The textile industry has urged the government to continue with the Rebate of State Levies (ROSL) scheme under the Goods and Services Tax (GST) for the benefit of made-up exports. The ROSL scheme was introduced in March 2017 initially for three years. But, the industry fears that the scheme will be withdrawn prematurely, with GST subsuming all other taxes and benefits. Under ROSL, exporters of made ups get incentives of 3.9 per cent of the value of exported goods. The ROSL benefit not only ensured Indian made ups were competitive in the world markets but also encouraged Indian players to expand capacity to meet overseas demand. "When the scheme was introduced, many small, medium and large companies started working on capacity expansion. A number of companies are currently in various stages of capacity expansion despite the fact that the scheme is just three months old," said Ujwal Lahoti, Chairman of The Cotton Textiles Export Promotion Council (Texprocil). The objective of the scheme was to provide rebate on state levies consisting of state value added tax (VAT) and central sales tax (CST) on inputs including packaging, fuel, duty on electricity generation and duties and charges on purchase of grid power, as accumulated through the stages of production from yarn to finished made ups. Many leading companies manufacturing "made ups" are reportedly drawing up plans for investments in this sector after the scheme has been announced. The ROSL scheme will certainly lead to an increase in exports of made ups articles which in turn will create more employment. "Any increase in the exports of made ups will create additional employment in the entire value chain such as spinning and weaving besides the made ups sector especially in the rural areas and for women," said Lahoti. Earlier, a package including the ROSL scheme was announced for the garments sector in July 2016. According to data released by the Ministry of Textiles, after the package was announced, between July 2016 and March 2017, garment exports increased to $13.47 billion from $12.37 billion during the same period in the preceding year. Since both "garments" and "made ups" fall under the category of "cut & sew" products and the requirement for labour is more or less similar in both the sectors, increase in the exports of made ups will certainly lead to the creation of more employment and the effect can be seen in the next three to six months, Lahoti added.
Source: Business-standard
With Germany reiterating the swift conclusion of an India-EU free trade agreement, Prime Minister Narendra Modi on Tuesday called on German companies to invest in India and said that India would welcome German companies with “open arms” During the inaugural address at the Indo-German Business Summit in Berlin, Modi highlighted the huge potential that remains untapped in the economic partnership. “There are 600 Indo-German joint ventures operating in India, employing 200,000 people. But there is huge potential as Indo-German economic cooperation is below its full potential and to enhance this, we in India are waiting with open arms because we value German partnership a lot,” Modi said. German Chancellor Angela Merkel and other business leaders spoke about the deadlock over FTA between India and the European Union (EU) and urged PM Modi for a speedy conclusion to the deal. “There are growing protectionist trends around the world but Germany believes the value chains are so deeply interconnected that we will continue to create fair trading conditions. Within this context, it is important that the FTA makes progress,” Merkel said. “Germany will continue to push Brussels to resolve negotiations more speedily and we are committed to implement and put into practise such an agreement. The negotiations have been tough because every country must safeguard its own interests and Germany will ensure that India’s concerns are also put on the table,” she added. Dr Hubert Lienhard, president and CEO of German industry body the Asia-Pacific Committee of German Business (APA), also urged Modi on resolving the agreement to enable investments. “Tension is not good for investment. It is important we join forces in pushing to reopen negotiations, to ensure stable trade relations for the future,” said Dr Hubert Lienhard, president and CEO of German industry body the Asia-Pacific Committee of German Business. Meanwhile, Ministry of External Affairs (MEA) confirmed that a meeting in July will between India and EU negotiators will take forward discussions on FTA. While the details of the said meeting have not been finalised yet, MEA reportedly said that a speedy resolution of an agreement would be reached keeping in mind the expiry of the Indo-German bilateral trade treaty in March this year. “We are committed and have been engaging on this issue and hope an agreement can be reached as fast as possible,” an MEA spokesperson was quoted as saying to reporters at a briefing following the Fourth Inter-Governmental Consultations (IGC) between Modi and Merkel. The spokesperson said that both India and Germany were committed to creating a “healthy ecosystem” for investments from Germany. He added that India refers to the deal as a Broad-based trade and Investment Agreement (BTIA). “They [Modi and Merkel] also reaffirmed their strong commitment to the EU-India Broad Based Trade and Investment Agreement and their commitment to bring about a resumption of the negotiations at the earliest possible date. This would, inter alia, allow to establish provisions for the mutual protection of new foreign investments,” a Joint Statement issued by Modi and Merkel after the IGC said. At the summit, Modi highlighted FDI regime in India and spoke about the “growing ease of doing business”. Speaking about the GST, and calling it the “most historic reform” in India ever, Modi added that reforms were spreading fast to all states. After meeting German President Dr Frank-Walter Steinmeier at his residence, PM Modi will leave for Spain later on Tuesday.
