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Tag: asia

  • Lotte Duty Free sales hit all-time high of US$6.7 billion in 2018

    Lotte Duty Free sales hit all-time high of US$6.7 billion in 2018

    South Korea’s top travel retailer Lotte Duty Free reported best-ever sales of 7.5 trillion won (US$6.7 billion) last year on a surge in online sales and mass purchases by Chinese merchants seeking trade in shuttling goods to China. Lotte Duty Free said its annual sales last year hit a record high of 7.5 trillion won, up 25 percent from a year-ago period. In particular, sales from the online business soared 50 percent on year to 2 trillion won, contributing 25 percent to its total domestic sales thanks to successful upgrades of its online and mobile platforms and various promotional perks like online-only products and discount options.

    Lotte Duty Free’s main store in the bustling shopping district of Myeongdong in downtown Seoul remained the world’s single-largest revenue earner for three years in a row last year with annual sales up 35 percent at 4 trillion won and daily revenue at about 11 billion won as of Dec. 14.

    The Myeongdong store that opened in 1980 has kept on growth with sales reaching over 1 trillion won in 2011, 2 trillion won in 2015 and 3 trillion won in 2016 on increasing demand from individual merchants from the mainland who buy popular Korean duty-free goods in bulk to profit from reselling them in China.

    Lotte Duty Free has expanded its investment in domestic stores to draw more consumers. Its Myeongdong store was expanded in August 2016, and spent 10 billion won to add the Star Lounge for VIP customers in April 2018. The World-Tower store in the affluent Gangnam area of southern Seoul also posted 1 trillion won in sales last year, becoming the largest earner to reach the threshold in the district.

    Meanwhile, Lotte Duty Free World Tower also posted sales of more than 1 trillion won (US$895.4 million), joining what the retailer dubbed the “One Trillion Club” on 23 December.

    That represents an 80 percent increase year-on-year for the Jamsil, Seoul store, which reopened on 5 January 2017, 193 days after it was forced to close on 26 June 2016 due to the loss of its licence in an open tender.

    “Even in the midst of rapid market changes, Lotte Duty Free has been able to achieve a record-breaking year, reflecting 38 years of operational expertise,” said newly appointed Lotte Duty Free CEO Lee Kap. “As a leader in the industry, we will endeavour constantly to improve our performance.”

    Lotte Duty Free said that the World Tower store’s excellent tourist services and differentiated luxury brand offer had generated “remarkable achievements” in 2018. This was despite the proliferation of new duty free stores in the Gangnam area [notably the new Shinsegae Duty Free store opened on 18 July], the retailer commented.

    Despite industry difficulties posed by the THAAD dispute between South Korea and China, sales of small and medium enterprise SME Korean brands at the World Tower store increased by 300 percent year-on-year. This contributed to a “win-win relationship” with SMEs, Lotte said.

    Increased demand by daigou shoppers “greatly influenced” sales said Lotte. The retailer noted that such travellers had compensated for the “stagnation” of conventional Chinese tourism since the THAAD dispute erupted in March 2017. However, Korean travel retail executives and observers are closely monitoring the impact of China’s new e-commerce law, introduced on 1 January 2019, which is expected to hit the daigou business hard

  • Limited share price upside seen for Malaysian property sector

    Limited share price upside seen for Malaysian property sector

    Rising interest rates, Malaysia’s slowing gross domestic product growth and unfavourable government policies will limit share price upside for Malaysian property development companies, said CGS-CIMB.Although it expects the property companies in its coverage universe to post positive earnings growth this year, CGS-CIMB said share price upside will be limited and the sector is unlikely to re-rate to peak levels last seen in 2014.

    “The property sector has garnered more interest lately due to its attractive valuations, but we believe the sector is cheap for a reason and this could be a false dawn. We believe developers could miss their new property sales targets for 2018, and are likely to set lower new sales targets for 2019. We think it’s a signal that the 2019 property market is likely to see lower new property sales and weaker buying sentiment,” it said in its report.

