Luxury brands explore blockchain to increase efficiency, improve customer experience
The global luxury fashion market continues to struggle with three challenges: counterfeiting, environmentalism and labor abuse. As per Global Brand Counterfeiting Report, the industry loses $100 billion every year to counterfeiting. Consumers are increasing their investments in sustainable products to over $30 billion, reveals IBM’s US Retail Index for 2020. Over 70 per cent consumers now opt for sustainable and environmentally responsible products. Around 76 per cent support recycling while 72 per cent prefer using natural ingredients in their clothes.
Time and again, media channels have highlighted instances of human rights violations in apparel factories. Luxury brands are addressing these issues through blockchain technologies.
Digital twin helps trace apparel journey
As per an Everledger report, blockchain technologies are helping brands prove their substantial and ethical credentials by creating a unique digital identity for each product. Digital twin of products helps trace the journey of an apparel from raw material to design and sale, to resale and recycling. The technology also helps brands replace the fragmented supply chain data into a single unchallenged record that can be viewed by all concerned parties.
The technology enables retailers to build customer-centric supply chains. Consumers can learn about the origins of raw materials of garments, their design and manufacturing process and their previous owners. Further, Blockchain enables the Everledger Platform support apparel and luxury brands by securing their records and accessibility to end consumers.
Encouraging conscious consumerism
Fashion label MCQ uses the blockchain technology to demonstrate its sustainability commitments. The brand has designed MYMCQ, a blockchain powered technology platform where designers and consumers can securely register trade clothing items. Consumers can also secure a digital record of each of these items. They can purchase any garment item with confidence. Through this technology, MCQ aims to encourage a more mindful consumerism. An outstanding achievement by MCQ, the MYMCQ platform enables luxury and apparel brands to increase their efficiency and customer experiences. By offering a more unified and trustworthy information, the technology enables stakeholders to improve customers’ shopping experiences by offering more authentic products.
Denmark eyes circularity milestone with new textile recycling project
Denmark is set to achieve a new milestone in circularity with a new textile recycling project called ReSuit (Recycling Technologies and Sustainable Textile Product Design). Launched by the Danish Technological Institute, project ReSuit or Recycling Technologies and Sustainable Product Design, is being supported by Innovation Fund Denmark. It will be developed in consortium with brands including Bestseller, Elis, Design School Kolding; raw material producer A/S Dansk, consumer behavior specialist Naboskab and recycling experts Arhus University and Fraunhofer.
A textile gamechanger
As per a Bestseller report, the project aims to gather textile waste in Denmark and recycle it into new raw materials for other products. The project will prove to be a gamechanger in the Danish textile industry, says Anders Lindhart, Project Incharge, Danish Technological Institute.
The main focus will be on creating a sustainable design for textile products to help eliminate substances not suitable for future recycling technologies. It
will help create a unified solution offering long-term benefits not just for Bestseller or Denmark but the entire world, explains Camilla Skjønning Jørgensen, Sustainable Materials & Innovation Manager, Bestseller. Through this project, consumer behavior specialist Naboskab will motivate consumers to act more sustainably
EU countries to join from 2025
Around 85,000 tons of textile and clothes enter the Danish market every year. More than half are ultimately incinerated as waste. The ReSuit Project will start sorting this waste from 2022. It will develop a technology based on chemical recycling to recycle polyester materials, adds Lindhardt.
Besides Polyester, the project will recycle the remaining materials with a technology called HTL (hydrothermal liquefaction). The technology converts complex textile stream into products that be used for the production of plastic, fuel or synthetic fibers. It uses water, heat and pressure to achieve this. A groundbreaking technology, HTL will be further expanded in collaboration with A/S Dansk Shell, which aims to recycle bio-oil products. The rest of the European Union will join this initiative from 2025.
Under Armour tightens inventory to boost margins
Under Armour is tighteningits inventory, says a report by Retail Dive.
This will help the brand better how much product sits in its reserve, limit low-demand products and focus on getting the items that are in demand. The strategy has involved consolidating vendors and cutting SKUs.
Controlling inventory and simplifying its supply chain has helped the brand boost its profit margins in the past. And the better-than-expected margins for its Q1 2021 gives hope that it can work going forward, too. The potential financial benefits to managing inventory may somewhat balance out with the freight increases expected due to transportation and logistic challenges.