Source: Financial Express
The Regional Comprehensive Economic Partnership, involving India,ASEAN and its six free trade agreement (FTA) partners, is expected to be completed this year, an official of the Ministry of External Affairs (MEA) said today. “India is actively engaged in the negotiations for RCEP involving ASEAN and its six FTA partners. It is in the concluding stage,” said Anurag Bhushan, joint secretary (ASEAN-multilateral), at an ICC session. The agreement will give India free trade access to the ASEAN partners thereby increasing the country’s exports, he added. Bhushan said that once finalised, it will be the largest regional trading arrangement in the world and the outcome is to be a balanced and comprehensive agreement across the key pillars of goods, services and investments. The ASEAN bloc is India’s fourth largest trading partner accounting for 10.2 per cent of the total trade. The MEA official said a government’s corpus fund of Rs 500 crore has been formed for making domestic companies a of the regional value chains and production networks for the purpose of catalysing Indian economic projects in Cambodia, Lao PDR, Myanmar and Vietnam. part of the regional value chains and production networks for the purpose of catalysing Indian economic projects in Cambodia, Lao PDR, Myanmar and Vietnam.
Source: Tecoya Trend
GDP growth is expected to slow to 7.2 per cent in January- March from 7.6 per cent in the preceding quarter, but recovery is on the cards due to easier financial conditions, says a report.A ccording to Japanese financial services major Nomura, demonetisation effect is expected to slow GDP growth to 7.2 per cent in the January-March quarter of this year (from a revised 7.6 per cent in October- December 2016). Nomura expects a recovery thereafter to an average of 7.5 per cent in the second half of 2017 and 7.7 per cent in 2018, supported by a release of pentup consumption demand with demonetization, easier financial conditions, pay hikes for government employees and modest external demand. “Overall, our economic heat-map indicates that the overhang from demonetisation has largely ended. Cashintensive rural demand is recovering and external demand remains a strong tailwind,” the report said. On the monetary policy front, Nomura said: “We expect the RBI to stay on hold at its June 7 policy meeting and maintain its neutral monetary policy stance. In our base case, we expect policy rates to stay on hold throughout 2017, followed by a cumulative 50 bps of rate hikes starting in April 2018.” In April, the RBI left key policy rate unchanged at 6.25 per cent for the third review in a row citing upside risks to inflation. It had, however, increased the reverse repo rate — which it pays to banks for parking funds with it — by 0.25 per cent to 6 per cent, narrowing the policy rate corridor. The report noted that notwithstanding the recent undershooting on inflation, the central bank is expected to emain cautious given the drow was largely driven by ongoing deflation in pulses and vegetable, which is transitory. Moreover, uncertainties emanating from implementation of the Goods and Services Tax, monsoons and house rent allowance increases are also expected to weigh on inflation, it added.
Source: Tecoya Trend
The estimated potential for business to consumer (B2C) e-commerce exports from the country is USD 26 billion, of which USD 2 billion can be achieved by 2020 from 16 product categories, according to a report. The report, jointly released by the Indian Institute of Foreign Trade (IIFT) and the Federation of Indian Chambers of Commerce and Industry (FICCI), allows Indian MSMEs to explore prospects in B2C e-commerce retail export. "Online international trade is flourishing and given the increasing accessibility to Internet and the focus of the government on digital drive, MSMEs can benefit directly from this opportunity," Sanjay Bhatia, President FICCI-CMSME, said. Online retail has seen exponential growth globally over the past two decades, and has picked up in the country in recent years. The e-commerce spend in the country still accounts for less than 2 percent of the total retail spending, compared to 10-13 percent in developed countries, the report said. The segment has become a key driver to create new markets in previously unreachable geographies. According to the report, bandwidth and network restrictions, lack of availability of skilled workforce, privacy and security concerns and inaccessibility to finance are some of the reasons that are dissuading Indian MSMEs from adopting modern retail practices. It highlighted the need for the government to recognise e-commerce retail exports as an industry and work towards removing regulatory barriers, including reviewing the foreign trade policy and simplifying customs duty procedures.
Source: 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$ 50.46 per barrel (bbl) on 30.05.2017. This was lower than the price of US$ 50.63* per bbl on previous publishing day of 29.05.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3261.56 per bbl on 30.05.2017 as compared to Rs. 3268.80 per bbl on 29.05.2017. Rupee closed weaker at Rs. 64.63 per US$ on 30.05.2017 as compared to Rs. 64.56 per US$ on 29.05.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 30, 2017 Previous trading day i.e. 29.05.2017) |
Pricing Fortnight for 16.05.2017 (April 27, 2017 to May 11, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
50.46 50.63* |
49.22 |
|
(Rs/bbl) |
3261.56 (3268.80) |
3162.88 |
|
|
Exchange Rate |
(Rs/$) |
64.63 (64.56) |
64.26 |
*Due to holiday in UK on 29.5.2017, the quotes for Brent were not available. Since Brent prices were not available, the price of Indian basket Crude oil cannot be derived, Hence Indian Basket Prices of 26.5.2017 had been considered.
