notjustapparel-wine-world

[notjustapparel-wine-world]

ARTIFICIAL INTELLIGENCE IN APPAREL INDUSTRY: (Part-1 Manufacturing)

The Apparel industry, production side of it, located in populous regions of the world, where A.I. seems to be a term less heard.  While automation is scarce and slow to adapt, often frowned upon by factory managers and owners, who have thrived upon the basis of cheap labor.  Apparel manufactured in factories in large scale and retailed at swanky malls, in itself is a low value product, hence automation as an idea of cost efficiency and quality is farfetched. Especially when there is enough of man-power available.

Necessity is the mother of all invention, and it is this necessity that retailers have been feeling, of late. With the rise in e-commerce platforms, Fast-Fashion, and economic crunch around the world. It is necessary for retailers to look beyond cheap labor in underdeveloped economies. That brings the quest for implementing I.O.T. (Internet of Things) and A.I. in manufacturing facilities. For the retailer who is able to roll out optimum quality of product within the fastest turn-around times will win the customer.

A typical Apparel manufacturing unit will have 200 – 300 machines, a more advanced facility will have conveyor systems, implemented 5S practice. A few will have ecologically certified buildings, however these are primitive in comparison to manufacturing best practices for other advanced machinery units, e.g. Passenger vehicle manufacturing. A Robot within an apparel industry is unheard of. Robotic Arms practically non-existent.  So how does the vision of an advanced, Garment manufacturing factory look like?

Let us begin with our focus on I.O.T., this is to say, enable the machines to communicate among themselves.  So every production line machine records the needle time, and upon the completion command of the operator, evaluates the real-time efficiency of the production line. It then decides the optimum WIP, and informs the line manager of potential bottlenecks, it further suggests appropriate operator allocation. The skill matrix of each operator decided on the actual needle time, the completion punch, and the pre-fed SMV.  Having maximized each of the production lines, it automatically sends the data to cutting room, to enable optimize cutting, such that only those lays and the number of lays are cut, which can be fed Just In Time.

This communication of data and numbers is shared also to the Embroidery section, finishing section and Washing section. All the machines be Wi-Fi enabled and able to send data to the maintenance department. Such that a scheduled maintenance is never missed, further a machine is able to tell when it may break-down.  An example, if the bobbin thread is wound to do 50 garments, post 45th garment it sends out a signal to a separate winding machine and a new re-wound bobbin is passed to the machine through dedicated conveyors Just In Time. If the oiling pressure of a machine is incorrect, the computer chip detects the same and informs the maintenance that a particular machine needs oil-change. If the Blade of the cutting machine is wearing out, it sends the data on the blade sharpness, and calls for re-placements. These help to ensure optimum efficiency of the factory, resulting in precision quality and manufacturing lead times.

This doesn’t end here, imagine the cutting room operations to be done by Robots. These robots gather the roll from the holding store, lay it on the cutting table, collect the end bits and move the trolleys into the position to be loaded onto the conveyor. Now unlike a human, a robot will not need a lunch break, or have a dip in efficiency during the peak summer tropical climates typical of apparel manufacturing zones. This will prevent any delay into the feeding system. It is often observed that a last cut-plan is completed at 4:50 p.m. a loading sequence take 20 -30 minutes, however since the factory closes at 5. This lay is not cleared and loaded until next morning.  During peak production, which 40 minute loss brings upon typically 1, 20,000 INR for a vendor manufacturing 10,000 garments a day with a CPM of 0.3 INR.

The second is the focus on A.I. this is where things are really futuristic. The inspiration comes from a ten-year project done by the Plymouth University and the Royal Hospital for Neuro disability in London, Professor Eduardo Miranda, has been able to lead a team where by using a EEG cap furnished with electrodes,  a musician is able to control the notes with her mind within an orchestra, as it is played live. The reflex between brain and hands is the primary ability of skill of an operator. Using similar technology all the critical operations are fed into a machine over a period of time, the machine will be able to learn the reflexes and come out as an aid to calculate the efficiency of the operator, linking it along with critical quality parameters, like number of stitches, actual needle time etc. It will be able to calculate, real time peak efficiency, PF&D allowance times much accurately, increasing the efficiency of the system.

Softwear Automation, a company based out of US, has already developed sewing machines, which can manufacture a T-shirt without any human intervention in the sewing process. A concept that most manufacturers’ would have written off as impossible even as early as 2015.

