While the debate about fibre neutrality and how due to higher GST rate on man-made fibre issue of unutilised credit with fabric manufacturers needs to be addressed is hogging the limelight a potentially devastating ramification on fabric imports front seems to be going unnoticed. Pre-GST period man-made fabric imports attracted 10% import duty 12.5% CVD and 5% SAD. However with the roll out of GST it will now be 10% import duty and 5% GST. Thus difference between domestic and imports will be only 10% informed Mr. Rajkumar Agarwal Managing Director SVG Fashion here. Citing an example Mr. Agarwal informed that exporters from China get a drawback of 18% whereas Indian manufacturers will pay 18% on yarn out of which about 10% will remain unutilised. So against a disadvantage of 18+10=28% Indian fabric manufacturers have a protection of only 10%. How can Indian weaving and knitting industry survive with a 18% disadvantage questioned Mr. Agarwal and added that this scenario aggravates further if one accounts for rampant undervaluation of imports. Mr. Agarwal said that Indian duty structure is very convoluted which one believes cannot be changed immediately. On account of this structure the raw material prices are higher in the domestic market to the extent of the anti-dumping duty (ADD). PTA which is the source of all polyester raw materials attracts ADD. On account of the ADD the prices announced by polyester producers are of import price parity. Thus the cost of domestic polyester is higher. Similar is the case in viscose filament industry. Now even spandex yarn attracts ADD due to which prices of domestic spandex yarn have also gone up. However the textile products made from these yarns do not attract ADD Mr. Agarwal pointed out. The above scenario prevailed prior to roll out of GST and now with the roll out of GST the scenario has become more severe Mr. Agarwal said and added that the imports have been simplified and facilitated with the reduction of duty on import of fabrics which is believed to be unintended after the GST roll out. It seems that government has not factored this situation while rolling out GST. Earlier there used by CVD and SAD on imports whereas local manufacturers did not have similar domestic duties. Hence there was protection to domestic fabric producers. But now with the reduction in import duties there will be onslaught of fabric imports particularly from China who is supplying fabrics at rates which are lower when compared to prices of raw materials of Indian fabric manufacturers Mr. Agarwal emphasised. Considering the above scenario he said that there is a need to impose ADD on value-added products. If ADD on raw materials exists a similar rate of ADD should be imposed on the value added goods in order to protect the domestic industry and provide them a level playing field Mr. Agarwal stressed. Mr. Agarwal informed that the domestic fabric producers cannot petition for imposition of ADD on fabrics with the government Fabric import to severely hit domestic textile industry Continued from Page 1 Col 6 because of unavailability of domestic fabric production data. The decentralised nature of fabric industry is one of the main reason that it cannot collectively prevail upon the government of ADD imposition because it cannot meet the requirements of 50% industry representation for ADD petition. In such a situation how can fabric industry get protection? The only way is that when ADD is imposed on any raw material similar ADD should be levied on the value-added products made from those raw materials Mr. Agarwal stressed. The government he said should also announce a special levy if the value-added products are imported by traders while exempting the actual user industry from the special levy. If the above suggestion is mooted the government will not only increase its revenues on account of higher duty collections but at the same time it will provide a level playing field for the domestic fabric manufacturers. Government action is required at war-footing before the situation becomes alarming due to onslaught of fabric imports in the near future and before it roots out the domestic sector Mr. Agarwal concluded.
Source: Tecoya Trend
Using a “Farm to Foreign” slogan, Mr. Narendra Modi, Honorable Prime Minister of India, has challenged the country’s textile industry to reach a target of US$650 billion by 2025. Speaking during Textiles India-2017 – the country’s largest-ever textile meeting – in Gandhinagar, Gujarat, India on June 30, the Prime Minister heralded the strength and capacity of the Indian textile industry, sharing industry statistics and outlining the opportunities for the sector. He also stressed the need to increase exports to help meet the 2025 goal. Speed, scale and quality are necessities for Indian textiles to compete against countries like China, said the Prime Minister. Innovation and research are needed to meet the demands of consumers in other countries, as culture, lifestyle and fashion trends are different. He also emphasized some specific areas, such as organic dyes, which need attention. The Ministry of Textiles, Government of India organized the three-day event, which attracted a large technical audience and general public. More than 1,000 exhibitors and 15,000 registered buyers/delegates from many different countries attended.