Source: PIB
Indian cotton growers are embracing for a challenging year as a higher production in countries such as the United States, may keep prices low. Higher prices of previous year have pushed farmers to grow more cotton and now the world faces an over-supply. India’s cotton output in 2017-18 may also rise given the forecast of a normal monsoon. The government may step in to protect the interest of farmers by raising the minimum support price, or purchase price of government agencies, slightly. There could also be import curbs to prevent the local farmers from the onslaught of dumping of cheaper cotton by countries such as China. Here are some of the factors that could impact Indian farmers and textile companies:
1. Higher production
World cotton production is forecast to increase 7% to 113.2 million bales, or 24.65 million tonne in this crop year that starts from August 2017, after a 9% rise in 2016-17. “The higher 2017/18 cotton production projection is the result of favorable prices that are encouraging a rebound in area,” the United States Department of Agriculture said in a report. India, China, and the US are forecast to account for a combined 62% of global cotton production in 2017-18, as compared with 63% in 2016/17. The International Cotton Advisory Committee (ICAC) said in a report that high cotton prices in 2016-17 are expected to encourage farmers to expand the area under cotton by 5% to 30.8 million hectares in 2017-18. A normal monsoon forecast by India’s weather office IMD means a boost to the cotton and other agriculture products. “India’s cotton area is forecast to increase by 7% to 11.3 million hectares in 2017-18 as farmers are encouraged by better returns due to high cotton prices and improved yields last year. Assuming yield is similar to the five-year average, production could increase by 3% to about 6 million tonne,” ICAC said. After contracting in the last five seasons, China’s cotton area may expand by 3% to 2.9 million hectares due to the stable cotton policy and high cotton prices. ICAC forecast production in China is expected to rise by 1% to 4.8 million tonne, the first increase in five seasons. Similarly, farmers in the United States are forecast to expand harvested cotton area by 12% to 4.3 million hectares and production could grow by 8% to 4 million tonne.
2. Sluggish consumption
While output gathers pace, ICAC says global cotton consumption is forecast to increase at by 2% to 24.6 million tonne as world economic growth recovers in 2017 and 2018. After decreasing by 3% to 5.1 million tonne in 2016-17, India’s consumption is forecast to recover by 2% to 5.2 million tonne due to competitive prices for its cotton yarn products, expanding capacity and the resolution of the consequences of demonetisation. China’s mill use of cotton is forecast to increase by 1% to 7.7 million tonne, accounting for 30% of world cotton consumption. Mill use in Pakistan may grow by 1% to 2.3 million tonne due to new incentives for textile exports offered by the government while Bangladesh may witness 5% rise to 1.5 million tonne.
3. Exports and imports
A robust crop will encourage the US to export more while China is expected to dump its already-high inventory in the world market. World cotton trade is forecast to rise 5% to 7.95 million tonne in 2016-17, after declines during the previous three seasons. In 2017-18, the exports are expected to rise to 8.09 million tonne, tad higher than last year. What’s worrisome, India’s exports are projected to decrease by 30% to 886,000 tonne, ICAC said.
4. Prices to remain subdued
With over supply in major countries, cotton prices may remain subdued.
Prices may also be tempered as China reduces its inventories by dumping cotton stock in world markets. China’s share of global stocks was 61% in 2013-14. It has fallen to 54% by 2016-17, and is expected to fall further to 45% by the end of 2017-18, says USDA. Meanwhile, stocks in India, Brazil, the US and Pakistan are expected to rise in 2017-18 with larger crops forecast.With a view to promote cotton farming, the government increased the minimum support price, or purchase price of government agencies, by 1.5-1.6% to Rs 3,860 per quintal for medium staple length cotton and Rs 4,160 for long staple. Last year, the Cotton Corporation of India (CCI) Limited was been asked to procure cotton at the MSP to protect the interest of farmers and avoid distress sales.
5. Indian textile firms to gain?
A higher cotton output may help Indian textile firms in keeping their input costs lower. The rollout of Goods and Services Tax (GST) will also help lower the cost for companies. Ample supply, softer prices and GST will improve the earnings outlook for textile firms.
