KOLHAPUR: The state plans to design a scheme to develop solar projects to supply electricity to the textile sector at the lowest possible cost. Subhash Deshmukh, minister of textiles, made the announcement at Ichalkaranji. Deshmukh was attending a live broadcast programme of the launch of the Centre’s Power Tex India scheme. Union minister of textiles Smriti Irani had launched the scheme at Bhiwandi in Mumbai and the programme was broadcast at 43 centres nationwide. The scheme was launched to upgrade the existing power looms, marketing, raising funds and develop common facility centres at the textile cities and towns. After the programme launch, Deshmukh said the state is making efforts to restart closed textile units as well as those that are in bad shape because of market fluctuations. “New technology will be introduced in the sector so that the process of converting cotton to cloth will be accelerated. The power availability issue for the sector will be addressed by designing a scheme to use solar power for textile mills,” he said. Power Tex comprises nine components starting from in situ up gradation of the plain power looms, group work shed scheme, yarn bank scheme, common facility centre, credit scheme for power loom workers, market development and modernisation. The government has also decided to provide a Rs 2-crore subsidy to the textile towns or developing felicitation centres. The centres will also have pre-weaving and post-weaving facilities. After the presentation, some textile mill operators interacted with Irani through video conferencing. The operators raised the issue of the power availability and skilled workforce to sustain the sector. Deshmukh said, “We have decided to get suggestions from the various stakeholders related to the sectors to implement Power Tex India scheme. Large investments are necessary to help the sector grow. The government’s initiatives will help the local textile mill operators. We have also decided to make the cotton available to small textile units to develop a level playing field.”
Source: ET Energy World
Summary: It aimed at generating 50,000 new jobs by attracting investment in the textile sector to the tune of Rs 5,000 crore, he said.The spokesperson said the draft Textile Policy 2017 had been put in public domain in February to invite suggestions from various stakeholders. It aims at positioning Haryana as a preferred destination for global textile majors, besides boosting textile exports by Compound Annual Growth Rate of 20% during the policy period.Under the policy, the Haryana State Industrial and Infrastructure Development Corporation would offer industrial plots on lease for 33 years with 5% increase in annual lease rent. The government would also facilitate setting up of a textile park at Hansi in Hisar district. The suggestions received had been duly factored in before giving the policy final shape, he said. "It has been formulated with an eye on the cotton belt of Haryana. Chandigarh: Keen on making Haryana a global hub of textile manufacturing and a preferred investment destination, the state government on Saturday came out with Textile Policy 2017 to incentivise setting up of new units, and ensure growth and modernization of the existing textile industry.A government spokesperson said taking a holistic approach to the issue, the policy was packed with fiscal and financial incentives and contains provisions for infrastructure augmentation, setting up of textile parks, and facilities for skill training. It aimed at generating 50,000 new jobs by attracting investment in the textile sector to the tune of Rs 5,000 crore, he said.The spokesperson said the draft Textile Policy 2017 had been put in public domain in February to invite suggestions from various stakeholders. The suggestions received had been duly factored in before giving the policy final shape, he said."It has been formulated with an eye on the cotton belt of Haryana. The state is one of the leading cotton producers in the country with Sirsa, Fatehabad, Bhiwani, Hisar and Jind being the main cotton producing districts. This sector provides employment to about one million people and readymade garments worth $ 2 billion are exported from the state annually," he said.The policy proposes capital subsidy of 10% for projects of eligible enterprises across Haryana. It aims at positioning Haryana as a preferred destination for global textile majors, besides boosting textile exports by Compound Annual Growth Rate of 20% during the policy period.Under the policy, the Haryana State Industrial and Infrastructure Development Corporation would offer industrial plots on lease for 33 years with 5% increase in annual lease rent.
Source: TOI
According to DIPP, a few of the 25 listed priority sectors would be left to be taken care of by their respective ministries. Facing flak for attracting less-than-expected foreign investment in manufacturing sectors under the Make in India campaign, the Department of Industrial Policy and Promotion (DIPP) has now decided to focus on a few key sectors, instead of all 25 that were included in the scheme. Launched in September, 2014, the Make in India campaign was a radical shift in India’s plan to boost the manufacturing sector, and push employment and job creation in the country. According to DIPP secretary Ramesh Abhishek, a few of the 25 listed priority sectors will be left to be taken care of by their respective ministries. He, however, refused to divulge the names of the sectors which would no longer be the focus of the DIPP, an arm of ministry of commerce and industry. According to sources, some of the sectors which could be dropped from the priority list might include construction, media and entertainment, roads and highways, wellness and electrical machinery. “The DIPP has proposed to concentrate on select sectors, not all 25 sectors and Make in India concern of other sectors can be addressed by their respective ministries. We have sought a cabinet meeting for approval and are likely to finalise the matter soon,” the DIPP secretary told HT. Abhishek chose to name a few sectors that would remain on the DIPP’s priority list. “These include automobile, electronics manufacturing, food processing, defence and aerospace, pharmaceuticals, biotechnology, medical equipments (surgical items), textile, capital goods and few others.” Other sectors that form a part of the 25 selected sectors include chemical construction, electrical machinery, IT and BPM (business process management), leather, media and entertainment, mining, oil and gas, ports and shipping, railways, renewable energy, roads and highways, space, thermal power, tourism and hospitality and wellness. What puts a question mark on the claimed success of Make in India initiative is that a majority of Foreign Direct Investment (FDI) India received during the financial year 2015-16, was not for manufacturing sector as per the DIPP data. Instead, the data shows that core manufacturing sectors such as automobiles, pharmaceuticals, power, construction and chemicals attracted about 15% FDI, and non-manufacturing sectors – services, computer software and hardware, and trading, telecommunications, tourism and hotels attracted more than 40% of the FDI.