Source: Cotton Grower
Nalgonda: Despite the awareness campaign and raids on seeds shops, marketing of spurious cotton seeds has taken wings once again in the district coinciding with the beginning of kharif season. Traders have been luring farmers offering seeds packets, similar to branded ones, with prices lower than original ones. In last 15 days, Agriculture and Police officials have conducted raids on several seed shops and registered 13 cases against traders, who were found to be marketing spurious seeds and sale of unauthorised loose seeds. As the government has not been extending cotton seeds on subsidy to discourage cotton cultivation, farmers have no other option but to approach private traders for cotton seeds. Taking advantage of the situation, some traders have been going around in villages and selling spurious cotton seeds to farmers at low cost. Cotton seed packets are priced between Rs 700 and Rs 750, but these traders have been offering cotton seed packets priced between Rs 350 and Rs 400. They have also been targeting farmers in Devarakonda division, where the tribal population is high. The officials conducted surprise raids on seed shops in Devarakonda town and filed cases against four traders under Section 420 and 6A on finding spurious seeds from their shops. The officials have also filed cases against four traders in Chinthapally, two traders in Tirumalgiri (sagar), one each in Nalgonda, Damaracharla, Kondamallepally and Madgulapally. Agriculture Officer (Seeds Section) Srujana told ‘Telangana Today’ that 1,520 packets of spurious cotton seeds worth Rs 12 lakh had been seized in raids on seed shops in last 15 days in the district. Rythu Sangam district secretary Banda Srisailam said traders from Guntur and Maharashtra were moving around the villages and selling fake seeds to the farmers. They were also appointing locals as their agents in the villages to make their task easy. He said the menace was severe in Devarakonda, Chinthapally, Haliya, Munugode and Damaracharla mandals in the district. Srisailalm added that officials had seized several shops selling fake seeds, but most of them manage to reopen new stores in 15 days and continue their business. There was a need to take strict action against traders, who had been found marketing spurious seeds and should be filed under PD Act, he said. Under subsidised seeds supply scheme, 5,472.80 quintals of seeds including paddy, red gram, green gram, groundnut, maize, jowar, sunflower and soyabean have been supplied to farmers in the district for kharif season and 2,343.40 quintals of seeds are still available for supply to farmers.
Source: Today
Indore: Textile merchants and wholesale traders kept their establishments shut on Wednesday against the levy of 5 per cent Goods and Services Tax (GST). Over 1,500 wholesale cloth merchants downed shutters and threatened to intensify protest if the tax is not rolled back. About 500 merchants took to streets shouting slogans and holding placards against the GST at Sitlamata market. The traders also demanded the government to simplify the tax filing procedure. Maharaja Tukojirao Cloth Market Merchants Association spokesperson Arun Bakliwal said, "There was no tax on textile in the earlier tax structure then why the government has imposed 5 per cent GST? This will kill small enterprises as they will have to compete with large enterprises." Traders said the worst to be hit under the GST regime is micro cloth traders as under the earlier tax structure only manufacturers with a turnover of more than Rs 1.5 crore were liable to pay the excise duty. But now with GST, the turnover limit has been reduced to Rs 20 lakh. Merchants have questioned the aim of taxing textile under GST and poor infrastructure in the country to deal with the tax. They said that no training has been provided to merchants about GST. Maharaja Tukojirao Cloth Market Merchants Association president Hansraj Jain said, "The provision of penalty and punishment for non-compliance is very severe in GST." Besides Indore, cloth merchants of Gujarat, Kolkata and Rajasthan among others also kept their shops shut, according to the merchants association. Traders have expressed worries about multiple bill entries, e-way bills and the complexity of filing 36 returns in a year under GST.
Source: The Times of India
Angry textile traders in Surat on Wednesday targeted both BJP and Congress leaders as business remained affected for the twelfth consecutive day amid protest against imposition of 5 per cent GST on the industry. The protesters in the textiles market area on Ring Road chanted “Modi, Modi”, forcing Congress’s Gujarat affairs in-charge Ashok Gehlot to drive away as soon as he reached there to talk to them. They also raised slogans against Navsari MP C R Patil when president of Federation Of Surat Textile Traders Association (FOSTTA) Manoj Agrawal praised the BJP leader for taking up their demands with Union Finance Minister Arun Jaitley. Those involved in the textile industry have been demanding withdrawal of GST or Goods and Services Tax imposed on manufacturing, processing and trading activities. On Thursday, the agitating traders have planned to take out a rally, also comprising 50,000 Patidar women engaged in embellishing sarees, to Surat collector’s office. Earlier on Wednesday afternoon, the youth brigade of the Surat GST Sangharsh Samiti — mostly comprising members FOSTTA — organised a public meeting in the textile market area. It was led by Samiti president Tarachand Kasat, Agrawal, and others. As the meeting progressed under the flyover opposite the textile market, the convoy of Gehlot reached there, raising Congress flags. Soon, Gehlot left his car and walked towards the dais, but at this point, Kasat told the meeting that “these people were the ones who gave birth to GST in India. We should not support them.” He asked traders not seek any support from “these politicians” and also not to entertain them. Provoked, traders started to chant “Modi, Modi”, forcing Gehlot, former Rajasthan CM, to return to his car and drive away. Sources in Congress said as a majority of textile traders hail from Rajasthan, Gehlot thought that he should meet them. FOSTTA president Agrawal also had to face anger of traders when he praised BJP MP Patil for taking representations on their demands to Jaitley. The crowd shouted down Agrawal by raising slogans against Patil. Later, Kasat told the traders: “The markets are closed for more than 10 days, with a single demand — ‘No GST’. We want that the government should rethink and lift 5 per cent GST on the textile trading. After GST was imposed, we had called a meeting of the textile traders and GST experts, including chartered accountants, but nobody gave us a clear picture… Give us more time to understand the GST structure.” Before imposition of GST, the industry was exempted from any form of taxation.