    According to its analysis, the medium 40% and bottom 40% (B40) households face difficulty in buying properties as the average house price is above both groups’ affordability range and despite government incentives and policies to address this issue, the oversupply in the property market has continued to rise since 2012.

    “Likewise, property stocks have fallen from their peak valuations in 2014, some to the trough levels in 2008, making them attractively priced at the moment, in our opinion,” it added.

    CGS-CIMB does not see much room for housing loan growth given the existing low interest rate environment, limited buyer’s affordability and possible interest rate hike.

    In addition, restrictive government policies are still in place and it does not see any incentive for consumers to purchase property given the weak rental market and subdued property market.

    Given the limited domestic affordability, higher real property gains tax and restrictive policies on foreigners, the property oversupply issue is expected to persist. Note that in 1H2018, properties priced below RM1 million accounted for 93% of total unsold residential property inventory.

    “We expect the housing market to remain challenging in the near term, unless there is a meaningful surge in household income, decline in house prices or more positive measures are introduced,” it said.

    Although lower property prices are possible, developers would be at the losing end if they were to lower prices at the expense of profit margins to spur new property sales demand or remove rebates/freebies to protect margins, which could result in weaker new sales.

    “Even if new house prices are cut by 20%, we think the prices would still be unaffordable for the B40 households. Instead of focusing on increasing affordable housing supply and ownership, we believe a better way to approach the housing glut is to increase Malaysians’ household income in a meaningful way,” it said.

    CGS-CIMB maintained its “neutral” call on the sector with an estimated dividend yield of 3% on average in 2019.

    Sime Darby Property Bhd remains its top pick as the company has shown continuous improvement in its property development division and new property sales since its demerger in November 2017.

    “We believe the group’s healthy balance sheet and massive land bank are advantages in addressing the change in future product demand,” it said.

  • India’s Rocking Deals plans 500 stores

    India’s Rocking Deals plans 500 stores

    India’s Rocking Deals is planning to launch 500 retail stores within next five years. The move by the online retail electronics marketplace follows the opening of the brand’s first offline store in Agra (Uttar Pradesh) last month, with up to 20 stores planned for the state in the near future. “We have chalked out an all round growth plan, be it online or offline,” said founder & CEO Yuvraj Aman Singh. “With our new retail stores, the company plans to weed out inefficiencies, lack of certified products in the market, and under or overvaluation of pre-owned products.

    “We would like to tap all major markets of smaller towns and cities through our offline market strategy.”

    The company has already signed with 27 retail franchises in various states, including Uttar Pradesh, Jharkhand, Odisha, Punjab and others.

    “The refurbished market is to rise by a compounded 27 per cent over 2019-20, as large players are joining through their existing online marketplaces such as Amazon and Flipkart, which posted surging growth in annual sales, and we too wanted to significantly capture the market through our organised channel,” added Singh.

    Rocking Deals was founded in 2012 and to date has sold close to 4 million refurbished and pre-owned units in 18 categories to end customers.

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  • L’Oreal Korea seeks Brandstorm 2019 contest participants

    L’Oreal Korea seeks Brandstorm 2019 contest participants

    L’Oreal is now accepting applications from students in Korea for its annual global marketing competition “L’Oreal Brandstorm 2019.” The mission for this year’s competition is to “invent the future skin care experience for health-conscious consumers.” Contestants need to choose one brand from L’Oreal’s Active Cosmetics division, such as Vichy or La Roche-Posay, and propose a new service or technology to enhance the consumer experience.

    Undergraduates in their third or fourth year of study and graduates can apply in teams of three. The application deadline is Feb. 28.

    After a final round in March, the winning Korean team will get a chance to represent the country and pitch its idea during the finals at L’Oreal headquarters in Paris.

    The winning Korea team members will also qualify for a chance to intern at L’Oreal Korea.

    The team that wins the global final round will get to test their idea at French start-up campus Station F for three months.

    The first competition was held in 1992. Since then, over 34,000 students have participated.