Source: Hindustan times
Those buying goods at prices lower than prevalent market rates in exchange offers for older items, a practice popular in the consumer durables and electronics sectors, might have to shell out more in the goods and services tax (GST) regime. For instance, a new phone handset is sold for Rs 20,000 in exchange for an older one. But, the price of the new handset, without the exchange offer, is Rs 24,000. Then, the GST would be levied on the higher amount; at present, value-added tax (VAT) is applicable on the cash component. Also, traders, dealers and distributors who have transition stock when the GST is rolled out might not get the full refund for central taxes already paid. This is likely to affect dealers of aerated drinks, luxury cars, cigarettes, and pan masala. These goods will be taxed at the peak rate of 28 per cent. The rules became clear after the Central Board of Excise and Customs (CBEC) on Sunday issued draft rules on composition, valuation, transition and input tax credit for comments. These were tentatively approved by the GST Council on Friday, and will be taken up at its next meeting on May 18 and 19. The last date for providing feedback is April 10. The CBEC also issued final rules on invoice, payment, refunds and registration with minor tweaks. The final rule on returns is yet to be issued. The rules on valuation said the value of the supply of goods or services, where the consideration was not wholly in cash, would typically be at the market value. If the market value was not available, an alternative mechanism has been provided. “This would impact consumer durables and electronics. At present, VAT is payable only on the cash component,” said Pratik Jain of PwC-India. Another set of rules on transition provides that dealers, suppliers or traders who have stock at the time of the GST roll-out would get 40 per cent of central GST as the input tax credit. This would affect those who deal in goods attracting the peak rate of 28 per cent. Though exact fitment of items in the five GST rates — zero, five, 12, 18 and 28 — is yet to be decided, it is clear that “sin” and demerit goods would attract the highest one. Explaining the rule, Jain said if a dealer traded in goods attracting 18 per cent GST, this meant he would pay nine per cent central GST and nine per cent state GST. The trader would get an input tax credit at the rate of 40 per cent of 9 per cent (CGST) — or, 3.6 per cent. So after paying 18 per cent tax, he gets 3.6 per cent, drawing a net tax liability of 14.4 per cent. In the current taxation regime also, he pays 12.5-14 per cent VAT. So, the new tax liability would be close to the current one. For dealers in goods that will attract the highest rate of 28 per cent tax, however, there would be a considerable hike. In the GST regime, they would get input tax credit of 40 per cent of 14 per cent — or, 5.6 per cent. So, his net tax liability would be 22.4 per cent. “This is much higher than the current 12.5-14 per cent,” said Jain. “There is a need to reconsider this; at least for a few segments.” There is also the issue of treatment of inter-company transfers between states for the purpose of taxation. It is mentioned that declared invoice value would be accepted by the authorities concerned. It should put at rest all apprehensions, but it is not clear whether or not the authorities would accept any invoice value, or whether the companies concerned would need to follow the cost-plus method for this. Experts said it was important that stock transfers were not valued at market rates as this could lead to blocking of credit at the receiving locations. Rajat Mohan, director, indirect taxation, Nangia & Co, said there was an indication that insurance companies, banks, and telecom operators would get some relief in case of self-supplies, as they can issue invoices on a quarterly basis. Rules on valuation also provide clarity on second hand sale of goods, booking of tickets for travel by air, or insurance premium. While principles for taxation on airlines and the insurance sector is similar to existing service tax laws, specific provision for valuation of trading in second-hand goods provide much needed clarity for industry, particularly for used car sales.
Source: Business Standard
World Trade, China Trade, Silk Road Economic Belt, Maritime Silk Road, OBOR, China-Pakistan Economic Corridor, BCIM, dynamics of world trade As against 30 days of time required for import from China through sea route, there is now a rail option of just 16 days. This is just one benefit of “Silk Road Economic Belt-SREB.” Udit Kumar On January 1, 2017, a freight train departed from Yiwu (Zhejiang Province) and arrived at Barking station (London) in about 16 days, covering 12,000 km across nine countries (China, Kazakhstan, Russia, Belarus, Poland, Germany, Belgium, France and the UK). This freight train service costs 50% less than air-freight, while reducing the shipment time by 50% compared to sea-freight. As against 30 days of time required for import from China through sea route, there is now a rail option of just 16 days. This is just one benefit of “Silk Road Economic Belt-SREB.” On the other hand, “Maritime Silk Road-MSR” will provide connectivity with resource-rich African countries. This is going to bring in big changes in the way trade happens between China and EU and other countries, which lie on Silk Road Economic Belt. In September 2013, President Xi Jinping during his visit to Turkmenistan, Kazakhstan, Uzbekistan and Kyrgyzstan called upon Central Asian countries to join hands in building a “Silk Road Economic Belt-SREB.” The SREB will connect China with Central Asian countries and Europe via an extensive network of roads, rail, pipelines and SEZs. Subsequently, “Maritime Silk Road” was announced, which is supposed to traverse through South China sea, South Pacific Ocean, Indian ocean, Suez canal to Mediterranean sea. Collectively, both SREB and MSR have officially been labelled as “One Belt, One Road” or in other words “Belt & Road” initiative. The OBOR comprises two physical routes, with six economic corridors, and is one of the biggest infrastructure projects of modern world. These two different routes will ultimately connect China with about 100 countries in Europe, Africa and Asia. These countries represent about 70% of the global population, 55% of global GDP and 24% of global trade. It is quite evident that the OBOR initiative has great potential. However, the size of the project brings various challenges. Even though ground transport is less expensive, it stalls each time when the shipment crosses a border which may result in increase in cost in the form of tariffs and arbitrary delays. However, if OBOR initiative operates with a single unified customs system and effective trade facilitation mechanism, then trade can happen smoothly across boundaries, combining the efficiency of air shipments with the low cost of land transport. According to various estimates, countries along the OBOR route will collectively need $5 trillion of investment in transport infrastructure until 2020. The massive investment will create over 70,000 new jobs and 12,000 engineering contracts until the completion of OBOR. OBOR countries will also receive significant amount in foreign direct investment (FDI). The benefit will rest not only with China, but also with countries along the OBOR project. On the west of South Asia, China-Pakistan Economic Corridor (CPEC) is getting constructed which plans to connect Gwadar Port in Pakistan with Xinjiang province in western China. This corridor will be used for shipment destined for Africa and Middle East. China, in turn, is expected to facilitate its energy imports from Middle East through CPEC. The corridor is being built with an investment of approximately $50 billion. In the eastern part of South Asia, the planned Bangladesh, China, India and Myanmar Economic Corridor (BCIM) joins eastern part of India with OBOR, and navigates through Bangladesh and Myanmar. Even though the project is being led by China, it would be incomplete if India is not a part of complete OBOR. India is strategically located along both the land route as well as sea route of OBOR. From India’s point of view, it has huge infrastructure requirement internally and externally. OBOR brings opportunity for India to connect with East Asia, Central Asia and Eastern Europe. Despite India having its own concern regarding the sovereignty of the country, it would have to work in close cooperation with Pakistan and China in order to reap the full benefit of logistic facilities. Since 2013, till the end of 2016, China has entered into over 50 cooperation agreement and has issued joint statement along with the OBOR countries. Going forward China would have to coordinate with over 100 countries and align its vision that can fructify into concrete measures. If the OBOR project takes concrete shape then it will change the dynamics of world trade in coming years.