Under Armourhas been impacted by the barrage of supply chain challenges over the last year. As a result, the company shifted to figuring out what they could do to mitigate issues by optimizing the inventory they could get.
Tight inventory management has translated into items selling faster and reducing returns, allowing for Under Armour to set prices that are more favorable, compared to relying on promotional sales to move inventory, Bergman said.
The company expects Q2 gross margins to decrease about 120 to 140 basis points in the second half of the year due to container-availability issues and port delays, but it said its supply chain is currently navigating the challenges "fairly well."
Rieter expects orders worth CHF 800 million in H1 2021
Rieter expects an order intake of around CHF 800 million in the first half of 2021.As per the Textile Value Chain, the company received orders worth CHF 300 million in April 2021. The order intake in April was broadly based internationally with the main focus on Turkey, Uzbekistan and India.
In addition to the regional development of the market, Rieter also attributes the business performance to a catch-up effect due to the low propensity to invest in 2019/2020.
As already announced, Rieter anticipates that sales in the first half of 2021 will be below the break-even point. Rieter expects an operating profit for the full year 2021. On July 15, 2021 Rieter will give an updated outlook for 2021 in connection with the semi-annual results, taking into consideration the ongoing challenges resulting from the COVID-19 pandemic.
The Rieter Board of Directors has approved the implementation of the CAMPUS project. The Rieter CAMPUS comprises a customer and technology center as well as an administration building at the Winterthur location. It will make an important contribution to the implementation of the innovation strategy and to the enhancement of Rieter’s technology leadership position.
Senators Rob Portman and Gary Peters applaud passing for legislation to strengthen PPE production
US Senators Rob Portman, Ranking Member of the Senate Homeland Security and Governmental Affairs Committee and Gary Peters Chairman. Senate Homeland Security and Governmental Affairs Committee applauded the Senate Homeland Security and Governmental Affairs Committee for passing a bipartisan legislation to strengthen efforts to onshore production of personal protective equipment (PPE) in the United States by requiring federal agencies to issue long-term contracts for American-made PPE.
Reshoring production will ensure American workers, health care professionals, and more have the PPE they need as the economy continues to reopen. Domestic production of PPE supplies also will create American manufacturing jobs and ensure that America is better prepared for the next pandemic.
Senator Portman, said, multi-year contracts give producers the certainty to know that their investment in the United States will be worth it because the government will be there to buy the PPE they produce. By re-shoring production of PPE, we can continue to support a safe and effective reopening of our schools, workplaces, and the economy.
Demand for wool grease rises
As per Nigel Hale, CEO, WoolWorks, wool grease is currently in high demand as it is used in cosmetics, skincare, and pharmaceuticals.
WoolWorks New Zealand is the only company in the country that produces and exports wool grease. Its prices have risen significantly due to the demand generated demand for COVID-19 vaccines.
As per Textile Value Chain, New Zealand wool grease is one of the best in the world because it is so high in cholesterol. Mills in Asia have been working overtime to produce more but that product is mostly being used domestically.
Ninety-nine percent of the wool grease is exported to mills all around the world including Japan, Mexico, The US, UK, India and Belgium.
Thredup posts bigger than expected loss in first quarter
Online second-hand apparel retailer ThredUp Inc posted a bigger-than-expected quarterly loss in Q1 and warned of clothing budgets remaining constrained even as the US economy reopens. The company’s total operating expenses jumped 18.5 per cent to $54.4 million in the first quarter and the company does not expect to generate positive cash flow in the near term as it re-invests in its expansion.
ThredUp’s net loss widened to $16.2 million in the three months ended March, from $13.2 million a year earlier. On a pro-forma basis, the company lost 17 cents per share, bigger than the 16 cents loss analysts expected, according to IBES data from Refinitiv.
ThredUp also forecast second-quarter revenue of $53 million to $55 million, above estimates of $48.8 million. The company expects things to normalize in the third quarter.
