Emerging Opportunities for Apparel Presentation.pdf · Potential Products for India in EU due to...
16
Emerging Opportunities for Apparel Presentation by: Apparel Export Promotion Council, India February, 2020
Transcript of Emerging Opportunities for Apparel Presentation.pdf · Potential Products for India in EU due to...
Emerging Opportunities for Apparel
Presentation by:Apparel Export Promotion Council, India
February, 2020
2
About Apparel Export Promotion Council (AEPC)
Represents over 8000 members (Merchant exporters - 32%, Manufacturer Exporters - 64%, Merchant cum Manufacturer -
4%)
80% exporters are MSMEs with turnover in the range of Rs.1 to Rs.10 Cr
AEPC’s Skilling arm Apparel Training & Design Center (ATDC) is providing training through its centers across India.
1. Present Scenario & Impact on apparel sector
China’s major apparel market & India’s position
4
In all the markets China has offloaded but India is only able to capture in 4 market out of 9 major markets of China China has offloaded USD 4917 mn. in these markets though India has captured only USD 314.4 mn. (6.4%). India
has the opportunity to capture the vacated market. These markets have been captured majorly by Bangladesh & Vietnam. In the recent “MAGIC FAIR” held at Las Vegas our strong contingent led by Chairman, AEPC participated and
observed that immense opportunities exist in USA for Indian Apparels.
Major supplying countries of China vs India's position
S. No. CountryImport from
WorldImport from
China China Offloaded
China Share in %
Import from India India's share in %
Offloaded spce captured by India
% captured by India in offloaded space20192019 2019
1 United States of America 87,522.8 26,396.7 2,430.9 30.2 4,262.4 4.9 237.0 9.72 Japan 27,994.4 15,901.4 1,087.1 56.8 277.2 1.0 21.0 1.93 Germany 36,015.2 8,515.5 399.2 23.6 1,489.2 4.1 --- Not Captured4 United Kingdom 21,034.3 3,923.3 228.2 18.7 1,152.0 5.5 24.4 10.75 Korea, Republic of 10,399.1 3,484.8 42.1 33.5 82.7 0.8 --- Not Captured6 Russian Federation 6,666.0 2,401.0 --- 36.0 170.4 2.6 --- Not Captured7 France 23,903.3 6,300.8 402.2 26.4 1,110.0 4.6 --- Not Captured8 Australia 6,600.6 4,192.3 107.2 63.5 235.3 3.6 32.1 29.99 Netherlands 15,176.5 3,198.7 220.9 21.1 552.6 3.6 --- Not Captured
Source: UN Comtrade, 2020Note - The data for Germany, UK & Russia is available for Jan-November & Netherland Jan-October All figures is in USD Mn.
Reduced options for import of inputs
5
India majorly import raw material from China
Other major supplying countries have very limited exports to India
There is an urgent need of exploring other options
India's Import of inputs
Raw material
Import in USD Mn.
World China Other 2 Options Other 2 Options Other 2 Options
Indonesia Japan Egypt Korea Hong Kong, China
Taipei, Chinese
Yarn 505.0 234.1 79.3 56.0 --- --- --- ---Fabric 1,303.0 878.9 --- --- 82.0 44.0 --- ---Interlining 152.1 123.9 --- --- --- --- 4.8 4.1Source: UN Comtrade, 2020
2. Enhancement in export opportunity inmajor markets of China ‐ Top 10 HS lines ofexport to USA, EU and other major marketsby China vis-à-vis India
7
Potential Products for India in USA due to recent situation in China
China’s Top 10 Products Exports to USA vis-à-vis India’s Exports
S. No. Product Code Product Description
Exports in USD mn. RCA
RemarksChina's Exports to
USA
India's Exports to
USA China India
1 611030 Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres 2508.8 6.0 3.1 0.2
2 620462 Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton 2460.4 84.4 2.4 0.5 Potential for India
3 611020 Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton 1995.5 60.9 2.0 0.5 Potential for India
4 611596 Full-length or knee-length stockings, socks and other hosiery, incl. footwear without applied 1150.5 16.2 5.2 0.3
5 620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton 966.3 118.4 1.4 1.0 Potential for India
6 610990 T-shirts, singlets and other vests of textile materials 910.0 144.7 1.9 2.4 Potential for India7 610910 T-shirts, singlets and other vests of cotton 896.5 399.0 1.0 3.5 Potential for India
8 621210 Brassieres of all types of textile materials, whether or not elasticated 751.8 82.3 2.6 0.6 Potential for India
9 610463 Women's or girls' trousers, bib and brace overalls, breeches and shorts of synthetic fibres 724.4 2.5 2.9 0.1
10 621143 Women's or girls' tracksuits and other garments, n.e.s. of man-made fibres 719.4 196.0 3.1 7.5 Potential for India
