Textile designer Madhu Jain who has successfully completed three decades in the industry, makes her own range of hand-crafted textiles instead of sourcing what is available in the market as she believes that textile is the most relevant part of the production process. Jain determines the weaves based on the kind of outfits she wants to fashion. "My forte lies in making my own range of hand-crafted textiles. I do not go out and source from what is available in the market. So, for me it is the textile that is the most relevant part of the production process," Jain told Fibre2Fashion in an exclusive interview. Talking about ikat weave, Jain said, "Ikat is one of the most ancient weaving techniques. The ikats of Central Asia, Southeast Asia, Africa, Japan and Central and South America are well-known. While you will find regional variations in the design, the 'blurriness' of the weave remains a constant due to the extremely tough resist-dyeing technique that characterises it, which weavers take years to perfect." "Ikats across the globe play around with three types-the warp ikat, the weft ikat, and the double ikat. The last is the most difficult to render as resists are tied to both the warp and the weft before dyeing, and this weaving form can be found only in four countries-India, Indonesia, Japan and Guatemala," she added. The handloom sector has taken a beating due to factory-produced fabrics. Price becomes an important factor considering that mass-produced fabrics are far cheaper than handlooms. "Sadly, the indigenous textiles sector is endangered today because of the lack of substantial buyers who can guarantee weavers' livelihoods. But I am relieved that there is a small section that appreciates what the natural textiles industry has to offer, and who value our traditional weaves. My humble attempt is to keep buyers' interest alive in handlooms and to grow that space. We cannot let a 2,000-year-old tradition die out," continued Jain. In order to safeguard against getting edged out, the traditional textiles sector needs to build on its core strengths. "However, this can only happen if government departments responsible for Indian textiles, handlooms and khadi could invest in the sector in a strategic fashion. I would be very happy to work in convergence with the government to infuse fresh life into a sector that might otherwise suffer a steady decline," she informed.
Source: Fibre2fashion
Bangalore – The issue of water availability, water conservation in wet processing, and wastewater discharge in the textile supply chain will dominate this year’s Planet Textiles Summit on sustainability on 24th May at the JW Marriot Hotel in Bangalore, India. As such, speakers at Planet Textiles 2017 will include Manoj Gulati, Executive Director, India, of the international NGO water.org, which was co-founded by actor Matt Damon and which has so far positively transformed more than five million lives around the world through access to safe water and sanitation. The event which is being co-organised by MCL News & Media and the Sustainable Apparel Coalition will also feature a special breakout session hosted by the ZDHC Group. At the event, the ZDHC will reveal results of pilot testing from studies at textile mills that have adopted its pioneering wastewater discharge guidelines. The ZDHC hopes that brands and retailers will roll out these guidelines across their textile supply chains worldwide. This year’s event partner will be leading man-made cellulosic fibre supplier Lenzing, which will unveil its latest sustainability report to delegates in Bangalore. It will also flag up new ground-breaking developments such as the launch its ‘Refiber’ lyocell which is 20 per cent derived from recycled cotton waste. Naturally, water use in cotton agriculture will feature heavily at the event given its location in India, which is the world’s largest cotton producer and accounted for 5.7 million metric tonnes in 2015/16, according to figures from Cotton Inc. Shreyaskar Chaudhary, the CEO and owner of cotton textile conglomerate Pratibha Syntex will give an overview of how his company has undertaken a holistic approach to reduce water consumption at factory and the farm by tackling challenges existing in current textile products and manufacturing processes. In 2005, Pratibha Syntex, which also has an extensive organic cotton programme, was awarded the GLASA (Global Leadership Award in Sustainable Apparel) by the Sustainable Fashion Academy based in Stockholm. Brands and retailers Leading retailers and brands and Indian government officials are also being lined up to speak at Planet Textiles 2017, where sessions will be held on water use, costs, efficiency and environmental solutions in textile dyeing and wastewater discharge; water use, disposal, and remediation in the denim industry; and the issues of MRSL and RSL in chemical management. The event is also being sponsored by the independent textile standard Oeko-Tex and Covestro, which a leading supplier of high-tech polymers and raw materials for the textiles and footwear sector. Other event partners include Messe Frankfurt and The Dyestuffs Manufacturers Association of India (DMAI), which will help to promote the event to the vast Indian textile sector. “From 2017, Planet Textiles will focus more strongly on the implementation and practical side of ‘sustainability’ in the textile supply chain with real-world case studies and examples of best practise,” said John Mowbray, editor of Ecotextile News magazine and founding director of event co-organiser MCL News & Media. “Over the past decade, a plethora of events have emerged on sustainability in the textile supply chain, but very few of them have dealt with practical solutions or examples of tangible change – yet this type of ‘hands on’ approach is needed now more than ever if we are affect real industry change.” Planet Textiles takes place the day following the two-day annual Sustainable Apparel Coalition members meeting and includes an exhibition space for solutions providers. At the 2016 event in Copenhagen, Planet Textiles was attended by over 440 leading international brands, retailers, NGO's and textile and apparel suppliers. Register before 31st March and get a 15 per cent discount using the following code: PT15PC in our web-shop.