Source: The Indian Express
Mumbai: West Bengal finance minister Amit Mitra witnessed early success during his visit to country's commercial capital to attract investments into the eastern state with two gems & jewellery industry trade bodies pledging to set up large centres to facilitate their trade. The West Bengal minister also had wide ranging discussions with top industry leaders like Anand Mahindra, Adi Godrej and Kishore Biyani for expanding their business in the state. He also received commitments from India's leading textile manufacturers for their support to expand their operations in and around Kolkata. All India Gems & Jewellery Trade Federation (GJF), the apex industry body for the $84-billion sector, is setting up a 25,000-square feet training centre for people in this segment of the economy. GJF's demand for space near Kolkata was approved during the meeting itself, Mitra said. The state also agreed to demands from the Central government-sponsored Gems & Jeweller Export Promotion Council (GJEPC) and leading jeweller Gitanjali Gems to set up design and R&D centres around the city, he said. "Mahindras have some big plans for the state and we are trying to see how to take that forward," Mitra said, without elaborating on the specifics of the plans by the $19-billion conglomerate. Currently, Tech Mahindra, the IT arm of the group, has a large development centre in the city, while the group's automotive arm has an auto spare warehouse near Kharagpur.Mitra, who also handles the industries and commerce portfolios, was in the city to speak to leaders from The gems & jewellery and textiles sectors are labour-intensive. West Bengal has some advantage in this sector due to the presence of a large number of skilled personnel. Across India, about 80% of the skilled workers in the gems, jewellery and diamond (GJD) industry are from Bengal, a top leader from the industry had told TOI recently. Rather than the people from the state migrating to other parts of India for employment in the GJD industry, The state is now taking steps to set up these industries within its boundaries to prevent migration for jobs, generate employment, bring in revenues and boost other related industries. Mitra said the response, from the leaders of these two industries to Bengal's proposals, on the table was good. "During our meeting with leaders from the (GJD) industry, it was found that the aggregate value of turnover that these industrialists managed was in excess of Rs 3 lakh crore. And the corresponding number for our meeting with the leaders from the textile industry was Rs 2.5 lakh crore," he said. For the textiles industry, the state and industry leaders have zeroed in on five sub-sectors in which Bengal is either a leader in the country or a top producer, and those segments will be boosted through government help. These sectors are hosiery & inner ware, linen, workwares, technical textiles and textiles machinery. Of these, the textiles machinery once developed, could also result into substantial import substitution and thus savings of foreign exchange for the country. "India imports almost all the textiles machinery it needs and so we are looking at developing this industry in the state," Mitra said. During the meeting with textiles industry leaders, Biyani, the head of Futures Group, said that if Bangladesh could be a major global supplier for textiles and apparel, there is no reason why West Bengal can't rise to that level.
Source: The Times of India
MUMBAI: Power equipment makers said introduction of the Goods and Services Tax (GST) will bring them close to a "level playing field" with the Chinese, but the fundamental problems in the sector persists and lack of orders is bleeding these units. The 18% GST that applies to Indian manufacturers will also be applicable on imports now. But manufacturers point out that the Chinese still have access to cheaper credit and inputs and they would be fighting for a slice of the shrunk pie of orders in the domestic market since there are no signs of recovery in capex for thermal power. Capital goods manufacturers in the power sector have been complaining that their Chinese counterpart have an undue advantage over them and are able to price products cheaper. Of the 117 gigawatts of projects ordered for the 12th Five year Plan, almost 45% were bagged by foreign players led by the Chinese. The 13th plan has not seen any major fresh investment in the conventional power sector, leaving companies like BHELBSE 1.86 %, L&T, Thermax BSE -0.50 % among other with dry order pipelines. “Post GST, we would have level playing field. But, we see concerns and challenges over its implementation for next 3-6 months. In our power business, tax is either reimbursable or inclusive. The tax arbitrage enjoyed by the Chinese manufacturers will not continue after GST,” said Shailendra Roy, member of the board and whole-time director (power, heavy engineering & nuclear), Larsen & Toubro.
Source: Economic Times
At the three-day event of ‘Textiles India 2017’ from June 30 to July 02, held in Mahatma Mandir, Ahmedabad, Gujarat, around 65 Memorandum of Understandings (MoUs) were signed between domestic and international organizations from textiles industry and government. The MOUs signed, involved countries such as China, Bangladesh and Australia for silk research, fashion technologies and knowledge transfer. Other than this, commercialization of hand loom products, skill development and trade promotion were some of the other reasons due to which MoUs were signed. Three government-to-government (G2G) MoUs were signed at the event. The first was signed with China for developing improved silk worm breeds and mulberry varieties with the exchange of sericulture genetic materials. The second was signed with Australia for different projects related to textiles and fashion. The third was signed between the National Institute of Fashion Technology and the Bangladesh University of Fashion and Technology. Smriti Irani, Indian Textiles Minister, said that the ongoing developments in the textiles industry will eventually lead towards its growth, globally. She assured that the government will leave no stone unturned to promote textiles sector. Other ministers who were present for the event were, Ajay Tamta, Minister of State for Textiles, Anant Kumar Singh, Union Textiles Secretary, Pushpa Subrahmanyam, Additional Secretary of Ministry of Textiles and Kavita Gupta, Textiles Commissioner.
