The global textile and apparel value chain is at a critical juncture, requiring a fundamental shift in its operating philosophy. This was the core message delivered by Dirk Vantyghem, Director General of the European Apparel and Textile Confederation (EURATEX), during his presentation at the recent joint conference by the International Textile Manufacturers Federation (ITMF) and the International Apparel Federation (IAF) in Yogyakarta, Indonesia.
Vantyghem’s address, which outlined EURATEX's perspective, introduced a "new business model" as a vital guide for the industry through its current turbulent period of economic volatility and intense regulatory change.
The five pillars of change
The presentation highlighted five key takeaways that underscore the necessity for this new model, moving beyond traditional production-focused paradigms:
1. Fragile sustainability business case: Despite widespread industry investment in sustainability initiatives, the commercial viability is often undermined by global over-capacities in virgin fibres and garments, driving prices unsustainably low. Vantyghem stressed that a 'smart regulatory framework' is essential, one that is properly controlled and globally implemented to level the playing field.
2. Regulatory harmony is crucial: To avoid inefficiency and competitive distortion, the Director General called for urgent regulatory dialogue and convergence. He pointed to inconsistencies, such as the potential for two parallel Digital Product Passports (DPPs) and different definitions of textile waste, as major roadblocks. The post-conference fringes reportedly saw some positive movement on this front.
3. Fair Trade over Free Trade: While EURATEX remains committed to open markets, the call was strong for trade to be fair and reciprocal. Vantyghem argued that existing free trade agreements must be re-evaluated and re-balanced to ensure a level playing field for European manufacturers.
4. The 'Ecosystem' approach: A recurring theme across the entire conference, noted by Vantyghem, was the overwhelming consensus on the need for an "ecosystem" approach—working in broader partnerships across the value chain. Achieving this, however, requires a significant shift in existing business mentality.
5. Direct dialogue with Consumers: A strong call was made for manufacturers to engage in more direct dialogue and storytelling with the consumer. This strategy aims to reduce dependency on major brands' images and allow companies' efforts in innovation and sustainability to be directly recognised.
A renewed focus for Europe
Sharing the stage with global textile experts, Vantyghem acknowledged that the conference provided a vital perspective on the challenges facing the European industry.
The final message was clear: European manufacturers must respond to global pressures by investing in innovation, high quality, and niche products. While remaining vigilant about threats from global competition and market turbulence, the continent's industry must maintain confidence in its core strengths of advanced technology and high-value production.
