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EAI 01 ISSUE 07
` 100
Market Focus
UK, as an
apparel market
BraND case stuDY
Zara: success
secret decoded
LuXurY
India emerging as a luxury market
AppArel eXpOrT prOMOTION COUNCIl MAGAZINe | October 2018
Apparel_Oct.indd 1 10/1/2018 6:03:24 PM
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AppArel / Chairman’s Message
Dear Friends,
T
he Indian apparel industry, at
the close of the first half of
this financial year, finds itself at
a rather unenviable position of
being one of the few sectors, which has not
been able to come out of the red, in terms of
export performance. The favorable rupee has
improved exports in rupee terms, but exports
in dollar terms may need a few more months to
recover. However the silver lining is the positive
performance in the major markets like US and
EU. With a good demand position in major
markets, the imminent peak season can finally
take the exports northwards.
The industry is eagerly awaiting the new
RoSL rates that can be a game changer in this
market, where the only constraint before the
Indian exporter is the cost competitiveness.
AEPC submitted its data and representation
for Determination of All Industry Rate of from the local factories also joined the
Drawback 2018-19 for readymade garments for campaign . The minister urged for a more
reimbursement of actual incidence of custom sustained effort to keep the clusters clean by
duties suffered on imported inputs. AEPC also recycling waste through innovative usage.
submitted representation to PMO office to At the cluster level, AEPC is creating
review and consider all embedded taxes. The awareness on Swachhata in apparel factories and
new rates are expected by next month. identifying dirty clusters drive with the support
Campaign to create awareness on of the local bodies / municipal corporations.
Swachhata in apparel sector Apparel Export India and Sri Lanka representative
Promotion Council (AEPC) and its members discussion to increase trade AEPC hosted
across the various apparel clusters observed B2B meeting between representatives of
the “Swachhata Hi Seva” campaign. The India and Sri Lanka on September 26, 2018
campaign was launched on September 15, at Apparel House, Gurugram. The discussions
2018 with Union Minister of Textiles, Smriti were aimed at increasing the trade between the
Zubin Irani joining the okhla industry in two countries. Industry representatives from
cleaning the garbage around Okhla apparel both sides agreed that it is time to look the
cluster. The entire north India’s apparel beyond tariff issues and explore the possibility
associations like GEA, OGTC, AEMA, of working together as a partner on future
NAEC, DEA, along with AEPC officials, collaborations for product and supply chain
students & faculties of ATDC and workers development. n
HKL Magu, Chairman, AEPC
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 1
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C O N T E N T S
EAI 01 ISSUE 07
` 100
MARKET FOCUS
UK, as an
apparel market
BRAND CASE STUDY
Zara: Success
secret decoded
04 | The Broadcast
India’s Ready-Made Garment (RMG)Export Update for FY
(April-August) 2018-19
LUXURY 05 | The Broadcast
India emerging as a luxury market India’s Textile & Ready Made Garment (RMG) Update for
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 Index for Industrial Production (IIP) for FY (April-July) 2018-19
06 | aepC evenTs
AEPC holds B2B interactions between India and Sri Lanka.
08 | LuXury
India to emerge a strong market for luxury brands
CHAIRMAN AEPC
Mr. HKL Magu 10| Brand reTaiL
• Indian brands shift focus to material quality strategy
CHAIRMAN EP
• Gap Q2 sales up seven per cent
Mr. Sudhir Sekhri
• Urban Outfitters Q1 sales up ten per cent
ADVISOR AEPC 11| Brand reTaiL
Mrs. Chandrima Chatterjee • Google to enter e - com space in India
• Primark to generate 5.5 per cent more sales than last
PUBLISHER year
Apparel Export Promotion Council • Inditex to sell online by 2020
12 | Case sTudy
Zara: Success secret decoded
16 | reTaiL
Gap Inc faces challenging times ahead
18 | Business
• Indian apparel market to reach $155 billion by 2022
• India likely to overtake China in textiles business
Editor-in Chief & Publisher & CEO - 19| Business
• India to change the rules of origin clauses in FTAs
Sanjay Chawla
• Recovery in sight for Indian textile industry
Director - Salil Chawla • India: Rising yarn prices worry hosiery makers
Managing Editor - Sujata Dutta Sachdeva
VP-Corporate Communications 20 | Cover sTory
Shraboni Mukherjee market focus: UK to remain a lucrative market for Indian
Assistant General Manager - Saqib Meer apparels against all odds
Editorial - Narayan Subramaniam
25 | eXporTs
Editorial Asst. - Ranjit Kaur • US-China trade war benefits India exports
Correspondent - Ajay Kumar Goswami, • Falling rupee boosts India’s exports sector
Prerna Sharma
Graphic Designer - Sanjeev D. Sonavane 26 | eXporTs
Production & Admn. - Dhansukh Rathod, • Tirupur knitwear exports decline by 13%
Dinesh Poojary • India to double exports by 2025
Mumbai Office: 38/314, Unnat Nagar 4,
27 | eXporTs
• India’s apparel exports to grow by 1-2 % y-o-y for FY19
Off M. G. Road, MHADA Colony, Goregaon (W), • Bangladesh, Sri Lanka to jointly make eco-friendly jute
Mumbai - 400 062. Ph: 022 2875 5181 apparel
e-mail: dfuif@yahoo.co.in / dfu@rediffmail.com • Kerala’s weavers need six months to repair looms
Dehli Office: Salil Chawla, Business & Mktg: 28 | Business
New Delhi - 110017, Mobile: +9193503 18639/ Indian garment manufacturers need to speed up to grab
95601 79633 e-mail: dfudelhi@yahoo.co.in global business
Printing Press: VIBA Press Pvt. Ltd. C-66/3, 30 | Trade TreaTies
Okhla Industrial Area, Phase-II NAFTA 2.0 to change US apparel sourcing norms
New Delhi-110020
e-mail: info.vibappl@gmail.com 32 | Trade TreaTies