Source: Business World
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$ 48.62 per barrel (bbl) on 04.07.2017. This was higher than the price of US$ 48.10 per bbl on previous publishing day of 03.07.2017. In rupee terms, the price of Indian Basket increased to Rs. 3151.22 per bbl on 04.07.2017 as compared to Rs. 3114.44 per bbl on 03.07.2017. Rupee closed weaker at Rs. 64.82 per US$ on 04.07.2017 as compared to Rs. 64.75 per US$ on 03.07.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on July 04, 2017 Previous trading day i.e. 03.07.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
48.62 (48.10) |
|
(Rs/bbl) |
3151.22 (3114.44) |
|
|
Exchange Rate |
(Rs/$) |
64.82 (64.75) |
Source: PIB
Japan is keen to get involved in more initiatives, including ‘viable connectivity projects’ in the North-East in states such as Assam, Meghalaya and Manipur, to boost trade between the two sides. Improving the road network is a priority to ensure that local residents have a lifeline and for economic development. A highly placed source told FE: “The plan is to improve connectivity between Asia and Africa through the Dawei SEZ – developed jointly by Japan, Thailand and Myanmar — using the free and open Indian-Pacific Ocean region. The North-East’s direct connectivity with the SEZ would also mean enhanced economic activity in the region.” While the ‘Look East policy’ under Prime Minister Narendra Modi has been attracting investors from Asean member countries, Japanese investments in NE, especially in infrastructure, will help facilitate India’s policy. Japan is also in talks with the government for securing infrastructure projects such as development of smart cities in other North-Eastern states. “Connectivity is the main pillar of relationship with India,” a source said. Though NE is landlocked , the possibility of Bangladesh opening its Chittagong port is bright, given their improved relations with India. India is also developing the Sittwe port in Myanmar and has also entered into a framework agreement with Myanmar in April 2008 to facilitate the implementation of the Kaladan Multimodal Transit Transport Project. Another source said: “We are working on projects in the North-East with the help from Japan International Cooperation Agency (JICA) for the improvement of the infrastructure, including roads in Meghalaya and Mizoram. Preparatory research for the roads project in Meghalaya has already been completed.” In March this year, JICA signed loan agreements with the government in New Delhi to provide Japanese ODA loans of up to a total of 308.762 billion yen for eight projects. The North East Road Network Connectivity Improvement Project (Phase 1) for national highways 51 & 54, which is adjacent to Myanmar, Bangladesh and Bhutan. These improvements will boost the level of connectivity between the target region and other areas inside and outside of India, thereby contributing to economic development in the region. A project in Nagaland is to be undertaken to help restore forests in the lands under shifting cultivation in Nagaland, and provide livelihood means other than shifting cultivation for local residents to contribute to sustainable forest environment conservation and improved livelihood of local residents. Earlier this year, in Imphal, Manipur, Japan’s ambassador to India, Kenji Hiramatsu had said his country was willing to help India develop infrastructure in the NE.
Source: Financial Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1136.04 |
USD/Ton |
0.65% |
7/5/2017 |
|
VSF |
2235.31 |
USD/Ton |
0.33% |
7/5/2017 |
|
ASF |
2176.49 |
USD/Ton |
0% |
7/5/2017 |
|
Polyester POY |
1180.16 |
USD/Ton |
0.94% |
7/5/2017 |
|
Nylon FDY |
2742.67 |
USD/Ton |
0.27% |
7/5/2017 |
|
40D Spandex |
5073.57 |
USD/Ton |
0% |
7/5/2017 |
|
Polyester DTY |
5823.58 |
USD/Ton |
0% |
7/5/2017 |
|
Nylon POY |
1397.07 |
USD/Ton |
0.80% |
7/5/2017 |
|
Acrylic Top 3D |
2544.14 |
USD/Ton |
0.58% |
7/5/2017 |
|
Polyester FDY |
2352.96 |
USD/Ton |
0% |
7/5/2017 |
|
Nylon DTY |
1536.78 |
USD/Ton |
0.97% |
7/5/2017 |
|
Viscose Long Filament |
2867.67 |
USD/Ton |
0% |
7/5/2017 |
|
30S Spun Rayon Yarn |
2882.38 |
USD/Ton |
0% |
7/5/2017 |
|
32S Polyester Yarn |
1735.31 |
USD/Ton |
1.94% |
7/5/2017 |
|
45S T/C Yarn |
2705.90 |
USD/Ton |
0% |
7/5/2017 |
|
40S Rayon Yarn |
2279.43 |
USD/Ton |
0% |
7/5/2017 |
|
T/R Yarn 65/35 32S |
3044.14 |
USD/Ton |
0% |
7/5/2017 |
|
45S Polyester Yarn |
2308.84 |
USD/Ton |
0% |
7/5/2017 |
|
T/C Yarn 65/35 32S |
1852.96 |
USD/Ton |
0.80% |
7/5/2017 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
7/5/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
7/5/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
-0.12% |
7/5/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
7/5/2017 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