Savio to display winding solutions at ITMA ASIA+CITME 2020
Italian textile machinery manufacturer Savio plans to display its winding solutions for processing cotton/spandex, modal and lyocell yarns at the ITMA ASIA +CITME 2020 exhibition that will be held in Shanghai from June 12-16, 2021. Savio offers numerous machinery solutions to support the quality of the final yarn product: winding, winding for continuous shrinkage, bulking and heat setting; TFO twisting; Open-End rotor spinning.
Another product to be exhibited Savio includes the Savio 4.0 digital solutions for data exchange in manufacturing technologies. The solutions offer new possibilities that translate into the different levels of Savio Industrial IoT, with the possibility of progressive sophistication. Different option levels, each corresponding to a different dose of Industry 4.0 are applied to Savio textile winding machinery, from simple connectivity and machinery data downloading, to remote machine setup, to operator real-time interactivity.
Savio will also display its integrated automation drive- Multi-Link, that connects multiple ring spinning frames (RSF) to one Savio winder, becoming a tailor-made circuit to link up to four RSFs to one winding machine. This solution optimizes space, reduces energy-consumption and production costs. This automatic bobbin transport shortens servicing paths for the operators and allows an ergonomic material flow. The costs for production, space and energy are reduced, while keeping the quality consistent even with long and multi-connected machines.
Savio has also launched a new and innovative Augmented Reality tool to fast trouble shoot, improve processes and increase machine utilization time.I t is offering remote assistance powered by TeamViewer Pilot, an application that allows interaction in augmented reality. Thanks to this application, Savio experts from their Italian headquarters can support field technicians at the customer site, in real time, through video sessions for faster troubleshooting.
LVMH teams up with Cartier and Prada for a blockchain solution
Luxury maker LVMH is teaming up with Richemont’s Cartier and Prada SpA to offer a blockchain solution that will ensure authenticity of its products—and prevent counterfeit purchases— for online customers with an encrypted certificate of guarantee.
As per a Forbes report, revenues of LVMH Moët Hennessy Louis Vuitton’s Fashion & Leather Goods division surpassed $8 billion in its most recent quarter. The brand’s market value nearly doubled from $194 billion last year to $380 billion in 2021, and its assets exceed $130 billion. Helmed by French billionaire Bernand Arnault, the third richest person in the world, LVMH climbed nine spots to become the 64th largest public company.
According to research led by Wells Fargo analyst Ike Boruchow, online sales soared 30 per cent during COVID-19. While cybershopping is likely to decrease from 2020 levels e-commerce will continue to rise over the next several years. Consumer patterns are also pointing to a post-pandemic shopping surge in stores. A recent Wells Fargo survey found that 37 per cent of respondents plan to buy new outfits for going out as more restaurants and indoor venues return to normalcy thanks to the vaccine rollout.
Luxury brands eyeing UAE market with standalone digital stores
Luxury fashion brands Karl Lagerfeld, Bally and Hugo Boss are setting up standalone digital stores in the UAE and Middle East markets. As per Gulf News, the Swiss shoe and accessories brand Bally has partnered with Jashanmal Group to expand in the Middle East market. Currently, Bally.ae services all of the countries of the Gulf area, plus Lebanon, Jordan and Pakistan.
Similarly, Karl Lagerfeld has partnered with the Chalhoub Group to operate stores on a franchise basis. The microsite Karl-Me.com will drive the brand’s digital approach and offer a tailor-made experience for visitors in the Middle East.
Fashion sales in the UAE, whether through a store or online, make up 50 per cent of all non-grocery retail sales. In Saudi Arabia, it would be in the 40 per cent range. The online fashion retail market is driven by omni-channel retailers, as per RedSeer Consulting. Fashion verticals are increasingly capturing a larger portion of the market with a wide variety of products at a competitive pricing.
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Hyosung TNC to recycle abandoned fishing nets
South Korean fiber manufacturer Hyosung TNC Co plans to recycle abandoned fishing nets to produce a new nylon fiber called MIPAN Regen Ocean. As per Korea Biz Wire, the project will be executed in partnership with a municipal government.
Hyosung has signed a memorandum of understanding (MOU) with the Busan metropolitan government and a social venture Netspa for the project. The city government will establish a system for separate disposal of abandoned fishing nets, while Netspa will be in charge of washing and processing the collected fishing nets.
