16 January 2024, Mumbai

Seeks Smoother Visa Process for Business Travelers

At the recent India-US Trade Policy Forum meeting, Commerce and Industry Minister Piyush Goyal made a strong appeal to US Trade Representative Katherine Tai to reinstate the Generalized System of Preferences (GSP) status for India, which was revoked by the Trump administration in 2019.

Spotlight

Highlighting India's position as the program's largest beneficiary, Goyal emphasized that duty-free exports under GSP amounted to $5.7 billion in 2017, benefitting nearly 1,900 products, particularly in engineering, chemicals, and textiles.

Much more

Beyond GSP, Goyal underlined the advantages of the vibrant bilateral and technological partnership between the two nations, facilitating the flow of professionals, skilled workers, students, investors, and business visitors. 

However, he expressed concerns regarding the lengthy visa processing times faced by Indian business travelers, urging Tai to expedite and simplify the process.

Looking ahead

Both sides identified key areas for enhanced collaboration, including critical minerals, customs and trade facilitation, supply chain resilience, and high-tech trade. 

This signals a clear commitment to strengthening the multifaceted economic relationship between India and the United States.

This rewritten headline and summary capture the key points of the original text while keeping it concise and informative. It also emphasizes the Indian perspective and priorities in the meeting.

Summary:

Goyal seeks GSP revival, smoother visas in upbeat talks with Tai. Focus on minerals, tech, supply chains.

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15 January 2024, Mumbai

India's Fashion Crossroads:

India's vibrant clothing industry, renowned for intricate weaves and breathtaking designs, stands at a critical juncture. Free Trade Agreements (FTAs) with the UAE and Australia dangle the promise of lucrative export markets, but whispers of intensified competition and domestic anxieties linger.

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To navigate this intricate tapestry, a strategic approach that embraces both golden opportunities and potential snags is essential.

High-End Soars, Mass Production Stumbles

The 2019 UAE FTA served as a potent catalyst, catapulting high-end garment exports by a staggering 47% in its first year thanks to a 50% tariff slash.

Similar winds of growth for Australian high-value clothing under the AIECA hint at a 30% upswing. But the mass-production segment remains stagnant, demanding diversification in strategies.

Vietnam: A Looming Challenge

Armed with effective production and strategic FTAs, Vietnam poses a formidable threat to India's dominance in mid-range and mass-produced segments.

Dr. Anjali Sharma warns of potential market share erosion for India without swift adaptation. Embracing innovation, niche segments, and value-addition becomes paramount to stand out in a crowded marketplace.

Balancing Act: Domestic Concerns

ICRIER studies raise disturbing possibilities - a potential 10% decline in domestic clothing production and 1.2 million job losses due to FTAs. Ms. Priyanka Singh urges policymakers to strike a delicate balance, safeguarding domestic players while maximizing export potential. Negotiating this tightrope walk poses a significant challenge.

Weaving the Future: To secure a luminous future, experts advocate a three-pronged approach

1. Embrace High-Value: Leverage India's inherent strengths in intricate craftsmanship and superior materials to dominate the high-value segment.
2. Invest in Skills and Tech: Enhance efficiency and agility through targeted skill development and technology adoption.
3. Foster Resilience and Competitiveness: Build robust manufacturing ecosystems, prioritize sustainability, and promote brand India on the global stage.

By harnessing the golden threads of opportunity while acknowledging the lurking knots of risk, India can transform FTAs into the fabric of a thriving clothing industry where both domestic players and export aspirations flourish in vibrant harmony.

The time to weave the future is now.

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11 January 2024, Mumbai

India's once-thriving textile and apparel industry is tangled in a knot of challenges, stalling its progress despite promising growth forecasts.

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We unravel the threads of this dilemma, examining the barriers to success and potential paths to a brighter future.

