Flexibility,quality, environmental performance and innovation are four specific areas ofimprovement and opportunity that brands and retailers are investing in toincrease the value, or the perception of value, of their products.International Apparel Federation (IAF) Secretary-General
In 2015, the concept around whichmany developments in the entire clothing industry supply chain are hinged mustbe value. Countless sales periods in most mature markets have eroded theconsumer's sense of value of apparel. In my own country of domicile, theNetherlands, we are seeing a recovery in the retail volume of apparel after aseven-year recession. But in terms of value, the sales of apparel are hardlypicking up. This is because consumers have simply been taught to spend less onclothing. The combination of the entry of big global discounters and theexcessive use of discounts to maintain sales volumes by independent retailershas decreased the average price a consumer pays for an article of clothing.
Brands and retailers havedifferent strategies in place to restore the consumer's sense of value ofclothing. These are key to understanding the needs, including the machineryneeds, of the apparel industry. Flexibility, quality, environmental performanceand innovation are four examples of specific areas of improvement and opportunitythat brands and retailers are investing in to increase the value, or theperception of value, of their products. In this article I will explain how foreach area this translates into machinery needs.
The issueof flexibility
In one segment of apparel retail,the ability to deliver to the consumer the products that are in fashion atexactly that time is what drives value. A consumer will pay a small premiumbecause he or she is given the assurance by the retailer that the articlebought is trendy. This is fast fashion, and it will only become more important.For a clothing manufacturer, fast fashion translates into flexibility, and fora machinery producer, this translates into machines with fast changeover times.
Many of these machines were put onthe shelf during the 1990s, but the move to fast fashion is also driving moreproduction closer to point of consumption, which makes automation easier tojustify. There are also machines that perform tasks in entirely new and moreflexible ways. Good examples of this last category are digital fabric printers,vision guided cutting machines, and machines that communicate with workers,management, and other machines to better control quality and productivity.
The issue of quality
Quality
as a requirement is as old as garments themselves, but it may be heading for a
revival. Especially in Europe and in the US, we see a consumer backlash against
the trend of fast fashion and cheap and disposable products. This trend may be
spearheaded by the food industry where the enormous efficiency of the supply
chain and the power of retail have made food relatively very cheap. Supermarket
chains are struggling to survive round upon round of price wars and in response
they are 're-teaching' consumers the value of food. Ahold, a Dutch chain, is
explaining to its customers that they sell six types of chicken. The first
category is cheapest and most industrially processed, with least regard for the
animal and the sixth, most expensive category has chickens reared in a more
animal-friendly environment. It fits into a trend of 'slow food' as opposed to
'fast food' and we see this developing in clothing as well. Consumers
consciously chose clothing articles that will last longer and they accept that
these are more expensive. They literally want more value for money. This does,
however, seriously raise the bar for quality, and garment manufacturers working
in this category must make a big effort to make faultless garments. This is a
positive trend for machine manufacturers as there is a strong correlation
between quality level and machine performance and hence, price. Also, because
quality is consciously used to raise the value perception of consumers,
garments ideally contain easily visible attributes of quality sometimes
requiring extra operations and specialised machinery.
The issue
of environmental performance
The relation between value
perception and environmental performance is very complex, but that doesn't mean
it isn't there. It may turn out that a certain level of environmental
performance will become a prerequisite for a garment to be in a certain value
level. Dropping below this performance makes the product just as unsaleable as
a garment with poor quality. Depending on the quality of the consumer
information systems that are being developed, a particularly strong environmental
performance may enable a premium to be put on the garment's price. In this
respect, it is wise to closely watch the SAC, the Sustainable Apparel
Coalition, that is currently the main vehicle by which brands and retailers
work together to develop a standardised communication system about
environmental performance. This system awards points for different aspects of
environmental performance; added together it forms a single score. For garment
manufacturers it may be useful to see what their investments in new energy
saving machinery, can add to the environmental performance of their customers.
It may be useful particularly to
see where the potential to save water, or energy or both, to reduce the use of
harmful chemicals, or the opportunities for recycling are greatest and start
investing there. Often, investments in environmental performance pay themselves
back quickly because saving energy or water or reusing fibres obviously also
saves money.
