Florian Heubrandner
Vice President of Global Textiles Business Lenzing AG
Observing higher interest in sustainable fibres than before
German company Lenzing produces lyocell and modal cellulosic fibres of botanic origin from the sustainably sourced natural raw material wood. Florian Heubrandner, Vice President Global Business Management Textiles of Lenzing AG, speaks to Fibre2Fashion about how the pandemic has influenced the fibre market in the last one year, the kind of innovation the brand has brought in its marketing strategies and focus area for the year.
How has the fibre market been affected in the last 1 year since the pandemic gripped the world? What were the major hardships faced? What steps did you take to weather the crisis?
At the outbreak of the pandemic, the textile industry experienced a massive temporary demand shock. The level of uncertainty across the industry was extremely high and no one knew what the next weeks or months would bring, resulting in very cautious ordering across the value chain. At Lenzing, we've never seen such a strong demand reduction in such a short time. It was only a few months later (around Q4 2020), that we saw gradual recovery from the market and a return of demand. While we were producing at full steam, demand was by far surpassing our production. With market recovery, and brands and retailers picking up their business, we went from one extreme to the other within a few months. Luckily, we were able to respond to this situation by being flexible with our operations. For example, we've kept high inventories and started delivering to China by train to cut down delivery times to our customers.
What were the major achievements of the company in the last one year? Which new projects were started? What new products in pipeline?
Clearly, our new, sustainable product launches and the introduction of the TextileGenesis platform are our key achievements over the past months. Another major achievement in the last year was the highly successful launch of our carbon zero Tencel branded fibres that are certified as carbon neutral products. At Lenzing, we set a goal to be carbon neutral by 2030 and carbon zero by 2050, the launch of this fibre goes a long way in realising this vision.
Another key area for innovation this year has been finding ways to increase our supply chain transparency. For us, there are no limits to the technological innovation we can implement in greening up the supply chain and providing better visibility to the brands and end users of our fibres. We have some exciting new offerings in our pipeline, again combining superior sustainability credentials and great performance, so please stay tuned for more updates.
You just introduced the first carbon neutral lyocell fibre for the nonwovens industry. Is this just the beginning? Will more such fibres follow?
Yes, I strongly believe this is only the beginning. As a growing number of consumers and companies care about the environment, the transition towards climate friendly products will certainly gain momentum in the future.
We at Tencel are on a journey to True Carbon Zero, contributing to a carbon neutral textile industry. With a vision to have net-zero emissions by 2050, our three-step plan is to reduce, engage and offset. Our priority is the continuous reduction of carbon emissions through more efficient production methods, using renewable energy sources and embracing new technologies. Being the first cellulosic fibre producer to commit to the Science Based Targets initiative, we engage and steer our industry to source materials with low carbon footprints and reduce overall carbon emissions. We offset unavoidable carbon emissions by supporting verified global carbon reduction projects.
What is the status of the worldwide fibre market as on date? Has it bounced back to its pre-Covid levels yet?
The rise of the pandemic forced many consumers to shift their purchasing habits from physical retail to online. Brands had to adapt to this shift in tangent by increasing their own digital presence and creating new ways to engage with their consumers. Another large shift we experienced as a result of COVID-19, was an increased demand and awareness of sustainability and eco-friendly products. Whether it was more comfortable loungewear to fit the "work from home" style or an increased interest in athleisure wear to adapt to their changing lifestyles, consumers needed more from the brands they know and love. Overall, in terms of demand, we're now back at pre-Covid levels and observing a higher interest in sustainable fibres than before the pandemic.
How have your marketing strategies for your products changed in the backdrop of Covid? What kind of innovation have you brought into your strategies?
Our marketing strategy has always been based around the unique properties of our textile fibres such as softness and breathability as well as their great sustainability performance. Given the innovative technology and eco-responsible production process we use at Lenzing, we wanted to ensure our stakeholders are fully aware of the pioneering qualities that our fibres can provide. To meet the consumer purchasing behaviour shift to online, we upgraded our digital presence by developing our offerings with our new "Tencel eShop" launched this year and expanding our 'Where To Buy' portfolio on the Tencel website. The global health crisis brought an increased interest in sustainability from consumers and brands, which resulted in additional demand for eco-fibres.
In terms of innovation, we've launched our carbon zero Tencel branded lyocell and modal fibres last year, which have sustainability at their core. They are part of Lenzing's commitment to reduce specific CO2 emissions by 50 per cent until 2030 and become net zero by 2050.
The other great innovation has been the launch of our Tencel Modal fibres with Indigo Color technology this year. They incorporate indigo pigment directly into fibres using a one-step spun-dyeing process. This delivers superior colour fastness relative to conventional indigo dyeing whilst using substantially fewer resources.
Technology is in a sense leading the fightback. What steps are you taking to move into a more digitalised work culture?
The sudden outbreak of the pandemic was like a crash course for remote working routines and interactive collaboration. It forced us to adapt to all these new technologies. Even after the pandemic is over, it is unlikely we will go back to our old way of working. We will continue to work partially from home, resulting in less travel, which is better for the environment.
What will be your focus area for the current year?
Our focus will be to help make fashion more sustainable and transparent. We'll continue to develop sustainable collections using our Tencel branded Lyocell and Modal fibres as well as our Ecovero branded sustainable viscose fibres. While doing that, we'll put a special emphasis on using our carbon neutral fibres to help reduce the CO2 footprint of the textile Industry. Additionally, we'll continue our push towards more transparency in the industry by shipping more and more fibres through our blockchain based traceability platform TextileGenesis.
Based on consumer preferences, how has your business got altered?
We see a stronger demand for sustainable fibres across all regions, as well as a need from consumers for traceability and transparency. Consumers are interested in knowing more about who made their clothes. To meet this demand, together with our external technology partner TextileGenesis, we've introduced a blockchain based traceability platform. The platform allows brands and retailers to trace back the entire value chain of their garments. When receiving a pair of jeans, the brand can see who produced the fibre, where the fibre was converted into yarn and fabrics and where the garment was eventually made. If they choose to do so, the brands can share this information with consumers.
What is your growth expectation for the current year?
Lenzing continues to expect strong growth in the fibre business. This expansion will be driven primarily by steady population growth, rising prosperity in the emerging markets and a gradual economic recovery post COVID-19. In addition, as consumers are considering sustainability more in their purchasing decisions and are increasingly conscious of the environment, we will continue to provide consumers with the peace of the mind they are helping to protect the environment thus expanding our consumer base globally. (PC)
Published on: 19/05/2021
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
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