Source: knitting Trade Journal
Auction in China quotes 25% higher price of cotton, textiles mills to shift to yarn import As the Chinese cotton auction started at a 25 percent premium over the prevailing fibre rate in India, Indian exporters are pinning hopes on a revival in cotton yarn exports. Despite a robust demand from Bangladesh, overall cotton yarn exports remained under pressure during the current financial year due to sluggish demand from China. For the April–December 2016, India’s cotton yarn exports slumped by 12 per cent to 872.19 million kgs from 987.21 million kgs in the corresponding period last year. Cotton yarn exports from India rose by a marginal 4.29 per cent at 1307.11 million kgs for the financial year 2015-16 from 1253.33 million kgs for the previous year. The first day of Chinese auction quoted cotton prices between Rs 51,000 and Rs 56,000 a candy (356 kgs) as against Rs 42,000 a candy currently prevailing in most local markets here. This means Chinese cotton is costlier by a wide margin. Also, the cotton being auctioned in China is up to seven-year old. By nature, the quality of natural cotton starts deteriorating after a two-three years as the fiber starts growing yellow. Still Chinese spinning mills buying cotton perhaps for blending with fresh cotton. But, because of high prices, India tends to gain despite 3.5 per cent levy of duty by China on import from India. India faces direct competition from Vietnam as China has allows zero duty import from there. So, instead of cotton, Chinese textiles mills would move to purchase cotton yarn from India. “We are expecting, therefore, cotton yarn exports to turn positive this year after a steep decline last year,” said Siddhartha Rajagopal, Executive Director, The Cotton Textiles Export Promotion Council (Texprocil). Meanwhile, cotton yarn demand from domestic mills have also revived with its price has risen by five to seven per cent in the last two-three weeks. Yarn price follows the trend of cotton price movement, of course, with a lag of 1-2 months. Today, cotton prices have risen sharply so far this calendar year with the benchmark Shankar 6 variety hitting to the level of Rs 12,188 a quintal on Tuesday, the highest in five months. Cotton (Shankar 6) price has jumped by over 10 per cent this calendar year. This level of cotton price was earlier seen on October 8, 2016. International price of cotton at 79 $-cents per pound is also all time high. “Yarn demand from overseas buyers remained sluggish since October price hike in cotton as importers held their orders in anticipation of price fall. But, now they believe that cotton prices are not going to come down. So, they are booking cotton and cotton yarn. So, the overall demand has revived in the last few weeks,” said Manikam Ramaswami, Chairman And Managing Director, Loyal Textile Mills Ltd, a Chennai–based textiles manufacturer. Meanwhile, a recent Care Ratings report forecast India’s cotton yarn output to decline by five to seven per cent to 3,936 million kgs for the financial year 2016-17 on the back of sluggish demand in past months with substitution taking place from man made fibre (MMF) as well as distressed direct yarn exports due to lower demand from China. Yarn demand in other export markets will be healthy, the report said. After declining by 10 per cent in 2011-12 cotton yarn production increased by over 14 per cent y-o-y to 3,583 million kgs in 2012-13. In 2013-14, production increased by about 10 per cent to 3,928 million kgs. High cotton prices and easy availability of MMF at competitive rates led to slower growth of production of cotton yarn. Spinning mills, however, have urged the government to extend 2 per cent tax benefit to yarn sector under Merchandise Exports from India Scheme (MEIS).
Source: Business Standard
US Secretary of Commerce Wilbur Ross Trump team’s 2017 Trade Agenda to push for stricter IPR, patent regimes too Doing business with the Trump regime is not going to be easy for Delhi. If the H-1B visa row was not enough, serious troubles lie ahead on the trade and investment fronts, too. The first indication of the trouble comes from the 2017 Trade Policy Agenda unveiled by the Trump administration. This document says ominously that the US will come down on India’s export subsidy programmes, and push for a stricter regime for intellectual property rights and patents. The Trump team’s first report — 2017 Trade Policy Agenda and 2016 Annual Report of the President of the United States on the Trade Agreements Program — released by the Office of the United States Trade Representative categorically says that India’s “import restricting measures” result in “serious market access issues” for the US industry. The document sees a general trend of tariff increases in India, which reflects an active pursuit of import substitution policies. The March 2 document states that the US will engage India bilaterally to commit to a phase-out of its export subsidy programmes to the extent that they benefit the textile and apparel sector. The new US government has asked India to announce the subsidies it offers to some of its agricultural produce in advance and not after a bumper harvest, diplomatic sources told BusinessLine. The report also states that India’s trade and regulatory policies have “inhibited” the real growth potential of the bilateral trade that rose to $109 billion in 2015 from $4.8 billion in 1980. The Goods and Services Tax (GST) regime, it says, could provide an impetus to the creation of a “common internal market that significantly lowers transaction costs.” While agreeing that India’s reforms on IPR are encouraging, the document says India’s new National Intellectual Property Rights Policy should protect US innovations. On the WTO dispute between India and US poultry imports, the USTR said it will continue to press for suspending trade concessions given to India to the WTO Disputes Settlement Body, unless India allows import of American poultry products. Surplus issue According to sources, the US will “come down heavily” on India and other countries with which it has trade surplus. The US has registered its biggest monthly trade deficit in nearly five years of $48.5 billion. Says Biswajit Dhar, a trade expert and a Professor at Jawaharlal Nehru University: “This government will uphold American interest at any cost. The US has been already asking questions of India on some of its subsidy mechanism. (US President Donald) Trump is going to be a mercantilist and will not tolerate trade deficit.”
Source: Business Line
The Commerce Ministry is under pressure to expedite a political decision on the market openings offer to members of the proposed regional comprehensive economic partnership (RCEP), particularly China, the country largely responsible for India’s indecisiveness. In last week’s negotiating round in Kobe, Japan, there was a broad agreement between the 16 participating countries that efforts would be made to submit revised and concrete offers in May, when members meet for the next round of negotiations in the Philippines, and to try and wrap up the negotiations before the end of this year, a government official told Business Line. “There was considerable progress made in last week’s talks. There is a sense of urgency amongst members to wrap up the negotiations after the failure of the Trans Pacific Partnership. We have to get a political nod very soon on improved offers so that we have something substantial to submit in May,” the official said. The RCEP, which includes the 10-member ASEAN countries, India, China, Japan, Australia and New Zealand, is aiming for free trade in goods and services and freer flow of investments between members. Once concluded, it could be the largest free trading bloc in the world accounting for 45 per cent of the world population and over $22 trillion of gross domestic product (about 30 per cent of world GDP). New Delhi has also been stressing that matching offers by all members need to be made in the area of services, especially mode 4 which relates to freer movement of professionals. There is no clarity yet on whether a Cabinet nod would be required for extending the final offers. “We don’t know yet what kind of clearance we would need. But we certainly can’t make our final offers till a political decision is taken by the higher powers,” the official said indicating the Prime Minister’s Office. India’s main problem is that the members have rejected its initial offer under a three-tiered system where it extended the ASEAN the maximum tariff elimination on 80 per cent items, followed by elimination on 62.5 per cent of items for Japan and South Korea (countries with which bilateral free trade pacts exists) and elimination on 42.5 per cent items for China, Australia and New Zealand (where no free trade such pacts exist). Not only will New Delhi now have to give a single structure of tariff cuts for all countries, with only some deviations allowed to take care of its sensitivities, it also has been asked to improve its offers, the official said. “It was difficult enough for us to give an offer of eliminating 42.5 per cent of tariffs for China, despite the fact that it will happen over an extended period of time. To improve upon that will be a very difficult political call,” the official said. New Delhi hopes to protect its most sensitive items such as steel from immediate tariff cuts using the deviations allowed. Now that the US has pulled out of the ambitious TPP — of which seven members from RCEP were also a part — participating countries are viewing the RCEP as their last recourse to a large regional pact. “While the failure of the TPP has made India less vulnerable in the discussions on IPR and investments where the TPP provisions were being treated as the gold standard, definitely the pressure in the area of goods has gone up several-fold,” the official said.