  • AEON Thailand and Mastercard celebrate new year with promotion

    AEON Thailand and Mastercard celebrate new year with promotion

    Mr.Nuntawat Chotvijit (2nd from left), Executive Director of AEON Thana Sinsap (Thailand) Public Limited Company together with Mr.Donald Ong (2nd from right), Country Manager Thailand and Myanmar, Mastercard joined hands to give away a special year-end promotion for AEON Mastercard credit cardholders. With every spending of 1,000 Baht, customers will be entered win a 3 days 2 nights Singapore travel package that includes an Economy Class roundtrip to Singapore, by Singapore Airlines” accommodation at the Resorts World™ Sentosa Universal Studios Singapore™, along withfun-filled experience at world-class theme parks such as Universal Studios Singapore and S.E.A. Aquarium™ A total of 10 prizes will be up for grabs (2 people/prize) worth a combined value of 700,000 baht.

     

  • Miroglio and Workplace keep collaboration in fashion

    Miroglio and Workplace keep collaboration in fashion

    Miroglio Fashion is the women’s clothing arm of Miroglio Group – a 71-year-old Italian conglomerate operating in 22 countries. The group joined Workplace in 2016. Since then, says CEO Hans Hoegstedt, it has “revolutionized our way of working.” “Over the last few years, the role of the CEO has changed. It is crucial for a CEO today to create culture, to remove filters and blockers so there can be a transparent and constructive dialogue between everyone. I was confident that Workplace was a platform that would help us achieve this,” he explains.

    “We chose Workplace because everyone in the company knows how to use Facebook. And they just instinctively ‘got it’. Right from the first day, people began to spontaneously interact with each other in a genuine way with no training required. We launched Workplace at our annual convention two years ago. Over 1,100 stores in our various brands swung into action along with the head office. We set up all the Workplace groups that we use for various parts of the business, like visual merchandising, product, innovation, communication and so on”.

    The result was instant. Within a short space of time, barriers and distances disappeared. People who had found it difficult to make themselves heard by head office suddenly had a direct, filter-free channel. It has given the company a more innovative and efficient way of working.

    “A clear example is the visual merchandising team. Before Workplace, the team would create a model window and send it out to all the stores by email. With Workplace, the VM team now posts the image of the model window into a group. All the shops reply with their versions, comments, and suggestions. The VM team then provides instant feedback for the stores.

    This allows to have hundreds of examples of how to dress the window instead of just one, and people can take ideas and inspiration from the others. There is a better dialogue and smarter collaboration that results in better window displays.

    Hoegstedt continues “There are functions we did not use at the outset that have now become core features for us. Auto Translate was crucial when we extended the platform to our colleagues in Russia. Everyone posts in their own language and Workplace auto translates. Simple and effective. It’s a powerful way to create a vast international network, and we’ll be relying on the translations as we deploy Workplace in Romania, Spain, and France. We also now use Live Video whenever we present a new collection”.

    “For me, as a CEO, it is also a way of ‘taking the pulse’ of the company. Of getting a quick sense of how people are feeling. It’s a kind of mass collective intelligence.”

    From frontline to back office to HQ, Workplace connects entire retail organisations so they can share, collaborate and transform the customer experience with next-generation technology.

  • Samsung cooperates with Apple

    Samsung cooperates with Apple

    Samsung Electronics is teaming with arch-rival Apple to enable its smart TVs to access video, audio and other programming from iTunes. It is the first time the two have cooperated on content. The partnership was announced Monday. Beginning this spring, Samsung smart TVs will have iTunes movies and TV as a default option, along with YouTube and Netflix. For customers with older versions of Samsung smart TVs, the service can be added with a software update.

    Apple’s new movie and TV streaming service is set for official introduction in March. Samsung Smart TVs will be the first non-Apple devices to have access to the service.

    Another feature to be made possible on Samsung TVs is AirPlay 2, a function that allows for wirelessly access to movies, photos, podcasts or music from Apple devices.

    Until recently, before Chinese manufacturers became smartphone leaders, Apple and Samsung competed intensely for domination in the market.