Source: Financial Express
Modi praised Razak for his leadership in countering radicalisation and terrorism and said it “is an inspiration for the entire region”. Prime Minister Narendra Modi on Saturday said that India and Malaysia have agreed to further strengthen bilateral strategic cooperation while continuing with joint anti-terrorism efforts. “We live in times and in a region, where both conventional and non-conventional security threats are constantly on the rise,” Modi said while jointly addressing the media with his Malaysian counterpart Najib Razak following delegation-level talks between the two sides. “Prime Minister Najib and I agreed that these challenges threaten the stability and economic prosperity of our countries and the region and, require us and other countries of the region to work together. “In this context, I deeply appreciate our continuing cooperation with the Malaysian government in our joint anti-terrorism efforts,” he said. Modi praised Razak for his leadership in countering radicalisation and terrorism and said it “is an inspiration for the entire region”. He also said that he and Razak were conscious of their “role and responsibility in promoting economic prosperity, freedom of navigation, and stability in the Asia-Pacific region, especially its oceans”. “To secure our societies, and for the greater regional good, we have agreed to further strengthen our strategic partnership to shape an effective response to our common concerns and challenges,” he said. On the economic side, Modi said both countries “have built a thriving economic partnership”. “In our efforts to scale this up, as the fastest growing large economy in the world, India offers unparalleled opportunities. “And, to build new avenues of prosperity in our societies we are ready to expand trade and capital flows between our two economies.” Modi also said that business partnerships forged between the two countries would enhance the level and momentum of commercial engagement. “We are also converging efforts aimed at food security that are linked to the well-being of our farmers,” he said. On his part, Razak said that the defence and strategic partnership would be very important for both countries to fight global terrorism, militancy and extremism, including the fight against the Islamic State terror outfit. He expressed “deep admiration” for Modi for undertaking bold economic reforms and congratulated the Indian leader for the country’s high economic growth. Terming their bilateral relationship at a “historic high”, Razak said that there was still potential that could be fulfilled. He said that with the end of the Trans-Pacific Partnership (TPP), the Regional Comprehensive Economic Partnership (RCEP) has become all the more important. RCEP is a proposed free trade agreement between the 10 member states of the Association of Southeast Asian Nations (Asean) and the six countries with which Asean has free trade agreements – Australia, China, India, Japan, South Korea and New Zealand. Following Saturday’s talks, India and Malaysia signed agreements, including on civil aviation, education, human resource development and setting up of a fertiliser plant in Malaysia and a technology park in Andhra Pradesh. A joint statement statement issued later reaffirmed the importance of strategic engagement of India in regional initiatives and stability in the region, while appreciating the growing engagement between India and Asean, especially in light of India’s ‘Act East’ policy. On the cooperation in the field of traditional medicine, like ayurveda and siddha, the two sides welcomed the signing of an MoU between Universiti Tunku Abdul Rahman, Malaysia and National Institute of Ayurveda, Jaipur, in December 2016 for cooperation in the field of education, training, research and popularisation of ayurveda in Malaysia. India welcomed the initiative by Malaysia to expand the visa-free programme for Indian nationals from April 1, 2017, until March 31, 2018, under the Electronic Travel Registration and Information system. Earlier in the day, Razak was accorded a ceremonial welcome at Rashtrapati Bhavan here. He subsequently called on President Pranab Mukherjee and Vice President Hamid Ansari. External Affairs Minister Sushma Swaraj too called on the visiting dignitary. Razak arrived in Chennai on Thursday on a six-day visit to India and reached New Delhi on Friday evening. He will also visit Jaipur on Sunday where he will meet Rajasthan Chief Minister Vasundhara Raje Scindia. The is the Malaysian Prime Minister’s third official visit to India. The delegation accompanying him includes 10 cabinet ministers and over 80 business leaders.
Source : Financial Express
Stepping up its hunt for black money stashed abroad, India has approached Switzerland for banking details of at least ten persons and entities suspected to have kept untaxed money in Swiss banks. These include two listed textile companies, while others are associated with an art curator and his carpet export business. Switzerland’s tax department issued notices to them last week to reply within 30 days to appeal the decision about providing ‘administrative assistance’ in information requests from India. Under its local rules, Switzerland provides a final chance to the concerned persons and entities before sharing the information about suspected cases of tax crimes with any foreign jurisdiction. These notices are made public through gazette notifications if they are not reachable directly by the concerned banks or the tax department. At least ten such notices concerning individuals and companies with Indian links were issued last week -- which could be the highest for a country within a week. The notices name two listed textile firms -- Neo Corporation International and SEL Manufacturing Company Ltd. There are also some companies incorporated in tax havens like Panama and British Virgin Islands. Most of the companies and individuals are associated with a carpet export business and an art curator with operations across several countries. These are Abdul Rashid Mir, Amir Mir, Sabeha Mir, Mujeeb Mir and Tabassum Mir. The companies named in these notices include Cottage Industries Exposition, Modale SA and Progress Ventures Group. Some of these names had figured in the leaked Panama Papers too, but several of them including the two listed firms have denied any wrongdoing. Earlier, the notices were issued by Switzerland’s Federal Tax Administration (FTA) asking some of them to designate a representative to exercise their “right to be heard” before the assistance is extended to India. India has been seeking “administrative assistance”, including access to bank account details of the persons and the companies suspected to have stashed undisclosed funds in banks in Switzerland, after furnishing some evidence to justify the suspicion. As per the local law, Switzerland gives an opportunity to the entity concerned to challenge the sharing of information, before providing the assistance to the requesting nation. The Swiss notices mention the names of individuals, their nationality and dates of birth. In case of companies, their names and the countries of incorporation are mentioned. India has shot off ‘administrative assistance’ requests to Switzerland in several cases in recent months seeking details of Indians suspected to have misused Swiss banks’ famed high-secrecy walls to evade taxes. The individuals and companies about whom India has earlier sought information include some listed companies, former CEO of a real estate major, wife of a Delhi-based former bureaucrat, a Dubai-based Indian origin investment banker, a high-profile fugitive along with his wife and an UAE-based holding company, as also some Gujarati businessmen settled abroad and presumably in trading business. Many of these are suspected to have maintained accounts in Swiss banks through offshore entities, including in Panama and British Virgin Islands. These requests for ‘administrative assistance’, which typically involves exchange of information on submission of proof by the requesting country about the account holder’s wrongdoing, have been documented by Swiss authorities in their Federal Gazette as per local laws to give the concerned person or entity a last chance to appeal against sharing of data. While India and Switzerland last year signed a new pact for automatic exchange of information about account details from next year, so far the requests have been made under their existing bilateral tax treaty. In the past also, names of some Indian nationals figured in Switzerland’s Federal Gazette notifications after the Swiss authorities were approached by India for information about those people with regard to the pending tax-related probes against them. After following the due process prescribed under Swiss law, the information has been shared by Switzerland with India in some cases, pursuant to which the Indian authorities -- including the tax department and Enforcement Directorate -- have proceeded with their prosecution and other actions. However, the pace of seeking such details seems to have quickened, going by the sudden spurt in the number of Indian names figuring in such notifications. For long, Switzerland has been known for strict secrecy clauses about details of foreigners having accounts in Swiss banks. However, under growing global pressure, Switzerland has begun sharing information in cases where other countries have been able to present some evidence of suspected illegalities.