7/5/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14706 USD dtd. 05/07/2017) The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
CHINA’S economy is expected to grow 6.5 percent this year with the yuan weakening to 7.1 per US dollar, Commerzbank said yesterday. A slowdown in the real estate market and policymakers’ commitment to deflating asset bubbles will drag domestic economic growth for the year down from first quarter’s 18-month record of 6.9 percent. China’s policy tone has turned less dovish since late 2016 and the People’s Bank of China will continue to maintain relatively tight liquidity to force de-leveraging in the banking sector, said Zhou Hao, senior economist at Commerzbank emerging market research. Zhou said downward pressure on the yuan remains and it may weaken about 2 percent annually against the US dollar over the next two years. That would lead the yuan to end 7.1 per US dollar by the end of this year and 7.25 by the end of next year. He said the US dollar may pick up in the fourth quarter, forcing the yuan weaker so that the yuan is kept relatively stable with a basket of currencies. Zhou said it’s unpredictable how the central bank may choose to release depreciation pressure, and a one-off depreciation as seen in August 2015 is possible in the fourth quarter. The yuan yesterday weakened on the onshore market against the dollar for the third consecutive day as the greenback strengthened. The yuan closed at 6.7999, down 102 basis points from Monday.The market followed the central bank’s movement yesterday morning that tuned down the central parity rate by 117 basis points to 6.7889 to the dollar. The yuan is allowed to be traded within 2 percent either side of that rate. China’s central bank introduced a “counter-cyclical factor” into its calculation of the parity rate as the monetary authority improves the mechanism to better reflect market demand and supply. This also makes it more difficult for the market to predict the official rate.
Source: Shanghai Daily.
Iran’s textile and clothing industry’s $850 million worth of annual exports (excluding hand-woven carpets) constitute a 0.1% share in global markets Currently, 9,818 industrial units are active in Iran’s textile and apparel industries licensed by the Ministry of Industries, Mining and Trade, constituting 11% of all industrial entities in the country. These units have created more than 290,000 direct jobs, accounting for 13% of all industrial jobs in Iran. The above figures were reported by director general of Textile and Clothing Department at the Ministry of Industries, Mining and Trade, Afsaneh Mehrabi, as reported by the ministry’s official news service Shata. The textile and apparel industry is one of the oldest, biggest and the most important industries in the world, which has been able to gain a strong industrial, economic and social position in terms of high job creation, earnings and added value in most countries, including advanced economies. The industry has a major share in developing a country’s industrial production, job creation and exports, and plays an important role in those countries’ advancement. The global textile and apparel industry’s exports, amounting to $800 billion per annum, make up 6.5% of the world’s industrial exports and 4.5% of the world’s total exports. Iran’s textile and clothing industry’s $850 million worth of annual exports (excluding hand-woven carpets) constitute a 0.1% share in global markets. Including hand-woven carpets, the figure stood at more than $1.2 billion in the last Iranian year (March 2016-17). “Textile exports alone stood at over $620 million last year, registering a 1% increase year-on-year,” Mehr News Agency quoted Alireza Haeri, former chairman of the Association of Iran Textile Industries as saying. Textile flooring topped the list of exports in this sector, with a 45% share (around $280 million). According to Mehrabi, Iran is the 36th biggest exporter of textile products and the 90th biggest exporter of apparel in the world. Taking into account both textile and clothing products, the ranking stands at 59th. As for imports, over $1.6 billion worth of textile products were imported into Iran last year. Taking into account the related equipment and machinery, the figure reaches $1.9 billion. The main import was fabrics worth $500 million–70% more compared to the previous year. Other major products imported were fiber ($440 million) and yarn ($300 million). In addition, the import of black fabrics used to make chador (a full body-length fabric worn by many Iranian women) saw a 73% increase compared to the year before to stand at $125 million. The above-mentioned value of imports, Haeri said, only pertains to legal imports. To reach a more realistic figure on the total amount of imports, a further $2-3 billion should be added to include illegal imports, which would bring the total amount of textile product into Iran last year to $4-5 billion.
