Responsible purchasing practices are central to IAF’s work
As the global apparel industry grapples with persistent disruptions, rising cost pressures, and shifting regulatory expectations, the need for stronger collaboration across the value chain has never been more critical.
At the helm of the International Apparel Federation (IAF), Stefano Festa Marzotto brings decades of cross-sector experience spanning luxury and manufacturing, offering a balanced perspective on the evolving dynamics between brands and suppliers.
In this conversation with Fibre2Fashion, he discusses the importance of shared responsibility, fair partnerships, and long-term alignment in building a more resilient and sustainable global apparel industry.
How do you assess the current state of the global apparel industry amid rising geopolitical tensions and supply chain disruptions?
We have reached a point where disruptions have become the norm rather than the exception. This leads to pressure to price the risk into the product and service costs. A more unstable business is inevitably a higher cost business. The question is how to mitigate supply chain risks. One way is for brands to work with suppliers that own or have guaranteed access to manufacturers in multiple countries. Another is to engage in ‘safeshoring’, or to move to countries closer to a brand’s main markets.
“Disruptions are no longer exceptions in our industry—they are the new normal. The real question is how we redesign supply chains to live with that reality.”
What are the most pressing challenges apparel manufacturers face today, particularly in terms of cost pressures and demand uncertainty?
One of the biggest challenges is determining who absorbs rising costs. Too often, risks and additional costs are pushed downstream to manufacturers. While cost increases are inevitable, the ability of manufacturers to absorb them is not limitless.
At the same time, inflation in major consumer markets is reducing purchasing power, which puts pressure on apparel demand. This translates into lower or more volatile order volumes for manufacturers, making long-term planning and investment increasingly difficult.
“Manufacturers cannot be expected to absorb unlimited risk. A resilient apparel industry requires fair partnerships and shared responsibility across the supply chain.”
How is digital transformation, including AI, reshaping competitiveness across the apparel value chain?
The honest answer today is probably: not enough yet, and we still do not fully know the potential.
Competition and regulation are pushing the industry towards greater efficiency and supply chain process improvements. Many of these improvements require digitalisation. However, our industry remains surprisingly analogue.
Digital transformation is difficult because it requires fundamental changes in how designers, developers, merchandisers, and sourcing teams work together. AI has the potential to accelerate these changes significantly, but it is still too early to fully predict how transformative it will become.
What role do sustainability and decarbonisation play in redefining sourcing and manufacturing strategies globally?
Sustainability is no longer optional; it is an imperative.
Consumers may sometimes appear ambivalent, but they still expect companies to act responsibly. Governments may adjust their pace of legislation, but globally the direction remains clear: regulatory requirements on sustainability will continue to increase.
The question is not only what individual companies are doing, but also how prepared entire manufacturing ecosystems are. Countries need strong collaboration between companies, educators, financiers, NGOs, and governments to enable manufacturers to meet sustainability expectations.
“If manufacturers are not economically viable, sustainability will remain an aspiration rather than a reality.”
How can the industry better balance speed, cost, and compliance in an increasingly regulated environment?
The answer lies in operational excellence and stronger partnerships.
The industry must remove unnecessary costs, including those created by fragmented compliance systems and a lack of collaboration. Joint investments in more responsive supply chains can reduce overproduction, markdowns, and inefficiencies.
Improving productivity, both on the factory floor and across the broader supply chain, combined with process innovation will allow companies to better balance speed, cost, and compliance.
“The biggest inefficiencies in fashion are not in factories—they are in how the supply chain is organised.”
As President of IAF, what are your immediate priorities for strengthening the federation’s global impact?
One of my immediate priorities is to further clarify and communicate IAF’s vision for the industry. This includes promoting free but fair trade, encouraging fair business practices, strengthening manufacturer involvement in industry decision-making, and supporting greater standardisation and collaboration across the supply chain.
Expanding IAF membership is also essential. A larger and more representative membership strengthens our ability to advocate for better operating conditions for manufacturers worldwide. At the same time, we are deepening collaboration with major global initiatives and strengthening dialogue within the industry.
How do you plan to build on the foundation laid by your predecessor in advancing responsible purchasing practices?
Responsible purchasing practices are central to IAF’s work, and the Sustainable Terms of Trade Initiative (STTI) plays a key role here.
