News International
Calvin Klein Launches White Washed Denims
 Calvin Klein Jeans has come out with Spring 2010 collection for men and women. This season, the collection is sexy - American sportswear that's always modern with pure, simple lines designed in lighter weight materials to lend a softer touch.
Calvin Klein jeans body is offering denim that is uniquely designed for a more contoured, shape enhancing fit – the brand has introduced 'Whitewashed' - an extension of the line for Spring 2010. Whitewashed extends the Body concept, featuring a more contoured, shape enhancing fit which is now offered in clean, translucent washes and enriched surface treatments in pure and coated shades of white. Each piece is lighter and is engineered with accents that include white, enamelled nickel metal buttons, as well as tacks, zippers, and rivets for added dimension. The season focuses on a straight leg for men, and a classic skinny cut with ankle zips or a loose boyfriend cut for women. A new five pocket rolled Body denim short, designed with a lean, slim silhouette, will also be introduced.
This season the line is really focused on clean, paired down, sexy denims. There is a very cool range of white and subtle washes which are executed on really functional, lightweight fabrics that are perfect for the season. Denim surfaces are coated, faded, washed, or distressed, while other techniques like garment overprinting, appliqué, enzyme washing and fading are used on outerwear and jerseys. Sexy, surplus utilitarian details inform pocket shapes and embellishments on denim and khakis.
India China Join Hands on 'Trips Plus' in WTO
 It will be recalled that the Trips agreement was signed as part of the broad multilateral trade agreement of the WTO (erstwhile GATT) during Uruguay Round in 1994 which forced a large number of developing countries to make sweeping changes in their domestic intellectual property regimes to make it more stringent. But going beyond the Trips agreement is something that is unacceptable to countries like India and China.
The two countries have asked the WTO's Council to include the issue of “Trips Plus” enforcement trend in the agenda for its meeting in order to examine the sanctity of an agreement being planned by a group of countries that goes beyond what they have agreed to under the WTO. The move is aimed at scuttling a draconian anti-counterfeiting trade agreement (ACTA) being negotiated by countries such as the US, Japan, the EU, Australia and South Korea, which could hamper India's trade in a number of areas. Other countries being involved in ACTA negotiations include Canada, Mexico, Switzerland, New Zealand, Morocco and Singapore, which proposes to widen the scope of protection and setting up higher standards for enforcement of intellectual property rights, which would extend to import, export and in-transit goods and includes infringement of all IPRS.
Indian Pavilion Attracts More Footfalls at Shanghai Expo
 The India pavilion has become one of the hottest spots at the Shanghai World Expo with average 25,000 visitors every day thronging the stalls of Indian handicrafts and cuisine and living on Bollywood songs and dance.
Visitors are amazed at the bamboo-made dome with a diameter of 34.4 metres. It is a recurrent theme in Hindu, Buddhist, Islamic, Jain, Sikh and Christian architectures throughout India, says India Pavilion Director D.K. Nangia. A visit to the world's largest bamboo-made dome paves the way for mutual understanding between China and India. More than 60,000 plants sit on its roof, which collects rainwater for use in the pavilion, he said.
"Environmental degradation has reached a horrific level. The stress of living in high-cost urban areas leads to impatience and that needs to be controlled. So, our stress in the pavilion is harmony, which is a trademark of India," said Nangia. For this purpose, bamboo is used in the construction of the dome for its low cost and inherent strength, he explained.
The interiors based on the theme of "Living in harmony through the ages" displays India's urban planning system, philosophy, scientific achievements, arts and cultures. An eye-catching holographic audio visual showcases the Seven Chakras (circles of energy) and how the ancient system inspires urban development. "This unique feature of the India Pavilion represents the country's long tradition of living in harmony with nature," Nangia said.
He said the Expo was a good platform to link the "India Tiger" and "China Dragon", especially at grassroots levels. "I appreciate the progress we are witnessing in China, and I have seen that people in China react very fast. The way Shanghai authorities have moved to create a green area around the Expo is something we should be proud of." Besides India, 188 other countries have been taking part in the six-month-long event which kicked off April 30.
Asian Clothing Marketing to Grow at 11%
According to a recent study, clothing market demand in Asia and Oceania is forecast to grow by an average of 10.9% per annum between 2009 and 2014. Within the region, growth in China alone is set to average 18.9% per annum, says Textiles Intelligence. As a result, clothing market demand in China will reach US$87bn by 2014 compared with US$37bn in 2009. This represents an increase in market size of US$50bn in absolute terms, which equates to almost half the increase in the region as a whole.
