Textination Newsline

• New research shows business leaders at top fashion, retail and textile businesses are putting sustaina-bility drive first, despite COVID-19 pandemic
• The power of data in the effort to ‘go green’ is well recognized, but patchy performance suggests more access to better quality data needed to help turbocharge change
• Despite Covid-19, fashion leaders are confident that fast, affordable and sustainable fashion is realistic, with crisis seen as opportunity to recharge sustainability efforts 

New research reveals the extent of the global fashion industry's commitment to sustainability, despite the COVID-19 pandemic, with sustainability ranked as the second most important strategic objective for businesses in the sector .

The new research, from the U.S. Cotton Trust Protocol and the Economist Intelligence Unit (EIU), is like Puma, H&M and Adidas. Explored in a new report, ‘Is Sustainability in Fashion?’ the research comes at a time when the industry finds itself at a crossroads: whether to continue to invest in sustainability, or row back in light of the pandemic.

Sustainability is business critical, say fashion, retail and textile leaders  
In defiance of the pandemic, the new data shows that for many of the world's biggest brands, sustaina-bility is now business critical. The majority of fashion, retail and textile leaders surveyed (60%), named implementing sustainability measures as a top two strategic objective for their business, second only to improving customers’ experience (ranked first by 64%). This contrasts starkly with the fewer than one in six (14%) that listed 'rewarding shareholders' as a top objective.

Leaders report they’re introducing sustainability measures throughout the supply chain, from sourcing sustainably produced raw materials (65%), introducing a circular economy approach to their business and cutting greenhouse gasses (51% apiece) and investing in new technologies like 3D printing and blockchain (41%).  Overall, the majority (73%) were optimistic that sustainable, fast and affordable fash-ion is achievable.

Data matters
A key finding of the research is that data matters for sustainability. When asked what measures they were implementing today to be more sustainable, collecting data from across the business and in the supply chain to measure performance was listed at the very top of business leaders’ list of priorities by 53%, second only to developing and implementing an environmental sustainability strategy with meas-urable targets, favoured by almost six in ten (58%).

And data is not important for the immediate term only –  three in ten (29%) said the availability of relia-ble data holds the key to greater sustainability over the next decade, while almost three-quarters of industry leaders (73%) stated their support for global benchmarks and thresholds as an effective means of measuring sustainability performance and driving progress in the industry.

But data collection is patchy
However, although brands clearly recognize the importance of data, the research’s findings on data collection indicates that top fashion brands, retailers and textile businesses may find sourcing good quality data a challenge.

While business leaders report relatively high rates of data collection on supplier sustainability practices based on a survey of 150 leading executives from top fashion, retail and textile business across Europe and the US and interviews with leading brands (65%) and worker rights and workplace health and safety in the supply chain (62%), a significant proportion (45%) of businesses do not track greenhouse gas emissions across production, manufacturing and distribution of the products they sell, while 41% don’t track the amount of water and energy being used to produce the raw materials they source.

Looking to the future, over a quarter (26%) of respondents saw a lack of available, easily-accessible data as hampering collaboration on sustainability across the industry. As some respondents in interview pointed out, while collecting data could be hard it is important.  

Commenting on the findings, Gary Adams, President of the U.S. Cotton Trust Protocol, said: "It is clear that brands are faced with a challenge on driving forward their sustainability efforts. At the U.S. Cotton Trust Protocol we know that accurate, reliable data supports businesses in this work - providing not only the evidence to show hard work and progress, but the insight to drive further improvements. We pro-vide one of the most robust data collection mechanisms available for an essential material – cotton – for unparalleled transparency.”  

Partnership offers path to further progress
An additional key finding is that fashion, retail and textile business clearly cannot drive change in isola-tion: collaboration is needed. According to one respondent, from Reformation, this is already happen-ing. “We’re energized to see collaboration and cooperation across the industry and believe that will only increase over time.”

However, when it comes to external support to help guide that progress, business leaders do not nec-essarily perceive further regulation as the answer.  The UN Sustainable Development Goals (SDGs) and government regulation were each given equal weight in driving sustainability change, both cited by a quarter of respondents (24% apiece). Regulatory requirements were also ranked by only a third (33%) of the business leaders surveyed as being within the top three factors that will drive sustainability pro-gress over the next decade.  

Jonathan Birdwell, Regional Head of Public Policy and Thought Leadership, The Economist Intelligence Unit: “It’s clear from the survey results and our interviews with business leaders that the industry is committed to driving progress on its sustainability performance. We were particularly struck by the fact that sustainability is largely considered as pre-competitive – behind the scenes brands are sharing re-sources and lessons learned.”

The impact of Covid-19  
This determination on sustainability flies in the face of COVID-19 uncertainty, although when asked their view on the pandemic, just over half (54%) of respondents said they thought it would make sustainabil-ity less of a priority within the industry.

The U.S. Cotton Trust Protocol is a new initiative that sets a new standard in sustainably grown cotton. By working closely with growers, the U.S. Trust Protocol provides clear, consistent data on six key sus-tainability metrics, including GHG emissions, water use, soil carbon, soil loss, independently audited through Control Union Certification. For the first time, brands can access annualized farm level data and trace their cotton from field to 'laydown'.