STTI aims to establish a globally recognised framework for responsible purchasing practices. We collaborate with organisations such as ETI, Fair Wear, the Fair Labor Association, and Better Buying to address key issues such as contracts, grievance mechanisms, and regulatory developments like the Corporate Sustainability Due Diligence Directive (CSDDD).
The goal is to create a more balanced and sustainable relationship between buyers and manufacturers.
IAF emphasises collaboration across the value chain. How can this be translated into actionable outcomes for manufacturers?
Collaboration must move beyond dialogue and translate into concrete initiatives.
One example is the Apparel and Textile Transformation Initiative (ATTI), our joint initiative with the International Textile Manufacturers Federation (ITMF) which focuses on supporting industry transformation at the national level while coordinating efforts globally.
Another key element is involving manufacturers earlier in industry initiatives so that requirements, such as data collection or environmental reporting, are realistic and achievable. And finally, collaboration should reduce duplication of efforts and enable manufacturers to invest in improvements.
“If manufacturers are not part of designing the solutions, the solutions will not work.”
Could you elaborate on how IAF is supporting members in navigating evolving regulatory frameworks across regions, especially sustainability regulations in the EU?
IAF supports members primarily through knowledge sharing and industry dialogue.
At our World Fashion Conventions and other events, we bring together experts and policymakers to discuss regulatory developments. In addition, we are organising webinars with the involvement of our Sustainability Committee and discussions to help members understand new legislation and its implications.
Our goal is to ensure that manufacturers are informed and prepared for evolving regulatory environments.
How does IAF view the role of innovation in improving productivity and resilience within apparel manufacturing?
Innovation is crucial.
Higher productivity enables manufacturers to invest in their businesses and remain reliable partners for brands and retailers. However, productivity must be understood broadly.
It is not only about factory floor efficiency but also involves improving supply chain processes to reduce overproduction, lost sales, and markdowns. When productivity improves across the supply chain, both buyers and manufacturers benefit.
IAF has Business Innovation committee, which focuses on these topics.
Your philosophy centres on “Respect is Our Shape.” How do you translate this concept into practical industry initiatives?
Respect must translate into real change in how the industry operates.
First, through initiatives like STTI, which aim to promote fair and responsible purchasing practices.
Second, through collaboration with global initiatives such as Cascale, where we work together to align sustainability efforts.
Third, through programmes like ATTI, which focus on supporting manufacturers and enabling industry-wide transformation.
Respect means recognising the essential role manufacturers play in making the global apparel industry work.
What specific steps is IAF taking to address sustainability challenges, particularly in terms of environmental impact and compliance?
IAF addresses sustainability through several initiatives. The Apparel and Textile Transformation Initiative (ATTI) focuses on enabling systemic change across national manufacturing ecosystems. In addition, the IAF Sustainability Committee works on topics such as decarbonisation, regulatory developments, and industry collaboration to reduce environmental impacts.
Our focus is on practical solutions that enable manufacturers to meet sustainability requirements while remaining economically viable.
How important is the role of young talent in shaping the future of the apparel industry, and how is IAF engaging with the next generation?
This is probably one of the most important topics for the future of our industry.
IAF has an Education Committee dedicated to addressing skills gaps and attracting young talent. We also work closely with the International Foundation of Fashion Technology Institutes (IFFTI) to better align education with the needs of the apparel industry.
We are currently conducting a survey among our members to better understand the evolving skills requirements of the industry. The results will be shared with IFFTI to help strengthen collaboration between industry and education institutions.
Given your extensive experience across luxury and manufacturing, how do you see the relationship between brands and manufacturers evolving?
I know that the interests of the two do not always align. However, the only way for the industry to survive is for both parties to jointly analyse needs and critical issues, while ensuring sustainable cost structures.
This can be achieved through long-term agreements that recognise professionalism, enable advance planning, and manage ongoing changes in a coordinated manner.
I understand this is not easy, as brands often position themselves from a place of strength, but they must also recognise the value of manufacturers.
What is your long-term vision for IAF in fostering a more resilient, transparent, and inclusive global apparel ecosystem?
It is our mission to foster stronger, smarter and more sustainable supply chains. We believe that apparel manufacturers play a key role to build this. IAF is urging brands, retailers and the ecosystem around them to better enable manufacturers to take on this role. On the longer term, we will see manufacturers take over more design and development roles from their clients, direct the work to improve supply chain processes, both upstream and downstream, through process innovation and the use of technology.