• India and Singapore review FTA
• US urge India to rethink trade barriers and tariffs
• Trump threatens to withdraw from the WTO
2 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
Apparel_Oct.indd 4 10/1/2018 7:24:39 PM
33 | Trade Treaties
• Indian trade barrier to hurt Bangladesh exports
• US-China trade war heats up with more tariffs on
Chinese goods
• India proposes stricter rules to prevent Chinese
goods flooding the country
34 | Trade War
US-China tariff war sees newer sourcing destinations
emerging strong
36 | Imports
• India’s apparel exports to Italy still minimal
• UAE’s apparel imports from India fall by 59 per
cent
• Trouser imports of EU increase by 7%
37 | Imports
• US jeans imports increase in H1
• India imports 56% more RMG from Bangladesh
during July-November 2017
38 | AEPC events
Good response for the Indian Pavilion at ATSC
40 | Insight
Fashion adopting a functional approach
43 | Trends
• Companies prefer cotton over synthetic apparels
• Denim back in fashion in the US
• Nearly 24 per of US apparel sales generated by
Athleisure
44 | Trends
Demand for temperature sensitive clothing on the
rise
46 | Infrastructure
• Manipur upgrades three apparel making centres
in Imphal
• Kay Ventures to convert Karur into a global
knitwear center
47 | Infrastructure
• YEIDA to set up textile park to boost industry
growth
• Arvind to outsource textile production in the next
five years
• UP launches ODOP scheme in Lucknow
48 | Tech Trends
Apparel Technology: New fabric handling
technologies a time saver
50 | AEPC events
AEPC to launched Swachhata Hi Seva Campaign
52 | sUsTainaBiLiTy
Need for Fast Fashion retailers to tighten their eco
goals
54 | certifications
Sustainable materials, certifications driving apparel
industry
56 | events
• India to participate in Footwear and Leather
Show in Australia
• IAF to hold World Fashion Convention in
Netherlands this October
• India to partner Germany at Ambiente 2019 Fair
in Frankfurt
57 | aepc event calendar
CALENDAR OF EVENTS - 2018
58 | NOTIFICATIONS
59 | GST Update
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 3
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AppArel / the broadcast
India’s Ready-Made
Garment (RMG)
Export Update for
FY (April-August)
2018-19
India’s RMG Exports
RMG exports were to the tune of USD 1292.18
million in August 2018 with the decline of -3.35
per cent against the corresponding month of August
2017, which was USD 1336.95 million
In rupee term export for the Month of August 2018
was ` 8986.67 cr. as against ` 8552.24 Cr. in
August 2017 with the growth of 5.08 per cent.
India’s RMG export to World in the April-August
of 2018-19 was to the tune of USD 6612.85 mn.
which has decreased by -12.07 per cent compared
to the same period of previous financial year. During
April-August 2017-18, India’s apparel exports were
to the tune of USD 7520.3 mn.
India’s RMG Export to World
MoM Growth of
FY 2017-18 FY 2018-19
Month 2018-19 over 2017-18 (%)
In INR Crore In US$ Million In INR Crore In US$ Million INR US$
April 11272.24 1747.44 8859.67 1349.81 -21.4 -22.76
May 10342.55 1605.37 9040.63 1338.57 -12.59 -16.62
June 9979.57 1548.59 9202.63 1357.46 -7.79 -12.34
July 8262.94 1281.95 8757.23 1274.83 5.98 -0.56
August 8552.24 1336.95 8986.67 1292.18 5.08 -3.35
April-August 48409.54 7520.3 44846.83 6612.85 -7.36 -12.07
Source: DGCI&S, Kolkata, 2018
4 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
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AppArel / the broadcast
India’s Textile
& Ready Made
Garment (RMG)
Update for Index
for Industrial
Production (IIP)
for
FY (April-July)
2018-19
INDEX OF INDUSTRIAL PRODUCTION
Manufacture of MoM Growth Rate Manufacture of MoM Growth
textiles (In %) wearing apparel Rate (In %)
Month 2017-18 2018-19 2018-19/2017-18 2017-18 2018-19 2018-19/2017-18
April 116 114.2 -1.6 155.5 134.6 -13.4
May 116.7 116.1 -0.5 156.8 136.8 -12.8
June 116.4 115.5 -0.8 145.2 151.6 4.4
July 116.4 119.8 2.9 134.2 147.3 9.8
Total April-July 116.4 117.9 1.3 147.9 143.8 -2.8
Source: CSO, 2018
Summary
• Manufacturing of Textiles has shown a growth of 2.9% in July, 2018 and growth of 1.3% for
the period of April-July, 2018-19
• Manufacturing of Wearing apparel has shown a growth of 9.8% in July, 2018 and decline
of -2.8% for the period of April-July, 2018-19
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 5
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AppArel / AEPC events
AEPC holds B2B interactions
between India and Sri Lanka.
A group photograph of Sri Lankan delegation with representatives from India
A
EPC recently held B2B interactions
between India and Sri Lanka that
were aimed at increasing trade
relations between the two countries.
Representatives from both sides agreed that
it is time to look the beyond tariff issues and
explore the possibility of working together
as a partners. India proposed that Sri Lanka
should share its knowledge on microfiber
fabrics and products, technology, etc while India - Sri Lanka B2B meeting at Apparel House, Gurgaon
India should provide knowledge on value Commerce, New Delhi; HKL Magu, Chairman, AEPC;
added products, designing and products Sudhir Sekhri, Chairman-EP, AEPC; Gautam Nair, EC
development. Member, AEPC and representatives from Sri Lanka Apparel,
The meeting commenced with the Brandix Apparel Ltd, Sri Lanka; MAS Brands India Pvt Ltd,
opening remarks from Aditi Das Rout, Sri Lanka; Hirdaramani, Sri Lanka; Timex Garments, Sri
Trade Advisor,Ministry of Textiles in Lanka; Page Industries, Sri Lanka; CMAI, Vardhman Textiles,
presence of AG NimalKarunatilake, Actg. CITI, Arvind Ltd., and TEXPROCIL
Addl. Director General, Department of The discussions aimed to increase the trade between the
Commerce, Sri Lanka. It was attended two countries. The meeting ended on very positive note.