    The two were also embroiled in a seven-year patent battle that was only concluded last year.

    Despite the rivalry, they have continued to do business with each other. Samsung has supplied Apple with smartphone chips and displays.

    At an event held in Las Vegas Monday before the Consumer Electronics Show 2019, the president of the Samsung visual display business, Han Jong-hee said that the collaboration is a “win-win” for both companies while customers will benefit from a wider range of choices.

    “For now, the collaboration will be about content. But in the future, I expect there to be other fields in which we can work together as well,” said Han. According to another senior executive at the event, the project was initially suggested by Samsung.

    The company suggested that it is open to partnerships with other companies as well, saying in a press release that it aims to minimize the barriers between products and providers to offer a “rich selection of content.”

    For Samsung, Apple programming will give it an upper hand in attracting customers.

    The war in the TV market is now as much about what is available on devices as it is about brighter, more colorful and slimmer panels. How TVs seamlessly link to online resources is one of the major battlegrounds.

    The partnership also reflects how Apple is increasingly putting weight on services instead of hardware – the reason it came up with the iTunes video streaming service. Global iPhone sales are falling short of expectations as customers don’t change phones as frequently as before and many are being turned off by the high prices.

    Samsung brings with it the strength of being No. 1 in the global TV market, with more than a 40 percent share.

    “We look forward to bringing the iTunes and AirPlay 2 experience to even more customers around the world through Samsung smart TVs, so iPhone, iPad and Mac users have yet another way to enjoy all their favorite content on the biggest screen in their home,” said Eddy Cue, senior vice president of Internet Software and Services at Apple.

  • Bank Negara: US$101.4b international reserves at end-2018

    Bank Negara: US$101.4b international reserves at end-2018

    Bank Negara Malaysia’s (BNM) international reserves remained unchanged at US$101.4 billion (about RM417.06 billion) as at Dec 31, 2018, from Dec 14, 2018. The central bank said in a statement that the reserves position is sufficient to finance 7.4 months of retained imports and is 1.0 time the short-term external debt.

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  • PUMA opens their first ever SELECT door in the Philippines

    PUMA opens their first ever SELECT door in the Philippines

    The first Puma Select store in the Philippines has opened. The new store launched last month at the Uptown Mall in Bonifacio Global City in Taguig and features the brand’s latest product range and collaborations – including high-profile partnerships with Fenty, Ken Lagerfeld, and Rihanna. A statement from the firm said the launch coincides with “the burgeoning streetwear scene in the Philippines”.

    The brand’s website says Puma Select “fuses performance with culture and fashion by revisiting Puma’s rich history and innovation as a leading sports brand, and combining this with our philosophy of creating premium product for the willing consumer”.

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  • Amway forays into the herbal oral care segment

    Amway forays into the herbal oral care segment

    Amway India, the country’s largest FMCG direct selling company has announced the launch of its latest innovation – ‘Glister Herbals Toothpaste’, to mark its entry into the herbal oral care market. Building on the success of its globally popular Rs 100 crore brand – Glister, the new herbal oral care product is a seamless blend of numerous herbal ingredients with appealing taste and pleasing color to suit everyone’s palate. With this new and advanced product, Amway aims to target the flourishing Rs 1,980 crores oral care segment in India.

    Announcing the launch of Glister Herbals, Sundip Shah, Chief Marketing Officer, Amway India, said, “Glister has been one of our most popular global brands. A bestseller for over five decades, it has won the trust of millions of consumers worldwide and has been an integral part of their oral hygiene routine. Keeping with our commitment of offering highest quality products and addressing the increasing demand for natural and herbal alternatives for long-term healthy living, Glister Herbals is an expansion of our flagship brand and indigenously developed for our Indian consumers.”

