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6. Vol. 5 ISSUE 2 JUNE 2016 58 ExportStatistics US Apparel imports in March take a negative turn - After a good start to the year, apparel imports by the US have taken a hitinMarch2016fromalldestinationsand were substantially down compared to the samemonthlastyear... CoverStory Moving beyond Rana Plaza… Industry eager for closure - The chilling memory of the aftermath of the Rana Plaza collapse on April24,2013stillhauntstheBangladeshgarmentindustryevenafterthreeyears,and withnumerousinitiativestomoveon…p14 CONTENT Retailer Current Aéropostale finally filesfor bankruptcy protectionp32 Cover Story2 Review: Denim Expo Denim developments moving towards comfort stretch and competitive pricingp18 WorldWrap Gloomy days for Britain Retail - Amongst UK’s largest employmentgenerators,theretailsectoris predictedtolose9,00,000jobsandclosure of thousands of shops in the next decade, becomingmuchsmallerin2025...p60 48 ResourceCentre Intertek: Re-defining Testing and Inspection Services to Assurance- ChemicalSmartScreening,designedwith a focus on brands and apparel sourcing companies,willtakeTesting&Inspection from ‘Control-era’ to‘Assurance-era’. 22 BuyerBlog Indus Apparel: Providing unique sourcing solutions Trends2016 Fall Prints 2016 - Since maximalismistheorderoftheseason,itisno surprise that many collections included heavy printsontheirsilhouettes,mostoptingforthe head-to-toe printedlook... p62 ExporterStrategy Double shift manufacturing among many other pursuits of East West Industrial Park: The Suit Manufacturing Pioneer- EastWestIndustrialParkrecentlycourted a few new challenges to push the frontiers and reset examples of excellence in manufacturing. Close to being the 4th largestjacketmanufacturerintheworld,East West Industrial’s Gazipur-based factory is nowrunningondoubleshifts...p26 TechManagement Evolution of Technology Pressing & Finishing - While pressingcanremovethe‘unwanted’creaseas well as impart ‘wanted’ creases, finishing can only remove the ‘unwanted’ crease, thereby limiting its use for formal clothing...p52 8 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

8. FROM THE EDITOR-IN-CHIEF’sDESK… I have a lot to say in this issue because of my recent visit to the USA to attend the Texprocess Americas at Atlanta. It is always exciting to meet friends and colleagues from around the world and catch up on latest trends in market andtechnology. This time I met many interesting people in the e-commerce and bespoke segment. These are the two areas that are growing and many retailers/brands are aggressively looking at these options to attract customers who are increasingly becoming difficult to please. Technology providers are also making efforts to keep pace with new challenges in thesegment. Another segment that was under debate and direction for constant innovation is Robotics in apparel manufacturing. I met many technology suppliers with their take on advancements in this area. While there are many ‘ifs’ and ‘buts’ in how successful the direction could be and also on the extent to which the sewn industry, fashion in particular, could be automated so as to completely remove human intervention through the use of robots in various operations; there is consensus on the factthat revolution in the industry can now come only from Robotics… howmuch and which operations is stilldebatable. Yet, more exciting than all this is the new look of themagazine… Yes…, this time I would rather talk about the new designed magazine and for the first time since I started my magazines, I would say that I had nothing to do with it. My inputs have not been taken and neither given. And the final outcome is in front of you…, it’s more youngish and ‘today’, designed by the young team. The content is crispy, and more info-graphics are used since younger generation believes in getting to the essence quickly and movingon. However, the emphasis remains on the importance of ‘responsible reporting’ to ensure that the positive developments and pro-active approach of the industry remains on the forefront of ourcoverage. I eagerly wait for yourreaction… Among the many stories we have this time, the live report on the CPD Meet gives me great pleasure as it clearly underlines the fact that the industry is moving beyond the Rana Plaza incidence with lessons learnt. The pro-activeness of the industry is indeed reflected in each article with both exporters and buyersadmitting that the industry is on a growth path. Even the US import data from Bangladesh reconfirms growth with 8.38% rise in quantities and 4.30% increase invalue. EDITORIALTEAM EDITOR-IN-CHIEF DeepakMohindra EDITOR IlaSaxena COPYEDITOR VeereshwarSobti ASST.COPYEDITOR SahilSehgal ASST.EDITOR DeepankarShyam Raj KumarChahal Peeush Jauhari Satyapal Bisht DeepakPanwar CREATIVETEAM PHOTOEDITOR HimanshuKumar OPERATIONDIRECTOR MayankMohindra PUBLISHER& MANAGING DIRECTOR RenuMohindra HEADOFFICE Apparel Resources PrivateLimited B-32, SouthExtension-1, NewDelhi-110 049 (India) Phone: 91-11-47390000,24602283 Fax:91-11-24604597 E-mail:contact@apparelresources.com; editor@apparelresources.com Web associate:www.apparelresources.com SUBSCRIPTION ADVERTISEMENTGENERAL ENQUIRY ENQUIRY ENQUIRY +91-11-47390000 +91-11-9811088666 +91-11-47390000 subscribe@ rani@ contact@ apparelresources.com apparelresources.com apparelresources.com 10 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

10. MINDTREE At a time when Bangladesh is strongly moving up the value chain, increasing number of garment manufacturers and exporters are either manufacturing or are showing keen interest in making value-added and specialized products, which are low in volume but fetch higher FOBs in the globalmarket. As a garment manufacturer/exporter, are you producing/planning to produce such kinds of value-added offerings? If yes, are there any challenges that you are facing/ anticipating to face in yourendeavours. If not, what is it that stops you from making such kinds of products which are in very high demandglobally? Q-and-A Adnan Peerzada, Manager Commercial, MidasSafety Indeed, everyone wants to earn high revenues whether they areretailers or manufacturers, and high value products will always remain the first priority to generate the same. We at Midas Safety Ltd. are the global private branding manufacturers of industrial gloves and in line with economic advantages and customers are interested to buy value-added items fromus. It is really unfortunate that we are unable to tap on these opportunities due to hurdles which have not allowed us to act fast and add immediatebenefits in our economy. Major problems rise because of non-availability of natural gas, which is the key energy resource for our production. Another challenge pertains to several kinds of regulatory licenses. Even though our primary authority is BEPZA, but still we have to collect licenses from different authorities. Availability of skilled workforce is another concern for our industry which all result in consumption of more time than what is available to cater successfully to the opportunities that are in theoffing. Md. Shahriar, Director, CosmoGroup We are interested in increasing production of value-added and specialized products. We are already manufacturing some of these items; currently we are producing fancy lingerie items. But there are some barriers here to make such products. First of all, the order quantities are very low. As a result, we have to purchase raw materials at higher costs. Also, all the materials are not available in our local market, thereby increasing the production costfurther. That is why we have to sell these items at higher FOBs in the global market. Sometimes, we have to export these goods with ‘no-loss no-profit’ margins just to increase our proficiency and also to show the world our quality and capacity, hoping that we’ll get big volume orders in the future. If we get big volume orders continuously,then we’ll be able to reduce the cost of production and the FOB value will also bereduced. Md. Towhidur Rahman, Director, LumanGroup We are in the business of manufacturing and exporting garments since 1991 and from the very beginning we have been producing outerwear/ jackets for international markets.These are specializedproducts which require good technical knowledge as well as larger number of workforce perline. Higher FOB is definitely a key driver for progressing towards production of specialized value-added goods but along with it comes some risks. If the quality of high-value goods are not maintained properly then there will be higher rejection rates, and it is much more harmful for a manufacturer if a large number of high-value goods are rejected compared tothe low-value ones. Other than that if a factory is unable to maintain the shipment dates properly, all the goods have to be shipped by air (which is sometimes big volume goods like padded jackets). In such ascenario freight cost will be immense compared to the low-value items. Also forraw material procurement purpose when opening back-to-back LC for high- value goods, it requires very high collaterals with the bank, which is out of reach for manyfactories. AbdullahAl-Mahmud, Managing Director, MahimGroup It’s true that a design is a sequence of creative choices – it’s a collaborative endeavour and an evolutionary development.The current global setting and fast fashion era, claims for product expansion which has turned out to be the business approach for the whole supply chain of the fashion industry. In the coming time, Mahim Group plans tobuild up its own brand, hence adding another feather to its designer cap. 12 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