Source: Fibre2fashion
JBF Petrochemicals Limited, step subsidiary of JBF Industries Limited, has commissioned the world’s largest single reactor train purified terephthalic acid (PTA) plant at Mangalore SEZ, Karnataka. Production of PTA is a backward integration for JBF Industries and its subsidiaries abroad, making the company self sufficient in meeting its PTA requirements. “The plant, with capacity of 1.25 million tonnes per annum, uses British Petroleum’s (BP) BP technology, known to be the most cost effective and highly environment friendly. This is the world’s largest single reactor train PTA plant,” JBF Industries chairman Bhagirath C Arya said in a filing with the Bombay Stock Exchange. “Pursuant to the initial run, the company plans to take routine checks and remove deficiencies, based on technical guidelines, for sustainable satisfactory technical performance. This new plant will increase the competitiveness of the company in the polyester chain and is expected to improve margins,” the statement said. Since its establishment as a yarn texturising company in 1982, JBF Industries has backward integrated into manufacturing partially oriented yarn (POY), polyester (BOPET) Film and also various types of bottle grade, film grade and textile grade polyester chips. Today, the company is one of the industry leaders in the polyester industry value chain. The company is amongst the top 5 domestic market leaders in textile grade chips, bottle grade chips and partially oriented yarn. Internationally also, JBF is amongst the top 10 manufacturers of bottle grade chips and polyester films, according to the company website. JBF has been accredited with ISO 9001 system of quality standards and also ISO 14001 certificate for environmental management.
Source: Fibre2fashion
For all the fanfare and attention it received, the PM’s export package doesn’t seem to have worked so far; for the month of February, Pakistan’s textile exports were down six percent over last month, and around three percent year-on-year. For the cumulative eight months ended FY17, textile exports are down two percent year-on-year. The low-value segment saw huge declines, offsetting the positive impact from the value-added end. Although cotton yarn has seen a 3.9 percent increase in volume, the dollars earned were less by 6.1 percent over 8MFY16. Raw cotton seems to have seen the largest decline – 53 percent in volume and 49 percent in value. The period under review has been marred by low cotton production for the second year in a row, hurting cotton exports and escalating the costs for spinners and the further downstream industry. Nevertheless, the value-added end has seen some positive results. Knitwear, bed wear, and readymade garments have seen higher quantity exports (2.1%, 8.9%, and 3.3%, respectively) for the eight months ended FY17. As per the SBP’s recently released quarterly State of the Economy report, higher quantum exports indicate that these products are in demand in key export markets. However, it says the recovery in international cotton prices has yet to translate into higher unit values for Pakistan’s high value-added textile exports. This may be why in spite of higher volumes, the dollar earned by these items have not increased by as much (except in the case of readymade garments). Thus far, the export package doesn’t seem to have made much of an impact. Various associations are still making hue and cry over unreleased refunds. Although the energy situation has improved significantly, the core issue of competitiveness still needs to be addressed if the industry is to be revived.
Source: Business Recorder
Additional Secretary, Ministry of Textiles, Pushpa Subrahmanyam; Deputy Director General, Office of the Textile Commissioner, Mumbai, O.M. Prabhakaran, and other senior officials took part in a function here on Saturday to mark the launch of Power Tex India scheme by Union Textiles Minister Smriti Zubin Irani at Bhiwandi in Maharashtra. The Minister interacted with the senior officials, District Collector S.Prabakar and Erode Member of Parliament Selvakumara Chinnaiyan during the launch of the scheme through video conferencing that linked eight power loom clusters including Erode. Ms. Pushpa, in her address, explained the potential inherent in the Central Government’s ‘Make in India’ initiative to facilitate investment, enhance skill development, and build best-in-class manufacturing infrastructure of all industries. The government was promoting growth and development of the MSME Sector that encompass majority of power loom units, Ms. Pushpa said. In Salem , the salient features of the scheme were explained to the owners of the power loom units, its workers, owners of textile mills and weavers at an awareness programme held on Saturday. The programme was brought up by Regional Office of the Textile Commissioner, Coimbatore, attached to the Union Ministry of Textiles, at the SITRA Powerloom Service Centre in the city. The scheme will be in force for a period of three years till March 2020. The scheme will benefit the small power loom wavers for their survival. For upgradation of power loom sector, the government has increased subsidy by 30 %. The yarn bank issue has also been addressed and an assistance to the tune of Rs. 2 crore will be given for the yarn bank created by 11 weavers. Under this scheme, a common facility centre will be started. Under Mudra Yojana, the government will give a soft loan. With the help of Small Industries Development Bank of India (SIDBI), power loom company can expand their business. Power looms using solar power will be granted 50 % subsidy. Rajendran, Assistant Director at the Coimbatore Regional Office, said that the Ministry of Textiles had taken various initiatives for the growth, development and employment generation in the power loom sector. He said the Powertex India would have the components of group worksheds; Yarn Bank scheme; common facility centre (CFC) scheme; Pradhan Mantri Credit Scheme for power looms; solar energy scheme; facilitation, information technology, awareness and market development for power loom service centres; modernisation and upgradation of power loom service centres. He said similar awareness programmes would be organised in different centres soon.