    He further added, “The industry for herbal oral care products has grown significantly in recent years, fueled by consumers’ preference for herbal solutions and trust in their long-term benefits. However, our research empirically highlights the need for likeable sensorials – a gap that exists in the available offerings in the market currently. This often leads to consumers shifting to regular and non-herbal products. Glister Herbals’ has the goodness of herbs with great taste and appealing colour. With this powerful mix, we aim to transform the product usage experience and long-term adoption of herbal toothpastes in the market and I am confident in our latest innovation and its potential to transform the category”

    Anisha Sharma, Category Head, Beauty & Personal Care, Amway India, added, “Glister Herbals is best defined as the herbal oral care solution from Amway offering great taste with the goodness of herbs. This multi-action toothpaste is enriched with 11 ingredients such as spearmint, clove, ginger, neem, mulethi, among others, which are known for their benefits and great taste. It also has biodegradable microbeads of essential oils comprising clove and tea tree to ensure maximum efficacy of the constituents. The goodness of herbs promises 12-hour germ protection and fresh breath benefits along with remineralization and teeth whitening.”

    She further added, “We are excited with the business opportunity offered by the market. In order to ensure national wide reach and to engage consumers, we are introducing digital activations across platforms and organizing dental camps in key markets. As ingredient story and taste is key to the success of our new herbal offering, we have begun taste challenges for our direct sellers for which we have received an overwhelming response. We are sure that the Glister Herbals will receive favorable response from the consumers.”

    Glister Herbals follows the thriving success of Amway’s Nutrilite Traditional Herbs in its Nutrition and Attitude Be Bright Herbals in beauty categories last year.

    Amway Glister Herbals is sold exclusively by Amway Direct Sellers across India and can be easily ordered on the company’s website.

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  • New Michael Kors to increase focus on Asia

    New Michael Kors to increase focus on Asia

    With the completion of its acquisition of Versace, global fashion group Michael Kors Holding has successfully transitioned into its new identity as Capri Holdings Limited. The group, which now owns Michael Kors, Jimmy Choo and Versace, hopes to leverage its brands to grow group revenue to US$8 billion, while increasing its exposure to the Asia pacific region from 11 per cent to 19 per cent.

    The group also notes an effort to reduce its exposure to the American market, from 66 per cent to 57 per cent, in the long term.

    “We have now created one of the leading global fashion luxury groups in the world,” Capri chairman John D. Idol said.

    However, considering the past performance of these brands, one cannot be certain whether this merged entity can turn them around says IBISWorld senior industry analyst Kim Do, though “Capri Holdings seem confident in their ability to do so.”

    “While many are concerned about the company diffusing its newly acquired brands, similar to that of its own, this is unlikely as, similar to Jimmy Choo’s agreement with Kors Holdings, Donatella Versace will continue to remain the creative director [of] her namesake brand, leading the brand’s creative vision,” Do said.

    “However, while it is likely that Versace will be pushed into new avenues of revenue (such as a stronger focus on Asian markets) it will likely not include mass-retailers – which is how Michael Kors expanded previously.”

    According to Do, IBISWorld expects Capri to hold off on further acquisitions for the time being, and will most likely focus on growing the three brands it now hold in its portfolio.

    In November 2018, the group saw total group revenue decline 32 per cent to $189.76 million (US$137.6 million), from $279.81 million (US$202.9 million) the year prior, which GlobalData Retail managing director Neil Saunders called “disappointing”.

    “Although overall revenue growth looks robust, it continues to be flattered by the acquisition of Jimmy Choo, which has yet to annualise out,” Saunders said.

    “In short, after slowly climbing the steep hill of recovery, Michael Kors now appears to be rolling back down in reverse.”

    Saunders also said the acquisition of Versace could prove to be a distraction that limits the group’s abilities to fix the core problems within it’s main brand.

    In November 2018, the group saw total group revenue decline 32 per cent to US$137.6 million, from US$202.9 million the year prior, which GlobalData Retail MD Neil Saunders called “disappointing”.

    “Given Michael Kors’ relative lack of success with its own label, we do not see the group being able to [easily] undertake the retooling required to generate superior results.”