There is a real threat that there will be a sudden wave of technical, machinery, AI adaptation by the Apparel industry mostly a forced one. Where manufacturing vendors will need to adapt themselves to meet the customer or buyer demands. The one who are not investing towards these will tend to take a back seat. The current gap is that these innovations are broadly based out of developed economies and very little is heard of in the manufacturing countries, this gap will become a problem eventually leading to eradication of the current manufacturing vendors. Early adapters will negotiate the bend, and there is real potential for start-ups in this sphere.

Another big challenge is the re-skilling of workers, it requires a considerable effort to adapt the workers to the mindset of working alongside and along with machines. It would definitely take time for a person who has not graduated school or haven’t used a smartphone to get used to a robot working next to him, which earlier a job was done by manual labor. The garment engineers need to skill themselves to learn big data analysis, to enable better product design and line balancing, link quality returns to problems in manufacturing.

The Apparel industry is one where the “winner takes it all”, as such hints have been clearly outlined by the BOF-McKinsey ‘The state of Fashion -2018’. Unless manufacturing economies are made to participate in collaborative projects or themselves develop the capabilities of advance manufacturing through A.I. there will be possibility of losing out to the early adapters and subsequent job losses, loss of opportunities and in certain future total eradication of existence.

Have fun to discover the A.I. until the Part-2 on retailing…

[notjustapparel-wine-world]

DO BRANDS LOSE THEIR VALUE BY OPERATING ON ONLINE/ E-COMMERCE ROUTE?

The frenzy of activities within the e-commerce space continues to make news, within the country.

There is a substantial negative impact on the sector, at the same time hopeful that post major consolidations, there can be substantial value creation.

The fundamental idea of business is to create value, through primary and secondary service module, i.e. address a solution, while profiting from the same.

Yet so far the real problem for the Indian customer/ consumer hasn’t been entirely resolved.

There hasn’t been many economical brands, which have started retailing through these sites. There hasn’t been many value additions that a leaner supply chain can harvest has been provided, like customization. Yes there has been a couple of stories, e.g.  Fablestreet.com

As the churn keeps happening and valuations are normalized, it is time every laptop clutching, Uber – pooled, Starbucks – sipper start-up founder, (whether it be a bored investment banker or the college placement drop-out), look into the value creation part.

The worn-out story of getting things at the click of a few buttons from you’re smart device, while one is at home is dying out, Discounts are running dry V.C.’s ask for Gross profit% instead of G.M.V.

And it’s also time that brick and mortar retailers understand the e-commerce story in reality devalues their brand.

 To experience this first hand through stores of Apparel and Footwear retailers separately.

There’s a unique thing I have come to realize, that a lot of you will connect to. [Try it out yourself].

 When we enter into the store of any EBO, we have multiple touch-points, sensory and olfactory.  It starts with the visual appeal, the BRAND ADVERTISEMENT, VISUAL Merchandising Window of the shop, then the moment we step in, an Exclusive Essence unique of the brand, the IN STORE LIGHTING, the HUMAN INTERACTION, the AMBIENCE IN STORE all come together as an identity of the brand.

     I am not a footwear person, so I looked up the online offering, right from “Franco Leone”, to “Louis Philippe”, to “Adidas Originals”. My online search, I could not make much of a difference between a “Franco Leone” and the “Louis Philippe”, essentially different web-page windows, and different font for the same, same was the situation with “Adidas” and “Adidas originals”, in which case it was the advertisement and the logo with the font, appealing to my visual connection that too partially.

The discounts were always a pop-up!!

 The difference happened when I walked into the Shoppers Stop section for Footwear, “Franco Leone” ceased to appeal, the moment I held the product, tried it, saw it on the racks.  

 The story took a different turn when I decided to walk into an Adidas store and realized, Adidas Originals is a different league altogether, which I then experienced into an Originals store, had I not made a visit to both the stores separately, for me Originals would be just another line of products from the house of Adidas.  

 Brands:  The very essence of their existence is how we connect to them, else a Burberry will be equivalent to a Bata, and a Calvin Klein to a Peter England. And that connection is 360 degree covering all the five senses, the touch points that an e-commerce website cannot provide for.

 If the number of touch-points for “Adidas Originals” reduce by half over a period of next decade, and its online presence increases, the only leveraging point for such an iconic brand will be visual appeal to the customers, through advertisements, which is only about 25% of the brands 360 degree engagement.