by, UpekkhaSamaratunga, Minister HKL Magu, Chairman, AEPC thanked the delegation from
(Commercial), Sri Lanka High Commission; Sri Lanka and proposed for future collaboration and B2B
SB Nanda, Under Secretary, Ministry of meetings with Sri Lanka. n
6 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
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AppArel / Luxury
India to emerge a strong
market for luxury brands
I
ndian luxury market needs to think in €150 and wines and spirits – more than €100 as true luxury. The
terms of size and growth, at least 10 luxury market in India is approximately $12 billion-$15 billion
years ahead of its time. Luxury brand or 1.5 per cent of the world market. China, on the other hand,
Louis Vuitton opened its first store makes up 40 per cent of the world luxe market.
in China in 1992 but could offer reasonable One of the biggest constraints for Indian luxury market
sizes only 20 years later. The brand opened its is talent. An important part of the experience is the in-store
first store in India in 2003 and is still few years staff. There are simply not enough trained people available.
behind when it could offer the right sizes. Even the pool available is more deferential than an informed
Standardising luxury by considering optimum seller of luxury.
price for experiential and personal luxury
goods, BCG classifies handbags above €1,000, Change in perspectives
shoes above €300, restaurants spend of above Popular perception that luxury consumers are old, live in
8 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
Apparel_Oct.indd 10 10/1/2018 6:03:36 PMAppArel / Luxury
metros and predominantly female needs to
change. Although dealerships for luxury car
showrooms exists in cities like Jalgaon and
Coimbatore, but the consumers in most cities
do not find the offer in India compelling and
end up purchasing goods either in Singapore
or London, where they get a better range,
service standards and retail environment.
The role of women as prospective buyers
in both luxury and premium categories is
changing. With the percentage of women
getting education rising higher than boys
increasing since 2015, the future consumer-
base for luxury and premium goods is likely
to be female-centric. In China, this segment
of young working women is amongst the
most important demography in luxury.
The India advantage
The Chinese luxury market is much bigger
than the size of Indian luxury market and is
growing at a healthy clip. The spread in China
is much broader – 50 per cent of luxury
consumers are beyond the Top-15 cities. India
also being a big country, has a potential of
vast spread beyond Tier I cities.
Most global luxury brands worldwide
started as craft brands a century or more,
ago. Bulgari, for example, was once a single
jewellery store and Burberry an outdoor
wear manufacturer; today these are global
iconic brands across categories. India also has
potential to build few luxury brands in future
due to its ideal business climate. High end
apparel or jewellery, etc are some categories
where true Indian luxury brands may emerge.
Some brands in India have already started
on that journey and are likely to attain global
reach and appeal shortly.
Historically, luxury brands invest a
lot in print for brand building. In France,
LVMH is the biggest print advertiser. In
contrast, a lot of brand building in China
happens online. India is likely to adopt the
mid-approach by focusing less on TV as
it finds less relevance in luxury owing to
increased fragmentation and also being a
low attention medium. n
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 9
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Indian brands shift focus to material quality strategy
I
n a bid to counter competition from
Ikea, domestic players have shifted their
focus from price point strategy to material
quality strategy. Some furniture makers are
manufacturing a roll-pack mattress that can
easily fit into the size of a TV box bringing the
shipping cost down by 70 per cent. They hope
to ship more products at a low cost across India
and the waiting period is less than three days.
One startup has even opened an experiential
center, where customers can rest for 30 minutes before buying
the product. Another startup visits customers at their homes. This
helps a brand understand customer expectations and customize
their products accordingly. n
Gap Q2 sales up Urban Outfitters Q1 sales
seven per cent up ten per cent
T
he first quarter sales of Urban Outfitters rose by 10 per cent. This
growth was spurred by higher consumer spending, despite
a longer than normal winter, as well as easier comparisons
versus the same period last year. The company expects to
generate substantial growth in the revenue and earning metrics
in the second quarter. Its sales are expected to grow by 12.2 per
cent and EPS by a whopping 75 per cent.
The company’s total markdown rate during the first quarter
was the lowest than that of any quarter in the last ten years. This
T
he Q2 sales of Gap Group have increased resulted in higher average unit retail, and eventually positive store
by 7.5 per cent. Its US sales rose by 9.3 comps. A better assortment, higher consumer spending, and
per cent. However, the group’s growth disciplined inventory
has slowed since Q1 due to its limited range. control also helped
It discourages people from visiting and the company to
purchasing. It also leads to the company offer lesser discounts.
resorting to continuous discounting to Urban Outfitters
stimulate sales. The brand needs to establish opened its first
a clearer identity and a sense of purpose like freestanding store
other apparel brand. in Paris in February
The total sales of its Old Navy brand, aided and its first franchise
by strong consumer economy, increaqsed store in the outskirts
by 13.7 per cent. The division continues to of Tel Aviv in April. The
produce nice fashion edits at good price company plans to
points. It is also adding plus sizes to the open two additional
range. Another brand Banana Republic also stores in Europe
reported positive results n and facilitate the
opening of several additional franchised stores in Israel. n
10 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
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Google to enter e - com space in India
G
oogle is planning further ripen up for acquisitions. The big three,
to enter the Google, Amazon and Walmart-backed
e-commerce Flipkart, flush with big money and investor
space in India. This optimism, will aim to buy out smaller players to
could pressurise the beef up their e-commerce war chest in India.
existing players through Start-ups in specialised niche domains
its higher customer acquisition costs and the latest technologies. such as medicines, cosmetics, food, furniture,
Existing players, who do not pay attention to aspects like fashion will continue to grow, acquire scale
recommendation engines and the search experience, will be and ultimately get picked up by the big three.
forced to optimise on these aspects. However, there wouldn’t be much space for
Though Google has an edge in terms of technology platforms, horizontal e-commerce players operating
the existing e-commerce giants boast of a strong supply chain in multiple products and service categories;
and customer support. For consumers, the party will continue enabling strong vertical players to emerge in
with lots of deals, discounts and cashbacks. The market will niche categories. n
Primark to generate 5.5 per Inditex to sell
cent more sales than last year online by 2020
S
pain’s Inditex SA plans to sell its Zara and
other brands online within the next two
years. The retailer currently has stores in
96 countries and e-commerce in about half of
those. It has been warned by Morgan Stanley
analysts regarding the drop in its rankings
from great to good; Credit Suisse too has
P
rimark, in its recent trading update, has stated that it would
generate 5.5 per cent more sales than last year at constant
currency of 6 per cent at actual exchange rates). But, this
will be offset by a 2 per cent decline in like-for-likes (LFL).