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  • Samsung to release feature-rich phone to take on Huawei

    Samsung to release feature-rich phone to take on Huawei

    Samsung is releasing a phone with robust functions specifically designed to meet the challenge posed by Huawei. It has fast internet speeds — utilizing 5G wireless — is foldable and has an innovative screen design. Last year’s smartphone market can be summarized in one sentence: Apple’s defense, Huawei’s catch-up and the fall of Samsung Electronics.

    According Counterpoint Research, Apple’s share in the super high-end smartphone market, those priced over $900 (880,000 won), was 79 percent in the third quarter of 2018. In the $600-$900 market (660,000 to 880,000 won), Apple (61%) surpassed Samsung Electronics (21%) by a large margin, and in the $400-$600 range (440,000 to 660,000 won), Huawei (17%) was right behind Samsung (25%).

    At this critical moment, Samsung Electronics celebrates the 10th anniversary of the release of its “Galaxy” smartphone. The Galaxy Black came to market in April 2009. A new Galaxy S10, a commemorative issued for the anniversary, will be unveiled at the Mobile World Congress (MWC) 2019 in Barcelona, Spain this February. The name of the new S10 is “Beyond.”

    Samsung’s says it wants to outdo itself with the latest release.

    In the new S10, Samsung’s Infinity-O Display will be embedded. The display has a small hole in the screen for the selfie lens, so almost the entire face of the device is screen. The proportion that is screen is more than in Apple products, which utilize more real estate for the lens.

    The fingerprint-identifying sensor does not require separate hardware, but is found within the screen. The sensor itself utilizes Qualcomm ultrasonic-wave technology, which can identify prints that are less readable due to water or soil on the screen. Instead of scanning the user’s iris, the new model will utilize facial recognition, as is done with iPhones.

    It is expected that Samsung will maintain the 3.5mm-earphone jack, which has been scrapped on iPhones. It will also be 5G capable, allowing for a 1.5-gigabyte movie to be downloaded in less than a second. Samsung announced last month it will supply the world’s first 5G phones to Verizon and AT&T.

    Huawei is expected to release its own 5G phone in the first half of the year.

    Early versions of the new Galaxy S10, to be released in February, will not be 5G capable. It is possible that the S10 with a 5G communications chip will be released separately, as was done with the Galaxy S5 broadband LTE-A model, which was separately released in 2014.

    It was expected that LG Electronics will release its 5G smartphone this April or May, but it changed its goal for release to late March. Apple might not equip new iPhones, which will be released this year, with a 5G-communications chip.

    A telecommunications industry source said, “Apple originally did not really care about the speed of telecommunications that much. Apple might embed 5G in the iPhone in fall.”

    Smartphone competitors are seen pushing foldable phones in 2019. According to market research firm Strategic Analysis (SA), shipments of foldable smartphones globally will increase gradually from 3 million in 2019 to 14 million in 2020, and ultimately to 30 million in 2022.

    Chinese phone market Royole released a foldable first, in October last year, ahead of Samsung Electronics and Huawei. Royole will release its 7.8-inch Flex Pie foldable phone at the 2019 Consumer Electronics Show (CES), to be held in Las Vegas from Jan. 8-Jan. 11. Royole led the market but has received criticism about the quality of its device.

    The Galaxy foldable phone will be released in February. It will have a 7.3-inch screen as well as a 4.58-inch screen. The initial run will be about 1 million units.

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  • Vietnam targets credit growth of 14 pct in 2019

    Vietnam targets credit growth of 14 pct in 2019

    The State Bank of Vietnam targets credit growth of 14 percent this year, the same as last year. The focus of new loans would be priority sectors such as manufacturing, agriculture and small and medium enterprises, Nguyen Thi Hong, Deputy Governor of the central bank, said. Credit growth in the Vietnamese banking sector last year was 14 percent, the lowest rate since 2014.

    The figure announced by the State Bank of Vietnam (SBV) Monday was well short of the 17 percent targeted for the year.

    According to officials from the SBV’s Department of Credit for Economic Sectors, lending grew sharply in the early months of the year before tapering off. It was primarily targeted at priority sectors such as manufacturing and processing.