Source: Hindustan Times
The state received these proposals during its roadshows conducted in Mumbai & Bengaluru The Odisha government has cleared fresh investment proposals of the order of Rs 1.31 lakh crore. The state received these proposals during its roadshows conducted in Mumbai and Bengaluru and the 'Make in Odisha' conclave. •From the three events, Odisha received 124 investment intents and of this, 71 cases have transformed into firm commitments. The Single Window has approved projects worth Rs 131,149 crore”, said Sanjeev Chopra, principal secretary (industries), Odisha. The 124 investment intents are valued at Rs 3.64 lakh crore. In the past three years, the Single Window Clearance Authority in the State has approved 102 projects with investments worth Rs 1,67,284.63 crore with an employment potential of 1,12,532 jobs. The state government has announced to approve ‘green’ category projects within 15 days and ‘other’ category in 30 days. Addressing the media, industries minister Niranjan Pujari said, “We have created a long-term roadmap for industrial development which is captured in our Vision 2025 document. To broad base and diversify the industrial development in the state, we have identified six focus sectors that include agro and food processing; ancillary and downstream in the metal sector; chemicals, plastics and petrochemicals; electronics manufacturing and IT; textiles apparel and tourism.” Pujari said, during 2016-17, Odisha has registered GSDP (Gross State Domestic Product) growth rate of 7.94% surpassing the national growth rate of 7.1% and the state is on track to reach a double-digit growth of 12% by 2019-20. In the run-up to the 'Make in Odisha' conclave, the state government unveiled many sectoral policies to lure investors. Speaking on the policies, Chopra said, “These policies have been successful in creating an attractive policy ecosystem in the state for diversified sectors and it has received extremely positive feedback from the investor community across the country. Over the last three years, the state government has embarked upon implementation of a Business Reforms Programme to make it easier for companies to set up and operate in the state.” The state government has signed the memorandum of understanding (MoU) with 92 industries. Of this, 46 have gone into operations, generating employment for 175,444 persons. The MoU bound projects have invested Rs 2.54 lakh crore.
Source: BS Reporter
The Garment Show of India, one of the fastest growing exhibitions for the apparel retail industry of the country, will host over 100 exhibitors, comprising leading brands and manufacturers and retailers of a variety of products like ladies tops, trousers, leggings, denims, men’s shirts, blazers and more. The event will be held in Delhi from June 4-6, 2017. Participants and brands from various garment hubs like Delhi, Noida, Jaipur, Mumbai, Bangalore, Ludhiana, Kolkatta, Hyderabad, Tirupur and many others will be present at the exhibition. "Our vision is to make Garment Show of India a one stop platform for everyone who is involved in apparel, fashion or retail business. The idea is to bridge the gap between buyers and sellers. Our exhibition has manufacturers/brands that can offer quality, fashion and competitive prices and match up with the requirements of retailers, retail chains, e-commerce companies and distributors," said Gagan Marwah, organiser, Garment Show of India. The exhibition will prove to be an ideal platform for everyone related to the fashion or garment business as they can see the latest trends, meet suppliers from all over India and negotiate for best rates, said the organiser in a press release. More than 10,000 visitors are expected to visit the show from places like Delhi, NCR, Meerut, Aligarh, Kanpur, Jaipur, Ludhiana, Lucknow, Bihar, Gorakhpur, Haridwar, Saharanpur, Mumbai, Kolkatta, Panipat, Hyderabad, Trichi, Madurai, Chennai, Bangalore, Surat, Ahmedabad, etc. To attract visitors from all parts of India, especially from tier II & III cities, massive promotions are being carried through newspapers, radio, outdoor advertisements, social media and roadshows all over the country. Shiv Naresh, one of the most reliable players in sportswear, Brand Kaira from Hyderabad that makes attractive ladies wear, Babeez from Mumbai, Indira Hosiery from Ludhiana, Reecrook and Cactus from Bangalore that make innovative denims, Dotted Jeans, Tinted, Royal Wood, Mac Mount and several others will participate in the exhibition.
Source: Fibre2fashion
Recycled fibre and yarn manufacturers have sought concessional Goods and Services Tax (GST) compared with virgin polyester staple fibre or a refund mechanism. According to a press release from the All India Recycled Fibre and Yarn Manufacturers’ Association, about 35 units, mostly small and medium-scale in the country, recycle scrap PET bottles and make recycled polyester staple fibre. The recycled fibre and yarn currently enjoy 2% concessional Excise Duty compared with 12.5 % on virgin polyester staple fibre. This creates a level playing field in the market. However, there are reports that recycled polyester staple fibre and virgin fibre will be on the same rate under GST. In such a scenario, the recylcing units will not be competitive and will become unviable. Hence, the Centre should look at concessional duty under GST for PET recycling units or have a system where the units can get a refund, the association said. The country consumes eight lakh tonnes of PET resin a year and this is used to make packaging containers for water, juices, medicine, etc. However, these bottles are non bio-degradable and recycling is an environment-friendly industry, it added.