The Growth Gap: Global apparel is set to reach $1.7 trillion by 2025, yet India's share remains stagnant. Projected exports of $40 billion by 2022-23 fell short, hovering around $24 billion. This stark gap between expectations and reality exposes the sector's hurdles.

Metrics:

Cost Concerns Constrict: High input costs squeeze the industry's breath. Expensive cotton, complex taxes, and logistical woes inflate production. Indian mills pay 20-25% more per kg of cotton than global standards, struggling to compete with lower-cost countries like Bangladesh and Vietnam.

Import Tsunami Erodes Profits: A surge of cheaper ready-made garment imports swamps the market. In 2022–23, Indian apparel imports doubled from 2019–20 levels, drowning out local producers' profits and hindering job creation.

Environmental Unraveling: Weaving in environmental concerns paints a complex picture. Water pollution from dyeing, inefficient energy use, and mountains of textile waste demand attention. The industry needs a greener shift, embracing practices like renewable energy.

India's textile tale needs a rewrite. Overcoming cost barriers, tackling import waves, and embracing green practices are crucial threads to reweave the sector's success. Can India untangle these challenges and claim its rightful place in the global fashion tapestry?

Only time will tell.

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16 January 2024, Mumbai

From Backwater to Booming: India's Fashion Revolution Unfolds in Tier II and III Cities

For decades, India's fashion scene mirrored the country's landscape: bustling metros glittered with designer labels, while smaller towns hummed with the hum of tailors and second-hand finds. 

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But a quiet revolution is transforming this narrative. Tier II and III cities, once fashion backwaters, are morphing into thriving retail hubs, revealing a vast new consumer base and rewriting the industry's playbook.

Fueling the Flame:

This shift is fueled by a potent cocktail of rising incomes, digital connectivity, and skyrocketing aspirations. 

According to CRISIL, the Tier II and III apparel market, valued at $30 billion in 2021, is projected to soar to $74 billion by 2025, a staggering CAGR of 20.4%. Metros, in contrast, lags at a measly 8-10%.

Beyond Saris and Kurtas:

Gone are the stereotypes of sari-clad women and kurta-clad men. Consumers in these towns are embracing diverse styles, with a growing appetite for fusion wear and Western trends. 

The premium segment is leading the charge, expected to grow at 22%, closely followed by the mid-price segment at 18%. 

Even menswear, traditionally stagnant, is experiencing a 19% CAGR surge, fueled by increased disposable incomes and social mobility.

Success Stories:

Domestic brands are tapping into this potential. Ethnic wear giant BIBA, with its stylish yet affordable options, has built a loyal fan base in smaller towns. 

Founder Meena Agarwal sums it up perfectly: "We speak their language, literally and figuratively." Online platforms like Myntra and Nykaa are bridging the gap, while ‘hyperlocal hustle’ brands catering to local tastes and offering personalized experiences are poised to thrive.

More Than Trends, a Cultural Shift:

The fashion revolution in Tier II and III cities is not just about market growth; it's about a cultural shift. 

As aspirations soar and technology connects these towns to the global fashion scene, consumers are no longer satisfied with hand-me-downs. They are discerning, demanding, and eager to embrace the latest trends.

The Future Lies Beyond Metros:

The future of Indian fashion is not confined to glitzy metros.

It's about the quiet boom happening in smaller towns, where consumers are ready to rewrite the rules of style. Brands that recognize this potential and cater to their unique needs stand to reap the rewards of this burgeoning market.

GIST

Fashion Boom Beyond Metros: A Quiet Revolution

1. Rising Aspires, Growing Wallets

2. Beyond Hand-Me-Downs 

3. Local Heroes Emerge

4. More Than Trends, a Shift

5. Future Lies Beyond Glitzy Streets

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12 January 2024, Mumbai

The market is set to reach $170 billion by 2026:

India's value retail market is projected to surge from $111 billion in 2023 to a whopping $170 billion by 2026, with apparel leading the charge, according to a report by Wazir Advisors. 