The company stated that its full year sales in the UK are
expected to be 6 per cent higher than the last year. Its share criticised its growing shift to online sales. The
of clothing market has also increased significantly. The brand’s company’s shares too have dropped by 14
stores in Spain, Portugal and Italy have delivered strong sales percent this year. E-commerce is the source
growth in the year. Its LFL sales have decreased due to a decline of 10 percent of its sales, having grown more
in northern Europe where the unseasonable weather led to than 40 percent last year.
difficult retail conditions. Despite this, sales in northern Europe Inditex’s ailing rival, Hennes & Mauritz AB,
were well ahead of last year driven by increased selling space. aims to add online sales in all its brick-and-
The company’s operating margin during the period declined mortar markets eventually, and expand in
to 9.8 per cent from 10 per cent year-on-year, due to the adverse other countries as well. The H&M chain has
effect of the US dollar exchange rate on purchases. But margin e-commerce in about 50 markets and stores
in H2, driven by the weakening of the US dollar exchange rate, is in about 70. n
likely to be more than in the first half and last year. n
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 11
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Zara
Success secret
decoded
Customer insights are the holy grail of modern business, and more the
companies know about their customers, the better they can innovate
and compete. This is the winning formula that Zara has been using to
beat the competition and remain successful over the years. An intriguing
case story by Martin Roll Company…
Z
ara is one of the world’s most The secret to Zara’s success has largely being driven by its
successful fashion retail brands. ability to keep up with the rapidly changing fashion trends and
With its dramatic introduction showcase it in its collections with very little delay. From the
of the concept of fast fashion very beginning, Zara found a significant gap in the market that
retail since it was founded in 1975 in Spain, few clothing brands had effectively addressed. This was to keep
Zara aspires to create responsible passion pace with latest fashion trends and offer collections that are a
for fashion amongst a broad spectrum of combination of high quality and yet, are affordable.
consumers, spread across different cultures The brand keeps a close watch on how fashion is changing
and age groups. There are many factors that and evolving every day across the world. Based on latest styles
have contributed to the success of Zara but and trends, it creates new designs and puts them into stores
one of its key strengths, which has played a in a week or two. In stark comparison, most other fashion
strong role in it becoming a global fashion brands would take close to six months to get new designs and
powerhouse as it is today, is its ability to put collections into the market.
customers first. Zara is obsessed with its It is through this strategic ability of introducing new
customers, who have defined the company collections based on latest trends in a rapid manner that has
and the brand’s culture right from the very enabled Zara to beat other competitors. It quickly became the
beginning. people’s favourite brand, especially with those who want to keep
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Winning formula
Zara’s unrelenting focus on the customer
is at the core of the brand’s success and
up with fashion trends. Founder Amancio Ortega is famously the heights it has achieved today. Customer
known for his views on clothes as a perishable commodity. insights are the holy grail of modern business,
According to him, people should love to use and wear clothes and the more companies know about their
for a short while and then they should throw them away, just customers, the better they can innovate and
like yogurt, bread or fish, rather than store them in cupboards. compete. But it can prove challenging to have
the right insights, at the right time, and have
Success strategies access to them consistently over time.
The media often quotes that the brand produces ‘freshly One of the secrets of Zara’s success is
baked clothes’, which survive fashion trends for less than a that the brand trains and empowers its store
month or two. Zara concentrates on three areas to effectively employees and managers to be particularly
‘bake’ its fresh fashions: sensitive to customer needs and wants, and
Shorter lead times (and more fashionable clothes): Shorter how customers enact them on the shop
lead times allow Zara to ensure its stores stock clothes that floors. Zara empowers its sales associates
customers want at that time. While many retailers try to forecast and store managers to be at the forefront of
what customers might buy months in the future, Zara moves in customer research – they intently listen and
step with its customers and offers them what they want to buy note down customer comments, ideas for
at a given point in time. cuts, fabrics or a new line, and keenly observe
Lower quantities: By reducing the quantity manufactured new styles that its customers are wearing that
for a particular style, Zara not only reduces its exposure to any have the potential to be converted into unique
single product but also creates artificial scarcity. Similar to the Zara styles.
principle that applies to all fashion items (and more specifically Due to Zara’s competitive customer
luxury), the lesser the availability, the more desirable an object research capabilities, its product offerings
becomes. Zara only has two time-bound sales a year rather than across its stores globally reflect unique
constant markdowns, and it discounts a very small proportion customer needs and wants in terms of
of its products. physical, climate or cultural differences.
More styles: Rather than producing more quantities per It offers smaller sizes in Japan, special
style, Zara produces more styles, roughly 12,000 a year. Even women’s clothes in Arab countries, and
if a style sells out quickly, there are new styles waiting to take clothes of different seasonality in South
up the space. This means more choices and a higher chance of America. The fact that Zara’s designers and
getting it right with the consumer. Zara only allows its designs customers are inextricably linked is a crucial
to remain on the shop floor for three to four weeks. This part of the brand strategy. Specialist teams
practice pushes consumers to keep visiting the brand’s stores. receive constant feedback on the decisions
its customers are making at every Zara
store, which continuously inspires the Zara
creative team.
Super-efficient supply chain
Zara’s highly responsive, vertically
integrated supply chain ships new products
to stores twice a week. After products are
designed, they take around 10 to 15 days
to reach the stores. All its clothes items are
processed through the distribution center in
Spain, where new items are inspected, sorted,
tagged, and loaded into trucks. In most cases,
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 13
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clothing items are delivered to stores within
48 hours. This vertical integration allows
Zara to retain control over areas like dyeing
and processing and have fabric-processing
capacity available on-demand to provide the
correct fabrics for new styles according to
customer preferences.