Source: Business Line
NEW DELHI: India has offered least tariff concessions to Chinese goods under the proposed free trade agreement between 16 Asia-Pacific countries including China and Australia. The highest duty cuts have been offered to imports from ASEAN under the Regional Comprehensive Economic Partnership (RCEP) trade agreement. The formula, intended to reduce the rising trade deficit with China, has not found many takers. “The deviations are being discussed. Nothing is final,” said an official aware of the development. The proposal was discussed in the latest round of RCEP negotiations held in Japan from February 27-March 3. This was the 17th round of talks and the next round would be held in the Philippines in April before a likely ministerial level meeting in May. The new approach of differential treatment to duty cuts comes in the wake of India’s burgeoning trade deficit with China. In FY2015-16, India’s exports to China were mere $9 billion while the imports were $61.7 billion leaving a $52.7 billion deficit. RCEP is a comprehensive free trade agreement subsuming goods, services, investment, competition, economic and technical cooperation, dispute settlement and intellectual property rights between 16 countries — 10 members of the Association of Southeast Asian Nations and their six free trade agreement partners — Australia, China, India, Japan, Korea and New Zealand. The RCEP grouping comprises over 45% of the world’s population, with a combined GDP of about $21 trillion. However, despite India being able to convince the other countries to negotiate goods, services and investments together, not much progress has been made on liberalising services trade in the RCEP. “There is progress on the goods front but not in services,” said another official.
Source: Economic Times
Pinning hopes on global trade facilitation agreement (TFA) in goods to boost India’s trade flows, Central Board of Excise and Customs Chairman Najib Shah on Wednesday said implementing the deal would not be a problem for India. Speaking at an event organised by the Confederation of Indian Industries (CII), Shah said India was largely compliant with the provisions of the TFA. The World Trade Organisation's (WTO’s) landmark deal came into force last month and is expected to provide a much-needed boost to beleaguered global growth. However, its success will depend on the rising tide of trade protectionism across the world and stronger voices against trade liberalisation like US President Donald Trump. Ratified by 112 nations, more than two-thirds of all member nations, the deal will ease customs norms and processes, bring down barriers to trade and enhance the capacity of developing world to better engage with the global trading network. India had ratified most of the reforms for implementation under category A which required immediate implementation of reforms at the time of enforcement of the TFA. Shah said that all necessary changes in legislation, as a result of adopting the deal, would be restricted to only the Customs Act and allied laws of participatory agencies. Asked about the investment required for the full implementation of the pact, he said, “I do not think that it is too daunting task for us to ensure. We will implement the TFA in both letter and spirit. This will be done over the next one year,” he added. “Among the provisions of the TFA, the mechanism for advance ruling will be especially helpful for traders." Vikram Johri, Chief Commissioner, Customs, Delhi said. India's existing initiatives on smoothening trade processes will give the TFA a leg-up, Johri said. However, trade experts have pointed out that India will have to engage in widespread upgradation and digitisation of its infrastructure before the benefits of the TFA start flowing. In this regard, while the facility of funding has been made available to all nations, the government had clarified that India would not be using it.
Source: Business Standard
The Institute of Cost Accountants of India plans to train 15 lakh traders across the country over the next one year in the basics of GST, according to CMA Manas Kumar Thakur, National President. The Institute is among several other professional bodies that have been assigned the job of training traders by the government. “There were about 22 lakh indirect tax assessees currently across India. And once GST is implemented, this number will go up to 70 lakh. So, the government wants us to train traders and new assessees in familiarising them with filling in forms, etc. We have commenced training and are creating a pool of trainers who would subsequently train others on the fundamental aspects of the Goods and Services Tax,” Thakur said addressing a press conference here. Speaking about ICAI’s 70-year journey, he said the Association made a humble beginning with 73 members and now hsa 69,000 plus members, and around 4,75,000 students, working through 4 Regional Councils and 92 chapters with 9 overseas centres. The profession draws continuously from global best practices in financial and management accounting and retunes them according to the Indian environment taking into account the domestic contents and issues, he stated. Sharing recent developments, he stated the Institute incorporated a Section to function as Insolvency Professional Agency. A website www.ipaicmai.in has been launched by the Institute to provide details on legal framework, eligibility criteria and other relevant information. The government established The Insolvency and Bankruptcy Board of India in October 2016 to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals. “India has about 1,000 insolvency professionals. We are in the process of training more insolvency professionals,” he stated. The institute plans to set up a Cost & Management Accountants Lab to support members and students. The objective is to provide support with regard to professional avenues, standards, laws of the land, tools and knowledge repositories, he stated.
Source: Business Line
New Delhi: A Mudra portal was on Wednesday unveiled by Union Minister Smriti Irani that will enable banks to deposit financial assistance to handloom weavers in electronic mode and credit the loan directly to their accounts. Through the portal, regional offices of banks will be able to submit the claims in electronic mode. The fund transfer will also be made in electronic mode. The money will be credited directly to the loan account of the weavers. Moreover, interest subvention and credit guarantee fee will be credited directly to the bank. "The Mudra portal launched today(Wednesday) will be functional from April 1. It will enable weavers to track the status of their loan applications. We are making efforts to link all banks with the portal so that weavers availing Mudra loans can track the processing status of their applications," Textiles Minister Irani said while addressing a conference on International Women's Day in New Delhi. She pointed out that women comprise 70 per cent of the beneficiaries of the Mudra (Micro Units Development & Refinance Agency) loan scheme. The portal, developed by Ministry of Textiles in association with Punjab National Bank, will become operational from April 1. The Minister announced that an award has been instituted in the name of social reformer and freedom fighter Kamaladevi Chattopadhyay, which will be presented to extraordinary women weavers on the Handloom Day on August 7. Irani observed that an analysis undertaken by the Textile Ministry revealed that only one woman has received the Sant Kabir Award till now. Moreover, from 1995 onwards, only 10 per cent women were bestowed the National Merit awards and other national level awards related to the Textile Ministry. She said the Buniyaad reeling machine will be distributed to artisans to end the 'unhygienic and inhuman practice' of thigh reeling adopted by almost 30 per cent women to produce Tussar silk. The Minister highlighted that an MoU has been signed between the Office of the Development Commissioner (Handicrafts) and the National Scheduled Caste Finance Development Corporation under the Ministry of Social Justice and Empowerment to promote SC artisans, especially females. The Pradhan Mantri Mudra Yojana, which has a corpus of Rs 20,000 crore, can lend between Rs 50,000 and Rs 10 lakh to small entrepreneurs. It has been set up for development and refinancing activities relating to micro units. It provides refinance to banks and other institutions at 7 per cent interest. The Ministry of Textiles has adopted Mudra platform for providing loan to handloom weavers and weaver entrepreneurs. RuPay cards are also issued to the beneficiaries to withdraw the loan amount upto Rs 50,000.