This translates to a significant 15% compound annual growth rate (CAGR) over the next three years.

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Affordable Fashion at the Forefront:

The rapid growth is fueled by rising incomes and increasing demand for affordable clothing, footwear, and accessories. Major retailers like Reliance Retail's Yousta, ABFRL's Style-Up, and Shoppers Stop's InTune have tapped into this potential by offering budget-friendly fashion options.

Rural Opportunity and Urban Limits:

While unorganized players still hold a dominant 79% market share, organized retail chains are making inroads, particularly in smaller cities and towns (Tier III or lower). These areas offer vast untapped potential, with average transaction values typically ranging from Rs 500 to Rs 2,500 and basket sizes between 2.5 and 7 items.

Digital Boost:

E-commerce platforms like Amazon, Flipkart, and Snapdeal are further powering this growth by providing convenient access to a wider range of value products, even in remote locations.

Overall, India's value retail market is on a dynamic trajectory, driven by changing consumer preferences, affordability, and digital reach. 

The future looks bright for both established and emerging players in this promising space.

Gist

1. Fashion Frenzy: $170 billion bonanza by 2026.
2. Bargain Boom: Affordable styles fuel 15% annual growth.
3. Rural Reach: Small towns embrace organized chains.
4. Digital Drive: Online platforms expand product access.
5. Bright Future: Open market welcomes new and old players.

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10 January 2024, Mumbai

WHY India

Fueled by rising disposable incomes, a growing middle class, and a newfound fashion focus among men, India's ethnic wear market surged to a whopping USD 18.68 billion in 2023, according to Technavio.

Data point

This impressive growth, clocking in at a healthy CAGR of 8%, is particularly driven by the increasing demand for ethnic wear in Tier 2 and 3 cities, where men are embracing traditional styles with a modern twist.

Evolving paradigm

This trend signifies a shift in the Indian fashion landscape, moving beyond major metropolitan centers and catering to the aspirations of a broader consumer base.

With more men seeking to express their cultural identity through their clothing choices, the demand for kurtas, sherwanis, and Nehru jackets is skyrocketing, creating a lucrative market for both established and emerging brands.

Prognosis

Analysts suggest that this trend is likely to continue in the coming years, fueled by factors like rising awareness of Indian heritage, the growing influence of celebrities sporting ethnic wear, and the increasing availability of stylish and affordable options online.

As disposable incomes continue to rise in Tier 2 and Tier 3 cities, the demand for ethnic wear is expected to further flourish, transforming the fashion landscape of India and offering exciting opportunities for players in this booming market.

5 Key Insights: India's Booming Ethnic Wear Market

1. Tier 2 Surge: Men in smaller cities drive a $18.7 billion boom, 8% CAGR growth.
2. Beyond Metros: Shift in fashion catering to broader aspirations, Tier 2 & 3.
3. Cultural Expression: Kurtas, sherwanis, & Nehru jackets soar as men embrace identity.
4. Future Promise: Trend to continue, fueled by heritage awareness, celebrity influence, and online options.
5. Lucrative Potential: Rising incomes offer exciting opportunities for ethnic wear brands.

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15 January 2024, Mumbai

Bangladesh's journey in the realm of ready-made garments (RMG) is a testament to relentless human spirit and the power of overcoming unimaginable odds. From battling logistical hurdles in the late 1970s to becoming a global powerhouse today, the story is one of grit, innovation, and a commitment to continuous improvement.

Journey to success

The industry's early years were marred by challenges. Immature supply chains and a nascent infrastructure presented roadblocks, but the Bangladeshi entrepreneurial spirit persevered. When faced with the global ban on goods made by child labor in the mid-90s, the nation responded swiftly, earning worldwide praise for its decisive action in eradicating and rehabilitating child labor.

This episode showcased the industry's ability to adapt and evolve, a trait that would become its hallmark.