 And we also discount the fact that some of us find a brand aspirational, because the store is located just across at DLF Emporio, and not DLF Promenade.

 ENJOY SHOPPING!!

 *** Views are expressed in personal capacity, as another fellow shopper.

[notjustapparel-wine-world]

Hitched or Single….It depends how we buy Apparel.

A few weeks back while standing at the trial queue of an H&M store in Delhi, I started getting irritated, a lady leaned over at the counter and met out suggestions & opinions to her fiancé/husband/ boyfriend, over the look of each piece of clothing he tried.  

It was not only the individual trouser & denim, but an extensive permutation and combination of all the pieces of clothing. My memory counted 5 bottom wear and 7 top wear that would be 35 trials. Phew!!

 However just because I am single I cannot complain the love and affection that is there between couples. And when I did narrate this to a female friend, she said it was CUTE!!! Really…

 Now getting to the economics of this if on an average each change-over time requires 3 minutes, the total trial time is 105 minutes, or nearly 1.5 hours. And considering the average price ticket of each of the garment is 1500 INR, it converts into 18000 INR of sale. An average load of 170 INR per minute for the trial room occupancy. Not bad!!

 What is interesting is the other side. I was rushed for time, to buy a suit for a b-school interview, and it’s pretty simple, being alone I had only my veto to worry about. The color was finalized before entering the trial room, the only two things to consider was Fit and Size. A total of 4 trials.

After doing the mathematics: 4 trials * 5 minutes = 20 minutes, 1 suit price = 9000 INR, per minute trial room occupancy; 450 INR. Even Better!!!

 So the point I had to make, considering that in India there are multiple points of approval for purchasing a garment, (read: Mom, Dad, Sister, Spouse, Etc.), it would perhaps be a good idea for major brands to segregate and provide certain reservation for us singletons!!

Sure we aren’t CUTE at the trial room, but sometimes we want a quickie, and in the trial room (Leave the imagination aside, it’s only for the garment trial).  

 A colleague of mine also suggested, probably if we had virtual assistants, A “Siri” or “Cortana” like, to provide feed-back within the trial rooms. Again for “Singleton’s” only. The gravity of his suggestion dawned on me, when during one of my “Alone” shopping trips I tried out a Faux leather jacket, with chains, and looked into the mirror on the shopping floor. Having an “ego boost” thinking I looked like a GQ model with beard. (Err. Man is Free to IMAGINE). A lady shopping nearby “rolled” her eye. Which meant “Dude, you look disgusting”. So I give her a smile and acknowledged her subtle hint.  

Seriously there are times when Single shoppers need assistance on the look, a store consultant is an idea that big retail chains can experiment with. What is more, this service “In Store Fashion Consultancy” can be made available only for “Premium Loyal members”.

 With Valentine’s week ahead, my best wishes to all the readers. Those who are hitched, have a “CUTE” time. And for “singletons”, walk up to cute guy or lady shopping alone and ask for advice. The coffee might follow!!

[notjustapparel-wine-world]