11. MINDTREE POST YOURCOMMENTS www.apparelresources.com contact@apparelresources.com NEXT MINDTREEQUESTION Social media (Facebook, Twitter, Google, Linkedin, YouTube, etc.) though increasingly being used forbrandingand marketing of products has of late found its way into garment production as well. It has facilitated the manufacturing process in diverse ways – both directly and indirectly, making easy the entire procedure to a greatdeal. What about you…? Are you also using these innovative social media tools to help facilitate your garment manufacturing? Please share yourviews… Sultan Ahmed, ManagingDirector, RASA FASHIONINTERNATIONAL/S&S FashionsInternational Each and every manufacturer/supplier wants to get some margin in the garments business, which is possible if they take orders for both basic items as well as fashionable/fancy and specialized garment items. Usually, forbasic items order volume is high but for fashionable and fancy products ordervolumes are low. But for fashionable/fancy and specialized products, value addition as well FOB prices are higher compared to the normal/basic items. On the other hand, production process for basic items is easier and a large amount can be produced in terms of quantity perday/month/year. So, I think every garment factory should contain two separate production lines, one for basic garments and the other for fashionable/fancy and specialized garments. Also, producing fashionable garments requires greater skill-set and permanent workers to get the perfect quality, and here in Bangladesh there are lots of skilled workers available. As such, I prefer to get orders for both types of garments – basic as well as fashionable/fancy and specialized garments – side by side, so as to use our production capacity as much as possible, and also to keep my overall profit margin at a reasonablerange. www.apparelresources.com| JUNE 2016 | Apparel Online Bangladesh 13

12. COVERSTORY Movingbeyond RanaPlaza… I n d u s try e a ger for c l o s ur e TaftermathoftheRana Plaza rights of the workers, identifiedthree key factors behind such tragedies – weakness of Government agencies, poor mindset of the industry towards workers, and the global market dynamics. He openly questioned the process of globalization which allows a product made at US $ 5 in Bangladesh to be sold at US $ 25 by western retailers and eventhen most buyers were not willing to share the gains for workers’ safety and upliftment and instead putting more squeezes on prices. Rehman also suggested that there should be more transparency in ‘costing’ so that each link in the supply chain gets itsdue. he chilling memory ofthe • FACTS • PROGRESSOF ACCORD INITIATIVE • About 58% ofwork has been carried out tilldate • Lowpercentage of completed CAPs (0.12% of totalCAPs) collapse on April 24, 2013 still haunts the Bangladesh garment industry even after three years, and with numerous initiatives to move on… All stakeholders came togetherevery year to commemorate theanniversary and take a pledge to ensure that such a catastrophe does not happen ever again. The 3rd anniversary was no different with many events held in Dhaka in the memory of the workers who lost their lives and to deliberate onchanges… At one such event organized by the Centre for Policy Dialogue (CPD), a civil society think-tank, many eminent people committed to safety at work place – from workers’ unions tofactory owners to legal experts to economists and even ambassadors of many western countries which are the main market for the garment industry – participated in an open forum dialogue titled ‘Re-emerging from the Rana Plaza Tragedy’. “The Rana Plaza building collapse was a wake-up call for us,” admitted Faruque Hassan, Vice-President of Bangladesh Garment Manufacturers and Exporters Association(BGMEA). Giving a fresh perspective to thetragic incident that claimed 1,334lives, Dr. Khondaker Golam Moazzem, Additional Research Director,CPD reasoned, “Although RanaPlaza was a symbol of poor compliance, efforts of private sector, Government, international agencies and other stakeholders have made it a symbolof better compliance in theworld.” With many workers’ representatives present at the event, Professor Rehman Sobhan, Chairman of CPD, expressing solidarity forthe Building a Responsible Supply Chain in the Apparels Sector’. He focused on five core challenges: remediation of RMG factories; freedom ofassociation; strengthening the organisations; changes in governance in the global apparel value chain; and some of the unaddressed issues of Rana Plaza victims and their families.Laying bare the trauma that the survivors are going through, the study finds thatthe • High percentage of CAPs arebehind the schedule of implementation (81.04% as of February2016) IDENTIFYING CHALLENGES… Setting the base for discussions, Dr. Moazzem presented the CPD- ILO study titled ‘Post-Rana Plaza Developments in Bangladesh:Towards Marcia Stephens Bernicat, US Ambassador to Bangladesh, urged industry to be positive. Sitting to her right is Arshad Jamal Dipu, Chairman,Tusuka 14 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

13. COVERSTORY TheeminentpanelconsistedofvariedpersonalitiesfromaMemberofParliamenttorepresentativesoflabourunions,encouragingconstructivedebate rate of re-employment of RanaPlaza survivors is still very low, at 21.4%, as many of them do not want to go back to their workplace, eitherfor their physical health-related problems or mental trauma. Dr. Moazzem emphasized on developingresponsible supply chain in RMG sector by strengthening theDepartment of Inspection for Factories and Establishments (DIFE) with adequate capacity. He also suggestedupgrading the Department of Labour (DoL) into the Directorate of Labour to ensure better support to theworkers. The biggest challenge inremediation of RMG factories lies in thefact that a good number of factoriesare still out of any assessment process (about 909), and in factories where the process is taking place the limitation in skilled professionals to undertake the task has slowed down the process considerably with 81.04% of suggested change implementation behind schedule as in February 2016. However, from a stakeholder perspective the remediation process has beengood and many entrepreneurs consider the parameters used for inspectionabove nationalstandards. In the case of freedom ofassociation, the report noted that thenumber of trade unions registered in 2015 slowed down drastically by 72% and only 10 new trade unions have been registered this year, till March 2016. Entrepreneurs argue that they are not against trade unions, but they fear that unions may disrupt work on small pretext due to outsideinfluences. The need to institutionally recognize garment workers as partners in the industry by the factory owners to bring in ‘real and sustainable’ change was stressedupon. Representing the administration, Mikail Shipar, Secretary, Ministry of Labour and Employment, GoB observed that factories being housed in shared and rentedbuildings are one of the majorchallenges in the remediation process. He admitted that lack oftrained human resources is an obstacle to accelerate the remediation and that there is an urgent need for effective coordination among the factory owners, workers and trade union leaders which he felt is a challenging task. Appreciative of the serious intent of the industry and Government in bringing in changes forworker safety, Srinivas Reddy, Country Director of ILO Bangladesh Offtce, urged each and every garmentfactory in Bangladesh to go in for inspection andremediation. • FACTS • PROGRESS OFALLIANCE INITIATIVE • Alliance has identified a total of 48,500problems • About 49%has so far been completed SUGGESTIONS FORCLOSURE… Debapriya Bhattacharya, a distinguished Fellow of the Centre for Policy Dialogue and a distinguished economist, pointed out five major issues that could put a closure to the tragedy andallow the industry to move on:punishment to the responsible persons for the collapse; re-employment of the victims; free treatment for them; compensation; and finding the missing workers. Helamented that even after three years of the industrial disaster many legal aspects of the Rana Plaza collapse have remainedunaddressed. Sara Hossain, an eminentadvocate at the Supreme Court and ahuman rights lawyer made some very valid observations on the subject of ‘compensation’. “Whenworking out a formula for compensation, no consideration has beengiven • 24 factories have beenfully • remediated(4.1%) www.apparelresources.com| JUNE 2016 | Apparel Online Bangladesh 15