In any case, neither garment manufacturers nor the machine industry can afford to wait until the end consumer starts to pay a premium for more environment-friendly garments. The complex system does not work like this. In many segments, investments are needed just to remain in the game. A major initiative in Germany called Industry 4.0 will fundamentally change the way the machines communicate and perform to produce better quality and more environment-friendly products. Industry 4.0 will enable the connection of machines, products, and people.
It currently identifies nine
technology areas that will be integrated to change the way manufacturing is
done. They are: Big Data and Analytics, Autonomous Robots, Simulation,
Horizontal and Vertical System Integration, The Industrial Internet of Things,
Cyber security, the Cloud, Additive Manufacturing, and Augmented Reality.
It becomes more difficult when
processes are reengineered. A good example is 3D design and product
development. Potentially, designing and developing products and eliminating the
need for physical samples saves money, and water and energy (which would have
been used to make and to transport physical samples). But it requires major
organisational changes; so, it is difficult to predict when and how fast the
trend towards 3D design and product development will take off. But it will grow
eventually and bring with it different hardware and software that garment
manufacturers will buy.
The technology already exists to
allow products to be developed as digital products and communicated globally.
Existing CAD systems can be integrated with 3D visualisation technology to
allow for accurate fabric/garment characteristics to be captured and
demonstrated on 3D virtual models. Such technologies as body scanning, avatar
engines, virtual dressing, and motion capture will enable products to be
created, developed, and approved before needing to convert them to physical
products.
The issue
of innovation
Innovation is back in fashion. And
this is good news for suppliers to the fashion industry. More brands and
retailers are looking at ways in which new technologies, or new combinations
with existing technologies from outside of the industry, can add new value to
their products. Examples are:
1. Fabrics that incorporate
nanotechnology allow for features to be designed into products. Such features
include stain resistance, odour absorption, wrinkle resistance, water
repellency, insulation against heat or cold, UV protection, electricity
generation, and more. Machinery must deal with nanotechnology.
2. Wearable Technology started
with such items as smart watches, activity trackers, smart glasses, clips, arm
bands, wrist bands, and other devices that would provide immediate feedback to
the consumer. And now wearable technology is finding its way into the clothing
industry. Garments are now being created that have the ability to track
performance in 3D. They capture biometric data like temperature, heart rate,
speed, and intensity of workouts. The manufacturing industry will be faced with
an increasing demand for machines that are able to literally integrate
electronics or for example solar panels into garments.
3. Made-to-Measure will become
more mainstream as manufacturing systems that incorporate robotics and
automation along with Lean production systems are established in local markets.
Consumers will carry their personal avatars on their smart phones and use RFID
and QR codes to try clothes on while in a store, on a train, or reading a
magazine. Orders will be placed electronically and fit information will be
transmitted automatically to the vendor. Standard sizes will still exist, but a
better match will be made when body scanners have been placed in medical
facilities, fitness centres, and stores around the world.
4. Waterless Colouring of fabric
will not only save tremendous amounts of water and waste treatment, but will
allow brands and retailers to detail the style, size, and colour of products
within a couple of weeks of being available on the store shelf. To conclude,
machinery manufacturers today face new or renewed demands for products coming
from the acute need of brands and retailers to add new value. Machinery manufacturers
also face complex demand. Quality and environmental performance often reinforce
each other, but flexibility and quality may clash, while a client needs both.
To create a good match between the changing needs of brands and retailers and
machinery producers, excellent dialogue in the supply chain is crucial.
In the end, innovation will not
slow down or stop. It will continue and the entire supply chain, including the
machinery industry must move along. We must eventually all prepare for the time
when 3D printers are in the home, and clothing can be produced as needed for
the occasion.
About IAF
The International Apparel
Federation (IAF) is the world's leading federation for apparel manufacturers,
their associations, apparel retailers and the supporting industry. IAF's
membership now includes apparel associations from nearly 60 countries
representing over 150,000 companies that provide products and services to the
apparel industry - a membership that represents over 5 million employees. The
many corporate and associate members of IAF are prominent companies or
institutes in production, retailing, technology, business services, logistics,
fashion fairs and education.
IAF stands for:
•
Cooperation between buyers and suppliers. IAF membership
reflects this.
•
Helping the industry become more knowledge intensive.
•
A global approach to global responsibility, focusing on
improvements.
•
Harmonisation of legislation helping the industry to cut
unnecessary costs.
•
Offering practical support to our members.
•
Being a truly global platform for networking and information exchange.
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