Source: The Hindu
New Delhi: Old money, says Deal Street, is in hot pursuit of fast fashion for the young. The Aditya Birla Group, founded before the Crown formally began her reign over India, is in talks with Danish apparel company Bestseller A/S to acquire a significant stake in the Indian arm of the fashion house that owns Vero Moda, Jack & Jones, and Only — or labels for the millennials. Aditya Birla Fashion and Retail is in “active discussions” to acquire 49% stake in Bestseller India, and is offering attractive valuations, according to one of the three industry executives aware of the development. Aditya Birla Fashion said it does not comment on “market speculations,” while Bestseller confirmed business discussions with the Indian group. “Our pan-India presence over the last two years has increased and we hope to bring in more brands to the market in the years ahead,” Vineet Gautam, chief executive of Bestseller India, said in an emailed response. “As a result, we have seen increased interests from multiple key Indian partners and business houses, Aditya Birla being one of them.” Talks with Bestseller are part of Aditya Birla Fashion’s strategy to enhance its portfolio of international brands, as the compa-ny seeks to cater to the changing taste of the urban consumer. According to an industry source quoted above, the fashion business of the Aditya Birla Group is under pressure from investors to
Source: Economic Times
The country’s export sector is choking fast and warrants innovative short and long term measures urgently to arrest declining exports that have already started widening the trade gap disproportionately. The issue gets compounded due to falling home remittances as well as foreign exchange reserves. The Rs180 billion export package given by the government a few weeks ago has so far not yielded any results to halt deteriorating export trends. While terming it ‘insufficient’, the exporters want serious action to address the issue. Exports have gone down from $24.5 billion in 2012-13 to $20.9 billion in 2015-16 and experts are sounding a warning both to the government and the export industry to play their due roles to arrest the falling exports - a life line for accumulating fast depleting reserves. These reserves have fallen from the peak of $23 billion plus to less than $22 billion, though mostly contained by borrowed external loans and still largely considered inadequate may force the future elected government to once again revert to IMF for emergency lending to avoid any upcoming default. The country’s exports, which remained stagnant at $24-25 billion during 2010-11 to 2013-14, were declining for the last three years. The situation seeks exigent export oriented investment. How China and India have channeled foreign direct investment (FDI) to stimulate exports are good examples to follow to increase exports. Earlier three year Strategic Trade Policy Framework (STPF 2015-18) announced by the PML(N) government did not help much to increase exports and discourage unnecessary imports. This STPF is said to have remained unimplemented as all the related efforts aimed at promoting exports could not produce any tangible benefit. Cash support schemes announced with all fanfare under STPF also proved unhelpful for improving product design and encourage innovation. Blame game between the exporters and the ministry of commerce, however, continues as both sides are accusing each other of doing little to bridge trade gap that is swiftly increasing. While the government urges exporters to improve their competitiveness by diversifying their products through value addition, exporters maintain that they cannot do much as the cost of doing business is still very high. They also lament that the supply of electricity and gas is still to be improved to help increase their productivity to a desired level. Former finance minister Dr Salman Shah believed that the government will have to play a major role to increase exports as it controls the energy sector. “Unlike other competing countries, the cost of doing business is very high in Pakistan and the government must support its private sector by giving services, essentially power and gas on reduced tariffs to boost our falling exports.” “Pakistan did not have any competitive edge in the international export market because of inferior quality of its exportable goods.” The exporters face tough competition and must strive hard to compete particularly against China, India, Hong Kong and Bangladesh. “But in the short term the government must improve its exchange rate to enhance exports”, Dr Shah said, adding that long term solutions are needed instead of achieving any momentary benefit. “The need of the day is competitiveness of export industry without which no objective could be achieved to enhance exports that may result in improved balance of payment position. Moreover supply chain up gradation needs special attention.” Prominent exporter and chairman of Bed Wear Association Shabbir Ahmad regretted that over the years the export mix has not changed as a result of which domestic industry was still uncompetitive against its rival countries. According to him there were three fundamentals that explained the country’s failure. “We have not much to export, we have little incentive to export and we have no compulsion to export.” He explained that Pakistan continued to produce goods that did not largely sell in the international export market. “It all suggests that the government needs to prepare and announce new industrial policy that promotes export growth leading to jobs creation and additional revenue generation,” Ahmad said. He urged the government to give up political expediency and go for long-term planning to enhance falling exports. “I would blame both the ministers for commerce and finance for not taking any interest to boost exports on one hand and discourage rising imports that have in fact doubled and have created a yawning trade imbalance. Our central bank should also focus on long term gains in facilitating exporters, including to help recover their over Rs150 billion sales tax refunds,” Ahmad said. The export relief package would not do the trick to enhance exports and that without taking policy level decisions and ensuring their implementation, Pakistan would continue to struggle to enhance its exports at some sustainable level, he added. But Ashraf Mahmood Wathra, governor State Bank of Pakistan (SBP), believed that new thinking has to be developed to increase exports. To begin with, he pointed out, new entrepreneurs should enter the export market who should concentrate on product diversification and market diversification to increase the existing low level of exports. “Our exporters would have to part with export model of 50s’ and 60s’ and new entrepreneurs must enter in the export market who should not look up for government’s incentives but effectively compete with other nations through hard work and new methodologies and techniques.” Wathra, who is expected to be given an extension in service by the federal government because of his proactive policies, did not believe that exchange rate was a cause of any worry and said: “the depreciation of our currency would only help in nominal term but would culminate on piling up of more debt.” He is of the view that now when the weighted average lending is just 7 percent and 5 to 6 percent for the textile sector, the exporters should avail more credit line to boost their exports. The amount of credit has increased from Rs267 billion in 2015 to Rs350 billion in 2016 which is a sound improvement. The issue of sales tax refund is also being addressed by the government. “This is not a good economic and monetary strategy to devalue rupee for some less gain that in return brings incredible increase in our overall debt burden,” Wathra said. He did not accept that the central bank was manipulating the issue by keeping disadvantageous exchange rate for the exporters. “The government has to protect the interests of all and not the exporters alone.” The view that the government must develop linkages to have export driven foreign direct investment (FDI) aimed at enhancing exports is gaining strength. The FDI, it is said, can help increase exports through multiple spillover effects on the local exporting firms that in turn can benefit by learning through observing the foreign firms’ export activities, new technologies and modern management techniques. But then people do talk about the overall security environment further to be improved to attract sizable FDI which is currently hovering between $900 million and $1 billion annually for the last many years. It reached the peak in 2007-08 when the country received $5.5 billion foreign investment. There is no doubt that security situation has greatly improved