14. COVERSTORY Accord inspectors pushed garment factories to buy any specific service or product for remediation. “Wehave a list of the companies that aredoing different types of work related to remediation. We state that we are not recommending and endorsing them. We have simply provided the information to the factoryowners,” said Rob He, however, mentioned that the factory owners can lodge official complaints for any specificallegations they may have, regarding Accord’s engagement in providing assistance forremediation. Rob reiterated that the Accord stood by the inspections doneby Bangladeshi andinternational engineers during the initialinspection and by Bangladeshi engineersin the follow-up inspections. He said the Accord coordinatedextensively ‘informally’ on a daily basisand ‘formally’ on a monthly basis withthe Alliance, another factory inspection agency. Supporting the existence and role of the inspection agencies in bringing the needed change in the industry, Babul Akhter said the Accord and Alliance should workin Bangladesh until all the factories are fully safe, irrespective of what the factory owners weredemanding. Audience took keen interest in the discussion, listening to each speaker attentively to pain and suffering, neither has the issue of pinning accountability for compensation been resolved,” she said. Sara was also critical of norms for compliance,questioning whether they should be in accordance to international sensibility or nationalrealities. Though official figures claim that over BDT 231 crore has already been disbursed among victims by stakeholders, including Government, factory owners and brands, Babul Akhter, Secretary General of IndustriALL Bangladesh, thelocal chapter of the global union federation, argued that the money thefamilies of the deceased and the injured had received so far from various sources cannot be termed ‘compensation’; they are mere ‘grants’, and theinjured should continue to receive medical treatment forlife. In a move that brought cheer, the Secretary announced that a fund would be set up soon wherein 0.03%of export earnings would be mandatorily reserved for the welfare of workers. “With the support of global brands/ buyers and the ILO, a global trust has been created to provide Rana Plaza victims with compensation. More than US $ 19 million have already been raised for the fund, of which US $ 18 million has been distributed among 3,000 beneficiaries,” claimed the LabourSecretary. RIFT BETWEEN EXPORTERS AND MONITORING AGENCIESEXPOSED… In an interesting face-off between the industry and the monitoring agencies, Arshad Jamal Dipu, Chairman, Tusuka said hebelieves those who are conducting factory inspections are also promotingtheir commercial purposes adding that the Government should be at the driving seat for factory inspection rather than Accord and Alliance. “This ‘irritant’ has to be addressed; otherwise, the effectiveness of corrective action will not be there. The quality of inspections has to be ensured,” he said. His frustration was obvious as he went on to say that if the Government didnot proactively look into the matter, many company owners may in factthink of other industries to work in rather than be harassed on ‘unpractical’ demands from the factoryinspection agencies that cropped up after the Rana Plazaincidence. Responding immediately and vehemently to the allegations, Rob Wayss, Executive Directorof Bangladesh Operations of Accord on Fire and BuildingSafety, said that they are just working for a better compliance of the RMG factories and it is untrue that the • FACTS • PACE OF REMEDIATION SEEMS TO BE INFLUENCEDBY • Costsincurred to undertake necessary • remediation(seems to be high for building and fire- relatedproblems) • Non-availability • of necessary correctivematerials NEED FOR RESPONSIBLE REPORTING… Ambassadors of the UnitedStates, Switzerland, Netherlands, France and Spain expressed satisfaction at the work being done in the past three years, though they feltthat a lot still needs to be done. Marcia Stephens Bernicat, USAmbassador to Bangladesh, while urging the industry stay be positive said, “I strongly protest to the view that the garment industry inBangladesh has been built on the back ofcheap labour. They have been producing world-class garment items and they are much more than cheap laboursuppliers.” On a conclusion note Apparel Online, emphasized the importance of ‘responsible reporting’ toensure that the positive developments and pro-activeness of the industry is highlighted to the world tounderstand and support the change, rather than just focusing on the low and negative happenings in theindustry. • Limitedavailability of skilled professionals • Lack of interest ofentrepreneurs concerning the bleakprospect 16 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

16. COVER STORY2 DenimExpo DENIM DEVELOPMENTS MOVINGTOWARDS COMFORT STRETCH AND COMPETITIVEPRICING Md. Sohel Rana, Director Marketing, NassaGroup M. Shahidul Hasan, Director Operations, AmberGroup Md. Jalaluddin Chowdhury, General Manager, MahmudGroup 18 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

17. COVER STORY2 Tonlygetting bigger, arealitythat he denim story for Bangladeshis ESSENTIALS The seminar on future of denim had stalwarts like M ShahidulHasan, Director, Amber Group; Md. Sohel Rana, Director, Nassa Group; and Md. Jamal Abdun Naser,Director, Shasha Denim answering toqueries from the audience. Though each company was of a different view with regard to individual growth strategies, the one thing that came out strongly was the common belief in the futureof the denim industry and the fact that sustainability was the only way forward for long termgrowth. was endorsed by the attention that the recently concluded Denim Expo received from diverse stakeholders of the industry. With 49 exhibitors from 13 countries, including Bangladesh, Brazil, China, Germany, India, Italy, Japan, Pakistan, Singapore, Spain, Turkey to mention some, showcasing their latest offerings indenim fabric, denim accessories,chemicals and eco-friendly technology, the exporters and buyers who visited the fair were served with enough innovations to make the visit worth their time. The two-day event also hosted well-attendedseminars where international experts like Amy Leverton, Jeanologia and Tonello highlighted future denim trends and technologies, and also addressed issues of industryimportance. The effort of most companies wasto differentiate, and as denim moves beyond being a commodity product, differentiation is getting more challenging by the day. While the Bangladeshi mills stressed on the importance of product development and the ability to respond quickly to demand, mills from other countries felt that visibility in a market like Bangladesh was important to grow, as buyers were looking toincrease sourcing from the region. The fact was endorsed by buyers at the event, who expressed confidence on thecapability of jean manufacturers in the country, though they did stress the importance of being more sustainable. “The country has grabbed the attention of denim brands from around the world, but will they retain it in the long run depends to a large extent on how sustainably they take the industry forward,” said MartinSchaefer of Denim Madhouse,Sourcing ProductionConsulting. The success of denim has encouraged many new players to enterthe arena in the last few years, among them Thailand-based Absolute Denim, a 7-year-old company that is integrated from spinning to finishing,is producing 2 million yards per month, of which 80 per cent of fabric is for men. Servicing mostlythe European market for customers like G-Star, Next, M&S, Bangladesh is an important market for thecompany, as most of them manufacture their jeans in the country. “We make more compact and masculine fabrics,with Atthaphon Sirikajornkij, Creative Director, AbsoluteDenim Tazib Uddin Khan, GM, Sales & Marketing, ArgonDenims www.apparelresources.com| JUNE 2016 | Apparel Online Bangladesh 19

18. innovative products in a ratio of 80:20 to ensure steady business. “This ismy second visit to Dhaka and it is better coming here than going to Texworld, as it gives us visibility in a market which is the fastest growing in this segment,” headmits. Pakistan has some very well established mills and though rope dyeing is the standard procedure of dyeing, SM Denim, claims to be the only mill to have facility for slasher dyeing. While rope is an American technique widely used because of the high production output, slasher is a single process with less running cost, though the technology is expensive. “Fabric from slasher work out about 3 cents to 7 cents cheaper, alsolight weight fabrics for leisurewear ismuch easier,” shares Asif Merchant, CEO (Denim Division), SM Denim Mills, who also admits that the fabric type that they are producing is 95per cent same as what the ropedyeing manufacturers are doing.“Today 99 per cent of production is in stretch and brands are taking theconcept to new heights; Replay, Italy has recently introduced hyper stretch…, it’s all about stretch. When I set up the plant in 2001 it was only basic fabric, change has come after 2003, now a company cannot survive if they do not innovate by keeping track of what top brands are doing,” aversMerchant. A China-based company,WinWin Textiles claimed tohave better quality and even more competitive priced fabric than other exhibitors. “Thecapacities that we have and the type of investments in R&D that isbeing made, is difficult for newer countries and companies to duplicate,”reasoned Vance from the company. Almostevery type of denim fabric wasshowcased, greater focus on constructionrather than stretchability. We develop the fabric based on what our customers want, and as of today thedemand is for more mercerized fabrics,” shared Atthaphon Sirikajornkij, Creative Director, Absolute Denim. The company supplying jeans to manufacturers like M&J, Columbia, Pacific Denim, feels that there has been a shift to more competitive price and the biggest challenge is to make innovation in a given price bracket. “Our facility is certified byBCI and for other sustainable practices like organic cotton. The focus in innovation maybe anything, like in UK and France it is cleaner while Spain and Germany are asking for more crazy washes, but sustainabilityis a direction that we cannot run away from,” addedSirikajornkij. Another new entrant Pak Denim Mills, which was taken over last year by a new management, for whom denim is a new segment, the upfront attitude of the CEO Bilal Zubair,has already brought the companyinto the eyes of buyers. “Our USP is quick response service; quality and priceare not negotiable anymore and buyers need partnerships. We have to support our buyers in all circumstances, for urgent deliveries and even lower prices sometimes,” says Zubair. The company manufactures 1.2 million yards per month and the product strength is comfort stretch. “Wedo a lot of R&D in Pakistan, what we developed last year has already fetched us orders. I travel intensively and take personal interest in developments, this really helps,” adds Zubair. Working with brands like M&S and Mango as nominated suppliers and also directly with garment companies, Pak Denim produces both standard products andspecialized ESSENTIALS Recognizing sustainability as the next bigchallenge, Mustafiz Uddin announced a ‘sustainable textile’ fair in February 2017. “I feel this is the future but not everyone even understands what is sustainable…; how do I find technology…; how do I go about setting up a sustainableunit, which are common questions. I want to address this rising interest. With such a good concept, support has come in from alldirections – be it the buyers, the Government, the associations and theEuropean Union,” says Mustafiz. Md. Jamal Abdun Naser, Director, Shasha DenimsLtd. Asif Merchant, CEO (Denim Division), SM DenimMills Bilal Zubair,CEO, Pak DenimMills 20 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