Source: Press Trust of India
The rupee turned weaker after a two-day rise and ended lower by 4 paise at 66.71 against the US dollar in a relatively muted trade on renewed demand for the American currency from banks and importers. Extreme caution continued to grip forex market sentiment over the likelihood of Fed rate hike announcement at its upcoming policy meet next week. Moreover, currency traders preferred to stay on the sidelines and avoided taking any long positions ahead of the key event, though good capital inflows into local equities somewhat cushioned the fall. Foreign funds bought shares worth a net of Rs 920.46 crore on Tuesday as per the provisional figures from exchanges. The domestic unit resumed higher at 66.63 as compared to Tuesday’s closing value of 66.67 at the Interbank Foreign Exchange (Forex) market on sustained dollar unwinding, also supported by firm local equities. However, it relinquished those gains in late afternoon deals to hit a fresh intra-day low of 66.7375 and remained stuck in a narrow range most part of the day. It finally settled the day at 66.71, showing a modest loss of 4 paise, or 0.06 per cent. On the global front, the greenback traded marginally higher against most of its major rivals, although the cautious stance persist ahead of the ECB monetary policy meeting and the US jobs data on Friday.The US dollar index was trading firmly higher at 101.95 in late afternoon session.The RBI fixed the reference rate for the dollar at 66.6362 and for the euro at 70.4011. In cross-currency trade, the rupee strengthened further against the British pound to end at 81.03 from 81.27 and hardened against the euro to finish at 70.42 from 70.50 yesterday. It also advanced further against the Japanese Yen to close at 58.49 from 58.50 earlier.
Source: The Hindu
The government will fine-tune the twin codes on wages and industrial relations before introducing them in Parliament. A ministerial panel led by finance minister Arun Jaitley on Wednesday discussed the drafts that form the crux of the government’s agenda for relaxing labour market rigidities and decided to deliberate upon the provisions once again before placing them before the Cabinet. Since the government is keen on passing the two codes in the second half of the budget session, starting on Thursday, it is likely that the next ministerial panel meeting would happen soon. Once agreed, both the codes, which have already undergone legal vetting, would be taken for the Cabinet’s approval and once that is secured, these would be placed in Parliament. Among the major proposals are introducing fixed-term employment — which was made applicable in the textile and garment industries last year — in all the sectors, allowing units employing up to 300 people to retrench/lay off workers and/or close down without government approval, making trade unions with negotiating powers more representative, barring outsiders from being office-bearers of unions in the organised sector and reducing such person’s role in union activities in the unorganised sector.
Source: The Financial Express
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 54.09 per barrel (bbl) on 08.03.2017. This was lower than the price of US$ 54.71 per bbl on previous publishing day of 07.03.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3604.10 per bbl on 08.03.2017 as compared to Rs. 3645.81 per bbl on 07.03.2017. Rupee closed weaker at Rs. 66.64 per US$ on 08.03.2017 as compared to Rs. 66.63 per US$ on 07.03.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on March 08, 2017 (Previous trading day i.e. 07.03.2017) |
Pricing Fortnight for 01.03.2017 (Feb 14, 2017 to Feb 24, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.09 (54.71) |
54.93 |
|
(Rs/bbl |
3604.10 (3645.81) |
3677.56 |
|
|
Exchange Rate |
(Rs/$) |
66.64 (66.63) |
66.95 |
Source: PIB
Punjab Agricultural University in Ludhiana has said that it has developed country's first genetically-modified (Bt) varieties of cotton — the seeds of which could be reused by farmers, resulting in saving the repeated cost they have to bear every season. “Indian Council of Agricultural Research (ICAR) has identified three Bt cotton varieties — namely PAU Bt 1, F1861 and RS 2013 — for cultivation in states of Punjab, Haryana and Rajasthan. They (ICAR) have asked us to put up the proposal regarding releasing of these varieties,” PAU vice-chancellor Dr Baldev Singh Dhillon told The Hindu. Dr. Dhillon said that the notification regarding these varieties could be out by as early as next month after ICAR's scheduled meeting. Meanwhile, the process for multiplying the seeds would be started. “We are expecting that by next year we will be able to distribute few seeds to farmers for sowing in fields. Surely, by next to next year we will distribute seeds on large scale,” he said. “PAU Bt 1 and F 1861 were developed by PAU, whereas, RS 2013 was developed at Rajasthan Agricultural University (RAU), Bikaner. While the PAU Bt 1 was completely developed at Punjab Agricultural University, the F 1861 and RS 2013 varieties were converted to Bt version by Central Institute for Cotton Research (CICR), Nagpur. All the three varieties carry ''cry1Ac'' gene imparting resistance against bollworm complex,” said an official PAU statement. Dr. Dhillon said with the cultivation of these varieties, the cotton farmers will not have to purchase the costly Bt cotton hybrid seed every year. “The farmers can keep their own harvest for next sowing season. Bt cotton hybrids became popular due to ‘Bt technology’ which imparts resistance to bollworms, which are a major cause of yield loss in cotton,” he said, adding that with the adoption of these new Bt varieties by the farmers, a major shift is likely to take place in cotton cultivation in northern states. Notably, cotton is the only genetically-modified seed that’s legally allowed in India. Punjab alone needs around 20-25 lakh packets of Bt cotton seed for sowing of crop which roughly amounts to around Rs. 225 crores. “The price of seed of these Bt cotton varieties shall much lower as compared to current market price of Bt cotton hybrids seed, and thus, there is a scope to reduce the cost of cultivation and increase the savings of the farmers,” he added.