Source: Financial Tribune
Upscale jeans maker True Religion Apparel Inc. said Wednesday that it filed for bankruptcy reorganization, making it the latest Southern California apparel firm to falter as people embrace online shopping. The once-trendy manufacturer also was frayed by design missteps and boring store displays as fickle shoppers sought out the next new thing. True Religion said that in tandem with filing under Chapter 11 of the bankruptcy laws, its owner, TowerBrook Capital Partners, a private equity firm, reached a proposed deal with lenders to slash True Religion’s debt by about three-quarters as it continues operating. “We are taking an important step to reduce our debt, reinvigorate True Religion’s iconic brand and position the company for future growth and success,” which includes putting more resources into its online efforts, True Religion Chief Executive John Ermatinger said in a statement. The Manhattan Beach-based firm, which employs 1,900 people, sells its jeans and other clothing in 140 stores with the True Religion and Last Stitch brand names, and through other boutiques and department stores. The company said it closed 20 of its stores last year to cut costs. Founded in 2002, True Religion grew popular with its array of pricey designer jeans, and from 2007 through 2012, it nearly tripled in size, becoming a company with revenue of $490 million in 2013. The company formerly was publicly held, but it went private in 2013 when it was acquired by TowerBrook Capital for $835 million. Also starting in 2013, True Religion “began experiencing declining sales caused by the general trend of consumers [moving] away from traditional retail to online shopping,” Dalibor Snyder, True Religion’s chief financial officer, said in a filing with the U.S. Bankruptcy Court in Delaware, where the company filed its Chapter 11 petition. That trend has accelerated in recent years with shoppers shifting from brick-and-mortar stores to e-commerce. In addition, the rise of “fast-fashion” stores carrying lower prices — such as Zara, owned by Inditex of Spain, and H&M (Hennes & Mauritz) of Sweden — has hobbled True Religion and other apparel retailers. American Apparel is one of several L.A. retailers to declare bankruptcy or go out of business in recent months. (Mel Melcon / Los Angeles Times) The shift resulted in the bankruptcies of such Southern California-based clothing retailers as American Apparel Inc., Pacific Sunwear of California Inc., Nasty Gal Inc. and Wet Seal. There also has been a widespread retrenchment in retail overall as consumers spend more online. Chains closing stores in malls and elsewhere in the last year include Macy’s Inc., Sears Holdings Corp., J.C. Penney Co. and Payless ShoeSource Inc. True Religion’s problems were “further adversely impacted by new product designs launched by the company that failed to resonate with the consumer,” Snyder said in his filing. In its fiscal year ended Jan. 28, True Religion lost $78.5 million on revenue of $369.5 million. On True Religion’s website Wednesday, many of the women’s jeans were priced at $199 or higher, with some pairs selling for $319. Many of its men’s jeans also were priced at $199 and up. Ilse Metchek, president of the California Fashion Assn. trade group, said there continues to be a market for expensive denim but that True Religion also has struggled with marketing and merchandising shortcomings. “Their retail establishments were not exciting enough, and they weren’t putting enough marketing energy behind their brand to bring them to an aspirational level — that the consumer would aspire to [buy] True Religion” apparel at its lofty prices, she said. “No longer can you excite a consumer in a retail store with piles of jeans on the table,” Metchek said. “There has to be a look around it. Is there an excitement to it that defines the brand?” Under its deal with lenders, True Religion plans to swap debt for new equity in the reorganized company that will reduce its debt by more than $350 million. The firm said it also had obtained additional financing of up to $60 million from Citizens Bank.
Source: Los Angeles Times
In addition to its proposed acquisition of Whole Foods (WFM), Amazon (AMZN) has made a handful of announcements in the past few weeks signaling a more aggressive push into apparel and footwear. The most notable development is Amazon Prime Wardrobe, a new service currently in a beta test that will allow Prime members to try on clothing, footwear, and accessory products at home and return unwanted items using a prepaid, preaddressed box. R.J. Hottovy, CFA, is a consumer strategist for Morningstar. Amazon also struck a deal to sell Nike (NKE) products on the Amazon.com platform for the first time, which will give it greater credibility in apparel and footwear while allowing Nike to better regulate sales by unauthorized third-party sellers. In many ways, we see similar motivations behind Amazon’s recent apparel moves and the Whole Foods acquisition: removing key barriers from accelerating growth in these large retail categories (making apparel returns an effortless process and tapping into Whole Foods’ supplier relationships), increasing consumer demand by bringing more established vendors onto the Amazon platform, significant private-label potential, and synergies with Amazon’s devices. Nevertheless, we believe investors should view Wardrobe, Nike distribution, and Whole Foods as more than just expanded pushes into these categories, but also meaningful sources of customer data that Amazon’s rivals can’t match while enhancing the network effect underpinning our wide economic moat rating. We’ll maintain our $1,200 fair value estimate for Amazon until details on the Wardrobe program and Nike’s distribution plans are released, but we acknowledge there could be upside to our retail products and third-party seller revenue assumptions (where we forecast 16% and 27% growth over the next five years, respectively). Regardless, we view these developments as a positive for Amazon--which we view as the most attractively priced name in online retail--and a potential source of disruption for department stores and specialty apparel/footwear retailers. Amazon hasn’t exactly been shy about its ambitions in the apparel and footwear space the past several years, including an uptick in apparel and footwear listings during last year’s Prime Day event and throughout key holiday events, developing several new apparel private-label brands across multiple target audiences, and the introduction of the Echo Look “style assistant” device (available only by invitation at present). While it’s difficult to pin down, we estimate that apparel and footwear represented $16 billion-$20 billion in gross merchandise volume in 2016, or approximately 