Source: UN Comtrade, 2020 and WITS,2020
8
Potential Products for India in EU due to recent situation in China
China’s Top 10 Products Exports to EU vis-à-vis India’s Exports
S. No. Product Code Product DescriptionExports in USD Mn.
RemarksChina's Exports to EU India's Exports to EU
1 611030 Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres, knitted ... 2887.1 13.3
2 620293 Women's or girls' anoraks, windcheaters, wind jackets and similar articles, of man-made fibres ... 1666.1 0.9
3 620193 Men's or boys' anoraks, windcheaters, wind jackets and similar articles, of man-made fibres ... 1538.5 1.5
4 611020 Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted or crocheted ... 1300.6 84.7
Potential for India
5 620462 Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton (excluding ... 1185.6 80.0
Potential for India
6 621040 Men's or boys' garments of textile fabrics, rubberised or impregnated, coated, covered or laminated ... 813.0 0.2
7 620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding ... 772.2 191.5
Potential for India
8 610990 T-shirts, singlets and other vests of textile materials, knitted or crocheted (excluding cotton) 751.7 234.3
Potential for India
9 621210 Brassieres of all types of textile materials, whether or not elasticated, incl. knitted or ... 736.2 14.6
10 611595 Full-length or knee-length stockings, socks and other hosiery, incl. footwear without applied ... 734.9 16.9
Source: UN Comtrade, 2020 and WITS,2020
9
Potential Products for India in Japan due to recent situation in China
China’s Top 10 Products Exports to Japan vis-à-vis India’s Exports
S. No. Product Code Product Description
Exports in USD mn. RCA
RemarksChina's Exports to
Japan
India's Exports to
JapanChina India
1 611030 Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres 1682.4 1.6 3.1 0.2
2 610990 T-shirts, singlets and other vests of textile materials 951.4 0.7 1.9 2.4 Potential for India
3 610910 T-shirts, singlets and other vests of cotton 664.1 10.3 1.0 3.5 Potential for India
4 611020 Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton 506.7 1.3 2.0 0.5
5 620462 Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton 428.4 10.4 2.4 0.5
6 611596 Full-length or knee-length stockings, socks and other hosiery, incl. footwear without applied 393.2 1.1 5.2 0.3
7 620343 Men's or boys' trousers, bib and brace overalls, breeches and shorts of synthetic fibres 386.0 1.3 2.0 0.7
8 620193 Men's or boys' anoraks, windcheaters, wind jackets and similar articles, of man-made fibres 341.7 0.1 3.0 0.0
9 610463 Women's or girls' trousers, bib and brace overalls, breeches and shorts of synthetic fibres 335.8 0.3 2.9 0.1
10 620463 Women's or girls' trousers, bib and brace overalls, breeches and shorts of synthetic fibres 330.0 3.9 2.2 1.2 Potential for India
Source: UN Comtrade, 2020 and WITS,2020
10
Potential Products for India in South Korea due to recent situation in China
China’s Top 10 Products Exports to Korea, Rep vis-à-vis India’s ExportsExports in USD mn. RCA
RemarksS. No. Product
Code Product Description China's Exports to Korea, Rep
India's Exports to Korea Rep China India
1 611030 Jerseys, pullovers, cardigans, waistcoats and similar articles, of man-made fibres 398.9 0.1 3.1 0.2
2 620462 Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton 276.6 0.5 2.4 0.5
3 620433 Women's or girls' jackets and blazers of synthetic fibres 201.5 0.0 4.4 0.4
4 610463 Women's or girls' trousers, bib and brace overalls, breeches and shorts of synthetic fibres 184.4 0.0 2.9 0.1
5 620463 Women's or girls' trousers, bib and brace overalls, breeches and shorts of synthetic fibres 182.3 0.4 2.2 1.2 Potential for India
6 611020 Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton 167.8 2.7 2.0 0.57 620443 Women's or girls' dresses of synthetic fibres 138.0 0.5 2.4 4.2 Potential for India8 610910 T-shirts 136.5 11.5 1.0 3.5 Potential for India
9 620293 Women's or girls' anoraks, windcheaters, wind jackets and similar articles, of man-made fibres 136.4 0.0 3.7 0.0
10 610990 T-shirts, singlets and other vests of textile materials 127.0 0.3 1.9 2.4 Potential for India
Source: UN Comtrade, 2020 and WITS,2020
3. Readiness of Indian exporters to tap emerging opportunities in the present scenario
12
Standing out from the competition of other supplying countries – Yes we are ready!
Raw material base
Mfg. capacity
Manpower
Industry Structure
• Largest global producer of cotton and 2nd largest producer of Polyester and viscose
• Availability of all other natural & manmade fibres as well
• Presence of complete value chain – from fibre to fashion• Ability to execute smaller minimum order quantities
• Abundant availability• English speaking technical staff, merchandizers, designers and managers
• Reliability, Transparency, Capability & flexibility to offer smaller runs for fast fashion brands
4. Issues and suggestions
14
Action Points to address key challenges
I. Economies of Scale – Average machines in Indian apparel manufacturing unit is 250-400 whereas Bangladesh’s apparel
units have an average of 1000 machines
II. Technology Gap – Majority of the technology is imported, hindering quick access to technology. Lack of long term
investment policies and procedural hassles in investment schemes have kept FDI away
III. Poor access to inputs hindering value growth – Lack of ease in importing MMF fabrics has restricted Indian export
basket to cotton
IV. Logistics – High domestic transport time. 3 weeks gap vis-à-vis China & Vietnam and 7-10 Days vis-à-vis Bangladesh
15
Challenges of the industry
1. Market Access – FTA with EU, USA, UK, Canada & Australia
II. Debottleneck – Port Infrastructure, Accelerated Infra for apparel clusters
III. Promote exports of MMF apparel – Availability of raw material, training in MMF apparels, more incentive in investment for
technology to make MMF apparels.
for Cotton we are capable.
But on MMF Fabric processing, we are weak and we need support/handholding from the Government.
IV. Incentives – Ensure certainty and consistency of notified incentives
V. Power Tariffs - Open Access and Lower Power Tariffs for apparel clusters