Other fast-growing markets include Indonesia, where clothing market demand is forecast to grow by 15.3% per annum between 2009 and 2014, and Vietnam, where an increase of 15.5% per annum is predicted. However, these markets, valued at US$12bn and US$22bn respectively, will remain markedly smaller than the market in China. Similarly, there will be strong growth in India, at 16.8% per annum. However, at US$11bn, clothing market demand in India will remain considerably smaller than in China.
The slowest growth in the region will be in Japan, at just 2.9% per annum, followed by Hong Kong at 4.5% per annum. In Australia, on the other hand, growth will be a somewhat brisker 6.1% per annum and in New Zealand 6.5% per annum.
Clothing Sales in UK up Despite Economic Uncertainty
Official figures published recently show that both the value and volume of clothing and footwear sales in UK in April rose 9.4% year-on-year - the highest growth since May 2004, despite overall uncertainty in Europe despite a mounting consolidated debt of the order of 68.1 per cent in case of UK. But this could all be about to change, with the new government's almost inevitable spending cuts and tax hikes - including a rise in the headline rate of value-added tax (VAT) in the UK - likely to derail the ongoing retail recovery.
The data echoed numbers released earlier showing inflation in the UK accelerated in April, with the Consumer Prices Index hitting 3.7%, the highest level since November 2008. These figures, issued by the Office for National Statistics, suggested the biggest upward pressure came from clothing and footwear where prices, overall, rose by more than a year ago. By far the largest upward effect came from garments and, in particular, women's clothing, it said.
British consumer spending on clothing has on the whole remained surprisingly buoyant throughout the recession - partly because the Government took few steps to reduce its own spending, but also introduced temporary measures like lowering the VAT rate to encourage people to shop. However, with David Cameron's new Liberal-Conservative coalition Government under increasing pressure to sort out the public finances, all eyes are now turning to where the sacrifices will be made. Tax rises are certain to accompany the GBP6bn of spending cuts that have already been mooted - and it is almost a given that the emergency budget will be used to raise the headline rate of value added tax in the UK from 17.5% to 20%.
With the country's GBP167bn (US$238bn) deficit to plug, the increase will hit the price of almost every product on sale - with children's clothing among the few exceptions.
While the timing of this VAT rise is uncertain, Stephen Herring, senior tax partner at accountant and business advisor BDO LLP, believes it is likely that any rise will be deferred until January or February 2011. This, he says, would "avoid a sudden dip in consumer spending derailing the nascent recovery and creating a temporary boost for high value consumer goods beforehand."
Whatever the outcome, the consensus seems to be that consumer spending in the UK is set to fall, at least in the immediate future.
Global Organic Cotton Product Sales Soar 35%
 If there is one thing which clearly defied global recession, it was organic cotton apparel and home textile products defied the recession last year to soar by 35%, new figures show, with C&A, Nike and Walmart among top users of the fibre worldwide. Retail sales of organic cotton reached an estimated $4.3bn in 2009 according to the Organic Cotton Market Report 2009 from Organic Exchange (OE), up from $3.2bn in 2008. Significantly, the numbers indicates little change from the 40% average annual growth rate the organic cotton market has experienced from 2001-2009. It also demonstrates considerable growth at a time when the overall global apparel and household textiles market fell by nearly 7% year-on-year.
"Many people thought the recession would mean an end to all things organic, but the market reacted in quite the opposite way," said LaRhea Pepper, OE senior Director and co-author of the report. "Consumers dug in their heels and continued to support the use of organic cotton and other sustainable fibres, while brands and retailers maintained or even expanded their commitments to making their product lines more sustainable."
According to the report, the top twelve global brands and retailers using organic cotton were: C&A (Belgium), Nike Inc (Oregon, US), Walmart (Arkansas, US), Williams-Sonoma Inc (California, US and recorded last year as Pottery Barn), H&M (Sweden), Anvil Knitwear (New York, US), Coop Switzerland, Greensource Organic Clothing Co (Washington, US), Levi Strauss & Co (California, US), Target (Minnesota, US), Adidas (Germany), and Nordstrom (Washington, US). The continued expansion of the global organic cotton market was driven in large measure by consumer interest in 'green' products, significant expansion of existing organic cotton programmes by brands and retailers, and the launch of organic cotton programmes by new entrants to the market. Companies also increased adoption of standards addressing organic product traceability and sustainable textile processing.