7%-8% of Amazon’s estimated $245 billion in GMV. We believe this was one of the fasting-growing categories in Amazon’s mix, particularly in women’s categories, and expect this momentum will continue with the launch of Amazon Prime Wardrobe, which we’d expect ahead of the holiday season, assuming beta tests are successful. Nike has distributed products on Amazon subsidiary Zappos.com in the past, but the partnership with Amazon will mark the first time Nike will directly distribute products on Amazon.com. In our view, this not only reinforces the power of Amazon’s network effect, but also offers a way to better police counterfeit or unauthorized third-party sales by utilizing Amazon’s Brand Registry platform. The key unknowns of the partnership are the mix of products Nike will distribute on the platform (footwear versus apparel, high-end performance versus mass market) and whether this move will encourage other apparel and footwear manufacturers to distribute through Amazon. We expect Nike’s initial product offering on Amazon will mirror its assortment on Zappos, weighed toward mass-channel products under $100 and not high-end products like Jordan, Air Force 1, and VaporMax. This would obviously be a negative to Nike’s existing mass-channel partners but could eventually open the door to new exclusive merchandise partnerships with Amazon over time. We also think the intent of Amazon Prime Wardrobe is to address one of the major weaknesses of online apparel sales: the lack of ability to test size and quality. By offering the ability to select apparel to try on at no up-front cost, Amazon is effectively turning homes into fitting rooms. Given Amazon’s strong brand, selection of more than 1 million products, and encouragement to make purchases through discounts, we think Wardrobe will achieve healthy adoption rates, and we continue to favor apparel brands over retailers for investment as a result of this expected market share shift. Further, we think Wardrobe will allow Amazon to collect valuable data on consumer preferences, better enabling it to target ads and searches we view this as another long-run negative to the department store sector, which relies on curation as a selling point. Similar to the Whole Foods transaction, Wardrobe will also offer an outlet to showcase Amazon’s existing and future private-label brands. While the Amazon Essentials platform is a relatively well-known private-label brand offering everyday apparel, we believe the greater opportunity will ultimately be in bringing apparel private labels such as Ella Moon, Lark & Ro, Paris Sunday, Mae, Goodthreads, and Buttoned Down. We’re also intrigued by Wardrobe’s opportunities in children’s apparel (Scout + Ro is the only Amazon label that we’re aware of, but we expect this and future children’s private labels could develop into a meaningful opportunity, given recent store closures from players like Gymboree), as well active wear, where the company has been reportedly working on new private-label brands.
Source: Morningstar.com
Japanese designer Yuima Nakazato claimed Wednesday that he has cracked a digital technique which could revolutionise fashion with mass made-to-measure clothes. "We can design every type and shape of garment to be a precise fit to the wearer's figure," he told AFP after showing his digitally created haute couture collection in Paris. The 31-year-old wunderkind has been working for six months on a new 3D clothes-making technique using traditional materials like cotton, nylon and wool. He said that in future clothes will be infinitely adaptable "and will grow with you"—easily expandable with the wearer's waistline—and able to incorporate wearable devices. "We want to create a world where everyone can have tailor-made garments," said Nakazato, who was admitted as a guest member of the elite club of Paris haute couture designers last year. Tailor-made clothes, particularly haute couture, are out of reach of all but the world's richest people. But Nakazato argued that his technology could bring clothes that fit perfectly within the reach of all. "I think that in future mass customisation is possible" because his team had removed the major constraint "of using needles and thread". Nakazato said the "unit constructed textile" technique he has developed in Japan with engineers, 3D designers and sculptors "can adjust a garment to be a precise fit to the wearer's figure." "With this system we are now able to build all silhouettes imaginable. It is like creating a garment from a dress pattern but with even more flexibility," he added. Clothes that fit perfectly Nakazato told AFP that the nine designs he showed in Paris—which included evening dresses and a version of Dior's classic Bar suit as well as jeans and a leather jacket—were built up with digitally-cut squares of fabric. Rather than a fitting, the wearer is first scanned before numbered squares of digitally cut fabrics are riveted together to form a perfectly fitting piece. He said his 1950s-themed show was a taster of what might be possible. During that decade "haute couture brought back elegance and luxury to the minds of people fatigued by the war, and mass-produced jeans became the world's first truly universal attire," he added. Technology now offered the possibility of putting those two things together, he argued. Nakazato said the major breakthrough was finding a way to use everyday fabrics like cotton, nylons and wool "which are difficult to control in digital fabrication. That was the most difficult part. But in the end we succeeded." While the young designer admitted that his work was very much at the experimental stage, he insisted that "future mass customisation is possible". "There is still a lot of work by hand" in putting the clothes together, Nakazato said. "It is like technology and craftsmanship put together." Aesthetically his digital creations had a long way to go to reach the crafted perfection of classic haute couture, he admitted, which must be made by hand. "But this is a long-term project, and we hope you enjoy watching the evolution each season. It is part of the journey," he added. Retro 1950s fashion has been a major theme on the Paris haute couture catwalk this week. French designer Jean Paul Gaultier put his own maverick twist on the trend with an Irish Aran sweater minidress in his collection which mixed ski resort chic with veils, super-glam Indian saris and nose chains. Valentino's Pierpaolo Piccioli preferred to embrace the 1970s for his bold and beautiful collection that came shrouded in handsome capes and kimono coats. Lebanese creator Elie Saab went all "Game of Thrones" with his "bright and brave warrior queens" while John Galliano at Maison Margiela transformed the humble trenchcoat into something fit for a masked ball.