Source: The Hindu
THIRUVANANTHAPURAM: There’s something called discharge print, where the cotton fabric is first dyed in a single natural colour, and then patterns are made on it by washing off the colour where the blocks (of block printing) are placed, making lovely motifs. “The person who dyes our cloth in Machilipatnam (Andhra Pradesh) said that it is the finest cotton he has seen in recent times,” said Sarita Dhawan from Team Malka. Malkha’s founder Uzramma And that’s no small complement.Every time one lays eyes on stacks of printed cotton bursting in prints of Kalamkari and Ajrakh in shops, one doesn’t just form the question, “From where does this cotton come from?”. But that’s an important question that would merit no answer, says the Malka team, a decentralised, sustainable, field-to-fabric cotton textile chaingroup, as they like to call themselves. The group aims to do a dedicated job of spinning yarns of indigenous cotton. Malkha will be exhibiting their yardage, sarees, dupattas and stoles in ‘A Few Good Things’ owned by Indu Nambiar and Nazreen Anil. Gorgeous handloom cotton material in Kalamkari prints done in Machilipatnam and Kutchi Ajrakh prints look resplendent and are an echo of the rich Indian textile heritage. “We spin our own yarn and as we only use natural colours, they might be a little uneven. But that’s the character of it, not a flaw, like how the industrial technicians who market the powerloom material would call it,” Arvind Leela Upender, from team Malka.
Source: The New Indian Express
Invitation - Seminar on 'Promoting Trade and Investment in Textile and Apparel Sector in Kenya' is being organized in Jacaranda Hall, India Habitat Centre, Lodhi Road, New Delhi on 10th March 2017 at 9.30 am.
Programme schedule is as follows:
• Registration - 10:00 am – 10:15 am
Programme:
• Welcome Remarks by Dr A K Krishna Kumar Executive Director, IL&FS Cluster Development Initiative Limited,
• Opening remarks by Mr. Rajeev Arora Advisor, Textile Value Chain for Kenya, Ministry of Industry, Trade and Cooperatives (MoITC), Government of Kenya
• Address by Mr. Julius Korir Principal Secretary (Investment and Industry), Ministry of Industry, Trade and Cooperatives (MoITC), Government of Kenya
• Address by Mr. Ali Nur Ismail Principal Secretary (Cooperatives), Ministry of Industry, Trade and Cooperatives (MoITC), Government of Kenya
• Vote of Thanks 11.05 am – 11.15 am
• Tea Break
• Presentation on Investment Opportunities in Textile and Apparel Sector in Kenya
• Discussion and Q&A Session
• Networking Lunch
• B2B Meetings
Among the list of delegates who would attend are: Mr. Julius Korir, Principal Secretary (Investment and Industry), Ministry of Industry Trade & Co-operatives; Mr. Ali Nur Ismail, Principal Secretary (Co-operatives), Ministry of Industry Trade & Co-operatives; Mr. Rajeev Arora, Advisor-CTA Sector, Ministry of Industry Trade & Co-operatives; Mr. Steve Odua, Assistant Director of Industries, Ministry of Industry Trade & Co-operatives; Mr. Charles Mahinda, Ag. Director-MLI, Ministry of Industry Trade & Co-operatives; Ms. Anne Wamae, Techinical Officer-CTA Sector, Ministry of Industry Trade & Co-operatives; Dr. Moses Ikiara, Managing Director, Kenya Investment Authority; Mr. Fanuel Kidenda, Chief Executive Officer, Export Processing Zones Authority; Ms. Lucy Muchoki, Chief Executive Officer, Kenya Agribusiness Agro-industry Alliance; Mr. Shah Ravi Amritlal Zaverchand, Director, Ken Knit Group Of Companies; Mr. Shah Amritlal Zaverchand Mulji, Director, Ken Knit Group Of Companies; Mr. Malli Rajaram Janardhanan, Managing Director, Thika Cloth Mill, Mr. Amiji, Director, Mombasa Apparel; Ms. Naomi Ngeno, Chief Engineer, Project, Kenya Electricity Generating Company Limited; Ms. Joan Misigo, Senior Financial Analyst, Kenya Electricity Generating Company Limited.
Source : PIB
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1220.87 |
USD/Ton |
0% |
3/8/2017 |
|
VSF |
2524.33 |
USD/Ton |
0% |
3/8/2017 |
|
ASF |
2217.12 |
USD/Ton |
0% |
3/8/2017 |
|
Polyester POY |
1257.82 |
USD/Ton |
0% |
3/8/2017 |
|
Nylon FDY |
3608.26 |
USD/Ton |
0% |
3/8/2017 |
|
40D Spandex |
5216.76 |
USD/Ton |
0% |
3/8/2017 |
|
Polyester DTY |
2391.02 |
USD/Ton |
0% |
3/8/2017 |
|
Nylon POY |
1550.54 |
USD/Ton |
0% |
3/8/2017 |
|
Acrylic Top 3D |
3825.62 |
USD/Ton |
0% |
3/8/2017 |
|
Polyester FDY |
5796.40 |
USD/Ton |
0.50% |
3/8/2017 |
|
Nylon DTY |
1485.33 |
USD/Ton |
0% |
3/8/2017 |
|
Viscose Long Filament |
3405.39 |
USD/Ton |
0% |
3/8/2017 |
|
30S Spun Rayon Yarn |
3159.04 |
USD/Ton |
0% |
3/8/2017 |
|
32S Polyester Yarn |
1847.60 |
USD/Ton |
-0.39% |
3/8/2017 |
|
45S T/C Yarn |
2709.82 |
USD/Ton |
0% |
3/8/2017 |
|
40S Rayon Yarn |
2318.56 |
USD/Ton |
0% |
3/8/2017 |
|
T/R Yarn 65/35 32S |
2014.25 |
USD/Ton |
0% |
3/8/2017 |
|
45S Polyester Yarn |
2275.09 |
USD/Ton |
0% |
3/8/2017 |
|
T/C Yarn 65/35 32S |
3289.46 |
USD/Ton |
0% |
3/8/2017 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
3/8/2017 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
0% |
3/8/2017 |
|
40S Combed Poplin |
1.17 |
USD/Meter |
0% |
3/8/2017 |
|
30S Rayon Fabric |
0.67 |
USD/Meter |
0% |
3/8/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
3/8/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14491 USD dtd. 08/03/2017)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The demand for wool is continuing to grow in major international markets for imported clothing like the EU and the US. The demand is forecast to grow more strongly in China—the world's largest producer and exporter of woollen clothing and textiles. Increasing domestic consumption of luxury woollen textiles is also a factor pushing wool demand in China. The continuing growth in wool demand has led to increase in the price of wool in Australian dollars since 2014, Senior ABARES economist Dr Caroline Gunning-Trant said in her analysis presented at ABARES Outlook 2017. Australia's leading forum for public and private decision-makers in agriculture, Outlook marks its 47th annual conference this year with expert analysis of innovation in agriculture. "In the two years since early January 2015, prices have risen by about 35 per cent," Gunning-Trant said. "The Australian Eastern Market Indicator (EMI) wool price is forecast to rise by 8 per cent in 2016–17 to around 1,360 c/kg." "Prices are expected to peak next year before easing in real terms as wool production increases… And by the end of 2021–22, prices are expected to still be relatively high at around 10 per cent above the 10 year average in real terms," she said. The upward trend in prices reflects the constrained supply of apparel wool—given lower flock numbers—and firm demand, particularly for fine wool. "By the end of 2016–17, shorn wool production is forecast to be 5 per cent higher than last year, reflecting flock rebuilding across the sector supported by good pasture growth on the back of 2016 rainfall… And the national sheep flock is forecast to increase to 73.6 million head in 2016–17 and to continue increasing to around 83 million head by 2021–22," she added. According to Gunning-Trant, wool exports are forecast to rise by 4 per cent and reach 442,000 tonnes in 2017–18, as the expanding national flock results in further increases to the number of sheep shorn. "This trend is expected to continue over the medium term and exports in 2021–22 are projected to grow to around 492,000 tonnes, valued at $3.9 billion, in real terms." The export growth is supported by a slow but steady increase in international demand, especially in the EU, the US and the Chinese markets.