Hyosung TNC will also expand investment in a depolymerization facility to remove the impurities in fishing nets and churn out more than 150 tons of MIPAN Regen Ocean per month. The initiative aims to reduce the marine pollution and improve awareness about the protection of the marine environment.
Burberry sales surge by 32% in Q4
Same store sales of Burberry surged 32 per cent in Q4 of fiscal 2021. As per Womens Wear Daily, the bounce helped lift Burberry’s full-year performance, with the company posting 11 per cent decline in revenue to £2.34 billion with same store sales down 9 per cent for the 12-month period that was scarred by store closures worldwide, reduced tourism and uncertainty across all of Burberrys major markets. The brand’s operating profit in the 12 months ending March 27 more than doubled to £ 521 million with profit for the period more than tripling to £376 million due to tight cost and inventory management and increased full-price sales.
Burberry has reinstated its dividend to 2019 levels, paying 42.5 pence, compared with 11.3 pence last year. Ira recovery accelerated through the year despite an average 16 percent of stores being closed in the three month period. The company’s full-price sales grew 63 per cent in the fourth quarter – nearly double the rate of same store sales growth in the same period. Burberry said expects its 2022 revenues to grow by a high single digit percentage underpinned by the continued outperformance of full-price sales.
The brand will continue to strengthen brand equity by exiting markdowns in mainline stores in fiscal 2022. It also aims to become carbon neutral by the year and continue championing diversity and inclusion, impacting one million people in the communities in which it operates.
French trade shows gear up for physical launches again
Halted since the outbreak of the pandemic, French trade shows are once again gearing up to launch their physical editions. Parisian Trade Show Tranoi plans to launch new women’s collections from September 30 to October 3 2021 at the Palais de Tokyo and Palais de la Bourse venues in Paris. The organizer has partnered FHCM to boost the Paris Fashion Week with a new event, scheduled four times a year at the Palais de Tokyo. The event will showcase a selection of emerging labels hand-picked by Tranoï and FHCM. The first session will be held in parallel with Tranoï, on June 25-27.
Première Vision will also organize a reunion event in Paris from June 30-July 01. The show will be at the Grand Palais Ephemere. The Who’s Next show will launch Who’s Next Limited. The new event will be staged at a showroom in Saint-Germain-des-Prés district on June 25-28, and showcase the exhibitors’ pre-collections during Paris Fashion Week. Who’s Next will also make its come-back at Paris’s Porte de Versailles exhibition centre on September 3-6 2021, alongside Impact, its sustainable fashion counterpart, and Traffic, which focuses on innovative solutions for retailers and brands.
Childrenswear show Playtime Paris will also stage physical sessions at the Parc Floral venue in Paris from July 03-05. One of the first trade events to announce officially its next dates was Maison & Objet, the show dedicated to interior design, fashion and the art of living, scheduled from September 9 to September 13 at the Paris Nord Villepinte exhibition centre. As of now, 1,500 exhibitors have confirmed their presence at the show and that 93 per cent of regular visitors intend to attend the show’s next edition, according to a survey carried out by Maison & Objet from April 30 to May 3.
PLM strategy helps Mayer & Cie create a digital backbone
Mayer & Cie’s Product Lifecycle Management (PLM) strategy has helped the company create a digital backbone to offer better customer experiences and lean, innovative and modern processes. First adopted in 2017, the strategy maps the company’s end-to-end digital process – from the first steps in machine development via product information of each and every kind, configuration options and production information to the service case. The strategy has helped the company move development and production significantly closer to each other. It also enables customers find the right parts more easily in the web shop.
Mayer & Cie. (MCT) is a leading international manufacturer of circular knitting machines. The company offers the entire range of machines required for making modern textiles. Fabrics for home textiles, sportswear, nightwear and swimwear, seat covers, underwear and technical uses are made on MCT knitting machines. Furthermore, Mayer & Cie. regularly develops new approaches underlining its leadership in technology.
Founded in 1905, Mayer & Cie. generated sales worth €72 million in 2020 with about 400 employees worldwide, according to preliminary figures. In addition to its headquarters in Albstadt, Germany, where around 300 people work, and subsidiaries in China and the Czech Republic, sales partners for circular knitting and braiding machines in around 80 countries represent Mayer & Cie.