Effect of De-monetisation on the Indian Apparel industry

Effect of Demonetization on the Indian Apparel Industry: Consumer view It’s been a while since I have actually stepped into a store to purchase a garment, precisely it’s been a little over five months. Interacting with the thought process of designers on a regular basis, seems to have convinced my subconscious that I am a grade -3 citizen when it comes to fashion sense, however much the pages of GQ or Esquire be turned on my daily commute to work. Also what is interesting is it is Christmas and the holiday time of the year, and there is a distinctively different pattern (than from previous year) of “Holiday-Sale” on display at most of the apparel brands. Let us understand the Apparel purchase pattern in India, as consumers Indian’s have not yet evolved to the trend and flavor of season, hence the purchase is not necessarily to have a wardrobe, but more occasional, which is primarily festivals, marriage and often a glamorous get together, family re-union etc. And this season does stretch from October to March. This year 2016, that glory home run has been dampened by the dual spray of water on pitch, in the form of de-monetization and the cap on the amount of cash that can be withdrawn. While Apparel remains a holy trio of “Roti”, “Kapda” and “Makan”, it remains a discretionary spend where the purse strings are pulled tight during the tough times and cash crunches. To begin with the “Preview sale”, an exclusive domain of privileged and loyal customer started a little ahead of time. The window for the exclusive Preview sale is 4-5 days on average. This year the same started almost two weeks to 10 days in advance than the actual full display sale. Logically it makes sense, since the branded apparel market caters to a low percentage of overall population, within which a large number purchase using cash transaction over the counter. The longer duration allows this set of consumers to adjust to the spending pattern viz. the cash withdrawal cap, mandated by the Govt. The second most interesting adaptation is the type of sale in itself. In recent past, most brands have adapted a certain kind of sale process confined to 40% off on purchase of a single garment and over the sale period graduating to 50% off or a “Buy-1 and get -1 free” kind of offer. That has changed, as of today most brands have jumped to the offers rolled out at later stage. That clearly has been an indication that brands are trying their best to make consumers make up for the lost time of shopping in previous months. There are some brands which have definitely broken the jinx, one such is “Blackberry’s”, and they boldly have enticed the consumer to purchase on EMI (Equated Monthly Installments). Times have surely changed, and that has allowed for more innovation. The last salvo fired towards this industry is the spending pause at big fat Indian weddings. This season, many would have planned to purchase with due cash an odd tuxedo, or a designer dress, for the many after events. Which of course was in for a big pause, unless we discount the media reports of a 500 crore one odd wedding. Maybe this year will leave many an Apparel brands, with stores in India and their Indian units short of target sales, however they all have learnt and innovated ways to counter the sudden effects. And boardrooms across the sector will be working for a revamped year 2017. Wish you all a Happy Shopping, Merry Christmas and Happy New Year 2017.

[notjustapparel-wine-world]

WHAT ACES AND HINDERS THE FASHION E-COMMERCE INDUSTRY IN INDIA:

Not so far back in time [read a few years], in India people with vision did visualize a revolution in the fashion industry.  3-G connection and Wi-Fi, had made an impact in the minds of people through posters and courtesy a booming telecom sector.

Lay the red carpet for the fashion e-commerce industry, anticipating a growth in telecom and envisioned with the fact that majority of Indian’s will own a smart-phone, the poster boys of e-commerce sold a brilliant idea, to bring “fashion” into those house-hold who had no access to the swanky malls with their “Pepe’s” and “Levi’s”.  

The script looked perfect, the numbers were promising and the venture capitalists’, eager to pour in their money.

So what came out different, within a span of less than 10 years, an entire industry is looking for pre-mature consolidation. The answer lies in missing the basics of the “FASHION” business and a highly inflated “MODEL”.

Let’s accept this, for a country of 1.25 billion, our fashion sense is very unlike the west and limited when it comes to understanding it. The average Indian does not shop as per the season, let alone be known about the theme and color.

Per person spend on clothes is way less than developed countries. Err. Fashion conscious countries. The Indian consumer shops during the festival season, and on occasions such as marriage etc. He does not shop an entire wardrobe every season for office, to socialize, for his sportive mood or his beach wear. [sic. Beach wear for gentlemen in India. French fries on my palate, and the belly we inherit];

So the e-commerce sites began the perks we consumers love to hear. “DISCOUNT”. “Buy one get one Free”. And the party continued like a 30 ml RUM with 50 ml Hot water for the reluctant drinker.

The second point most of the e-commerce platforms probably missed was the nature of Indian shoppers. The typical Indian family does not go out to shop alone and alone for apparel and fashion. The entire family moves. Shopping becomes an affair’ Grande’!! There is shopping + eating out + visit to the nearest neighbor all thrown in –together.

After all how do I purchase a shirt without knowing what “color” my mother likes, what “Fit” my father likes, and the “dressing room selfie “ the special someone likes.  I like “green trouser with Red polka dot shirt”.  Did someone hear a SCREAMMM...!! [My sister just fainted]

So sitting back at home, the family cannot judge you’re look, hence some sort of physical contact in terms of shopping is evident for the Indian family and individual.

If any one doesn’t believe me here – try telling you’r mother you want to shop on-line for you’re wedding and look at the el classic!! Expression on her face.

So what exactly does an e-commerce platform does to position itself as niche. I happen to be fortunate enough to discuss this with various people over the last month while wanting to fine tune my ideas.

One of the primary problems with the Indian fashion purchase today is the availability of the correct size and color. For starters, with such a large population that India has, there is no standard Indian body size defined for apparels. We borrow that from the UK and the US.

A large kudos to the Indian apparel brands who have learned and tweaked their fits and sizes to hide the Indian “VIRASAT KI BELLY”, in their SLIM FITS.