19. COVER STORY2 FOB US $ 6, the fabric should not cost more than US $ 2.5 per kg and there is enough orders fromthis buyer segment in Bangladesh,” opines Tazib Uddin Khan, GM, Sales & Marketing, Argon Denims. He adds that the Rana Plaza incident was a blessing in disguise, as it helped the industry to mature. “About 5 years back all customers had specific designs, but now they expect the mills to develop. Brands are moving to the mills and collaborating to create new designs, which is a good trend and reflects a change,” saysKhan. Mostaftz Uddin, Organiser of the event and Managing Director of Denim Expert Ltd., Chittagong was very happy with the way the fair rolled out. As a manufacturer of denim garments, Mustafiz wanted to expose the industry and its directions to buyers, which gave birth to the Denim Expo. “We are a new country in the segment witha young history of denim manufacturing and there is still much to bedone, but the movement is in the positive direction,” says Mustafiz. As a jeans producer, Mustafiz feels that his company is growing as they are very responsive to trends and quick to incorporate newideas. Interestingly he is not advocating further investments in denim fabrics. “Companies have to see how they want to take the advantage of their setup. People think denim is a good investment because there have been some success stories…, but I feel that setting up a denim mill will work only if the new mill can produce that product which is currently being imported, otherwise it is only going to create more competition among the existing players. Feasibility needs to be seen,” arguesMustafiz. Recognizing sustainability as the next big challenge, Mustafiz announced a ‘sustainable textile’ fair in February 2017. “I feel this is the future,but not everyone even understands what is sustainable…; how do Ifind technology…; how do I go aboutsetting up a sustainable unit, which are common questions. I want to address this rising interest. With such a good concept, support has come infrom all directions – be it the buyers, the Government, the associations and the European Union,” concludesMustafiz. “Bangladesh is now the hub of denim andbuyers arecoming with greater expectations. Visitors at the fair were very knowledgeable and askeda lot ofquestions, which isgood.” – Md. James AbdunNaser “When a buyer comes to Bangladesh,his first thought is to buy at a low cost; we want to changethat perception. Bangladesh is now a seriouscontender forinnovation indenim. – Md. SohelRana “About 5 years back all customershad specificdesigns, but now they expectthemills todevelop. Brands are moving to the mills and collaborating to create new designs,which is a goodtrend. – Md. AligulAktar General Manager, MahmudGroup. The strategy at Nassa is to continually upgrade products with something new every second month. “When a buyer comes to Bangladesh, his first thought is to buy at a low cost; we want to change that perception. No doubt Turkey is the leader ininnovation, but the way the industry is growing and entrepreneurs are investing with a mindset towards sustainability (as it is not about few companies, but the industry at large), Bangladesh isnow a serious contender forinnovation in denim,” says Md. Sohel Rana, Director Marketing, Nassa Group. This fully integrated company is giving options of innovation at every stage. In garments they are going for sustainable washes, while in fabricthe investments are in improving quality of fabric. “We are not focusing on expansion in numbers, but in quality,” addsRana. Md. Jamal Abdun Naser, Director, Shasha Denims Ltd. was very happy with the visitation at the event. “Bangladesh is now the hub of denim and buyers are coming with greater expectations. Visitors at the fair were very knowledgeable and asked a lot of questions, which is good. Only with interactions we can grow, because exchange of ideas is the onlyway to grow,” said Naser. Tencil blends, recycled yarn and BCI certified cotton were some of theinteresting variations in denim that was on display at the Shashabooth. However, not every Bangladeshi company is looking at innovation and Argon Denims believes that the USP for most Bangladeshi jeans manufacturers is working for the medium range brands and fabric manufacturers must look at this segment.“For an average jeans worth MostafizUddin,OrganiseroftheeventandManagingDirectorofDenimExpertLtd. including multi-colour denims, which the company claimed was making a comeback. The company is directly supplying to manufacturers through a localagent. Major Bangladeshi companies had displayed their latest collections which received much appreciation. At Mahmud Denim, the emphasis was on viscose and dual blends,bright colours and comfort stretch. “OurR&D facility is big on washes andbased on standards given by buyers, we innovate quite a lot in this area. The biggest strength however is beingfully vertical so we are very competitive and since we have always invested in new technology this keeps us ahead,” said Md. JalaluddinChowdhury, “I visit more than 10 exhibitions around the world and have a strong sourcing network of fabric, which helps me tobe bang ontarget.” – MustafizUddin. www.apparelresources.com| JUNE 2016 | Apparel Online Bangladesh 21

20. BUYERBLOG APPAREL RESOURCESNEWSLETTERS To subscribe, send us an emailat subscribe@apparelresources.com FACEBOOKFRIENDS Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resources at www.facebook.com/pages Bilal S. Ghauri, Country Manager, Indus Apparel INDUSAPPAREL PROVIDING UNIQUE SOURCING SOLUTIONS BANGLADESH COUNTRY MANAGER SAYS COUNTRY WAY AHEAD OF COMPETITORS Phousethatforayedinto and abilities to deliver as per clients’expectations. “We believe in building relations… We value our vendors and are going to stick with them,” observes Bilal, underlining that it takes a lot to educate new vendors and train them to live up to the stringent parameters, vital amongst which are – competence,capability, background and repute, and last but not the least, adherence to commitments. As such, Indus works with just 10-15 vendors in Bangladesh, of which 2-3 vendors are assigned for each product category. However, that does not mean the keen and the willing stand no chance of working with Indus. “We keep looking out for new vendors also – from small to big scale – because you neverknow what kind of buyer you may meet tomorrow,” clarifies Bilal, hinting towards diverserequirements of different clients (in terms of price and quantity) that may not match with those offered by the existingvendors. Bilal’s aim now is to project and popularizeBangladesh’s competencies in the global arena, and to facilitate the samehe has already added new product categories such asjackets, PU outerwear, fashionwear in fake leather and suede, etc. in the sourcing basket.“If China can do many categories so can Bangladesh. We are trying to project Bangladesh’s competency that many customers might notbe aware of,” points out Indus rimarily an apparelbuying designing and manufacturing subsequently, what distinguishes Indus Apparel fromothers is its singular approach in offering ‘out of the box’ sourcing solutions which has been imbibed in essence and spirit by the company’s Bangladesh office, headed by its Country Manager Bilal S.Ghauri. Established a decade ago, especially to cater to a Canadian client (as Bangladesh enjoys duty-free access to Canada) as well as try andget a foothold in the business ofdenim – that Bangladesh is famous for worldwide, the primary thrust of Indus Apparel in Bangladesh has been on selecting the right vendors and then develop theirproficiency We are trying to project Bangladesh’s competency that many customers might not be awareof.” 22 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

21. BUYERBLOG USD 500MN Turnover VANCOUVER DesignStudio CUSTOMER SERVICE CUSTOMIZED DESIGN & DEVELOPMENT SEASONAL SHOWCASE ServicesProvided PAKISTAN JORDAN CHINA PDCentres PAKISTAN BANGLADESH EGYPT JORDAN Factories Apparel’s Country Manager, who believes that textiles being the biggest contributor in Bangladesh’s growth and development,the focus still is on the textile sector chiefly. Recognizing the sector’s importance, the Government and the industry bodies also actively support it, which definitely plays in Bangladesh’s advantage, underlined Bilal. “Even during strikes and other problems, the Government and BGMEA handle the situation very well, ensuring that exports are not impacted,” saysBilal. However, Indus Apparel’s Country Manager is reluctant to maintain the same for Pakistan, another primary sourcing destination for the company, where it has a factory as well. The scenario is no different for India, which has already moved beyond textiles to get into fields like software development and others, Bilalobserved. Given the kind of support the garment sector in Bangladesh is enjoying, Bilal maintains it would be very difficult for its competitors to surpass Bangladesh even with trade benefits. “Even if Sri Lanka and Vietnam get GSP and TPP, they cannot compete with Bangladesh because we have huge facilities. Besides, the approach of the Government towards the industry is also proactive,” Bilaladded. Notwithstanding the edge that Bangladesh holds over its competitors, Bilal’s prime concern as a sourcing agent is more about the diminishing FOBs now. Accountingfor 10 per cent of company’s total earnings generated from Bangladesh, Bilal’s mantra for countering falling FOBis ‘efficiency’. “These days you don’t make money out of prices, but out of your efficiency. If you select the right product for theright concept, you can save some money,” underlinedBilal. He adds, “It is not about making new things, butabout making the rightly priced product. The kind of prices we are doing now, we never thought we could do it at this price 15 yearsago. So, no matter what kind of price challenges people are facing, they are able to overcome them by increasing their efficiencies, R&D, productivity enhancement, fabric price reductions, new washing techniques, innovative fabrics,etc.” Going forward, Bilal’s aim is to increase the business volume from Bangladesh steadily... “We will not stop hunting for new possibilities, strive for new developments, or adding new clients,” concludes Bilal on a positivenote. www.apparelresources.com| JUNE 2016 | Apparel Online Bangladesh 23