Source: Fibre2fashion.
The China Digital Textile Conference (CTDC) has been organised along with the International Digital Printing Industry Fair (TPF) with an aim to provide visitors a complete experience and insight about the industry and to help source exhibited technology and raw material. The conference will be held on April 18, while the fair will take place from April 19-21. The forum is expected to attract more than 250 worldwide professionals on digital printing machinery and technology suppliers, end users of digital printing, college experts as well as designers. The speakers’ line-up has more than 18 experts and leaders of textile digital printing industry. The conference will be attended by leading digital printing machinery companies, ink suppliers, digital printing consumables and design software. As the most influential conference in digital textile industry, CDTC will be a platform for suppliers and users to discuss the opportunities and challenges of this rapid-growing industry. Among the highlights is the ‘WTiN Professional Insights into Future Development’. Tansy Fall, Editor digital textile of World Textile Information Network (WTiN) will speak on the size and shape of digital textile market. Fall’s focus will be on where key growth markets are currently within the industry, forecast future growth. Top industry experts from textile, dyeing and printing design industries will share their insights on new age digital printing and give future direction and application advantages of digital printing. Walanwalan.com will speak on design trends in digital textile printing. A roundtable discussion will also be held to focus on various topics related to digital printing. Here suppliers can interact with users and share the solutions of bottlenecks in the production process. B V Denis Jahic, regional sales manager of SPG Prints will speak on ‘Digital Textile Printing Technology Enabling Fast Fashion’. Also, Luca Sandron, international sales manager, In èdit Software, and technical support manager in Asia Kevin Liu will discuss on the importance of colour management software and techniques of getting the perfect colour on the fabric. TPF 2017 will also have several product and technical presentations to provide more opportunities for exhibitors to promote their high-quality products and new technologies. Workshops on different topics will be held, giving an opportunity to gain knowledge about digital printing and its development, as well as market insights and design trends. Organised by WTiN and co-organised by UBM China, TPF 2017 will promote industry development and create a platform for digital printing machinery, supplier and users to exchange techniques and seek business opportunities. It will focus on the latest industry trends, print technology developments, inks and more. (KD)
Source: Fibre2Fashion
A total of 3,500 Jossi fibre cleaning systems – now produced by Uster, a leading high-technology instrument manufacturer – has been installed to date to help yarn spinners prevent contamination in their products. The Uster Jossi Vision Shield solutions, in particular, are said to be highly effective at removing even the smallest contaminants, including polypropylene, the company explains. The manufacturer will demonstrate the importance of the nonwovens sector for Uster Jossi systems at the forthcoming INDEX17 event, which will take place in Geneva, next month. Uster believes that its technology, which is already used in cotton spinning, will attract wider interest at the exhibition from manufacturers of bleached cotton and other quality-critical nonwovens products. “With Uster Jossi Vision Shield and Uster Jossi Magic Eye, the whole production is checked, for every category of contaminants including synthetics,” said Oswald Baldischwieler, Product Manager Fibre Cleaning within Uster Technologies. “Nothing can escape the detection power of these systems.”
Reliability and effectiveness
Contaminated yarn is one of the spinner’s biggest headaches, potentially leading to customer claims and rejects when synthetic particles such as polypropylene (PP) remain undetected in cotton until the fabric reaches the dyehouse. For nonwovens producers, the risk of contamination is especially great: in medical and hygiene applications, for example, quality standards are super-critical and zero contamination is essential. Uster Technologies acquired Jossi AG in 2013 and now applies the Uster Jossi Vision Shield 2 and Uster Jossi Vision Shield T systems, using multiple detection principles to eject all polypropylene particles, however minute. The finest white PP contamination is reliably and efficiently detected with the Uster Jossi Magic Eye in combination with the Uster Jossi Vision Shield. Practically all types of foreign matter, including polypropylene and polyethylene, are eliminated, with a minimum of waste. Special challenges for nonwovens producers “Compared to yarn spinning, nonwoven products and processes bring some special challenges and even more demanding requirements,” the company explains. “Imagine, for example, a scratchy remnant of polypropylene in a make-up removal pad or any kind of contamination in hospital products such as absorbent cotton, alcohol swabs, or nonwoven gauze. Such problems would be totally unacceptable. Not surprisingly, markets for medical and hygiene products in the USA, Europe and Asia are extremely quality-oriented.” With developments in synthetic fibres, there was a trend about 25 years ago for nonwovens applications to switch from pure cotton to synthetics. Initially, consumers preferred the dry and light texture of synthetic fibres. In the last decade, however, many applications are seeing a return to pure cotton as the favoured option, particularly where allergenic reactions, such as skin reddening and irritation, are an issue. Manufacturers of nonwovens for these demanding end-uses now require an efficient contamination control system, guaranteeing a zero-tolerance standard – for defects bigger than 1 mm – in their products. In nonwovens, fibre cleaning is the only way to control contamination – unlike in spinning where yarn clearing can make a final check at the winding stage. Product quality in nonwovens, therefore, depends on the efficiency of the fibre cleaning system. Nonwovens: big in Japan Most of the machinery for nonwoven hygiene products is made by Japanese companies and Japan itself plays a leading role in manufacturing goods for medical and cosmetic applications, as well as food packaging materials. “Japan is growing as a market for Uster fibre cleaning systems, thanks to these nonwovens applications,” said Oswald Baldischwieler. “The combination of Uster Jossi Vision Shield and Uster Jossi Magic Eye supports the manufacturers to control contamination continuously at a high level.”