Source: The Hindu
Revenue Secretary Hasmukh Adhia today did not rule out the scope for rationalisation of tax rates fixed on various goods and services (GST) under the GST regime to be implemented from July one. "One thing we would agree is that there is a scope for rationalisation of tax rates on various goods and services," he said here in an interaction with the industry on GST. Even the Central Board of Excise and Customs Chairperson Vanaja Sarna had yesterday said the GST Council could revise rates if there is any justification for reconsideration. Various industries and businesses, including traders, FMCG and automobiles had been petitioning the Central government for revising rates. On concerns by representatives of food processing sector, Adhia said a decision on the rates of food grains, especially wheat and rice, would be taken at the June 3 meeting. "It was already mentioned by (Finance Minister Arun) Mr Jaitley that this is one issue which is still pending before the GST Council, and it will take a decision. We understand the food processing industry needs to be encouraged," he said. He also argued that if these items were kept in the exempted category, the food processing industry will be losing. He said the Council will take a view on the definition of branding. On concerns raised by representatives of the financial services sector, Adhia said dismissed the fear of loans getting costlier due to an implementation of GST. "There have been some concerns raised in the financial service sector that loans and all of these will become costlier, no way (it is going to be so)," he said. "All people in financial services will know, we are not charging service taxes in deposits as well as loans, but taxes on other services. Loans are not going to become costlier. That is a misplaced fear, because of lack of understanding "he added. Adhia also said the GST may push India's GDP up by more than 4% because of the simplicity and predictability of the new indirect tax regime, which will encourage people to be tax compliant. "Economists have argued that India's GDP may go up by more than 4% because of GST — that is the kind of potential it has," he said. "Why will the GDP go up? It is because businesses require simplicity, the predictability of tax regime. These are the things which are going to be fulfilled by GST," he added. Adhia said the new indirect tax regime will create problems but one should find solutions, instead of not allowing it to happen.
Source: Business Standard
The GST roll out will not be postponed and both the States as well as the Centre will stick to the July 1 date, Revenue Secretary Hasmukh Adhia said on Tuesday. ddressing a ‘Town Hall’ meeting on GST, Adhia said, “We are anxious for a speedy rollout. There is no compromise on the date. Most of the work required for implementation of GST from July 1 has been completed.” “Once rolled out, trade and industry will have a much lower compliance burden compared with the current regime in which they have to file different returns with different authorities for different taxes,” he added. The Revenue Secretary said the GST when rolled out is expected to push up country’s GDP by more than 4 per cent. “This is due to the simplicity, uniformity and predictability of the new indirect tax regime, which will encourage people to be more tax complaint,” he said. Adhia said he was not predicting the 4 per cent jump in GDP, but it was an opinion of US Federal Reserve’s economists in their paper on India. He said, “Once we are there, then there will be scope for rationalisation of tax rates fixed on various goods and services. For at present only 19 items are under 28 per cent bracket and about 44 items under 18 per cent bracket.” Various industries and businesses, including traders, FMCG and automobiles have been petitioning the Centre for revising rates. At the Town Hall meet, he announced that he did not rule out the scope for rationalisation of tax rates fixed on various goods and services.
Allaying fears
Adhia dismissed fears over deposits or loans getting charged due to implementation of GST. “All people in financial services will know, we are not charging service taxes in deposits as well as loans, but taxes on other services. Loans are not going to become costlier. That is a misplaced fear, because of lack of understanding,” he explained. He further told the meet that on June 3, the GST Council is expected to meet to address items left out of GST taxation. “At the council meet food processing sector issues are to be taken up like fixing rates of foodgrains, especially wheat and rice.” He further said the Council would also take a view on the definition of brands and branding of food items.
Cheaper homes
Adhia said with works contracts coming under input tax credit, homes are set to get cheaper. “There is a provision in the GST law that, by chance, if taxes paid on the inputs are more than the tax rate of the output liability, refunds will also be given except in certain items such as work contracts.” He explained that the total incidences of taxation on a product or service are to come down for most items. “This will happen because of the removal of cascading of taxation, and availability of seamless flow of credit across the value chain. If goods are produced in which services are used, the input tax credit of taxes paid on services will be available and vice versa.”
Source: Business Line
Euro zone economic sentiment fell in May from a near 10-year-high in April against expectations of a rise, as confidence mostly dropped in services, European Union data showed on Tuesday. The European Commission's monthly survey said the overall index for the 19-country currency bloc fell to 109.2 from an upwardly revised 109.7 in April. Economists polled by Reuters had expected an increase to 110.0 points. A separate business confidence indicator, which indicates the phase of the business cycle, fell to 0.90 in May from an upwardly revised 1.10 in April, against market expectations of a rise to 1.11. The drop in sentiment was mostly driven by less optimism in the services sector, the largest in the euro zone, which dropped to 13.0 in May from 14.2 in April. Confidence in the retail sector also dropped to 2.0 from 3.1. But in a sign that the euro zone economy is still in a phase of healthy recovery, the manufacturing sector recorded a boost in confidence to 2.8 points from 2.6. Asia stocks cap fifth month of gains on China relief; sterling slips 'Green' mutual funds bounce back after Trump-induced retreat Inflation expectations among consumers went down to 12.8 from 13.9, in a sign of appetite for future purchases. Expectations of selling prices among manufacturers were stable. Lower inflation would reduce pressure on the European Central Bank to quickly end its monetary stimulus. The indicator for overall consumer confidence rose to -3.3 points in May from a downwardly revised -3.6 in April.