So let’s say E-commerce Firm “E.COM” puts up a physical store but without the inventory and the store managers, sans the sales assistant. All it does is have a large screen and a size set for each category of apparel available.

The person walks in and first tries the correct size, then positions herself in front of the screen. A picture of her is captured there, then she starts scrolling the design, color, maybe value add-ons if the concerned brand provides. Then when she finds all of the combination she does place her order. Of course the heuristic algorithms that numerous engineers keep churning out tells her of the availability and delivery time-line, should she choose to purchase given all her needs are met.

She pays through a card, very much like a self-payment done at the Mc Donald’s counter, or if she’s a “loyal customer”, “preferred customer” she pays “CASH on DELIVERY”.

So what is the primary benefit here, there is real problem that is getting solved, the customer gets a feel and look of the apparel, sans the hassle of not finding the correct size or color or design. And now for the Operations people of the Apparel industry, it helps in reducing the inventory and strain on supply chain. Typically that blocks money for an entire Spring Summer and autumn winter.

 The upside is also a size chart with the availability of a large set of DATA. And I dream of a day when along with US and UK size a ZARA will have an INDIAN size.

Oh does it sound like “Enfant terrible”!!!

Happy Shopping!!

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[notjustapparel-wine-world]

TECHNICAL APPARELS INDIAN BRANDS AND TECHNICAL APPARELS-2016

The apparel industry in India has been undergoing a soft and quiet makeover. The business of Pret’ a Porter range of brands, has been shifting gears smooth yet aggressively.  A few days back at one of the Pubs in Gurgaon’, on a Thursday evening, as the band played peppy western numbers the T.V. screens had advertisement of a brand that has been around since the two generations of the “LinkedIn’, and ‘face-book’ hopping crowd that gathered around the bar-counter.

From a corner I saw the advertisement (“Raymonds” since 1925),   was all about innovation, the super –premium fabric that goes into stitching of the apparel the “Techno smart”. It was about “UV protection”, “Wrinkle free”, “Smooth touch” and “breathable”.  

The advertisement was appealing to the suave young crowd, a couple of whom admitted to opening their wallets up to innovative fabric and apparel.

The other Indian brands are not left behind, “Arrow”, one of the premium brands from the house of PVH, and in exclusive arrangement with Arvind Group, has launched the “World’s First SMART Shirt”. To have a look at the technology I headed to DLF Place, Delhi, one of the top premium mall -retailing destination in India. The Smart shirt technology covered the entire Visual Merchandising space on the front part of the “Arrow Store”.

The shop manager who enthusiastically showed the technology, only showed how much ingrained technology is into our lives. Well for starters the shirt has a chip embedded [sewn] into the cuff, a specialized app [available for android phones] can be downloaded and then the phone can be tapped to share a business card; LinkedIn Profile; Play a song and to launch a favorite App. I tried to explain it to my father who could not understand how a cuff can have a “visiting card holder”. Won’t it be Bulky?? He asked. Of course not!! The cuff is as sleek for the Human eye. What even got me interested is that the store assistant had a “Business card” and “LinkedIn profile” too. My Father’s favorite little MBO owner would gape at the mention of “LinkedIn” profile.  

Apart from the race towards technology driving the Apparel space, especially for Indian brands, it is interesting to note why this is suddenly an aggressive strategy. Raymonds has been promoting the “Made to Measure” a premium offering that goes beyond the custom tailoring, while “Van Heusen” exclusively talks about the Fit and Customization. (If you’re waist size is 33, not a problem Van Heusen had the adjustable waist band, such that one does not struggle with a tight 32, or a boxy 34).

The last decade has seen an onslaught of Multinational brands set shop on Indian soil. The fashion giants of the world ZARA; MARKS & SPENCER; H&M; GAP etc.  These brands known for their fast to market and variety in terms of fashion elements, have unique advantage because of sheer size and scale. Their supply chain is well oiled and the closeness to places of fashion origin [Europe & US], provide them with certain unique advantage in the space of economical, and fashionable merchandise.

In order to combat that area, most Indian brands have found a niche segment “Technical” offering. While there exist global brands that have such offering, but they are at a super-premium range. While these offerings are at a much affordable price. [eg: Arrow Smart Shirt : starts at 3000 INR].

Since the Indian consumer is now well versed, she can head happily to a Global brand for the latest in Fashion, whereas she will definitely head to Indian brand for technically advanced offering. A unique position that only India can make available for.  

 Happy Shopping!!!

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