It also eliminates the need for warehouses
and helps reduce the impact of demand the most outstanding pieces in the collection, are also a powerful
fluctuations. Zara produces over 450 million communication tool designed by a specialised team. A lot of
items and launches around 12,000 new designs time and effort is spent designing the window displays to be
annually, so the efficiency of the supply artistic and attention grabbing. According to Zara’s philosophy
chain is critical to ensure that this constant of fast fashion, the window displays are constantly changed.
refreshment of store level collections goes This strategy goes down to how the employees dress as well
off smoothly and efficiently. – all Zara employees are required to wear Zara clothes while
In addition to these supply chain working in the stores, but these ‘uniforms’ vary across different
efficiencies, Zara can also modify existing Zara stores to reflect socio-economic differences in the regions
items in as little as two weeks. Shortening they were located.
the product life cycle means greater success
in meeting consumer preferences. If a design Rising up to the challenges
does not sell well within a week, it is withdrawn For Zara to effectively compete and maintain its strategic
from shops, further orders are cancelled and a advantage, the focus needs to shift away from price but
new design is pursued. towards quality. Even today the Zara brand enjoys high levels
of appeal, which is evident by the serpentine queues outside
Brand communication its stores when it launches in new markets. There is a need for
strategy Zara to start investing in building a strong brand positioning
Zara has used almost a zero advertising and aggressively communicate it. Additionally, Zara needs to
and endorsement policy throughout its entire adopt, imbibe and leverage social media and digital platforms
existence, preferring to invest a percentage of in its advertising and communication strategies deeper going
its revenues in opening new stores instead. forward. Without advertisements, Zara relies heavily on
It spends a meagre 0.3 per cent of sales on word of mouth or social media. This causes the perception
advertising compared to an average of 3.5 of potential customers towards Zara to be heavily shaped by
per cent by competitors. The brand’s founder family and friends, which may not be accurate. In addition,
Amancio has never spoken to the media nor Zara’s social media platforms such as Facebook and YouTube
has in any way advertised Zara. This is indeed exist merely as a feed for updates rather than a platform that
the mark of a truly successful brand where consumers can interact with. Its videos on YouTube are also
customers appreciate and desire the brand, seeing very low viewership in comparison with its follower
which is over and above product level benefits count, which is not ideal as videos are a powerful medium
but strongly driven by the brand experience. for brands in the fashion industry. This is a gap that Zara
Instead of advertising, Zara uses its store needs to plug immediately as the reach and impact of social
location and store displays as key elements of media marketing gets stronger. As Zara’s target customer
its marketing strategy. By choosing to be in segments start using more social and digital platforms for
the most prominent locations in a city, Zara communication and for sharing their lives, it is important for
ensures very high customer traffic for its Zara to have a strong presence on such platforms. n
stores. Its window displays, which showcase Source: Martin Roll Company
14 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
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Apparel_Oct.indd 15 10/1/2018 6:03:44 PMAppArel / Retail
Gap Inc faces
challenging times ahead
F
ollowing a strong industry retail Accelerating store openings
report of growth of 6.6 per cent Gap has speeded up Old Navy store openings. The brand
and 6.4 per cent in June and July opened over 30 stores in FY 2017, and 28 in H1 2018, along
versus the previous year, and with 85 remodels. The performance of these stores is exceeding
stellar results posted other leading like Urban expectations and remodels are outperforming the fleet by an
Outfitters, much was expected from the average spread of five comp points. The company further
company Gap Inc. However, the performance plans to double store openings as compared to FY 2017, which
of the brand Gap left much to be desired. Gap should help increase revenues.
Inc’s comparable sales increased only 2 per
cent as against the expected 1.5 per cent, while Introduction of plus collection
comparable sales of the Gap as a brand fell 5 Old Navy will launch its plus collection, which was previously
per cent against the expected decline of 2.3 per available only online, in 75 select stores. The women’s plus-
cent. However, the growth of company was led size market is growing at a higher rate than the overall apparel
by Old Navy, followed by Banana Republic as market. According to NPD, even with just the online business,
these brands performed in-line with estimates. Old Navy falls within the top 10 women’s plus-size brands
As per analysis of Forbes, the following factors and the expansion of the category in the stores represents a
may influence the brand’s future performance: significant growth opportunity.
16 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
Apparel_Oct.indd 16 10/1/2018 6:03:44 PMAppArel / Retail
Improvement in online
business
Focus on Athleta and Old Navy The company has one online platform
Sales in the activewear category increased 2 per cent, valuing for all its brands, ensuring customers can
the market at roughly $48 billion in 2017. The brand registered purchase items for in one place. This also
a double-digit growth in its second quarter and the momentum ensures recognition for its new brands which
is expected to continue through FY 2018. The company would not have been possible if they had had
expects its future store openings to be focused on Athleta and a separate web presence. An upshot of this is
Old Navy, with closures weighted toward Gap and the Banana that the company was able to deliver strong
Republic. growth from its online and mobile channels in
the second quarter, and is on track to garner
Excess inventory impacts margins over $3.5 billion in digital sales this year.
The company was saddled with excess inventory in the first Gap Inc. is increasing store count of
quarter, which consequently impacted its sales from this brand Athleta, Old Navy, and the factory and
as well as its ability to optimise its margins. The overall gross outlets at the Banana Republic and Gap.
margins of the company fell by 10 basis points in the quarter, Consequently, in the first half, the company
after a 20 basis point decline in Q1. Looking ahead, the company opened 60 stores, largely Old Navy and
has cut 30 per cent styles heading into the second half of the Athleta, and closed 38 stores, primarily Gap
financial year, which should help to improve the performance. and Banana Republic. n
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 17
Apparel_Oct.indd 17 10/1/2018 6:03:45 PMAppArel / Business
Indian apparel market to reach $155 billion by 2022
T
he Indian apparel market is slated to accordingly. For example, men and women display different
grow at the rate of 15 per cent CAGR till drivers for entering the purchase funnel. Fashion brands need
2022. Purchases of seven out of 10 fashion to adopt relevant marketing strategies and reduce friction in
accessories in India during this period will be
executed through mobile phones. Nearly
half of these mobile-executed purchases will
be driven by Facebook, amounting to a 110
billion dollar sales opportunity. Additionally,
the mobile will influence two in three apparel
purchases, amounting to a 66 billion dollar
opportunity for brands, half of which will be
driven by Facebook.
Friction accounts for 19 per cent of
consumer dropouts in the apparel category,
while in the accessories category, it accounts
for 22 per cent of consumer dropouts. Friction
occurs when consumers dropout during
purchase due to unnecessary additional consumer journeys across multiple touch-points, leading to
effort, incremental step or inconvenience improved conversion rates and increased revenue opportunity.