    Credit to the commercial and services sectors saw the highest growth rate, 16 percent. Lending to industry and construction grew by 12.1 percent and to agriculture, by 8.8 percent.

    Overall, interest rates remained steady despite rising interest rates in global markets. In Vietnam, interest rates are commonly around 6-9 percent a year for short-term and 9-11 percent a year for medium and long-term.

    The non-performing loans ratio was down to 1.89 percent from 1.99 percent in 2017 and 2.46 percent in 2016.

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  • Mattel to launch BTS doll this summer

    Mattel to launch BTS doll this summer

    Toy retailer Mattel has announced a comprehensive, worldwide licensing agreement with popular South Korean boy band BTS. The creative collaboration will debut the first-ever line of BTS fashion dolls this summer. Under a multi-category license with BTS under its label, Big Hit Entertainment, Mattel will create dolls, collectible figures, games, and more. The collaboration will launch with a toy line created to resemble the band’s seven members – RM, Jin, Suga, J-hope, Jimin, V and Jung Kook – styled after their looks from the YouTube record-breaking “Idol” music video.

    “BTS is a pop-culture music phenomenon that transcends age, culture and language, and through this partnership, Mattel will offer a new way for millions across the world to engage with the band,” said Mattel’s SVP & global brand GM Sejal Shah Miller.

    “Partnering with established franchises that have global appeal is a cornerstone of our strategy and given our creative expertise, we are perfectly suited to create products celebrating BTS”.

    The BTS fashion dolls were unveiled at this week’s Hong Kong Toys & Games Fair.

  • Smart Garments: The next big thing in sportswear

    Smart Garments: The next big thing in sportswear

    Fitness wearables are no longer just a matter of wrist straps or pieces of practical jewelry. Such technology now works via our clothing. Smart garments are all set to supercharge the fashion industry in the years to come. We are fortunate to have been living in an era which will go down in history as the apogee of technological advancement.
    Technology is an indispensable part of our life today. It has thoroughly morphed all aspects of human life — right from the way we communicate,travel, exchange information to the way we eat, live and drink. Hence, it is but only natural that technology has heralded a propitious change in the way we dress and clothe ourselves today.

    After the huge success of fitness wearables like Apple Watch, Fitbit, Polar fitness monitors, etc., etc., smartness and intelligence is progressively making inroads into the clothes we wear. The fashion world, more so in the last few years, is abuzz with words like wearable technology, smart garments, intelligent garments, e-textiles, etc.

    Although used interchangeably, in a broad sense, they all refer to any piece of clothing with integrated sensors and digital components. The integrated technology monitors the physical conditions of the user and uses big data analytics to predict and show the results.Newer smart clothing technologies can also sense and monitor the environment condition as well.

    GROWTH DRIVERS

    A recent survey by the World Economic Forum (WEF) reveals that 92.1 percent of corporate leaders believe 10 percent of people will wear clothes connected to the internet by 2025, and 85.5percent believe 105 percent of eyewear will be internet connected.

    Growing use across various industrial verticals such as sports and fitness, healthcare, military and defense is driving the smart clothing market globally. The rising demand for monitoring body activities through sensors is expected to surge the demand for smart clothing market over the forecast timespan. Growing awareness among individuals regarding fitness is providing an impetus to the industry growth. In addition, the inclination of athletes towards the use of these products to prevent injuries and optimize their performance will have a positive impact on the business. Additionally, incorporation of newly developed and advanced fibers such as nanofibers and hybrid materials is expected to drive the growth of smart clothing market.

    THE MARKET SIZE

    As per the US based global market research and management consulting company Global Market Insights Inc., the size of the smart clothing market was over US$ 150 million with shipments of around 800,000 units in 2016. The market is expected to balloon to over US$ 4 billion by 2024, and shipments are forecast to grow at over 50 percent CAGR.