Evolving dynamics

The dismantling of the Multi-Fiber Arrangement (MFA) in 2005 ushered in an era of doubt and uncertainty. Many questioned Bangladesh's ability to compete in a free market.

However, the RMG sector, fueled by relentless drive and an unwavering commitment to quality, proved its critics wrong.

Today, Bangladesh stands tall as a global leader in RMG exports, a remarkable feat for a nation that, only decades ago, struggled to find its footing.

Historic view

Yet, Bangladesh's story is not merely one of economic success. It is also a tale of immense strides towards responsible and sustainable practices. Beyond simply complying with safety and health standards, the industry has embraced environmental responsibility.

Leading the way in sustainable practices and climate action, it owes much of this transformation to the unwavering support of its valued buyers.

This partnership goes beyond mere numbers. Global brands and retailers have played a crucial role in enhancing workplace safety standards and pushing the industry towards a more conscious future.

Vision: Super inspiring

The increasing membership of buyers and buying houses at the BGMEA, through the “Associate Membership” category, speaks volumes about the trust Bangladesh has earned.

As the industry strives for "Sustainability Vision 2030," prioritizing ESG (Environment, Social, and Governance) goals, the future appears bright.

With substantial investments in circular fashion, renewable energy, and modern technologies, Bangladesh is weaving a sustainable future for the RMG industry, one thread at a time.

From humble beginnings to global leadership, Bangladesh's RMG journey is an inspiration to nations embarking on their own development paths. It is a story of courage, resilience, and an unwavering commitment to a better tomorrow, both for its people and the planet.

Highlights:

• Focus on overcoming challenges and achieving global leadership.
• Emphasize the role of stakeholders in driving sustainability.
• Highlight the "Sustainability Vision 2030" and its impact.
• Conclude with a hopeful and inspiring message.

CREDITS: BGMEA Press release

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11 January 2024, Mumbai

Despite a recent decline in UK clothing imports, Bangladesh has solidified its position as the top supplier by volume, surpassing even China. 

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This achievement marks a significant milestone in the country's journey towards global leadership in the apparel industry.

Key Takeaways:

• UK's global clothing imports declined by 16.44% in value and 12.20% in volume during January–October 2023 compared to the same period in 2022.
• Bangladesh secured the top spot as a clothing supplier to the UK in terms of volume (KG) in 2022 and maintained this position through the first ten months of 2023.
• While Bangladesh holds a 23% share of UK clothing imports by value and 28% by volume, opportunities for further growth remain, particularly in the mid-to-high-priced segment.
• Moving beyond cost leadership and focusing on backward and forward integration, value-added products, and niche markets will be crucial for sustained growth.
• BGMEA is actively supporting the industry's transformation through initiatives like the Center for Innovation, Efficiency, and OSH.

Challenges and Opportunities:

The report highlights the ongoing pressure on prices, with Bangladesh offering the lowest average import price compared to competitors like China, Turkey, and India. 

This indicates a need to diversify into higher-value segments, where complex processing and functionality can command premium prices.

The emergence of virtual shopping and the growing popularity of pre-owned and up-cycled clothing are further disruptions that the industry must prepare for.

BGMEA's Role:

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is actively supporting the industry's transformation through initiatives like the Center for Innovation, Efficiency, and OSH. 

These initiatives aim to foster innovation, improve efficiency, and enhance occupational safety and health standards.

Epilogue:

While Bangladesh's success in the UK market is commendable, the report underscores the need for continued focus on value addition, diversification, and adaptation to evolving market trends. 

With BGMEA's support and the commitment of individual entrepreneurs, the Bangladeshi apparel industry is well-positioned to navigate the challenges and capitalize on the opportunities ahead.

5 Key Insights:

1. Volume King: Bangladesh tops UK supply despite market dip.
2. Value Lags: Cost pressure hinders premium market access.
3. Diversify Up: Higher-end products are key for sustained growth.
4. Embrace Change: Virtual shopping and sustainability disrupt.
5. BGMEA Guides: Support fosters innovation and efficiency.

