#flaxlinencongress16 - Masters of Linen
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#flaxlinencongress16
#flaxlinencongress16
FLAX/LINEN,
THE SMART GREEN FIBRE
FOR BUSINESS
TRENDS FOR LINEN & INTERNATIONAL FINAL MARKETS 亚麻流行趋势与国际终端市场 リネンの傾向と国際的な最終マーケット
Thomas VARGHESE
Business Head
ADITYA BIRLA GROUP
INDIA
Emerging Indian Trends in Linen
CELC
ANNUAL CONGRESS -
Madrid
Points for Discussion
• Aditya Birla Group – Textiles & Apparels
• India Textiles & Apparels
• India Linen Market
• Linen Club : Investment in products and retail
• Expectations from CELC
Aditya Birla Group
Aditya Birla Group - Textiles & Apparels
• World's largest player in the Viscose Staple Fibre industry
• The largest player of Linen yarn and fabric in India
• The largest fashion retail network in India - 375+ towns, 7500 points of sale, 5.6
million square feet of retail space
• 5th Largest manufacturer of Acrylic Fibre
• Quality leader in spun yarn globally
• Manufacturing plants across Canada, Sweden, China, Indonesia, India and
Thailand
• Dedicated R&D facilities spanning plantation to fashion
Indian Textile and Apparel
India Textiles & Apparels
India’s T&A industry was estimated to be worth USD 98 billion in 2013, including
both domestic consumption and exports, and is projected to grow at a CAGR of
9% to reach USD 233 billion, by 2023
Total Exports Domestic 233
(USD bn)
Exports; 2023 (P);
CAGR 9% 149 95
98 Exports; 2018 (P);
60
Exports, 2013,
Domestic; 2023 (P);
40
138
Domestic; 2018 (P);
Domestic, 2013, 89
58India Textiles & Apparels
USD 138 Bn
9%
USD 58 Bn
• The Indian domestic textile and apparel market was estimated at USD 58 billion in 2013, and is
projected to grow at a CAGR of 9% to USD 138 billion by 2023.
• India’s textile and apparel exports are expected to grow at a CAGR of 9%, from USD 40 billion in
2013, to USD 95 billion in 2023.India’s Linen Market
Yarn (in MT) Fabric(in million
meter)
16300
30,000 37
58
5% 6%
29
29
14%
13500
11,500
15% 17
15
7800
4,000
2012 2008
2012 2014 2020 E
2008 2016
2014 2020 E E
2020 2016 2020 E
• The Indian domestic Linen market has consolidated its growth pace from the robust growth rates
witnessed in yesteryears and is expected to grow at a moderate pace in coming years.India’s Linen Market Outlook
• Linen Business is expected to grow by ~ 5-6% in next couple of years.
• Rupee depreciation coupled with reduction in other competitive fibre prices like
cotton are impacting the end price to consumer for linen products and hence
impacting linen demand. Further, current inventory levels at different stages in
value chain have also impacted the liquidity position.
• The growth in the Indian linen market has been supply led with more players
coming into the market, both fabric & yarn.
• Linen blends have gained popularity in market space due to lower prices and
making linen fashion accessible to mass markets.Linen Club: Investing to promote linen in India
Jaya Shree Textiles - Linen Value Chain
Linen
Fabric -
Retail
Linen Linen Linen Linen
Fibre Yarn Fabrics Apparel Retailing
Strong presence in niche business - Yarn to RetailDesign Studio
State of the art modern design studio at Rishra to build on new
product development capability at Linen ClubProduct developments : Adopting linen for
popular product categories
• We have made efforts to develop a range of products while working with leading value chain players in
India.
• Some of the key products developed for Indian markets are : Sarees for women, Dhotis for Men and
Indian customer centered designs for stoles and other fashion accessories.
• There is a lot of focus given to final packaging and presentation to drive the premium image.
Linen Silk sarees
Linen Club Dhotis
Linen Club range of
fashion accessories and
apparelProduct Developments
Chic & Slim White For Life
Linen club offers fine counts in 80, 100 & 120
Linen Club - White for life with whiteness
lea. The fine fabric in all its crumpled look
index same for 20 washes. A wide range of
is the epitome of comfort for refined
white dobbies and plains to chose from.
consumer.Product Developments
Checkered Look The Cross-over
Widest range of offering in checks for
Linen wool or linen cotton blended with fine
jackets, trousers or suits. Window pane or
counts for the new age formals
tartan.Product Developments
Prints Indian Influence
From 60L to 100L prints for shirts and Dobbies in 60L gives a rich feel to Indian
ornamental prints for bottoms work well attireNew product categories
• We have added a range of new products to
enhance linen fashion for the Indian market:
• Apparels
• Stoles
• Bags
• Belts
• WalletsNew product categories - Women’s wear
Sarees Designer LabelLinen Club – Enhancing consumer experience
at Retail
Modern retail identity of Linen Club StoresLinen Club – Elements of customer journey
• The retail journey for a consumer is designed to have multiple elements as she / he
moves through the store :
• Attract
• Establish
• Inspire
• Inform
• Engage
• AccomplishLinen Club Customer Experience - Attract
• Initial Architectural and material interaction is not only exciting and enticing for
new patrons and passers-by, but also iconic and memorable. It is easily
recognizable for return customers and those familiar with LINEN CLUB
• Life style product displays as well as visibility of the store interior, hint at what is
in store for potential shoppers.Linen Club Customer Experience - Establish
• A welcoming first impression promotes recognition that Linen Club stores
provide a unique, service-based luxury retail experience.