during the last few years albeit with the help of the armed forces who offered plentiful sacrifices to restore peace across Pakistan particularly in Sawat, Karachi and tribal agencies. Previously foreign investors and their hundreds of firms made significant profit by investing in Pakistan despite facing security issue which compounded during previous PPP government and the initial one and half years of incumbent PML(N) government. The government needs to woe and channelize FDI inflows into export oriented market, though during the last decade more than two-thirds of a total of $20 billion foreign investment went into non-manufacturing sectors including construction, oil and gas, telecom and power. In this regard Pakistan has to compete with China, India, Bangladesh, Malaysia, South Korea and Vietnam in terms of ease of doing business to enhance its FDI related exports and the job requires reviewing faulty investment promotion strategy. Exchange rate is an issue that needs to be sorted out by the ministry of finance/central bank by negotiating with exporters who maintain that rupee is 20 to 25 percent overvalued against dollar and has to be brought down to boost exports. They often cite the example of China, Turkey, India and Bangladesh which frequently depreciate their currencies against dollar to promote their exports. In comparison with other South Asian countries, Pakistani exports are declining for the last many years with rulers failing to reach at any remedy. Part of the problem is that exporters do have their own inherent weaknesses such as not going into value addition and mainly concentrating on export of raw cotton benefiting countries like Bangladesh. According to Economic Survey of Pakistan 2014-15, Pakistani exports remained stagnant at $24-25 billion and actually decreased in the year 2016 while Bangladesh’s exports surpassed the $30 billion mark last year and is set to hit $34 billion mark this year. This all is happening due to sluggish growth in Pakistan’s major trading partners – UK-USA and China – due to expensive gas/electricity that always delays in order deliveries. Major exports including rice, cotton, leather, jewelry and the chemical sector have been hit hard by the slump in exports and the situation calls for drastic improvements. The government needs to help diversify exports whose current base is mostly limited to basic commodities like textiles, leather, cotton, grains, fruit etc. Making a transition from these exports to more value added goods in the global value chain like computer chips, integrated circuits, semiconductors, parts used in mobile and laptop manufacturing and other high tech items seems imperative. At the end of the day one finds that two important sectors of the economy –exports and agriculture - stumbled since 2013 which is one-third of the country’s Gross Domestic Product (GDP). A positive development is slight growth in agriculture that had remained negative during the last many years. But the most worrisome is the export earning which have declined by almost 20 percent from $25.1 billion in 2012-13 to $20.8 billion in 2015-16. This decline is calculated to be larger after adjusting for exports under the EU GSP Plus status. Overall there is a decline in both textile and non- textile exports. Dr Salman Shah, former finance minister Unlike other competing countries, the cost of doing business is very high in Pakistan and the government must support its private sector by giving services, essentially power and gas on reduced tariffs to boost our falling exports. Pakistan did not have any competitive edge in the international export market because of inferior quality of its exportable goods. The need of the day is competitiveness of export industry without which no objective could be achieved to enhance exports. Ashraf Mehmood Wathra, SBP governor New thinking has to bedeveloped to increase exports. Our exporters would have to part with export model of 50s’ and 60s’ and new entrepreneurs must enter in the export market who should not look up for government’s incentives but effectively compete with other nations through hard work and new methodologies and techniques.” Shabbir Ahmad, chairman Bed Wear Association We have not much to export, we have little incentive to export and we have no compulsion to export. Pakistan continued to produce goods that did not largely sell in the international export market. It all suggests that the government needs to prepare and announce new industrial policy that promotes export growth leading to jobs creation and additional revenue generation. Going forward the phenomenal low export base has to be improved along with policy decision to ensure value addition of products. Both the finance and the commerce ministers, who are being accused of side stepping the export issue must take into confidence the exporters’ community. The writer is Islamabad based senior journalist
Source: The News International
Mrs Silibaziso Makovere, a farmer contracted by The Cotton Company of Zimbabwe works on her 3 ha cotton field in Vere area in Sanyati recently PRIVATE cotton merchants found dabbling in side marketing in the forthcoming season will face the full wrath of the law. Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made said the Government was deeply concerned over “poor funding” of the crop by the errant merchants and largely blamed them for the decline of investment in the cotton industry. Dr Made said the Government would ensure relevant agencies, including the police and the Agricultural Marketing Authority would be on the ground to ensure orderly marketing. “Let me warn errant companies that we will take action against cheating companies,” Dr Made said in an interview last Friday. “I will put all instruments to protect, not only Cottco, but companies that have fully funded production of the crop . . . not only seed, but a full input package, which includes all fertilisers and chemicals.” The Government, through Cottco came up with a three-year free input scheme for cotton farmers, which extends into next season to revitalise cotton sector. Already, there are growing concerns that some private companies might have overstated cotton inputs they gave to farmers to obtain buying licenses during selling season. According to figures obtained from AMA, cotton companies invested about $45 million into cotton production during 2016/17 cropping season. Five companies funded production, with the bulk of the investment coming from Cotton Company of Zimbabwe. The AMA report, as at March 16, 2017 showed that apart from Cottco, the funding from other companies was mainly seed. This lends credence to claims by most farmers financed by private players in major cotton producing areas that some of the contractors’ level of funding was very low. Most farmers complained that the input packages by some private contractors were insufficient to guarantee a good yield. According to AMA, Cottco invested $36 million, or 80 percent of the total investment. Alliance Ginneries and ETG Parrogate spent $3,1 million each, Olam $1,5 million and Grafax $1,4 million. While Government has moved in to revive the cotton industry through a three-year free input support programme, inadequate regulatory enforcement, particularly during the marketing season remains a threat to the sustainable recovery of the sector. The cotton industry remains at a crossroads due to the rampant illegal purchase of contracted cotton by unscrupulous non-indigenous merchants. Last year, Government financed the crop to the tune of $26 million but only a bought a third of 30 000 tonnes produced. Dr Made said his ministry would request names of people funded by cotton merchants for validation purposes to determine the level of inputs support by the companies. “While we are going to expose and take action against cheating companies, it is very important that Cottco must be on the ground, working with our extension officers while AMA on the other should also be on the ground to enforce rules and regulations,” he said. In terms of the law, AMA will issue buying licenses to merchants based on the investment made. Farmers are expected to produce at least 110 000 tonnes of cotton this year. Analysts said there is need for a thorough review of the effectiveness of AMA structures in curbing side marketing and capacitation of the regulator to adequately discharge its functions. “Unless we choose to get serious about effective regulatory control, the recovery of the cotton industry is not sustainable,” said one analyst. Dr Made said the cotton industry was critical for revival of the economy considering various spin offs from the value chain. He urged farmers to deliver their crop to Cottco, as this would automatically make them eligible for next year’s Presidential Inputs Scheme.