22. BUYERBLOG FASHION AND SERVICES Padam Vaish, MD – Fashion andServices WORKING TOWARDS UPLIFTING BANGLADESH's IMAGE Epotentialsforthegrowthofthe Compan y’s MD read y to hand-hold and help new facilities to achieve efficiency and excellence Planning to deliver 1.5 to 2 million pieces of garments thisyear to efficiently cater to and meet the buyers’ demands, Padam maintains the reinstating of GSP by the USA could prove to bea vital factor to better trade volumes and infuse enthusiasm amongst the entrepreneurs. Good EPZs is another factor which could contribute a great deal to this end, Padam feels. “Such facilities would not only benefit the manufacturers and the buyers but also motivate the garment manufacturers to go for newer markets like Australia and South Africa, whichhold great promises from Bangladesh’s perspective,” concludes Padam. growing popularity as the global denimhub. Padam’s nine long years of association with the Bangladesh apparel industry and his pursuit to enable themanufacturing setups to attain better efficiency, is helping the company’s cause further. “Assisting them is still going to be a job for me, because they could be good in compliance and delivery, but not that efficient… They might have over- capacities and might not be able to fill it up. There are several possibilities,” explains Padam on the needto hand-hold and guide the factories in the right direction, sounding rather upbeat about the country’s future prospectsnonetheless. xploring and exploitingthe Bangladesh apparel industry, uplift its image as a compliantcountry in global market, introducing the industry to new or less- manufactured garments inthe country while also promoting the regular product categories, and popularize Bangladeshi products in unconventional and new markets, are some of the objectives that inspire and drive theone-year- old buying house Fashion and Services, led by Padam Vaish, its ManagingDirector. Padam is trying to exploit the potential of markets such as Holland, Denmark, Germany, etc. for which Fashion and Services has roped in services of ‘A-class’ manufacturing units, which are not only fully compliant but are also firm on on-time delivery, the two most sought-afterprerequisites of any global buyer these days. It has already enlisted around 300 manufacturing units for the regular and specialized products like workwear, corporatewear, lingeriewear and activewear; the latter two categories that ithas added to its basket recently. Denim is also another product from the regular category that Padam is keen on adding to his portfolio in the backdrop of Bangladesh’sever- Fashion and Services has enlisted around 300 manufacturing units for the regular andspecialized products like workwear, corporatewear, lingeriewear and activewear; the latter two categories that it has added to its basketrecently. Reinstating of GSP by the USA could prove tobe a vital factor to better trade volumes andinfuse enthusiasm amongst the entrepreneurs. GoodEPZs is another factor which could contribute a great deal to this end, saysPadam. 24 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

25. EXPORTERSTRATEGY SUBSCRIPTIONENQUIRIES Contact RaniMahendru +91-11-47390000(512) rani@apparelresources.com DATAANALYTICS For Latest ApparelExport/Import Data pleasevisit dataanalytics.apparelresources.com Challenges of runningmultiple shifts Multiple shifts have been enjoying preference in the textile industry for a long time now. On the other hand, the apparel factories are rarely seen running on multiple shifts. Speaking of the subcontinent, Sri Lanka has been the best exhibit of the concept with some factories even running three shifts a day, for all seven daysin a week. Closer home, India has not achieved any significant benchmark operations based on this concept. Bangladesh’s latest undertaking in this realm has taken off well. While Rashid and his team have led East West to a nearly seamless transition and even started reaping benefits, the challenge is simplistic as it has many layers. Adarsh Sharan, COO, Matrix Clothing – an Indian apparel exporter who has extensively practised the double shift paradigm, details on its success, “The success of multiple shifts is that itis a cultural and disciplinary issue for the operator as well as the management.” Therefore as per Adarsh, the best case scenario is that the factory functions on multiple shifts from its very inception. However, if the challenge is picked up in the later stages, the successful progression of the factory to double shift cannot be taken for granted as it is dependent on cooperation from the management, HR andoperators. As per Adarsh, the operational challenges are very few – namely smooth transition between the shifts, wherein the entry gates and exit gates for the workforce of the upcoming shift and previous shift are clearly demarcated. Then there are case-to-case scenarios where the operator of the previous shift is still finishing the bundle while the timer goes off for the next shift. “Usuallyit is about 2-3 pieces, and for that duration the operators for the upcoming shift wait for the work to get over,” shares Adarsh, and soon adds, “Care must be taken to keep the bundle sizes to meet the balancing requirements and there are no incessantly huge bundles.” The next challenge is to find the closest clone of the operator pool, so that, “Sunita replaces Sunita and Anita replaces Anita,” as Adarsh explains. He further goes on to caution that such a set of operations will reap the best results when the factory is manufacturing long runs of standardproducts. Other than this, in Bangladesh, there are clearances and consents required from the women workers, if they are willing to work between 10 PM and 6AM. to understand and resolve what is hampering the quality,” he adds. Focus onIndustrial Engineering “We have never lost any buyer. Once they work with us, they stay with us,” shares Alam. The company allocates lines accordingly to the key buyers round the year, and is booked for nine months from now. The confidence which the buyers place in the company’s capacities stems from the focus it gives to Industrial Engineering and also its scientific approach to running operations. Whenever a new order comes, the IE works from sampling onwards. Forinstance, for poly-viscose jackets with 4% lycra, we know that the productivity will be reduced. Therefore during the PD, the IE assists the Pattern Master in shrinkagecalculations. Simultaneously, the IEs tabulate all the operations and the required SMV for an operation bulletin. “Based on these calculations, the samples are prepared and tagged with the IE’s name stating the productivityas per the order quantity which is then shared with the buyer,” explainsAlam. “IE today plays a big role as theyare driving the operations forward with scientific analogies andmethods. Their role also includes developing line plans, line balancing and to even convene the daily productionmeeting. We had a line efficiency of 36% two years ago. Today we stand at 50%, and the next milestone for our IE team is to shoot past the 60% level of efficiency,” informsAlam. Gearing up for growing, from US $ 50 million to US $ 120 million by 2018, Rashid is now looking at working with new buyers, especially Japanese – as can be guessed from the focus on Zero Defect programme. Thefactory today produces 1,70,000 suits, 4,00,000 trousers and 80,000waistcoats, per month by not only employing better systems and technologies, but is also making capacity expansions and adding Japanese clientele beyond its existing set of buyers such as NEXT, Moss Brothers, H&M, Raymond, Blackberrys, to mentionsome. ESSENTIALS East West Industrial Park is a projectfor manufacturingof jackets, trousers and waistcoats. The company also has a textile mill inDhaka for polyester, poly-viscose and poly-wool suiting fabrics. While the poly- viscose fabric is manufactured usingfibre-dyed imported yarn from India, the raw materials for others are secured from China and Taiwan. East West today is also capable of finishingfabrics. Impressively enough, East West has grown today to even provideproduct development inputs to the buyers and before starting theseason, the product development team sends designsto itsbuyers. 28 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