• This is the opportunity for us to determine and cater to the specific needs of
clients.Linen Club Customer Experience - Inspire
• The main product and its unique presentation acts as a gallery that delights
and surprises clients.Linen Club Customer Experience - Inspire
• New, seasonal and promotional products are isolated and featured to
create a dynamic and fresh appearance. Customers may browse
independently or with the help of a knowledgeable salesman.Linen Club Customer Experience - Inform
• A semi-private consultation area where selected product is inspected, provides
a comfortable place to interact and develops a better understanding of the wide
spectrum of product that Linen Club offers.
• Knowledge of the process and science behind various fabrics gives shoppers
confidence in their purchases and promotes repeat business.Linen Club Customer Experience - Engage
• Once a customer has made their fabric selection, a process of personalization
begins.
• The store provides an atmosphere of a lounge and a studio.
• Clients can relax with friends or family members while measurements are taken
and garment style and fit are discussed and determined.Linen Club Customer Experience - Accomplish
• In ceremonious fashion, the product is prepared, packaged and presented to the
client.
• As transaction area also serves as a concierge where customer loyalty is
encouraged by offering personalized services for garment finishing options/
information and storing customer size/ measurement information as well as
samples of previously purchased fabrics and garment preference.Our Philosophy- We are Responsible
Sustainability – Our Focus
CSR – Our Belief
We believe that co-creation and stakeholder engagement go
• Our employees are at the heart of our hand in hand We work consistently towards building a
operations.
culture that empowers our employees, builds their confidence, and creates a positive work
environment.
• We encourage diversity at the workplace and encourage those with varied skills, backgrounds,
experiences and education levels to work with us
• We are an integral part of the region we operate in and wish to contribute significantly to its
economy. We constantly engage with our communities and extend various skill development
trainings and focus on developing education and training centres and medical facilities in and
around the areas we are present in.
Encouraging Girl Child
Education- supporting Kasturba
Gandhi SchoolGrowth for Linen via collaboration
Linen Demand and profitability scenario
• Un-precedented drop in consumption of linen yarn in India
Jan-Sep Jan- Sep
Linen Yarn Drop Over LY
2015 2016
Quaterly Avg Demand ( MT) 9190 5500 -40%
• Demonstrating reduced demand for pure linen fabric
• Drop in prices of cotton / polyester leading to drop in both yarn and fabric prices of substitutes.
• Major producers in China & India have kept production running , skilled workforce employed,
despite low EBIDTA margins in current yarn prices. No major support has been forthcoming
from European farmers / scutchers / traders in terms of lower prices for flax.
• The purpose of this congress is get entire community of flax stakeholders working together to
support sustainable growth of flax industry. In last 4/5 years all players, specifically flax
growers as well as value chain have done well. It is imperative that in crisis situation today, we
need to come together to support each other.
• The congress will lose meaning if we do not follow collaborative working.Immediate action areas
• The major consumption centres of China, India , Japan and Korea now account for
major share of European flax consumption. It is important that the congress
deliberate on how sustainable growth can be ensured in these markets.
• The crop of 2016 is a major worry in terms of quality. All major importers have been
consistently asking for drawing of standards of flax fibre including setting up of
scientific testing laboratories to test and grade fresh linen crops. No major progress
has been seen on this , over past few years.
• Getting new segments of consumption like home, women’s wear and technical
textiles in also a major need for the market.In Summary
• Linen usage is coming under threat of substitution by cheaper fibers trying to imitate the linen look.
Popularity of linen blends is increasing by day, impacting total linen demand.
• Increasing manufacturing costs due to increase in cost of labour, power and flax will contribute to the
already existing gap between linen and other fibers such as cotton, viscose and polyester including
linen blends, posing a threat to growth of 100% pure linen category
• It is important that the industry players help each other by sharing and institutionalizing the process of
supporting each other with information and key initiatives:
• Modernization of machinery and automation of manual processes
• Initiatives for yield improvement and reduction of waste / losses
• Wastage reduction and better utilization of short fibers
• Improved maintenance practices to improve quality, uptime and cost of spares
• It is also important that collective investments to be made towards enhancement in downstream such as
better seeds, improving output per hectare of land and fibre quality
• Certification and classification of fibres to improve transparency is very criticalIn Summary
• There are many countries where in linen as a category has not grown, allowing for great opportunity
for the whole industry
• A central body which can support market entry of linen players by providing key consumer insights on
fashion, industry requirements etc. and also connecting key value chain players will help the growth of
the whole industry
• Clear communication of benefits and differentiation of linen will only help us together.
• Currently many brands do not value the European Flax certification. CELC could work with leading
brands o make them aware of the European Flax certification.Thank You
#flaxlinencongress16
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