Source: Innovations in Textiles
Kenya will import two tonnes of certified seeds from Israel to distribute to local smallscale cotton farmers in the coming long rains season as part of efforts to revive the industry. FarmersAgriculture, Livestock and Fisheries Cabinet Secretary Willy Bett confirmed Wednesday that government is importing the high yield seeds from Hazera Genetics through Amiran Kenya Limited. Hazera, a global leader in seed industry, is headquartered in Israel. Bett confirmed that the importation deal is being undertaken with a view to improving local cotton productivity and as well increase farmers’ income base. “These seeds has undergone mandatory tests by Kenya Plant Health Inspectorate Services (KEPHIS) and is ready for commercialization,” said Bett. The seeds will be distributed to farmers for planting during the coming long rains season. “The yield potential of this seed is 2,000 kilograms per hectare and therefore this is a major step in addressing the yield gap and competitiveness of value chain,” Bett said. Once proved viable and adaptable to local ecological zones the seeds will be multiplied to enable more farmers access and increase their farming. The seed importation deal is meant to supplement local initiatives the government is undertaking to produce and commercialize the varieties. The cotton industry is grappling with numerous challenges such as low production, high production cost, and high cost of inputs especially pesticides for producers and power cost for processors.
Source: News Ghana
The government is expected to taste its first major demonstration from a workers’ union as members of the Textile, Garment and Leather Workers’ Union (TEGLEU) hints of hitting the streets on Thursday, March 9 to draw attention to what it is describing as the aggravated job insecurity in the textile industry. The massive job losses, the union explained was as a result of the influx of counterfeit, pirated and smuggled African Prints into the local markets, which unfortunately has become the preserve of many Ghanaians. Members of the union, which is part of the national organised labour group, the Trades Union Congress (TUC), said the planned peaceful procession would end with the presentation of a petition to the Minister of Trade and Industry (MoTI), Mr Allan Kyeremanten at the ministry by a four-member team. The procession, according to the General Secretary of the Union, Mr Abraham Koomso, had become necessary as a result of the failure of the Ministry to take action on their plight, despite several attempts requesting for audience with the minister. “The attention of MoTI has been drawn to this development but no action has been taken as the distressed manufacturing companies grind to a halt; resulting in the loss of over 20,000 workers,” he said in an interview on March 1, Accra. Subsequently, two letters requesting for a meeting with the minister were not responded to and several physical attempts to meet with the minister, he explained, had also proved futile. The letters he said were dated January 30, 2017 and February 13, 2017. “In view of this dire situation, we have resolved to embark on this procession on March 9, 2017 to amplify our grievances for MoTI to act swiftly by reconstituting the Task Force to check the illegal activities of some importers and traders to save our jobs,” he said. Task force suspended The import of cheap and pirated textiles onto the market, prompted the formation of an anti-textile piracy task force, established in 2010 by the ministry and has since operated to bring sanity into the business of trading in the products. The task force, comprising representatives of the security agencies, the Ghana Standards Authority, the local manufacturers and the trade unions were able to seize some of these pirated textiles but had to deal with persistent resistance from traders, who sometimes endangered the lives of the group. As at now the operations of the task force have stalled for no apparent reason and the union he said, has not been able to explain the circumstances.
Ailing sector
The sector trade union has over a decade consistently petitioned the government to deal with the illicit trading business which had virtually destroyed the local manufacturing companies and caused job losses. Meanwhile the smugglers have intensified their activities with impunity to the detriment of the local textile manufacturing companies.
Source: Business Ghana
Islamabad : Senate Standing Committee on Textile Industry on Wednesday stressed the need for protecting local textile industry to enhance exports volume of the country. The committee gave recommendation for proper execution of “Trade Enhancement Package” amount of Rs.161 billion for the industry, announced by Prime Minister Muhammad Nawaz Sharif for coming 18th month from January 2017 to June 2018. The meeting was chaired by Chairman of the Committee While the Senator Mohsin Aziz here on Wednesday. Mohsin Aziz recommended to extend the period of trade enhancement package from 18 months to five years for benefiting the local textile and industrial growth. committee also recommended the appropriate utilization of the package and also stressed for proper time line in execution, protection of local industry for enhancing exports and reduce the energy prices to provided competitiveness for industrial growth. Officials from textile industry informed the committee that the government had decided to give drawback on duties in garments The government had also given relaxation on the import of textile machinery for the modernization and to enhance the by seven percent, process fabric five percent,madeups six percent for coming 18 months. Capacity of the textile sector, he said. The committee The official informed thewas informed that through this package cost of doing business would decrease for enhancing business activities in the country. committee that the country was facing 21 percent short fall in cotton production and 10.7 million cotton bales produced in this production year. He also said that seven new varieties of cotton had also been introduced to enhance the cotton production in this year.
Source: Pakistan Observer
The government has formed a tripartite council to resolve any crisis in the garment sector through dialogues. In a gazette on Monday, the labour ministry published the names of the representatives of the council, which will be headed by the state minister for labour and employment. Six government officials from different ministries, including the labour secretary, and six leaders from Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association will be in the committee, according to the gazette. Six trade union leaders from different associations will also be present in the committee, the gazette said. The council will mainly suggest the government how to improve the industrial relations between the factory owners and the garment workers and how to improve their productivity. The council members will meet thrice a year to discuss the latest labour situation to update the government. The head of the council can call more meetings if necessary, the gazette said. The director general of the Department of Inspection for Factories and Establishments, labour director of the labour directorate and director general of industrial police will also be present at the meetings. In consensus, the tripartite body can include any person anytime from home and aboard if they think it is necessary. The council will be in place until the issuance of further notice in this regard. The deputy secretary of the labour ministry will act as the member-secretary of the committee. The council was formed, as the international community put pressure on the government after the arrest of 35 workers and unionists during the Ashulia garment unrest in December last year. However, the detainees were released later.
Source: The Daily Star
China posted its first monthly trade deficit in three years in February as imports surged at their fastest pace since early 2012, driven by its strong demand for commodities from iron ore to crude oil and coal. China’s February exports unexpectedly fell 1.3% from a year earlier, but imports expanded 38.1%, well above economists’ forecasts, customs data sho- wed on Wednesday. That left China with a trade deficit of $9.15 billion for the month. But, China watchers have cautioned that trends in January and February can be distorted by the long Lunar New Year holidays, with business slowing down weeks ahead of time and many firms scaling back operations or closing.