Source: Financial Express
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, is likely to remain on solid ground in the wake of other reports on Tuesday that showed confidence among households still at lofty levels despite some slippage this month and strong gains in house prices in March. "Fed officials can continue with their gradual pace of rate hikes in June as the economy remains on course for stronger growth this quarter and throughout the rest of the year," said Chris Rupkey, chief economist at MUFG Union Bank in New York. The Commerce Department reported that consumer spending increased 0.4 percent last month after an upwardly revised 0.3 percent gain in March as households spent more on both goods and services. April's increase was the biggest since December and eased concerns about second-quarter economic growth after weak reports on core capital goods orders, the goods trade deficit and inventory investment in April. Consumer spending was previously reported to have been unchanged in March. Consumer spending grew at its slowest pace in more than seven years in the first quarter, helping to restrict the increase in gross domestic product to an annual rate of 1.2 percent in the first three months of the year. Following April's report and upward revisions to March's data, economists said consumer spending was running at around a 3 percent rate, a sharp acceleration from the first quarter's 0.6 percent pace. GDP growth estimates for the second quarter range between a rate of 2 percent and 3.8 percent.
Source: Financial Express
The launch of two new textile innovations continues to drive the apparel industry towards greater circularity. Austrian fiber producer and Tencel creator Lenzing continues to push the envelope on sustainable textiles in response to growing consumer awareness for greater industry sustainability and transparency with the introduction of its new eco fiber EcoVero. Setting a new industry wide benchmark for viscose fibers, EcoVero has the lowest environmental impact in the industry. The fiber to make EcoVero is derived from wood sourced from sustainable forestry plantations that are certified by the Forest Stewardship Council (FSC) or Programme for the Endorsement of Forest Certification (PEFC), building on Lenzing’s comprehensive wood sourcing policy. Additionally, the manufacturing process for the fiber has been designed to have significantly less impact than traditional viscose production. Lenzing’s viscose production sites where EcoVero is produced complies with EU Eco Label guidelines, a leading global environmental manufacturing standard, which has allowed the company to drastically reduce emissions and water consumption throughout the production process. At its flagship viscose production site in Austria, Lenzing relies largely on renewable bio-energy to fuel manufacturing. The introduction of a special manufacturing system has also allowed the company to identify EcoVero fibers in the final product, long after the textile processing and conversion steps. As a result, retailers and brands are fully assured that they are incorporating the sustainable viscose and not a generic market viscose into their products. “With this special identification technology for EcoVero fibers, we are supporting the trend in the fashion industry towards greater transparency,” said Robert van de Kerkhof, CCO at Lenzing. “It is becoming increasingly important to know where the products come from and which path they have covered.”The new EcoVero fibers are currently in the sampling phase and will launch at global textile trade shows this autumn. Meanwhile, Sympatex Technologies, developer and producers of membranes, laminates and functional textiles for clothing, footwear, accessories, has developed a new technical jacket that strikes the ultimate balance between form, function and sustainability. Developed during a two-day design hackathon with a group of 20 outdoor bloggers and influencers, the jacket is made with a 100 percent recycled laminate from the current Sympatex portfolio. The membrane consists of 100 percent polyether-ester produced through a climate-neutral process and the outer fabrics and linings consist of 100 percent recycled polyester fibers certified by the Global Recycled Standard (GRS) and bluesign. Compared to traditional polyester fibers, the production of recycled polyester has allowed Sympatex to reduce CO2 emissions by 32 percent, energy consumption by 60 percent and water consumption by 94 percent. Additionally, digital printing is used in lieu of traditional dyeing processes to color the jackets, further reducing the jacket’s water footprint. At the end of life, the jacket is fully recyclable. Each jacket is equipped with an integrated return label featuring the Sympatex company address, where consumers can send their product to be recycled. The company then sends the jackets to a plastic recycling facility, where the PES fibers are separated to be reused, ultimately creating a closed loop process.“Our closed-loop meets textile industry 4.0 lighthouse project deals with the development of a customizable, recycled and recyclable function jacket 4.0. We are not going to produce an own collection in the future, but we want to give an example of already available opportunities that can be implemented already today in terms of ecology,” said Dr. Rüdiger Fox, CEO of Sympatex Technologies. “This project combines the highest clothing performance and fashion style with the same time optimized sustainability and we invite the entire industry to replicate these technological opportunities unscrupulously that are available already today.” The “functional jacket 4.0” will be presented at the Sympatex booth at the international OutDoor 2017 industry tradeshow in Friedrichshafen, Germany on June 18 – 21. Consumers will be able to customize and purchase the functional jacket from June 18 onwards at ClosingtheLoop.de.