Source: Phys.org
Suppliers from around the world are all set to gather at the Intertextile Shanghai Home Textiles during August 23-26, 2017. The largest home textiles sourcing event in Asia connects the entire home furnishings industry with full spectrum of products and accessories provided by top manufacturers from mainland China, as well as Asian and European countries. Intertextile Shanghai Home Textiles - Autumn Edition, is being organised by Messe Frankfurt (HK), the Sub-Council of Textile Industry, and the China Home Textile Association. With increasingly high quality and competitive prices, Chinese home textile products are gaining in competitiveness, while the government’s recent national 13th Five-Year Plan encourages the industry to upgrade by incorporating more innovative ideas and advanced technology. What’s more, Chinese suppliers are no longer limited to resellers or agents of foreign brand names, but are also capable of producing high-end products and developing their own brands. Huatex International is one of these exhibitors. With profound experience in jacquard for over 13 years, it established its own design brand Texdream in 2015 to provide more quality woven fabrics to customers. Hangzhou Aico Home Textile is another well-known brand in China that will present its high-end home textile products like curtains, bedding and other decorative fabrics in the August show. Amongst the Chinese exhibitors, there is no lack of companies equipped with both sophisticated design and production ability. Yuanzhicheng Home Textile has been cooperating with a famous Italian design company - Arte Tessile - to get new product design ideas for hotel and residential usage. Meanwhile, advanced and professional jacquard design software is used to improve the product development process. They have also developed a widespread sales network and worked closely with several international hotel brands including InterContinental, Starwood, Shangri-La, Hilton, Hyatt, Marriott, Accor and more. Zhejiang Maya Fabrics focuses on designing fabrics for the high-end interior design and home furnishing industries. Their products are supplied to over 200 fabrics distributors, furniture manufacturers, design firms and hotel groups in 25 countries. In addition, they have been partnering with the Art Institute of China and various Italian designers to incorporate the latest technology and innovative elements into their designs so as to keep up with the changing trends in the market. Apart from these veteran exhibitors, some newcomers are going to catch buyers’ attention this year. Being the sole Asian distributor of leading British bedding brands such as Common Living, Harlequin, Morris & Co., Sanderson and Scion, Qingdao Mirtos Textiles will also have their first participation. Equipped with its own design studio, they will be showcasing mid-range to high-end bedding products and accessories with stylish design and competitive price. Presence of well-known international exhibitors affirms the show’s prominence in the industry. To satisfy buyers with various sourcing needs, the show will also feature universal big names from different product sectors. German brand JAB Anstoetz will be providing a series of delicate appliques to household textile decoration products, while the UK’s Prestigious will offer a diverse range of fabrics for drapes and upholstery, wall coverings and home décor accessories. Some of the other leading suppliers also include D Décor, one of the world’s largest manufacturers of woven curtains and upholstery, and Advansa Marketing, the leading German supplier of polyester fibres. Apart from fabrics and finished product suppliers, non-textiles suppliers like Somfy are also not to be missed. The Somfy Group from France excels at designing and producing automated controls for doors, windows and other building openings. Its Chinese subsidiary will make its debut in the show, presenting their world class sun protection systems. In addition to a sourcing platform, Intertextile Shanghai Home Textiles aims to bring more inspiration to the industry. This year, the show will feature the Andrew Martin International Interior Design Award for the first time which includes a forum where leading players from the interior design, architectural design, apparel design and art sectors will share their insights on the transformation of design in the new information era. This widely recognised award has been organised by the well-known interior design house, Andrew Martin International annually since it was introduced to China in 2006. There will also be a Trans-border Home Art exhibition which enables new home living styles to be illustrated in the form of furniture and installation art.
Source: fibre2Fashion
Shanghai - The current dynamism in the Asian yarn and fibre market is reflected in a huge demand for space at October's Yarn Expo Autumn with the show set to more than double in size. Asia’s yarn and fibre market is going through a period of substantial change at present, and Yarn Expo is at the heart of it all. The major trade platform in the region will more than double in size this October, expecting its exhibition space to expand by 115% as more companies recognise its effectiveness to mirror the latest industry trends as well as attract a truly global audience: last year’s autumn edition drew trade buyers from 77 countries & regions. Around 400 companies, up from 319 last year, are predicted to exhibit this edition.
Source: Knitting Trade Journal