Source: The Times of India
Export earnings declined 4.49 percent year-on-year to $2.72 billion in February due to a slowdown in apparel shipments that account for more than 80 percent of national exports. February's receipts were 21.49 percent less than that in January at $3.31 billion, according to data from Export Promotion Bureau. The amount was also 9.64 percent lower than the monthly target of $3.01 billion, data showed. However, overall exports in July-February increased 3.22 percent to $22.83 billion. Apparel shipments went down due to a fall of the euro against the US dollar as well as the Brexit issues, the US elections and a decline in consumption in the West, said Siddiqur Rahman, president of Bangladesh Garment Manufacturers and Exporters Association. Rahman said the UK is the third largest export destination for Bangladesh. But exports to this destination began declining due to Brexit that took place in June last year. Garment shipments to the UK declined 5.19 percent to $1.53 billion in the first half of 2016-17. Usually, Bangladesh exports apparel worth more than $3 billion to the UK in a year. Britons are suffering from an inflationary pressure due to a fall in the value of the pound. Similarly, apparel export to the US, the single largest export destination for Bangladesh, declined a bit because of a volatile economy after the national elections. Of the top 10 exporters to the US, apparel shipments of only three countries were in the negative territory in January. Among the three, Bangladesh's garment export declined 2.31 percent to $500 million in that month. Garment exports to the US from India, Pakistan and Vietnam, the major competitors of Bangladesh in the global apparel markets, increased in January. “People in the western world are now spending more on smart gadgets than on clothing. This is a major reason for a fall in consumption of clothing items worldwide,” Rahman said. In July-February, earning from the garment sector was recorded at $18.63 billion, which is 2.82 percent higher than that in the corresponding period of the last fiscal year, data showed. The February receipt from garment export was 5.64 percent lower than the periodic target at $19.75 billion. “We need to grow at 12.25 percent every year to reach our export target at $50 billion at the end of 2021. But we are growing at only 2 to 4 percent now,” Rahman said. The jute and jute goods sector was one of the top export performers in the July-February period, with shipments rising 15.28 percent year-on-year to $646.62 million. It was also higher than its periodic target of $626.83 million. Shipments of leather and leather goods grew well during the eight-month period as well. It stood at $827.62 million, up 9.95 percent year-on-year. This segment too hit its periodic target of $793.30 million. Furniture exports rose 16.84 percent to $28.52 million and pharmaceuticals 9.94 percent to $60.19 million. Home textile exports increased 3.16 percent to $500.15 million and plastic products 39.87 percent to $82.37 million, riding on the back of a 10 percent cash incentive on shipments. Some sectors performed poorly during the period. Exports of frozen and live fishes declined 3.89 percent to $357.95 million. However, it was 1.75 percent higher than the target of $351.78 million. Exports of petroleum byproducts declined 31.40 percent to $158.04 million. The government has set the export target of $37 billion for this fiscal year, which is 8 percent higher than the receipts in fiscal 2015-16.
Source: The Daily Star
Business is booming for online apparel retailers, particularly in the United States. Between 2011 and 2016, online apparel sales rose from 11% of total US apparel sales to 19%. The market will continue to flourish, with an expected growth rate of over 17% through 2017. But the US is not the only country in which online business is booming. Improvements to infrastructure and internet penetration in Asia-Pacific countries such as India and China will drive online apparel sales in the region. Asia-Pacific is currently the fastest-growing market and is expected to have the highest CAGR through to 2025. This rapid growth in the market is largely coming at the expense of brick-and-mortal sales, which are growing at a considerably slower rate. E-retailers are often able to offer more competitive prices, as they do not have to bear the cost of physical store locations. Online shopping also offers consumers greater convenience, both in terms of finding the type of garment they are looking for, and in the ease of comparing prices. Amazon, one of the largest online retailers, plays a significant part in this trend. The company’s marketplace allows smaller retailers and manufacturers to offer their apparel through Amazon’s site. Amazon receives a cut of the proceeds, and the smaller companies gain access to Amazon’s enormous customer base. This model appears to be working very well, as apparel and accessory sales on Amazon’s marketplace rose 48% in 2015. Department stores lead online apparel market While this growth in online sales is eating away at sales from physical stores, it doesn’t seem to be hurting online sales from clothing stores that also have a brick-and-mortar presence. In fact, according to Internet Retailer, the top 9 American department stores together hold the largest share of the online apparel market. Their websites grew by 19% in 2015, mostly from apparel. Almost two-thirds of total online sales from the top American apparel e-retailers were from retail chains, compared to about 14% from web-only sellers, according to Internet Retailer. Because department stores were early adopters of online sales and have the resources to promote their sites, they have accumulated a large and loyal customer base. Online-only clothing stores may still be seeing healthy growth, but they have strong competition from other retailers. Challenges for e-retailers Despite the promising growth rate of online apparel sales, there are still some hurdles to overcome, and they all stem from one problem: fit. For all the advantages that online shopping brings, seeing how clothing fits on one’s body is still the biggest factor in making a purchase, and a large deterrent from completing a transaction. This means that conversion rates are very low — a 3% rate is considered good. Customers may browse online catalogues, but they will often decide either to not buy the product at all, or to try it on in person first. Size charts, while helpful, are often not enough for consumers to judge the fit of a product. Sometimes they do not offer enough measurements, such as only providing a waist size but not one for the chest, or vice versa. Or they may neglect to list sleeve length. With an incomplete picture, many consumers are unwilling to risk the purchase. Also, even complete measurements cannot predict exactly how a garment will sit or how flattering it is, and something that is technically the right size may still end up not being a good fit. Even when a consumer does decide to make a purchase, the sale isn’t necessarily a successful one. Return rates are nearly 30%. Offering good return policies may encourage shoppers to take a risk and buy clothes online, but with the difficulty in determining fit and appearance, these policies also mean that many pieces of clothing are returned. This, combined with the industry’s very low conversion rate, means it can be very challenging to make successful sales. However, this is still a growing market with a lot of promise. Many companies are looking for innovative ways to improve the online experience and increase sales. There are already many apps on the market or in development, for example, that make use of augmented reality and other technology to help consumers see just how a piece of clothing would look on them. As this technology becomes more refined and more widely used, it could help improve both conversion and return rates. Considering how well this sector is growing despite these challenges, there is much potential for it in the future.
Source: Bizvibe
