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Textile excluded from industries

getting tax breaks

Advisor to Prime Minister on Commerce, Industry and competitive after the rupee’s devaluation and duty
Investment Abdul Razak Dawood, in a recent cuts, Dawood said, citing a 36% jump in quantity of
interview to Bloomberg, announced the garments shipments. “It means that we are getting
government’s plan to provide tax breaks for market share, we are taking somebody’s market
industries with export potential, however, the textile share.”
sector has been excluded from this incentive.
Dawood said, “I am in favor of limited time-bound
Dawood explicitly excluded the textile sector from the incentives,” indicating a three- to four-year period for
new tax incentive saying “they have gone to the point tax breaks. Engineering, chemicals, technology and
that it is a drug.”. He further said, “If we want to go to footwear are among the 20 sectors identified for
$100 billion or $200 billion exports like Malaysia or incentives, he said. Dawood said he saw outbound
Thailand, you aren’t goanna do it on textile.”
shipments growing to $24.5-$25 billion this fiscal year
Pakistan’s exports, particularly textiles, became ending June from $23 billion last year.

Direct-to-consumer captures

40% of American market: Study

Communication agency Diffusion conducted a study of how consumers heard of the DTC brands, followed
that concluded that 40 percent of Americans did their by print or online advertisements at 18 percent, word
shopping online and from other direct-to-consumer of mouth from friends at 15 percent and print or
(DTC) avenues. The study found that around 14 online reviews at 14 percent. About 9 percent of
percent of American shoppers used DTC outlets for respondents also reported hearing of DTC brands
around 19 percent of their purchases. However, there through podcast advertisements.
were two percent Americans who said they used
DTC companies for almost all of their shopping. Though DTC was popular, the survey also found that
consumer had interest in visiting a DTC’s physical
DTC purchases overtook traditional retail in notable store. As many as 37 percent of those studied
categories such as health and beauty products at 35 wanted to visit a physical shop to get a sense of the
percent, apparel at 34 percent and technology and product, 32 percent wanted to visit for convenience,
gadgets at 26 percent. Leading reasons for choosing and 28 percent wanted to receive the product right
DTC purchasing over a traditional retailer was cost at away. Another 27 percent expressed interest in
48 percent followed by fast, free shipping and easy visiting multiple DTC brands in a single location. Even
returns at 43 percent, the agency reported. with those options, over 26 percent of Americans still
looked for positive reviews or media coverage before
Social media or influencer accounted for 19 percent making a DTC purchase.

July/August 2020