Source: Sustainable Brands
The brand is vastly different from the image that Trump had originally envisioned. At a T.J. Maxx discount shop in the shadow of New York's Queensboro bridge, there's little sign of Ivanka Trump's fashion label. But she's there. Dangling next to a bright red Fossil handbag is a single, blush-leather Ivanka Trump satchel. A flip of the tag reveals a $129 price, about the same as the other bags on the rack. Spread among the jumble are items by Guess? Inc., Nine West Group Inc., Steve Madden Ltd., and even a decidedly cheaper option from the Jessica Simpson Collection. None of this screams luxury, yet that's the brand image Trump, 35, originally envisioned: An icon of extravagance similar to what her father spent decades trying to build. When she began selling her brand as a fine jewelry label, she looked to Tiffany & Co.'s robin egg-blue box and Christian Louboutin Ltd.'s red-soled pumps for inspiration. She placed Trump wares in the same realm as such storied couture names as Harry Winston Inc. and Van Cleef & Arpels. She even opened an boutique on Manhattan's Madison Avenue. Somewhere along the way, though, Ivanka Trump went downmarket. Her label now represents a much more modest image, perhaps recognizing exactly where on the retail continuum her products truly reside. At its heart, Ivanka Trump is a celebrity brand, not a designer fashion house, industry analysts say. It's the messy discount rack, not the gleaming glass jewelry case. Her company's moves over the past few years reflect that. And as it turns out, targeting the masses has worked. "Celebrities, as a branding tool, appeal more to the mass than luxury," said Allen Adamson, the New York-based founder of consulting firm BrandSimple. "The further downmarket she goes, the more horsepower her brand potentially has." The pivot began in late 2010, when Trump started her footwear and clothing businesses. She chose to go after a much-less-glossy group of people, discarding four-digit pricetags in favor of numbers more on par with the broader market. U.S. President Donald Trump's election last year accelerated that shift. After losing her most glamorous retail partners amid the controversies and boycotts that have marked her father's tempest-tossed administration, she halted production of the diamond jewelry that was her only remaining fashion business. Her executives decided to nix the Ivanka Trump Fine Jewelry Collection in March in order to create a more cohesive brand. Gem-laden necklaces at $10,000 didn't make a whole lot of sense for a brand that also peddles discount heels at DSW-a low-price shoe warehouse. In its place is a "fashion jewelry" collection sold at Lord & Taylor stores and online. There's no solid gold or diamonds: Some items are available on sale for as little as $11. Just how far downmarket has Ivanka Trump gone? Bloomberg compiled pricing data from the her brand, and compared it with those of other labels known for work-wear, using three office essentials as illustrations: pumps, tote bags, and sheath dresses. Trump has long promoted her clothes as work-appropriate garb the working woman can afford. The Ivanka Trump label now clocks in alongside mall staples Banana Republic and Ann Taylor, brands far from the luxury segment. Above Trump sits DKNY, the mid-market diffusion line created by designer Donna Karen. Luxury brand Burberry, meanwhile, is out of her league. Other fashion houses such as Prada SpA carry even higher price ranges. (A spokesperson for the Trump brand didn't immediately respond to a request for comment.) Back in the summer of 2010, a few months prior to her shoes hitting store shelves, Ivanka Trump held court at Trump Tower in New York, hosting retail buyers and members of the press eager for a look at her new collection. Marc Fisher Footwear LLC, maker and distributor of her shoes, happened to be located in the same building. In a showroom, she displayed a wide selection of styles, from high heels to sneakers, with retail prices spanning $60 to $160. The initial feedback was strong enough to prompt Trump to push up the line's timing from the following spring. Nordstrom Inc. and Bloomingdale's were among the retailers to get on board. Her apparel line, a partnership with G-III Apparel Group Ltd., came next. In February 2011, it landed on department store racks, featuring $80 blouses and $200 jackets. Trump said she wanted the clothes to exude "timeless glamor" despite the mid-level pricing. "I wanted the price points to be accessible," Trump said as she was hyping her new apparel line six years ago, "but ultimately we're in the business of luxury, and these looks are consistent with that larger messaging." It was 2011, and shoppers wanted Ivanka Trump. Business boomed. Her clothing line grew to a $100 million business by flaunting the counter-intuitive promise of "affordable luxury." She expanded into home goods and fragrances as her label entered more stores. As the company grew, glamorous jewelry gave way to mass-market merchandise. Items emblazoned with Ivanka Trump's IT logo are now sold via the online marketplaces of Wal-Mart Stores Inc., Kmart, and Sears brands. Executives told Refinery29 in March that the brand's average customers are aged from 25 to 40, with an annual income of $60,000 to $100,000-far from the sort of shoppers who shell out thousands of dollars for gem-encrusted necklaces. "It's very hard to authentically be in the luxury channel and at the same time be in the more accessible price-points." This was not the first daughter's original vision-not by a long shot. As Trump explained in her 2009 book, she wanted to sell "heirloom chic" jewelry, a cleaned-up version of classic Hollywood-style glamor. She would not, however, copy Tiffany & Co., which sells rings and bracelets