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08 January 2024, Mumbai

Epochal moment

India's 2023 Fashion Revolution: Global Stars Strut Onto the Stage

The Indian fashion scene exploded in 2023, witnessing a dazzling entry of international brands across all segments. 

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Like runway giants strutting in designer threads, luxury names like Balenciaga under Reliance and e-commerce favorites like BoohooMAN on Myntra took center stage.

But what fueled this fashion influx, and who will be the next stars lighting up the Indian market in 2024?

Reliance: The Grand Couturier

Reliance Industries became the orchestrator of this captivating performance. Its subsidiary, Reliance Brands Ltd. (RBL), transformed into a fashion-forward force, introducing coveted luxury brands like Sandro, Maje, Valentino, and Balenciaga to India. These designer titans found a new platform to shine, solidifying RBL's position as a fashion powerhouse.

"India's rising disposable income and evolving customer preferences present a unique opportunity for luxury brands," stated Darshan Mehta, CEO of RBL, highlighting the strategic logic behind his acquisitions.

E-commerce: Catwalking onto the Scene

But online platforms weren't left behind. Myntra, the e-commerce darling, played a starring role, onboarding diverse names like BoohooMAN, Anne Klein, NEXT, Oasis, and Parfois. 

This catered to a broad range of styles and budgets, making Myntra an international fashion hotspot for Indian shoppers.

"We are constantly expanding our brand portfolio and offering curated experiences to our diverse customer base," explained Amar Nagaram, CEO of Myntra, emphasizing the platform's commitment to global options.

Beyond Reliance and E-commerce: More Players Join the Party

Birkenstock, the iconic sandal brand, announced plans for 10 franchisee outlets, bringing its comfort and style to a wider audience. Social commerce stepped in too, with Trell partnering with Bestseller India to introduce European brands like Jack & Jones, Vero Moda, and Only to its influencer network.

What Fueled the Fashion Invasion?

Several factors propelled this global fashion influx:

1. A Booming Market: India's rapidly growing middle class, rising disposable income, and increasing internet penetration created a lucrative market for international brands.
2. Easing Regulations: The government's efforts to simplify FDI norms and foster a startup-friendly environment further strengthened India's appeal.
3. Aspirational Audience: "India's young and aspirational population, combined with its strong economic growth, makes it a highly attractive market for global brands," commented Abhishek Agarwal, Managing Director of Alchemy Capital.

2024: Brands to Watch on the Runway

With its ever-evolving market, India promises to attract even more international names in 2024. 

Brands like Roberto Cavalli, Dunhill, Armani Caffe, and Foot Locker are reportedly in talks, potentially through Reliance and other major players. 

European and Turkish brands like Kiabi, Mavi, Damat, and Dufy are also eyeing expansion.

The Future: Bold, Stylish, and Full of Surprises

This influx of global brands promises to transform the Indian fashion landscape. Increased competition, a wider variety of styles, and improved product quality are inevitable. 

Indian consumers will be exposed to international trends, shaping their tastes and preferences.

"The Indian fashion market is poised for further growth and diversification," predicted Ritu Bansal, Founder and CEO of Ritu Kumar. "We can expect to see a unique blend of global trends and Indian sensibilities emerge in the coming years."

As the Indian fashion story unfolds, one thing is certain: the future promises to be bold, stylish, and full of surprises. 

This market, once a spectator on the global stage, is now taking center stage, captivating audiences with its vibrant narrative.

Gist

• Luxury Boom: Reliance brings Balenciaga, others, fueled by rising income.
• E-commerce Catwalks: Myntra onboards BoohooMAN, catering to diverse styles.
• Beyond Giants: Birkenstock joins, social commerce brings European brands.
• Market Magnets: Growing middle class, easing regulations, young consumers.
• Future Runway: Roberto Cavalli, Foot Locker next, Indian fashion evolves.

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