEA) Rafiq Godil, Former Chairman of Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association (PCFA) Khawaja Usman, Chairman of Towel Manufacturers Association (TMA) Farrukh Maqbool, former Chairman of Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) Shaikh Muhammad Shafiq and Chairman of Pakistan Cloth Merchants Association (PCMA) Abdus Samad jointly issued a statement in this regard recently, as per media reports. As per the leaders of the trade bodies, cotton yarn is available at international price and therefore devaluation increases cotton and yarn price in rupees, adding that price of cotton yarn is cheaper in Bangladesh than Pakistan due to lower utilities cost. What’s more, as most of the inputs (such as dyes, parts, chemicals, petroleum products, accessories, packing materials, etc.) are also imported, devaluation of the currency is adding to the production cost thereby increasing the cost of exportable goods. It may be mentioned here that Pakistan Rupee has devalued to approximately 20.16 per cent against US Dollar from 123.6 to 149.07 in just 9 months. Pakistan Rupee has devalued to approximately 20.16 per cent against US Dollar from 123.6 to 149.07 in just 9 months. Vietnam's textile sector worried over rise in retirement age The textile companies in Vietnam have completely rejected the Government’s proposal to increase the retirement age of textile workers. The Government plans to draft a bill wherein the retirement age of men and women will be increased to 62 (from 60) and 60 (from 55), respectively. Workers from the textile sector, while condemning the proposal, said this will increase the workload of women by several manifolds as they constitute majority of the workforce. Speaking more on the same, Bui Duc Thinh, Chairman, Song Hong Garment JSC, said at a recent seminar that women workers are already under lot of stress set up their own business. Truong Van Cam, General Secretary, Vietnam Textile and Apparel Association (VITAS), said that the Government should first increase the retirement age for administrative sector and only after 5 or 10 years, it should think of doing the same for manufacturing sector. Reportedly, social insurance funds are limited in Vietnam and the nation’s retirement and social benefit funds are expected to face a shortfall from 2023, which is a big worry. Besides, according to International Labor Organization (ILO), the Government may subsidise the pension system from 2034. instances where women even bribe doctors so that they get early retirement on medical grounds. Lot of women workers in Vietnam’s textile sector retire between 35 and 40 and they then use all their retirement benefits to as they work for 10 hours – and sometimes more. He added that the existing retirement age of 55 for women was already very high and further increase would make things very difficult for them. Besides, there are several 50 Apparel Online India | JUNE 1-15, 2019 | www.apparelresources.com