Top friction areas for different demographic The fashion spectrum in India has evolved considerably
cohorts vary, therefore marketers need enabling the apparel and accessory market to reach $155
to customise their marketing strategies billion by the year 2022. n
India likely to overtake China in textiles business
O
wing to the availability of cheap labor and
modernisation, India is likely to outpace
the Chinese textile sector. The country can
easily counter Chinese competition with the aid of
cheap and skilled labor.
India, with the help of FDI, aims to double its
annual revenue from textiles by 2025. This will
also create millions of jobs in the sector. High-
tech machines, which deliver quality goods,
will enable India to reach the set targets at the
production level. Tamil Nadu, which has 4.13 lakh
handlooms, alone accounts for 39 per cent of
the total textile production in the country. These
provide employment to around 6.08 lakh weavers
in the state. The state also has 3.66 lakh power
looms and 1,889 spinning mills that provide
employment to another 2.40 lakh people, while
knitwear and woven garment production units
provide employment to over five lakh people.
The textile sector in India is showing signs of
recovery. The stressed advance ratio of the textile hit by demonetisation, GST, rupee appreciation and high domestic
sub-sector has improved in March 2018 from the cotton prices. Packages and incentives are expected to create a strong
levels of September 2017. The sector was heavily turnaround in the textile and clothing sector.
18 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
Apparel_Oct_shortstories.indd 3 10/1/2018 7:26:56 PMAppArel / Business
India to change the rules of origin clauses in FTAs
I
ndia is planning to change the clauses for the rules of origin Bangladesh, with which India has FTAs.
in the free trade pacts, including the South Asian Free Trade As India has not imposed any sourcing
Agreement, as the country fears that with the US-China trade restrictions on less developed countries
war escalating, Beijing may divert its manufactured goods into (LDCs), analysts believe China can use the
the Asian markets. LDC route. Besides Bangladesh, within Asia,
India’s trade deficit with China has already increased to Nepal, Afghanistan, Myanmar, Maldives and
$62.9 bn in 2017-18 out of a bilateral trade worth $89.6bn in Cambodia are LDCs.
the last fiscal. The country has increased
The country does its basic customs duty
not have any on printed circuit boards,
free trade pact including populated,
(FTA) with India. stuffed and loaded PCBs,
However, policy as well as camera modules
makers feel that and connectors used in
Beijing may use mobile phones to 10 per
other countries cent from zero, seen as
in South East part of a bid to kick-start
Asia and South the much hyped “Make in
Asia, such as India” campaign. n
Recovery in sight for Indian India: Rising yarn prices
textile industry worry hosiery makers
T
he textile sector in India, hit by demonitisation, GST, rupee
H
appreciation and high cotton prices, is showing signs of osiery manufacturers in Mumbai are
recovery. The stressed advance ratio of the textile sub-sector protesting against the rising prices of
has improved in March 2018 from the levels of September 2017. yarn. Yarn rates, which were around Rs
Support in the form of the Rs 1300-crore ($US 185.41 million) 255 till January, have reached Rs 400 per kg.
Samarth scheme for skilling and the Rs. 6000-crore($US 855.86 The prices have almost doubled during these
million) package for apparel and made-ups, along with various six months. Due to this many manufacturers
incentives, is expected to create a strong turnaround in the are losing orders.
textile and clothing sector and put the industry back on the Dealers are also urging the government
growth path.
What the industry now needs is policy support to stop excess
imports and refund of all duties and taxes on exports across
the value chain. In the financial year 2018, imports of textiles
and apparel were 16
per cent higher than the
previous year’s value. All
categories across the
value chain have seen a to deal with the issue of cartelisation in yarn
drastic rise in imports. industry. Many hosiery manufacturers have
Moreover, embedded protested against this “cartel” of yarn dealers
duties, in the range of 4 and owners. Under the banner of For Arm
per cent to 6 per cent Welfare Organisation, they burnt the effigy of
across the value chain, yarn dealers/ owners of yarn manufacturers.
are not getting refunded. This is one of the key factors for the They are now trying to meet Member of
decline in exports; apart from blockage of funds due to delay in Parliament Ravneet Singh Bittu on this issue. n
GST refunds and rupee appreciation. n
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 19
Apparel_Oct_shortstories.indd 4 10/1/2018 7:26:56 PMAppArel / cover story
Market Focus
UK to remain a lucrative
market for Indian apparels
against all odds
UK has always been a key textile and apparel market for India. However, with
Brexti, the actual effects on the apparel industry will only be clear once the terms
of trade are negotiated. Indeed, Brexit is expected to impact India’s exports in
some ways. Stakeholders are still waiting for the clear picture to emerge.
T
he UK and India have more than India’s apparel exports to the UK
200 years of shared history with remains steady
powerful democracies, connected For India, the UK is a key market for textile and apparel
cultural institutions and a strong products. Out of India’s total textile and apparel exports to
economic trade relationship. The Indian the EU, the UK’s share was 23 per cent in 2016. India is the
Diaspora, which totals about 1.5 million fourth largest supplier of textile and apparel products to the
people, is the largest ethnic minority group in UK. Apparel is the largest category with a share of 75 per cent
the UK, has an important role to play in many in India’s textile and apparel exports to the UK. This is followed
spheres ranging from economic and business by cotton textiles and manmade textiles having shares of 12 per
relations to sports, science and politics. cent and five per cent.