Many manufacturers also became certified to the Global Organic Textile Standard (GOTS) which addresses textile's processing stages and includes strong labour provisions. Organic Exchange forecasts the global organic cotton market will grow 20% to 40% in both 2010 and 2011 to reach a value of $5.1bn in 2010 and $6.0bn in 2011.
Poor Export Climate Forces Sri Lanka to Slash Export Targets
Notwithstanding the supposed recovery in the world economy, Sri Lanka 's garment industry representative body The Joint Apparel Association Forum (JAAF) has cut its export targets for the next five years by US$1bn. The JAAF has cut its projected annual export revenue from US$5bn to US$4bn by 2015, due to the poor export climate so far this year.
"Originally we thought of a target of US$5bn, but considering the fact that half the year has gone and the markets are not too positive, and with our cost structure as it is, we revised the target to US$4bn, which would be more realistic," said the Secretary General of the JAAF, Rohan Masakorala.
The US and the EU account for about 93% of Sri Lanka's total apparel exports, but these two markets are still down from the recession. The JAAF said that over the first three months of the year export earnings have dropped by about 15% compared to 2009. Given this trend, the industry is expecting 2010 export earnings to be lower than 2009. But the industry is hoping for 5% year-on-year export income growth from 2011 to 2015.
The industry is also worried about its future in the EU market, with the Euro having depreciated against the US dollar. Another concern is that the EU will suspend its GSP+ duty free trade scheme after mid-August 2010, meaning Sri Lankan apparel having to pay duties of 8%-12%. "Exports to the EU are over half of total exports and out of this, around 75% qualify for GSP+. "So whether we can retain orders from the EU would depend on whether we can retain our prices without the GSP+," added Masakorala. "At this point EU buyers want our companies to absorb the price difference fully or partially."
Act to Empower US Customs to Curb Textile Frauds Introduced
 The Textile Enforcement and Security Act of 2010 (TESA), which is the first textile specific Customs enforcement bill that has been introduced recently contains more than a dozen measures to help US Customs and Border Protection crack down on customs textile fraud. Clamping down on illegal textile imports, it is hoped, will in turn strengthen domestic production. The bill includes provisions to close the loopholes currently being used by illegal and fraudulent players by providing US Customs with additional resources and expanded authority to better target these bad actors.
These include plans to establish an electronic verification of textile and apparel imports; allow the Department of Homeland Security to use fines and penalties to help pay for investigations and training; increase staff at high volume ports for textiles and apparel imports; and establish a non-resident importer programme to ensure that resident agents are held accountable for products imported under their name.
The legislation has been applauded by US textile firms. "Textile and apparel fraud is increasing at our ports and borders," said Bill Jasper, President of yarn maker Unifi. "This legislation will provide our US Customs with the necessary tools, resources and direction to effectively enforce our trade laws and help to bring a level playing field to US workers."
While Anderson Warlick, President of Parkdale Mills added: "A decade ago, our industry employed more than one million workers throughout the south east. "Today, we employ just one-half of those employees and I can testify with absolute certainty that our industry was forced to lay off at least half of those employees due to illegal shipments of yarn and fabric entering into the United States through CAFTA and our other preference regions illegally."
The National Council of Textile Organizations (NCTO) noted increasing textile fraud is taking place in trade preference and free trade areas - with the Central American Free Trade Zone singled out for its sharp increase in illegal trafficking. The majority of the US textile industry's $13bn in exports go to free trade agreement (FTA) and preference programme partners, so it relies heavily on strong customs enforcement for its livelihood.
Fraudulent schemes include phony companies that repackage Pakistani and Chinese yarns as US yarns; undervaluation of Chinese apparel in order to avoid duty payments; and a flood of Chinese denim through the United States and into Mexico that illegally claims duty-free preferences under NAFTA. "This is a case where our US Government needs to really evaluate our border security and import verification systems," said NCTO President Cass Johnson.
China, India Have Higher Productivity in Asian Region : ILO
 According to the latest report of ILO, labour productivity in China and India has surged ahead of other nations in the Asian region between 2007-2009, expanding by 8.7% and 4% respectively. "Much of the productivity gains in China and India can be attributed to their exceptionally strong GDP performance in the past two years," the report notes.
As against this growth, the average labour productivity, during the same period, contracted by 0.3 % in the 10-member country Association of South East Asian Nations (ASEAN), which includes major apparel producing nations such as Cambodia, Indonesia, Thailand and Vietnam. The latest figures show ASEAN falling further behind - and are a far cry from its strong performance prior to the crisis, notes the ILO.
It also highlights that in 2000, for example, output per worker in the ASEAN region was 61% greater than in China and 84% greater than in India.