28. RETAILERCURRENT SUBSCRIPTIONENQUIRIES Contact RaniMahendru +91-11-47390000(512) rani@apparelresources.com DATAANALYTICS For Latest ApparelExport/Import Data, pleasevisit dataanalytics.apparelresources.com Bonmarché makingchanges inmanagement British clothier Bonmarché is making somechanges in its management… Mark McClennon has been roped in as an Independent Non-Executive Director of the company. He is currently working as the Global Vice President for IT atUnilever. “I am delighted with Mark’s appointment. His experience gained over more than 20 years within Unilever will bring to the Board skills and knowledge which will be especially valuable given the developing business change agenda within Bonmarché’s strategy,” said John Coleman, Chairmanof thecompany. The Bonmarché Board has also appointed SergeiSpiridonov as a Non-Independent Non- Executive Director.His knowledge and background, particularly in the consumer space, will be valuable in going forward and the company looks to continue good relationship with its majority shareholders, averred Coleman. Besidesthis, Bonmarché has also unveiled its yearly report. The company has registered a 5.3 per cent surge in its sales for the year ended March 26, 2016. Its like-for-like sales zoomed 0.7 per cent. Commenting on the results, BethButterwick, CEO of Bonmarché said, “Post- Christmas, trading conditions have continued to be quite challenging, with the exception of January where we saw a higher than average demand for autumn/ winter salestock. VFC, Lee bag award for ‘deniminnovation' Global leader in design, manufacturing, marketing and distribution of branded lifestyle apparel, footwear and accessories, VF Corporation and its Lee brand in Asia have been named winners of Bronze in materials science category for itsJadeFusion Denim by Edison Awards, which honours the best in innovation and excellence in the development of new products andservices. The retailers’ innovative jeans features particles from jade gemstones combined with treated cotton to help wick moisture and enable cooler denim. The company release states that materials experts and scientists from VF,Lee brand and outside partners tested more than 60 different materials and determined that yarn infused with jade particlescreated coolerfabrics. The jade yarn is combined with treated cotton to create a new patent pending fabric that provides superior temperature regulation, more wicking power and quicker drying time thantraditional denim. After extensive testing, VF launched its global cooling platform, adapting the denim for local markets, includingthe Lee® brand’s JadeFusion Denim in China that offers consumers refreshing comfort and style even in summermonths. “At VF, all innovation starts with the consumer – understanding their needs so that we can design purposeful and compelling products. Our corporate innovation team collaborated with our Lee® brand and a globalnetwork of universities, labs and mills to research and develop the JadeFusion line, ultimately addressing the consumer pain point of denim discomfort in hot, humid climates,” said Stephen Dull, VP – Strategy & Innovation,VFC. Resource Centrep48 36 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

29. RETAILERCURRENT “Our USP is quick response service; quality and price are not negotiable anymore and buyers need partnerships. We have to support our buyers in all circumstances, for urgent deliveries and even lower prices sometimes.” – Bilal Zubair, CEO, Pak Denim Mills p20 HanesBrands to acquire PacificBrands Commenting on the acquisition, Hanes’ Chairman & CEO,Richard A. Noll said, “PacificBrands is a natural addition tothe HanesBrands portfolio with its strong market-leading brands that will be complemented by our global supply chain. In the span of 10 years, we have transformed the company through acquisitions and our Innovate-to-Elevate initiatives. We have tripled operating profits and expanded from a US $ 4 billion companyconcentrated in the United States to aUS $ 7 billion global underwear and activewear powerhouse spanning the Americas, Europe and Asia- Pacific. This foundation will serve as a catalyst for growth and value creation for the foreseeablefuture.” HanesBrands, a leading worldwide marketer of underwear, intimate apparel and activewear in the Americas, Europe and Asia, is all set to acquire an Australia-based underwear and intimate apparel company PacificBrands. The transaction is valued atUS $ 800 million (on an enterprise- value basis) and is expected to be immediately accretive to adjusted earnings per share and deliver an after-tax internal rate of return in the mid-teens. It isprojected to deliver full benefits within three years, attaining adjusted operating profit of approximately US $ 100 million, contributing approximately US $ 0.25 to Hanes’ adjusted EPS, the company said in arelease. Hanes will most probably hold on to the senior management team of Pacific Brands to run the business post acquisition, which is expected to result in significant savings through the use of Hanes’large- scale, low-cost global supplychain. The acquisition also would add to Hanes’ global productdesign, development andinnovation capabilities that span the Americas, Europe and the PacificRim. www.apparelresources.com| JUNE 2016 | Apparel Online Bangladesh 37

30. RETAILERCURRENT APPAREL RESOURCESNEWSLETTERS To subscribe, send us an emailat subscribe@apparelresources.com FACEBOOKFRIENDS Join more than 10,000 people who are fans of Apparel Resources on facebook. Search for Apparel Resources at www.facebook.com/pages Cherokee Global Brandsenters license agreement withAhold Marketer of style-focused lifestyle brands, Cherokee Global Brands has inked a license agreement with Ahold Czech Republic, adivision of the Netherlands-based Ahold, to launch Cherokee-branded products in theregion. Speaking on the occasion, Howard Siegel, President & CEO of the company said, “The Cherokee brand has had along and marketable historythroughout Central Europe. We are very excited to partner with Ahold and build upon the existing awareness of the Cherokee brand in the Czech Republic. Our 360 degree platform provides Ahold with turn- key design, merchandising and implementation solutions thatwill ensure speed to market, in addition to immersive, engaging in-store experiences for Albert customers.” Under the agreement, a wide range of Cherokee products, including men’s, women’s and children’s apparels, essentials, footwear and accessories will be launched in more than 80 of Albert’s 330 stores in the Czech Republic, beginning Fall 2016. Ahold will workwith the company’s in-house design and marketing teams to launch Cherokee shop-in-shops within Albertstores. Milan Hladil, Commercial Director of Ahold Czech Republic averred, “We are pleased to introduce new lines of the Cherokee brandin our Albert Stores and are looking forward to growing ournon- food business together with the Cherokee brand. We are confident that the debut of the Cherokee brand in Albert Stores will be fully embraced by Czechconsumers.” Kate Spade reports risein Q1 netsales H&M joins hand withKENZO of KENZO x H&M, with all of its creativity, fun and love offashion.” The creative directors of KENZO, Carol Lim and Humberto Leon will bring the spirit of KENZO to H&M in making assortments for both women and men and infuse the essence of freshness in the creation. ‘KENZO x H&M’ willbe available in over 250 selected H&M stores worldwide and online, from November 3 thisyear. “With this collaboration by H&M, we want to think big, push the boundaries and bring the new energy of KENZOto everyone around the world,” said Carol and Humberto, Creative Directors,KENZO. In its latest design collaboration, H&M has joined hands with the Parisian fashion house KENZO to create chic apparel and accessoriesassortments. Revealing about the collaboration, Ann-Sofie Johansson, Creative Advisor at H&M said, “We can’t wait to share with everyone theworld Fashion retailer Kate Spade & Company has reported an increase of 14.5 per cent in its net sales to US $ 274 million in the first quarter of the year. Direct-to-consumer comparable sales grew by19 per cent in the reportingquarter. According to company release, income (loss) from continuing operations on a reported basis was US $ 11 million compared to US $ 54 million in the first quarter of 2015. While Kate Spade North America net sales were US $ 219 million (up 17.1 per cent), Kate Spade International net sales for the first quarter were US $49 million, marking an increaseof 3.2 per cent compared to the same period lastyear. Craig A. Leavitt, CEO of Kate Spade & Company commented, “Our first quarter results reflect the stronger, refocused Kate Spade & Company and underscore the effectiveness of our differentiated strategy. We continue tofocus on our powerful multi-channel approach, especially fuelled by the robust performance of our global e-commerce business, which helped drive our industry- leading comparable sales growth by 19 percent.” 40 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