20 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
Apparel_Oct.indd 18 10/1/2018 6:03:45 PMAppArel / cover story
As a trendsetter in global fashion, the apparel and footwear
market in the UK has been growing steadily over the last seven and the pound plummeted to its lowest level
years, with 2018 expected to bring the current market value in 31 years with $2 trillion wiped off the
to a massive €60.7 billion. Besides market value, the annual global stock market. Tariff-free trade in the
expenditure on clothing which is based on sales volume has EU, free movement of talent and skills, EU
also seen a gradual increase, reaching £57.8 billion in 2017. funding and investments were the lifeline of
As prevalent in all markets around the world, the maximum UK’s apparel industry.
sales come from women’s outerwear which is almost double of Actual effects of how Brexit will affect
men’s outerwear purchasing. Many leading brands are doing the apparel industry will only be clear after the
well in the UK market, including high street retailers, which terms of trade are negotiated.
include brands such as Primark, Next, New Look as well as However, a soft Brexit, which is a sigh of
online shops, like ASOS. In recent years, growth in internet
sales has been considerably high, with 56 per cent of individuals India’s exports to the UK
purchasing clothing online in 2017. Despite this growing trend, account for less than 7 per cent
many consumers still prefer to buy clothes in physical shops of total textiles but more than 10
and offline purchases are predicted to remain responsible for per cent in case of apparels. In
around 71.2 per cent of sales by 2020. 2015, exports to UK aggregated
Many high street brands have now set up shop in Indian $2.41 billion including $1.81
malls of Tier I and II cities. Many brands are importing their billion of apparels alone. This
raw material from India or doing the finishing work on their shows trade between India
garments by outsourcing from India, thus leading to a healthy and UK becomes pertinent for
economic relationship between the two countries. apparel. Although it is a large
The UK is a major consumption centre of a variety of
market for India, it is more
textile and apparel products from around the world. Apart from
or less saturated now with so
these, other varieties such as manmade textiles, cotton textiles,
many players. Post Brexit, it is
and carpets are also imported from other countries. China is
the largest supplier, followed by Bangladesh, Turkey and India.
expected to be a growing market
for high value-added products
Brexit’s fallout on trade still over the next few years. Many
undetermined large Indian mills such as Arvind
Beset by a protracted economic recovery, rising cost of Mills, D’Décor, Oswal, Mafatlal
massive European Union (EU) bureaucracy, and migrant crisis, and Raymond and other premium
Britain opted to exit the EU. On June 23rd, 2016, when Britain producers have been exporting
voted to leave the European Union, the 28-nation trading bloc to UK labels
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 21
Apparel_Oct.indd 19 10/1/2018 6:03:46 PMAppArel / cover story
on its trade with India because of the EU’s failure to agree to a
free trade deal. However, the deal has been held up for a decade
by EU regulations on intellectual property and data protection,
with which India is refusing to comply. But after Britain leaves
the EU, the deal can go ahead because British trade negotiators
regard the disputed EU rules as unnecessary. A Commonwealth
report, whose 52 member nations also include India and the
relief for the apparel industry, is expected. UK, says Brexit will bring forth a great opportunity for bi-
Before its exit, Britain had a trade agreement lateral relationship when actually implemented.
with the EU but now, all trade between
Britain and EU would be as per the WTO UK’s apparel manufacturing market
rules. This means, trade between Britain and holds steady
EU will be subject to trade tariffs on imports Inspite of market fluctuations and changes in regulations,
and exports, the textile goods tariff being apparel manufacturing market has been holding steady in the
around 12 per cent. It is mainly the UK-based UK. There has been an increase in the number of companies
garment companies that will suffer by these over the last five years and a rise in the value of clothing
tariffs and their only way out is to pass on exports, which was worth approximately £6 billion in 2017.
the extra cost to customers. This will further Growth in the apparel market has also been supported by the
impact retail as a whole and further impact rise of niche markets, such as plus size clothing, which garnered
the companies doing business with British £18.7 million in 2016 alone. Plus size clothing in many styles
apparel firms globally. There may be chances and brands has lately taken over the women’s apparel market by
of a negotiable free-trade deal as well, similar storm. There will be initial turmoil post Brexit as there will be
to Norway (EFTA) and other new regulations. some structural market changes and fresh negotiations.
Britain will be able to increase its exports to In perspective, EU imported textiles worth $235 billion in
India by more than £2 billion per year after 2015 from the world. Of this, UK accounted for 15 per cent or
Brexit by cutting EU red tape. $35 billion. Thus, the country is one of the largest markets for
The UK currently faces significant tariffs textiles including fibres, yarns, fabrics, apparels and other textile
products. However, it is not a major supplier of this industry
The impact on India’s exports
is expected to happen in some
ways. There will soon be an
inevitable decline in demand
for India’s goods and services
because of Brexit-induced
growth slowdown in the UK and
EU, and also some un-favorable
exchange rate movements
22 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
Apparel_Oct.indd 20 10/1/2018 6:03:47 PMAppArel / cover story
and thus will have negligible impact on sourcing. a FTA with the EU and preferring a separate
India’s exports to the UK account for less than 7 per cent economic pact with the UK. India currently
of total textiles but more than 10 per cent in case of apparels. enjoys a 12.5 per cent tariff preference in
In 2015, exports to UK aggregated $2.41 billion including $1.81 the EU under its generalised scheme of
billion of apparels alone. This shows trade between India and preferences programme.
UK becomes pertinent for apparel. Although it is a large market However, the initial hurdle is the UK will
for India, it is more or less saturated now with so many players. firstly have to negotiate terms and conditions
of trade with many different countries, besides
India. So India will have to prove itself to be
the best viable option and this will involve
many complex and market interdependent
variables. What to export/import in what
quantity and what pricing between will be a
different ball game altogether post Brexit.
Change is inevitable
A recent report on India’s trade relations
with the UK says the value of India’s exports
to the EU in FY16 stood at $45 billion, which
is around 17 per cent of its total merchandise
exports in dollar terms. Of that, Britain alone
accounted for over 20 per cent, equivalent to
$9 billion. Of this, around $2.5 billion or 28
per cent was apparels and made ups. Overall,
Post Brexit, it is expected to be a growing market for high value- Britain accounted for 40 per cent of India’s
added products over the next few years. Many large Indian mills total merchandise exports to the EU.
such as Arvind Mills, D’décor, Oswal, Mafatlal and Raymond and The impact on India’s exports is expected
other premium producers have been exporting to UK labels. to happen in some ways. There will soon be
Indian garment exporters however are now a little perturbed an inevitable decline in demand for India’s
about how the post Brexit economic relationship will work out. goods and services because of Brexit-induced
After separation from EU, they are looking at a trade treaty growth slowdown in the UK and EU, and also
with a free trade agreement (FTA) with the UK which will help some un-favorable exchange rate movements.
boost garment exports. Knitwear exporters are also pitching for Brexit will have direct and indirect impact
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 23
Apparel_Oct.indd 21 10/1/2018 6:03:47 PMAppArel / cover story
discretionary spending is limited. Young clothing shoppers have
higher purchase frequency, with 58.1 per cent of 16-24s buying
clothing at least once a month, boosted by fast fashion trends
and shoppers’ desire for newness. In
comparison, just 14.6 per cent of 65
plus age group, buy clothing at least
once a month.