The strong performance by the world's two biggest emerging markets is also impacting investment trends say textile and apparel industry experts. Investment are flowing to China and India, as apparel enterprises "see them as big domestic markets, and even if they can't export there's big money to be made by selling to their domestic market," said Munir Ahmad, Executive Director of the International Textiles and Clothing Bureau (ITCB), an umbrella group for 26 developing countries. Ahmad concurred that while China and India are moving ahead, other countries - with the exception of Vietnam - have lagged behind.
Bangladesh's Targets $ 1 Bn. Exports to India by 2011
Bangladeshi exporters have chalked out a plan to get a bigger pie of the Indian market to achieve an annual $1-billion earning target from exports by 2011. Bangladesh has a tiny share of $500 million of the over $250-billion Indian market. However, exports to India have grown by over 100 per cent in the past three years from $230 million in 2007 because of reduction in tariff and non-tariff barriers for Bangladeshi products.
"We expect to fulfill the target of exporting our apparels in increased volumes. We are also exploring ways to be engaged as partner of India 's Information Communication Technology (ICT) sector for our export promotion," India - Bangladesh Chamber of Commerce and Industry (IBCCI) President President Abdul Matlub Ahmad said. IBCCI, which set the target of achieving $1 billion in exports to India three years ago, is planning to coordinate a series of tours of Bangladeshi exporters to India.
Another business delegation comprising Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders will be in Kolkata to discuss with Indian importers, including some chain store operators, for getting a greater and ensured market access at the retail level. IBCCI officials said similar business team from ICT and garments sectors will also visit Delhi, Hyderabad, Chennai and Bangalore for exploring bigger market.
"We are expecting some significant outcomes from the planned business tours and discussions as we are now trying to expand market for our RMG (ready-made garments) products through engagements with famous chain stores and partnership with Indian IT industry," Ahmad said. The companies may include software giant Infosys and chain store operators for clothing such as Future Groups' Pantaloon and Tata's Westside, he said. Ahmad said he expected the bilateral trade ties to be widened as the obstacles of tariff and non-tariff barriers were likely to be eased further in the coming months.
"Both the tariff and non-tariff barriers are also going down through discussions between the countries, and as business community we are hopeful about further increase in export earning from Indian market in near future," he said.
Gap Reviving Plans for Indian Market
 Gap Inc's senior vice-president of international Strategic Alliances, Ron Young, who was recently in the country on a fact-finding trip, has suggested that the company is making preliminary moves to set up shop in India. Gap Inc's team has sounded out prominent Indian apparel makers including Reliance Brands, Aditya Birla Nuvo-owned Madura Garments and the Future Group. However, no agreement has been sealed yet. “Gap Inc seems serious about entering India,” a senior executive at an Indian apparel major, who met with the Gap team, said asking not to be named. “The company's recent visit was centred on studying the options that it would have in tapping into this market,” he added.
Gap Inc's sourcing team also spent a few days with a few apparel firms and this is to be followed by a visit of their International Sales Director, another apparel industry veteran said. The company had also conducted a recce of potential retail real estate across Mumbai, Delhi, Bangalore and Hyderabad. The Indian retail majors mentioned above were, however, unwilling to comment.
The $14.2-billion speciality retailer Gap Inc is present in around 3,100 stores across the globe and has mopped up $1.6 billion in revenues from international markets in 2009. Its portfolio stretches from 'accessible luxury' brand Banana Republic, acquired in 1983, to the more value-priced Old Navy. It also owns online accessory store Piperlim and women's active lifestyle brand Athleta. Yet, it is its eponymous casual clothing brand Gap, which has a strong brand recall even in India, which is expected to steer its rollout along with Banana Republic in India.
As foreign direct investment of up to 51% is permitted in single brand retail, Gap Inc would choose to partner with an apparel firm which has deep pockets to power a credible presence for the two brands in India. The US giant is evaluating the Indian market at a time when its Spanish fashion rival Inditex is poised to open Zara stores through a joint venture with Tata Group's retail arm Trent. Gap Inc is likely to retail through a more premium strategy in India, slightly above the brands' positioning in the US.
A few years ago too, the company was reportedly in talks to enter the country but this did not come through. India is also not a completely new market for the retailer as it serves as a strong sourcing destination for Gap Inc through tie-ups with multiple garment exporters including Bombay Rayon Fashions, Gokaldas Images and Orient Craft. The company could stand to gain on profitability if it leverages this sourcing base for an India foray, industry experts said.
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