    Smart t-shirts are emerging as one of the most popular and widely used categories of this segment in recent times. Projected to grow at over 50 percent CAGR from 2017 to 2024, these smart garments can provide biometric data such as heart rate, breathing rate and volume, muscle activity, etc., which are utilsed to optimize performance and workout plans professionally. Smart jackets are set to witness growth over the future owing to the ability of these products to control the mobile devices of the wearer and connect to several services such as music and camera, device charging, etc., directly from the jacket.

    Military and defense applications are predicted to witness high growth with a CAGR of over 55 percent from 2017 to 2024. In order to gain visibility into the health of a soldier as well as crucial battlefield insights, various government institutions are investing heavily to develop technologically advanced military uniforms.

    The US smart clothing market, the biggest hitherto in the world, is estimated to witness huge adoption and will dominate the industry with the significant revenue share. Increasing investments by various sports associations to eliminate the possibility of any preventable injuries of highly paid professional athletes is expected to fuel the industry growth.

    The Asia Pacific smart clothing market is expected to witness substantial growth over the forecast timespan. This can be attributed to the growing adoption of various wearable devices coupled with the increasing demand for advanced features in the products. In addition, rising security concerns and increasing military and defense budgets across countries such as India and China is predicted to witness huge demand for these products.

    THE INDIAN SCENARIO

    The smart garments segment is still in its nascent stages in India, and very under-developed compared to its peers in the Asia Pacific.

    The Indian ecosystem is just experiencing the advent of wearable technology and while the initial focus is mainly on the fitness and healthcare sector, there is a lot of scope for innovation in the existing product line – such as gamification, introducing social incentives to encourage community / group adoption as well as building an augmented product by providing a comprehensive set of services and charging based on usage. There are immense opportunities in the other sectors as well.

    Here is a look at some of the best Indian companies who are shelling who are breaking new ground in the smart garment industry:

    SYGNAL – Hyderabad based startup, Broadcast Wearables Pvt Ltd. is an AI based wearables company on a mission to make everyday devices smart. It is the parent holding of SYGNALS who has the distinction of producing the world’s first touch- enabled t-shirt.

    Loaded with a bunch of sensors packed in a small chip, the brand’s smart t-shirts are equipped to track a plethora of things including, the number of steps taken in the entire day, calories burnt even in the slightest form of exercise, floors climbed, distance walked or run. It can also navigate the wearer to a desired location. All the data is synched through Bluetooth to the app, and can be viewed for at least three days.

    LECHAL – Hyderabad based Ducere Technologies Pvt Ltd., is another noteworthy name in the field of Indian smart fashion. The company’s offering Lechal uses GPS to track down the users location through a GPS linked app, which then sends vibrations to his soles, thus telling him which turn to take. Built into the shape of a small pod which comes fitted into insoles, it functions through an app installed on a smartphone. The app also allows the user to keep a record of his route and tracks the steps taken, the distance travelled and the calories burned. The pods have a claimed life of 15 days on each charge.

    BOLTT – Boltt is a ‘sports tech-brand’ that is developing next generation consumer-centric solutions for personal health & fitness. Known for its advanced artificial intelligence (AI) ecosystem, Boltt provides ‘connected fitness solutions’ bundled with the hardware.The hardware includes smart shoes, stride sensor and activity tracker. The Boltt sensor is powered by Garmin’s patented SDM Technology. Boltt’s AI is aimed at solving problems in health and fitness coaching by providing real-time audio feedback and provides customised workout suggestions. As of now, there are Boltt’s wearables portfolio encompasses such as Boltt Fit, Boltt Beat, Boltt Beat 2.0, Boltt Ace, Boltt Verve Luxe, etc.

    ARROW – Popular shirt brand Arrow from Arvind Ltd., launched its first smart shirt and India’s first smart garment in 2016. The Smart Shirt comes with an inbuilt chip on the cuff that can be programmed by downloading the Arrow mobile app on a near field communication (NFC)-enabled smartphone. The Smart Shirt allows the wearer to share things like his LinkenIn profile, his Facebook profile or visiting card through a tap on the shirt’s cuff with a smartphone. Among other functions it performs are connecting via Bluetooth to play your favourite songs on the phone or switching your phone to ‘meeting mode’.

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