Source: The Herald
ZIMBABWE’S clothing manufacturers are no longer certain about their future because banks are said to be allocating foreign currency for the importation of finished garments. Jeremy Youmans In the meantime, manufacturers are unable to get forex applications to import raw materials approved, an industry official has revealed. Zimbabwe Clothing Manufacturers’ Association (ZCMA) chairperson, Jeremy Youmans told Standardbusiness last week that banks were not prioritising the importation of raw materials but were providing money for the importation of finished products. “Obviously, there is a serious problem with importation at the moment. There is insufficient export proceeds to meet the demand for imports.We have many manufacturers complaining that they cannot get applications for foreign currency to import raw materials processed through the banks,” Youmans said. “It is apparent that monies are being allocated for the importation of finished garments, while the manufacturers are unable to get their raw material applications approved.” He said the central bank needed to investigate this practice as that was not what they understood to be the intention of the priority based allocation of foreign currency by the RBZ to assist the revival of the economy. Efforts to obtain comment from the Bankers’ Association of Zimbabwe were fruitless. The association’s chairperson, Charity Jinya, had not yet responded to questions sent to her via email by the time of going to print. Reserve Bank of Zimbabwe governor, John Mangudya, was not picking calls. Youmans said the clothing industry remained relatively static during 2016 as policy interventions made by the government failed to kick-start the industry. “It had been expected that some of the interventions introduced last year would incentivise more local procurement of clothing but this has not been evident yet, which suggests the implementation of these interventions has not been effective. Some companies have not opened in 2017,” he said. Like many businesses in Zimbabwe, the clothing sector faces many hurdles and several manufacturers are no longer confident about their future unless there is significant change to the economic environment, Youmans said. “One of the biggest issues we face is lack of clothing fabric, which should be available from our own textile sector. Clothing requires a large range of fabrics,” he said. These, Youmans said, could be classified generically as 100% natural fibres (including cotton), 100% polyester fibres, blends of the two, for example a blend of polyester and cotton fibres called poly-cotton fabric, and other fabrics made from other man-made fibres, he said. “Fabrics made from man-made fibres have never been produced here for clothing and have always been imported. Hundred percent polyester fabrics were produced at some stage in the 1990s but only on a small scale, and since then, have had to be imported,” Youmans said. He said poly-cotton fabrics were made in Zimbabwe up until about 10 years ago, but now that also had to be imported. Over the past 10 years the only fabrics for clothing the local textile sector has been producing have been a small range of 100% cotton fabrics, in limited constructions, limited colours and finishes, he said. “For example, no 100% shirting suitable for a business shirt is made locally and no denim is made in Zimbabwe, even though denim is made from 100% cotton. Consequently, all the other fabrics that are required to service the full range of clothing demand have to be imported as the local textile sector is unable to, or does not want to make them,” he said. Youmans said the world continued to change and evolve and there was a general increase in the use of man-made fibres and materials while there was a decrease in the use of natural material. He said plastics and other man-made materials were often better substitutes for natural materials. “There is still sufficient demand for 100% cotton products to require substantial textile production in Zimbabwe. However, this needs to be based on what the consumer demands and not on what the manufacturer wants to produce,” Youmans said. Youmans said whilst there had been substantial reduction in demand for 100% cotton fabrics worldwide, there had been a big increase in demand for garments made from poly-cotton fabrics. These fabrics used to be produced in Zimbabwe and should be produced again, he said. Youmans said the main competition for the clothing sector was imported clothing. He said most of this came into the country duty free. This is despite the fact that government came up with a number of interventions to curtail importation of cheap imports into the country, especially by banning the importation of second-hand clothing. “Therefore, any increase in cost to the local manufacturer, including duty on fabric either imported directly or via the wholesaler, will simply make our clothing products less competitive and will incentivise imports of finished clothing products,” he said. “The textile sector is facing many challenges themselves and, as we speak, there is no fabric being woven or spun in the country at all.”
Source: The Standard
Bangladesh needs to hold effective dialogues with the union leaders and senior officials from the European Union and the International Labour Organisation to resolve the crisis of the garment sector and improve relations with the EU, an expert said. “The dialogues will help resolve the crisis in the garment sector as all the stakeholders will have equal rights to express their opinions,” said Christian Ewert, director-general of the Foreign Trade Association (FTA), a Brussels-based organisation. The FTA comprises nearly 2,000 retailers and brands, transacting 1.1 trillion euros in 2016. During the dialogues, Bangladesh should highlight the progress in workplace safety after the Rana Plaza industrial disaster, Ewert suggested. “Bangladesh has made remarkable progress after the Rana Plaza building collapse as the Accord and the Alliance have completed the inspection, and the remediation is underway to improve workplace safety.” Of late, the apparel sector has come under renewed pressure after the EU sent a letter to the government with a call to improve the labour rights further. The letter urged the government to implement the ILO's special paragraph that was given to Bangladesh during the International Labour Conference (ILC) in Geneva last year. The special paragraph called for amending the labour law and putting in place a single labour law for all workers in the country -- a law that also covers workers employed at factories in the export processing zones. The ILO paragraph, which has EU's endorsement, has called for easing the terms of forming trade unions at factory level. During its tour to the country last week, an EU delegation consisting of parliamentarians suggested Bangladesh follow the ILO's special paragraph. The third-round meeting of the Bangladesh Sustainability Compact meeting is scheduled to take place in Dhaka on May 18 and the next ILC is going to be held in June. “So, immediate dialogues are important for resolving the crisis. I hope a positive outcome will come out from the dialogues,” said Ewert. Ewert said Bangladesh also needs to build a better relationship with the retailers and brands by following compliance and supplying goods within the stipulated time to be more competitive. He said the inspection and remediation of the factory buildings should have a strong follow-up to strengthen the workplace safety. Ewert backed extension of the tenure of the Accord and the Alliance for stronger monitoring of the remediation. The tenure of Accord and Alliance will expire in June 2018, he said. The FTA chief said Bangladesh needs to invest in skills development and diversification of export items. He said product diversification can even take place within the garment sector as so many varieties of clothing items could be manufactured. “This means Bangladesh should focus on value added items to be more competitive. Once the country produces more value added items, the exporters will get higher prices by producing less number of products.” “As a result, the cost of production will go down, which will boost the profit margin. All this requires a skilled workforce capable of producing value added items at minimum cost.” According to Ewert, Bangladesh will remain as a hotspot for sourcing apparel items as the country has already proved one of the strongest players worldwide.