for $150 to get first-time shoppers hooked before graduating them to pricier baubles. Trump's starter trinkets would be much more expensive. "We wanted to offer luxurious pieces in the five-, and six-, and even seven-figure range, but at the same time we wanted to offer entry-level pieces priced between $500 and $1000," wrote Trump. "We wanted to fill that void just below the high-end diamond jewelers such as Harry Winston, Bulgari, Graff, Van Cleef & Arpels-the boutiques that exemplified acquisitions of $50,000 or more-while at the same time creating luxurious pieces that would be the envy of any jeweler." But as the years passed, and her mid-market business chugged along, Trump's high-end aspirations struggled to gain traction. People with that kind of money weren't buying. Trump unsuccessfully tried to expand the luxe portion of her label abroad. In 2013, a store bearing the Ivanka Trump name opened at a fancy mall in downtown Beijing. At the time, she said the Trump brand had garnered a lot of interest in China because the culture is "very sympatico with how our brand is positioned .. A statement published in the Mandarin edition of Vogue declared that each new boutique in Asia would haul in $3 million in sales its first year and grow 20 percent to 25 percent annually. The Beijing store quietly shut its doors last year. Luxury branding generally requires exclusivity. Labels that want to sell high-end goods while also occupying the Macy's Inc. outlet racks risk tarnishing the luster of the former in favor of higher sales of the latter. When a brand is too available-especially at off-price venues such as T.J. Maxx-the value of the entire name can shift. Of the high-end department stores that were once home to Ivanka Trump's products, only Bloomingdale's remains. Meanwhile, dozens of styles of Trump shoes and handbags are available online, ranging from $50 flats for toddlers to $250 leather tote bags. "It's very hard to authentically be in the luxury channel and at the same time be in the more accessible price-points," said Robert D'Loren, chief executive of Xcel Brands Inc., a brand licensing and management company. The priciest pieces of Ivanka Trump jewelry left are a pair of gold-plated necklaces with pendants of reconstituted stones. They cost $148. Abigail Klem took over the brand's operations just before Donald Trump's inauguration in January. She suggested the label's move away from luxury goods is permanent, saying that future price points would be "aligned with the rest of our collection," and that the company will be focusing "on existing and new categories that are most relevant to our loyal customers." Ivanka Trump, the person, now occupies an office in the White House. Though she says she no longer runs her company, she still owns it, having refused to divest or forgo payouts from a trust holding some of her assets. The brand has made efforts to distance itself from its namesake-cutting her image out of promotional materials, for instance-but shoppers can't ignore the name, especially now. Ivanka Trump, the fashion label, polarizes shoppers because of the same political divisions that polarize America. According to research firm YouGov BrandIndex, conservative shoppers have a slightly positive impression of the brand, while moderate and liberal consumers have clearly negative perceptions of the brand. Nevertheless, Trump's goods seem to be selling well since her father's campaign began. Sales were up 21 percent in 2016, the company said in February. Clothing sales jumped $17.9 million last year, a healthy increase despite being less than the $29.4 million bump the company reported the year prior. What's less clear is the longer term impact on her brand. In February, the label lost two high-end partners. Nordstrom, once her biggest retailer, stopped selling Trump shoes and apparel, while the even swankier Neiman Marcus dropped her jewelry. (Both said their moves were based on the brand's productivity). Then in March, the Ivanka Trump label decided to kill its fine jewelry collection entirely. In the end, the future of Ivanka Trump's brand may be less dependent on the success of her downmarket strategy than on the success of her father's presidency. As far as shoppers are concerned, they're pretty much the same.
Source: Economic
ICE cotton futures settled marginally lower on Tuesday on increased production of natural fiber with federal data showing strong progress in the U.S. cotton harvest. The U.S. Department of Agriculture's weekly crop progress report released earlier in the day showed that 63 percent of cotton crops were harvested in the United States by the week ended May 28, up from 52 percent in the previous week. "The crop is getting planted very nicely in the Northern Hemisphere without any major disruptions," said Keith Brown, principal at cotton broker Keith Brown and Co in Moultrie, Georgia. The December cotton contract on ICE futures U.S. settled down 0.04 cent, or 0.1 percent, at 72.75 cents per lb. It traded within a range of 72.33 and 72.77 cents a lb. Meanwhile, the July cotton contract on ICE Futures U.S. touched a two week low of 76.90 cents per lb. July prices have fallen about 12 percent since touching a near 3-year peak of 87.18 cents mid-May. "Ever since the July market peaked on May 15, open interest has been declining, and so has the prices, which tells me that those are long positions that are getting liquidated," Brown said. Total futures market volume rose by 3,674 to 22,066 lots. Data showed total open interest fell to 241,984 contracts in the previous session. Elsewhere, speculators cut their bullish bet in cotton by 8,532 contracts to 97,141 contracts in the week ended May 23, U.S. Commodity Futures Trading Commission data showed on Friday.
Source: Times of India