32. BEYONDBD Cambodia's trade union lawill-received by workers: Rights activists Sri Lanka signs MoU withPakistan to enhance bilateral trade In a bid to increase bilateral trade and utilize the benefits of the Free TradeAgreement (FTA), a Memorandum of Understanding was signed between businesscouncils of Pakistan and SriLanka recently on the sidelines of Pakistan’s first textile exhibition TEXPO-2016in Karachi. The MoU was signed byRohita Thilakaratne, Presidentof Sri Lanka-Pakistan Business Council of Ceylon Chamber of Commerce and Industry, and Khalil Naseer, Chairman of the Council established under the umbrella of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). The Sri Lankan Minister, who is heading a15-member delegation to take part in TEXPO-2016, saidthat both the countries have enjoyed strong economic ties since many years.Trade DevelopmentAuthority of Pakistan (TDAP) Chief Executive SM Muneer, urged the FPCCI to adopt a practical approach to explore the benefits of the FTA for enhancing bilateral trade between the twocountries. Pakistan is the second largest trading partnerof Sri Lanka in South Asia. At the time of signing the FTA in 2005, SriLankan exports to Pakistan amounted to around US $ 40 million, while imports from Pakistan were US $ 108 million. In 2015, the volume of export and imports of SriLanka with Pakistan increasedto US $ 73 million and US $ 297 million,respectively. getting abused or mistreated at work. So much so, a worker is first needed to seek permission from their factory owner before staginga protest. They can even be arrested for disrupting production,making it more difficult for workersto strikework. Defending the new trade union law, Minister of Labour Ith Sam Heng claimed it “would bring stability and biggerinvestments”. The ruling Cambodia People’s Party (CCP), backed by thefactory owners, has long blamedthe trade unions for poor relations, condemning strikes for having ruined performance of several sectors in the country, while the Cambodia National Rescue Party (CNRP), which has a large support base of garment workers,garnered 2.9 million votes and 55 seats in the Parliament, following the July 2013 generalelection. Cambodia’s growth of the garment industry hasdiminished substantially in recenttimes. Foreign investment has become a dire necessity for sustaining the industry, which has become a far cry in the face of frequent strikes, now becoming pretty regular in thecountry. Cambodia’s new trade union law does little to alleviate thetroubles of the garment factory workers, with the fear of violent agitations becoming imminent with each passing due to the poor labour practices that remainwithin thesystem. While the factory workers are getting restless, relationsbetween both the ruling party and the opposition kept getting worse. Five years since its drafting, the Cambodian National Assembly and the Cambodian Senate passed the controversial trade union law in April to regulate the country’s 3,400 trade unions, which has so far drawn much flak from both the domestic and international trade unionists, besides humanactivists. The bone of contention in the trade union law has been the clauses that exclude informal workers and public servants from its purview. Besides, the law also requires unions to disclose their finances to the Government as well asincrease the minimum threshold ofworkers required for union formation from10 to 20 per cent for any givenfactory. Apart from these clauses, theissue of labour malpractices exist within the system, leading toworkers cotton, fibres and fabrics, and the little that are produced within the country, fail to suffice in terms of both quality and varieties. In spite of being one of the world’s largest garment exporters, the industry contributes only a smallpercentage to Vietnam’s annualGDP. textiles,” MANTRA Director V I Bachkaniwala is reported to have told an English dailyrecently. “Plasma improves the quality of fibre, drastically reducing shrinking of fabric, andis a clean technology with no chemicals involved. It will surely provide a major boost to quality improvement in textile manufacturing,” IPR Director D Bora said, adding, “In case of wool, plasma treatment nearly eliminates the prickly feel and entanglements of the fibre.”He went on to suggest the MANTRA members to look into “plasma nitriding”— a process to improve hardness of machine tools and parts of textile units by treating them with plasma. www.apparelresources.com| JUNE 2016 | Apparel Online Bangladesh 43

33. BEYONDBD TOADVERTISE Contact RaniMahendru +91-11-47390000(512) rani@apparelresources.com GOING TO A GOODEVENT? Send your industrygossip, photos and newsto isaxena@apparelresources.com InBrief Rare win for garment factory worker inMyanmar M&S Group declares full-year result:British multinational retailer Marks & Spencer plc has announced its full-year results, recently. According to the company, its Clothing & Home gross margin has increased by 245bps; however sales remained low in the period under review. Moreover, persistent tricky trading situations in the international markets resulted in the decline of 39.6 per cent in operating profit to £ 55.8million. In a rare victory for a garment factory worker in Myanmar, the Arbitration Council of the country has ruled in favourof the Han Jen factory worker who was recently fired for turning up late for work. Not only has the Council ordered the factory to hire back the worker, Ko Ye Ko Tun, but has also told the company to compensate him for the loss of pay. Ye Ko Tun, is however, to be informed when he can return to work. This worker was among 100-odd labourers who had recently been laid off by the factory, located in Shwe Pyi Thar’s industrialzone. According to the arbitration body, the company’s decision tolay off Ye Ko Tun was in violation of the regulations, since he had not been given a warning. The council stated that during the hearing of the case, the factory authorities had submitted forgeddocuments. Bangladesh, Nepal agree to do away with the Technical Trade Barriers: In a historic move, Bangladesh and Nepal have come to a mutual agreement to eliminate Technical Trade Barriers (TBT), during the third roundof trade secretary-level talks between the two nations in Dhakarecently. Speaking on behalf of the company, the factory’s HR Manager U Khin Maung Win had reportedly said that workers were only fired when they have been late for work on as many as 19 different occasions. “We can’t accept the council’s decision. We will appeal this case at the Central Arbitration Council. This was a one-sided decision,” hesaid. Meanwhile, Ko Kyaw Kyaw Myint, a former employee of the factory and a union chair, claimed that the Factory Manager has a tendency to ‘punish’ workers for getting involved in the workers’ union. Ko Kyaw Kyaw Myint claimed that out of the 100-odd workers fired in the past one year, 34 were unionmembers. Nepal Govt. lobbying for RMG's access to USmarket According to a US legislation special trade preferences were given to Nepal, under which Nepalese garment exporters could avail duty-free tariffbenefits for up to 66 types of garment items like carpets, headgear, shawls, scarves and travel goods. However, this duty-free facility, which will be in effect till 2025, is applicable to only 40 per cent of the Nepalese garments being exported to the US. Several garment producers were disappointed to hear that their products are not currently included in the duty-freelist, to which Oli assured them that he would lobby to gainduty- Nepal’s Prime Minister K P Sharma Oli recently assured garment makers that theGovernment would lobby the US Government to gain duty-free and quota-free access to the American market for all types of readymade garments. Currently, the benefit is applicable to only 40 per cent of the country’s garment products exported to theUS. Speaking at the 65th annual general meeting of the Nepal Chamber of Commerce (NCC), Oli urged the garment producers to increase their manufacturing capacity so as to ensure smooth and regular supplies to the Americanmarket. free, quota-free access to the American market for all types of readymadegarments. Further, Oli urged the private sector to come up with rational demands for the economic development of thecountry. Concerned over the overall development of Nepal, he said, “The Government will try to address thegenuine demands through its policy and programmes, and the upcoming budget.” Stressing on the need for industrialisation,Industry Minister Som Prasad Pandey said, “For the purpose, industries based on domestically available raw materials arenecessary.” 44 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

37. RESOURCECENTRE INTERTEK: RE-DEFINING TESTING AND INSPECTION SERVICES TOASSURANCE Dr. Karthik ND, Country Managing Director, Intertek Bangladesh Cdesignedwithafocuson brands Designed as a global benchmarking solution, Intertek’s WCA is not just a pass or fail test. Instead the factories are rated on a scale of red to green and a continuous benchmarking is generated which helps the Intertek team provide them with inputs and suggestions on what needs to bedone to improve the score. The scoring system compares a certain facility across other facilities within the country; in other countrieswithin the same sector; and other countries across different sectors. “So, when Bangladeshi factories take this assessment, they have the advantage of global visibility and they do not really need to project themselves asa country with competitive costing but quite literally globally benchmarked high in compliance and quality also,” elaborates the CountryMD. At the same time, often it has been contended that therewere discrepancies in howsafety inspectors and factory owners look at the interpretations of guidelines. Intertek’s antidote for the situation sets forth teams that are trained on buyer’s code of conduct and/or an accreditation organisation suchas is to identify the processes in the entire chain that are responsible for chemical impurity and to create the support testing system,” saysKarthik. hemical SmartScreening, and apparel sourcing companies, will take Testing & Inspection from ‘Control-era’ to‘Assurance-era’. Today, the entire apparel value chain, right from product development to packaging to retail operations uses over 1,600 chemicals, reckonsKarthik. While some amongst these are identified as critically hazardous, and obviously screened, such as the liquid waste from a dyeing house. Several others go unnoticed anduntested as they are present only in trace amounts, which is a recipe fordisaster in waiting. “We have identifiedclose to 400 chemicals which although are present only in trace quantities, but are hazardous in the long term, and Bangladesh is one of the primary locations where the screening forsuch chemicals is beinglaunched. Choosing Bangladesh as one of the flagship locations for the program goes on to reflect the market dynamics of the country. Karthik is certain that the program will strike a chord with the Bangladeshi Apparel Manufacturing fraternity.“The only challenge which remainsnow INDUSTRY COMMITMENT Being a part of Bangladesh’s growth storyand the journey toUS $ 50 billion apparel export target, Karthik not only sees this as an opportunity butalso a commitmentfrom Intertek to be most trusted partner for qualityassurance. Solutionsforauditfatigue The possibilities are so immense that it is vexing for a factory owner. A factory working with a certain buyer for years might suddenly be dismissed as a supplier because of a change in regulation. Or maybe, out of the 10 buyers that a factory works with, for six buyers the factory’s infrastructure is compliant to their regulations. “Such a factory doesnot really need to go through sixdifferent audits to be certified compliant,” points out Karthik. Realizing the need of solution for suchsituations of audit fatigues, Interteklaunched a service of WorkplaceCondition Assessment (WCA). “Thisassessment, typical to Intertek and customized based on country’s labour law and requirements, covers almost all the points from almost all buyers and standards of the world. We have created our own set of what we trust would cover the requirements of all these buyers,” informsKarthik. 48 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