Source: The Daily Star
NEW YORK — Fabrics produced by Japanese manufacturers are increasingly appearing in the collections of high-end overseas brands. At the recent Fall and Winter 2017-2018 New York Fashion Week, a number of brands featured Japanese fabrics, while Japanese manufacturers promoted the quality of their textiles. On Feb. 10, the Japanese fashion brand Theatre Products presented its collection made in cooperation with Nakaden Keori Co., a textile maker based in Ichinomiya, Aichi Prefecture. The theme of the collection was “overnight trip,” and it featured a range of comfortable clothing items that can easily be packed in a small bag. The brand used fabric manufactured by Nakaden Keori for its shirts and casual pants. The soft, wrinkle-resistant fabric was made using the latest manufacturing techniques for mixing weaving and knitting. Another fabric used for sweatshirts and skirts features a ridged surface woven using cotton and synthetic fabric for improved stretch properties. Ichinomiya and its neighborhood are one of the largest wool textile manufacturing regions in Japan. Nakaden Keori also manufactures synthetic and knit fabrics, as well as woolen fabrics. The company promoted its products by providing samples and information about their fabrics to the buyers and journalists who attended New York Fashion Week. Theatre Products designer Akira Takeuchi said, “The company uses great technology and responds to our detailed requests.” Kimihiro Nakashima, the vice president of Nakaden Keori, said, “We want to make the quality of our fabrics more widely known around the world with the help of fashion designers.” At New York Fashion Week, Calvin Klein and rag & bone also unveiled collections using Japanese denim and other made-in-Japan fabrics. The Los Angeles-based brand James Perse uses material made by the Tokyo-based textile manufacturer A-Girl’s Co. for its T-shirts. The cotton fabric is manufactured at a factory in Wakayama Prefecture. Tadashi Okubo/The Yomiuri Shimbun - A James Perse T-shirt using fabric made by A-Girl’s, right, and a tunic also using fabric by A-Girl’s Even though the T-shirt is made of cotton, it’s as soft as satin and doesn’t get sticky when a wearer is perspiring. The company began supplying James Perse with the fabric after a trade show held in Paris. “The great texture of the fabric was really appreciated,” said A-Girl’s Vice President Tomohiro Yamashita. Some manufacturers have their own brands, which use the same premium textiles supplied to famous overseas brands. Sato Seni Co., a textile mill based in Sagae, Yamagata Prefecture, has several brands of its own, such as M.&Kyoko. It operates sales outlets at department stores and other facilities across Japan, and its knitwear and skirts have been well received. Komatsu Seiren Co. in Nomi, Ishikawa Prefecture, also uses the fabric it supplies to European brands for its own brand, mittente. Their trench coats are popular for the smoothness of the material, as well as their water-repellent and wind-resistant properties. Instead of relying on trading firms to market their fabrics overseas, these Japanese textile manufacturers have taken the initiative to promote their products themselves.
Source: The Japan News
Stephan Rabimov, CONTRIBUTOR - I write about fashion, lifestyle, and emerging markets. Dior before the New Look, Yamamoto before Paris, Manolo Blahnik before Carrie Bradshaw. Fashion history is built on grand before-and-after moments that change everything in a designer’s career or global sense of style. The creativity and hard work that lead up to the breakthrough often gets overlooked.Mercedes Benz Fashion Week Russia featured several designers on the precipice of international success. It is exciting to witness their rising star. Artem Shumov and Yuri Pitenin are highly recognized names on the Moscow fashion circuit, despite having arrived from St. Petersburg. They craft clothes unaffected by the ubiquitous trends, yet with implied global ambitions. The eponymous Artem Shumov brand and the Saint Tokyo line by Pitenin feel remarkably fresh in capturing the zeitgeist of contemporary Russia (and beyond). Along with the bad boy du jour Gosha Rubchinskyi, they yield collections with strong, memorable narratives that generate cult following. Russia, with its tumulus history and rich cultural heritage, is an unexplored treasure trove of inspiration for any fashion designer. Shumov referenced an extraordinary moment in Russian history, when on the cusp of the October Revolution in 1917 the ordinary workers, service members and youth were caught in the middle of the national conflict. Shumov masterfully translates the angst into wearable, modern looks in a daring choice of fabrics, shapes, and colors. Some silhouettes might appear somewhat familiar to an eye trained on Russian cultural symbols: overcoats, sport suits, and factory protective wear. Every detail was re-envisioned with a global audience in mind. Despite being young, Shumov, over the past several seasons, has single-handedly pushed the Russian menswear industry forward, hopefully paving the way for others. Photo by Oleg Nikishin/Mercedes-Benz Fashion Week Russia - A model walks the runway at Artem Shumov show during Mercedes Benz Fashion Week Russia FW17/18. According to Euromonitor Intertnational, menswear in Russia accounted for 25% of total apparel value sales in 2016, with significant growth in the forecast. Made in Russia menswear would nicely fit the Kremlin’s directive for import substitution; it appears that a few Russian designers are starting to recognize immense market opportunity for domestic menswear consumption. Founded just two years ago, Lumier Garson by designer Jean Rudoff is already making quality strides on the runway. Rudoff's latest collection carried a certain raw energy that attracted the eye to the craftsmanship as well as proportions. Fit is something that many Russian designers continue to struggle with and they would benefit from paying closer attention to how Rudoff excels in that department. The infusion of smart sportswear elements ensures that Lumier Garson is strongly positioned to find international buyers. Photo by Oleg Nikishin/Mercedes-Benz Fashion Week Russia - A model walks the runway at Lumier Garson show during Mercedes Benz Fashion Week Russia FW17/18. Breaking the mold, some women designers are also entering the menswear game in Russia. The launches of Nikolay Legenda by Olga Kapitonova and Dokuchaeva by Anastasia Dokuchaeva this season at MBFW Russia has further secured Moscow as the Eastern European go-to place for menswear. Unapologetic and Instagram-ready clothes are the hallmarks of both brands. Although being respective debut runway shows, both brands could benefit from refining their vision, voice, and storytelling through clothes to make stronger cases for why buyers and customers should invest in them long-term. Photo by Oleg Nikishin/Mercedes-Benz Fashion Week Russia - A model walks the runway at N.LEGENDA show during Mercedes Benz Fashion Week Russia FW17/18. Stylist Alexandr Rogov is a household name in Russia with a popular TV show and a mobile styling school. It was inevitable he’d try himself as a designer. His debut runway show did not disappoint; the experience rivaled any exclusive Moscow nightclub, where face control graduated to style control. The shock value of some looks was well-timed to make this was one of the most dynamic shows of the week. What does it take to gain acceptance as a designer? Rogov is less concerned with the status, and more is with keeping up with momentum. Thanks to tremendous social media following, the collection sold out immediately. With some creative perseverance Rogov could join a small club of successful defectors from styling to designing, which already includes Nicola Formichetti, Brandon Maxwell, and Nina Tiari. A model walks the runway at ALEXANDR ROGOV fashion show during Mercedes Benz Fashion Week Russia FW17/18. Every so often there are instances in fashion industry when a particular set of designers intentionally or inadvertently comes together to form a collective force that transforms our sense of style the way Manolo Blahnik, Stewart Weitzman, and Jimmy Choo elevated footwear into a contemporary art form, or how the famous Antwerp Six or Japanese New Wave designers became fashion ambassadors of their nations on the global stage. It appears that Russia's growing cadre of young style visionaries is about to capture their centerstage moment. Next season the world will be watching.
Source: Forbes