Experts feel the future of India-
UK relations is bright and India
can play an important role once
Britain exits the EU. However,
Indian exports could face increased
competition from cheaper Chinese
products—from steel to textiles—
not only in European markets but
also in third country export markets
such as the US, because of relative
weakness of the yuan vis-a-vis rupee
against the dollar.
Brexit and the Trans-Pacific Partnership (TPP) trade deals
are two big threats for the revival of India’s exports to the
UK. However, an intelligent precaution over the last few years
India has diversified its exports significantly away from the EU
and other developed markets towards emerging markets of
Asia, Africa and Latin America. This is expected to minimize
on growth prospects of both Britain and the the damage to current market. However, Brexit could be
EU. As per IMF, Brexit will mop up anything
between 1 to 9 per cent of Britain’s GDP
growth rate, depending upon actual terms
of withdrawal from the EU. If Britain fails
to retain duty-free market access, rise in EU
tariff and non-tariff trade barriers will disrupt
existing supply chains. That, along with
slowing GDP growth, will reduce the demand
for India’s exports to the region.
Brexit will come at a time when emerging
economies are struggling to export to the rest
of the world. Industry experts feel that it will
make India’s exports revival quite difficult
unless it’s a soft Brexit.
Value for money is the biggest purchase problematic for sectors which are overexposed to Britain and
motivator for clothing, especially among EU, like textiles and clothing, IT and pharmaceuticals. The
mature shoppers. This is followed closely Japanese Yen has gained immensely against the dollar over the
by quality and then price. Across all socio last few quarters and that makes its imports cheaper. India can
economic groups, value for money and quality use this limited window to push exports to Japan to make up
were the top two drivers, ensuring it is not low for the likely loss from Brexit. Industry experts are now seeing
prices alone that will garner sales as shoppers a wait and watch policy till the impact of Brexit is truly felt in
look to justify purchases at a time when their the Indian markets. n
24 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
Apparel_Oct.indd 22 10/1/2018 6:03:48 PMAppArel / Exports
US-China trade war benefits India exports
T
he trade war between the US and China
has presented India with an opportunity to
export more cotton, corn, almonds, wheat
and sorghum to China. There are at least
100 products where India can replace US
exports to China by benefiting from the higher
import duty China has imposed on products
originating in the US.
While China has imposed 15 to 25 per
cent tariff on these goods coming from the
US, other countries are subject to a five to a
10 per cent duty. Moreover, India has been
granted additional duty concessions under
the Asia Pacific Trade Agreement, making its
exports more competitive.
Fresh grapes, cotton linters, fluecured exports of these products because of the tariff differential and
tobacco, lubricants and certain chemicals, the substantial demand in China.
including benzene, are a few products which Corn is of specific interest to India as the country is a huge
the US has been exporting to China. India too corn exporter. While American corn is subject to 25 per cent
has been exporting these products to China duty, APTA countries can get up to 100 per cent concessions on
but now there is scope for India to increase corn exports to China. n
Falling rupee boosts India’s exports sector
I
ndian exporters are buoyant due to the falling rupee. Those who have just raised funds, especially in dollars or about to
The auto component players are especially happy close a fund, are in the positive sphere. Venture capital money is drawn
with increasing flow of dollars. It has resulted in over time and the exchange rate matters only at the time of withdrawal.
businesses, transacted in dollars (the IT, apparel, Those who have drawn down their tranche of capital in the last two to
leather or textile sectors), to make a substantial gain three months will gain 6 per cent -7per per cent only due to exchange
of 7-8 per cent. Those raising funds from the Indian rate fluctuations. The current slide augurs well for those intending to
market can be rest assured as investments typically raise money from the domestic market. However, despite gains, the
pour in with a one-year timeline. moot point is having a stable currency should be the way forward. n
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018 / 25
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Tirupur knitwear exports decline by 13%
K
nitwear exports from
Tirupur, in the first four
months of the current
year, have fallen by 13 per
cent. A major reason for this
is GST and the consequent
reduction in duty drawback
and rebate of state levies. The
basic customs duty has been
increased from 10 to 20 per
cent on specified garments.
The duty hike on import of
23 knitted garment items and
one knitted fabric is expected
to protect the domestic textile
industry. Knitwear exporters
had been appealing for swift action in this of labor, low wages and customs exemption available to these
regard as textile imports from countries such as countries in EU and Canada. Under the South Asian Free Trade
China, Bangladesh, Vietnam and Cambodia Area agreement, specified garment items imported into India
have increased significantly. from Bangladesh are also exempted.
Exporters have urged for a restriction on The Tirupur knitwear cluster is looking forward to the Indo-
import of textile products. They have prepared Pacific economic corridor as it would open up traditional
a white paper detailing the threat from China, apparel markets abroad. The corridor is a treaty of 12 countries,
with Chinese companies setting up factories including India, the US, Australia, Indonesia, Japan and New
in countries bordering India to take advantage Zealand among others. n
India to double exports by 2025
I
ndia plans to double its exports by 2025.
These exports will not only create jobs but
also bring in foreign exchange and validate
India’s international competitiveness in view of
the challenges like uncertainty of global trade,
rigid approach of banks which affects availability
of credit, high logistics cost and productivity
standards and qualities.
India will focus on 12 identified sectors for
promoting their development, and realising their
potential. It is preparing a special strategy for the
services sector to achieve broad-based growth
instead of the existing pre-dominance of IT. New
structures, policies and action plans will be
formulated for the sector. country will boost trade with smaller countries and explore new
Attention will also be given to gems and jewelry, territories like Africa, which has 54 countries but accounts for only 8
leather, textile and apparel, engineering sector, per cent of exports from India.
electronics, chemicals and petrochemicals, India has acceded to the WTO’s Trade Facilitation Agreement. An
pharma, agri and allied products and marine action plan containing specific activities to further ease bottlenecks to
products. Apart from traditional markets, the trade has been prepared. n
26 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | October 2018
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