38. RESOURCECENTRE HAVE YOURSAY Tell us your news by emailingat news@apparelresources.com BREAKINGNEWS To read the latest sustainability news, goto http://news.apparelresources.com/sustainability-news/ announces Mobile App and thread colour identificationtool Asecond-largestmanufacturer A&E global representatives, are features offered byColorlink. In addition, Colorlink also supports a companion device called COLORCATCH NANO, an advanced hand-held colour tool to identify colours on a variety of smooth, structured or patterned surfaces with touch of abutton. “Thread colour selection is a foundational element of garment design and production, but too often this decision is left to the end of the process,” stated Chris Alt, Senior Vice President Sales, A&E, adding, “Our goal for Colorlink is to give designers and manufacturers an easy-to-use, go-to thread colour collaboration tool that not only provides colour inspiration,but also streamlines access to our expansive global colour platform and Colorlinkpalette.” merican & Efird (A&E) –world’s and distributor of premium quality industrial and consumer sewing thread, embroidery thread and technical textiles – recently unveiled a mobile app named ‘Colorlink’, with a focus on threadcolour. Available for both Android and Apple phones and tablets, Colorlink is created to serve as an end-to- end tool to connect designers and production managers in thread colour selectionprocess. Opportunity to easily specify thread colour and manage ideas on the-go, create personal thread colour collections, locate complementary threadcolours, place selected colours on sample stitches and fabric types, ability to organize and share projectand thread colour details with colleagues and the supply chain, request physical thread colour samples for confirmation, besides offering the opportunity to connectwith Availableon 50 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

40. TOADVERTISE Contact RaniMahendru +91-11-47390000(512) rani@apparelresources.com GOING TO A GOODEVENT? Send your industrygossip, photos and newsto isaxena@apparelresources.com Evolution ofTechnology PRESSING &FINISHING Wthe‘unwanted’creaseas Formal jacket offers the maximum challenge as differentparts have different 3Dshaping. The press manufacturers verypainstakingly created exact replica of different sections of jacket shapes to offer the best possible quality appearance while theprocess remainsfast. hile pressing canremove well as impart ‘wanted’ creases, finishing can only remove the ‘unwanted’ crease, thereby limiting its use for formal clothing. However, finishing being a continuous process with tremendous possibilities for automation, mass manufacturing is gradually adopting finishing over ironing and pressing to scale up the production. While the technology of buck ironing is giving way to sophisticated buck pressing and non-contact tunnel finishing is giving way to flexible finishing module, the trendis shifting from mass manufacturing to flexiblemanufacturing. Dr. Prabir Jana, NIFT Delhi traces the evolution of pressing and finishing technology and how the market-led developments are maturing to support the flexibility infuture. Pressing is done by compressing the fabric between either twoflat or curved surfaces (no relative motion between the surfaces); and though pressing is also a batch process like ironing, pressing is mainly used either for large areas (as it is a faster process than ironing) or for 3D shaping of the garment part (e.g., bypressing a convex and a concave surface together). On the other hand, finishing is done to remove the ‘unwanted’ crease by applying stretch. The garment is worn over an inflatable dummy andsteam is applied to inflate the dummy, thereby removing the creases; the hot air follows steam to remove the remainingmoisture. In flat pressing, garments are laid on an upsteam table and another flat surface is used to press over the garment in a scissoraction Form finisher forshirts PRESSING Initially, the pressing tables were primarily two flat surfaces covering large area and most popular pressing function was trouser legger press. In a single press the whole trouser leg, from below crotch to bottom hem portion, waspressed at one go. There were improvised pressing machines for sweater and heavy knitwear as well, where garments were laid flat on an upsteam table and another flat surface (created by tensed fabric) used to press over the garmentin a scissor action. Although pressing of flat surfaces were relatively easy and simple technology was used to make the process faster by covering greater area at one go, the real challenge of pressing came while pressing shaped area ofgarments. In past, ironing tables used to have one movable armand various convex shapes ofbucks for ironing shaped garments; the shaped portion of garment parts were placed over the bucks and hand iron was used over the top to remove the creases fromthe shaped portion of the garment (like shoulder and sleeve crown area of jacket). Initially there were only few generic shapes of bucks available and same buck was used for right and left side of the garment. First of all the process was extremely slow and as the convex bucks was of approximate shape of garment area, quality of the process was compromised. Although the process used to be called ‘buckpressing’, it was actually ‘buck ironing’ as the top surface was the same hand iron moving over the bucksurface. Generally the convex or male shapes are stationary heads;garments are laid on top of it and concave or female shapes are moving heads that come over it in vertical action to press the garmentparts. 52 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

41. EXPORTSTATISTICS US Apparel imports in March take a negativeturn January - March 2016 After a good start to the year, apparel imports by the US have taken a hit in March 2016 from all destinations and were substantially down compared to the same month last year. While the values were down (-) 19.91%, the volumes decreased (-) 21.20%. This has impacted the January-March 2016 overall importvalue. Global Apparel Imports by theUS: Jan.-Mar.2016 Percentage decrease inUVR 8 7 6 5 4 3 2 1 0 2.87% ValueDecrease Average UVR (Euro per Kg of Fabric) 2.14% US$ 3.13 US$ 3.04 VolumeIncrease 0.58% 2015 2016 Change inValue Year 5.72% Cotton 5.47% Wool Total global apparel imports by the US — Jan.-Mar.’16 Type of Apparel Jan.-Mar. ’15 Jan.-Mar.’16 %Change 1.76% MMF 7.00% Silk &Veg Change inVolume Qty & value in mn M2 & US$ 2.36% Cotton 0.03% Wool Total apparel exports to the US by India and its competitors — Jan.-Mar. ’16 Countries Jan.-Mar. ’15 Jan.-Mar. ’16 %Change 3.08% MMF 7.12% Silk &Veg [The information has beenextracted from US custom site and furtheranalyzed.] Qty & value in mn M2 & US$ 58 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com

42. WORLDWRAP “Twage and apprenticeship hough both, nationalliving Gloomy days for Britain Retail Eyes on EU votethat decides UK’sexit levy have sound intentions but could also fail on implementation. Together these effects could mean that there are as many as 9,00,000 fewer jobs in retail by 2025 but those that will remain will be more productive and higher earning,” reveals the report. Currently, the retail sector employs aboutthree million people, but out of the 2,70,000 shops in the UK, up to74,000 could be shut, which comprise of nearly 30 per cent in Wales and North England. In April, the national living wage which was £ 6.50 an hour has been increased to £ 7.20 forthose aged over 25, which is estimated to cost the industry up to £ 3 billion a year. Moreover, the national living wage is expected to increase each year to reach 60 per cent of the median UK earning by 2020, i.e.the living wage would go to more than £9. This gloomy prediction comes in when mostly UK high street retailers across the country have not beenable to fully recover from theaftermath of the 2008 financial crisis, which saw the shut down of many stores of retailers such as Woolworths, Zavvi and MFI, etc. “Areas that are already economically fragile are likely to see the greatest impact of store closures and some of the people affected by changing roles will be those whomay find it hardest to transition into new jobs that are created,” informs the report. Nonetheless this situation also saw Amazon announcing that it will begin selling fresh and frozen food to UK consumers in a deal with Morisons, whereas the American online retailer is alsodeveloping its clothing offering, after exploring books, music, home entertainmentand consumer electronics sectors over the pastdecade. In the report, the BRC (British Retail Consortium) also surveyed low-paid employees in retail who are workers earning less than 20 per cent above the minimum age and also found that out of them 70 per cent are female with a mean age of 35. The report claims that the percentage of people in the retail sector on low pay has nearly doubled since 1990 to morethan 60 per cent. “What the national living wage does is that it increases the pace at which wages will rise – and by the way that’s not a bad thing, it’s inmany Amongst UK’s largest employment generators, the retail sector is predicted to lose 9,00,000 jobs and closure of thousands of shops in the next decade, becoming much smaller in 2025, according to the latest report by the British Retail Consortium (BRC). The rising costs due to ‘national living wage’ and the apprenticeship levy, both introduced by Chancellor GeorgeOsborne in last year’s budget could increase the rate of jobs cut, reveals the report. This report comes way before the voting day, i.e. 23rd June 2016, which would decide whether Britain remains in the EU or will quit from thesame. 60 Apparel Online Bangladesh | JUNE 2016 |www.apparelresources.com