Research based on quantitative survey of 150 executives in the fashion, retail and textile industry based in Europe and the United States undertaken by the Economist Intelligence Unit between 9th July and 28th July 2020. The survey was complemented by qualitative insight from interviews with ten professionals in the fashion and sustainability space.

• Finite resources and endless mountains of rubbish set the tone of the upcoming 25th edition of PERFORMANCE DAYS. Closing the loop means nothing is wasted, not even time, as recycled clothing gets recycled again and again.

In keeping with this topic, the trade fair organizers are planning expert discussion panels to help present the facts as well as visions of the future. Expect the corresponding displays of sustainable materials, chosen by the PERFORMANCE FORUM Jury. Look for materials such as fibers from recycled PET bottles, recyclable mono-component materials or blends, and shirts that decompose to biomass in a "Cradle-to-Cradle" approach. "Nothing to Waste - Closing the Loop" is open to the public at the Messe München fairgrounds and as a Digital Fair online starting on December 9-10, 2020.

The PERFORMANCE DAYS trade fair has chosen a new Focus Topic that concerns not only our own industry. The textile industry has long been achieving more efficient production by recycling its own waste products and using recycled materials from outside the industry, for example, PET-bottles. Nevertheless, textiles exist alongside glass, paper, metal, and plastics as a separate branch of waste management. Despite ambitious efforts at recycling by the waste and textile industries, the efficient use of textile waste as a resource remains a challenge. Compounding this challenge are the difficulties caused by a global world: production, consumers, and disposal sites are miles apart, shared expert knowledge about the other industries is lacking, and international standards and political support are nearly non-existent.

Final destination: the waste bin
Information from the Federal Office for the Environment shows that 0.8% of the oil produced is used in the textile industry for the production of new textiles. But the costly processing chain of this finite resource ends all too quickly in waste. A Greenpeace survey reveals outdated fashions or clothing of worn quality is thrown away within three years, only to land in the trash dumpsters. The European Environmental Agency estimates that 5.8 million tons of used textiles are discarded every year and either incinerated, used for landfill, or taken to mechanical-biological sewage treatment plants. Even if used clothing is collected by state or private companies, in many cases it cannot be sold (as second hand), donated, or recycled (into rags or insulating material). In the best case scenario, it is incinerated and converted to thermal energy.

Recycling and circular design
From an economic and environmental perspective, the term recycling refers to waste-free products, waste avoidance, and waste recovery and disposal. In our industry as it stands, recycling at the end of the product life cycle usually means converting the product into some other product, i.e., not clothing. This is the "Open-Loop" process. Accordingly, textiles are eventually incinerated, but the amount of energy recovered can vary greatly depending on how efficiently the waste incineration plant works. Such devaluing of the product to a product with less value than the original product is known as Downcycling. However, Downcycling is not the only solution: the "Closed-Loop" approach has the goal of making new clothes out of old ones through recycling. The closed loop for renewable natural resources, for example, can mean that natural fibers used in textiles will end up becoming soil, which is the nutrient for new natural fibers, i.e., a cradle-to-cradle approach. Synthetic garments similarly require extracting the man-made fibers and reprocessing them to produce another garment.

Planning for the end in advance
Rather than thinking about recycling opportunities at the end of the product life cycle, brands can already begin developing closed loop options while in the design phase. Among other things, designing out the waste can reduce the environmental impact of the products. To extend the useful life, consider leasing the materials and/or adding labels with instructions for disposal, repair, or repurposing. And, what about the idea of preparing 100% used textiles that can be reintroduced into the supply chain as 100% new textiles? Separating the different types of fiber used in blends is complex, cost-intensive, and further complicated when labels are non-existent (or no longer existing) or it is simply not (yet) technically possible. More and more clothing makers and suppliers are trying to avoid mixing fibers and are switching to "mono-materials" or "mono-components." Shirts are easy to make in this way, but if you add buttons, zippers, etc., the issue becomes more complex.

Nothing to waste - not even time
If you are like many end consumers, brand managers, and producers and want to make use of valuable resources in a more sustainable manner, register now on the trade fair website under "Visitor Login." There you can access a free trade fair ticket for December 9-10, 2020. You can also learn about the complimentary and soon to be expanded offers at the Digital Fair. Don’t forget to sign-up for the free Newsletter mailings. 

•     09.-10. December 2020      DIGITAL FAIR  Trends Winter 2022/23 

 

UPDATE
CoVid-19 continues to keep the world on edge. Many PERFORMANCE DAYS visitors, as well as exhibitors, have already announced that travelling to Munich in December would be simply impossible for them. Due to the increasing number of infections, further international travel bans and company-internal travel restrictions are now threatening. As a result, the December 2020 edition of PERFORMANCE DAYS will unfortunately not take place at the Messe München, but as Digital Fair! On the planned dates of December 09-10, both approved and advanced new tools will go online and provide further proof of PERFORMANCE DAYS’ expansion of its pioneering role in creating a digital textile trade fair experience.

 

The Carl Meiser GmbH & Co. KG - started in the early 1950s as a day- and nightwear manufacturer. Over the last 20 years the company has become a specialist in the field of technical textiles. With its brand nopma Technical Textiles the company is present as developer and producer of textile solutions via coatings. The main products are nopma anti-slip - textiles with anti-slip effect, nopma adhesion - adhesive pre-coated films, spacer fabrics and substrates for lamination in automotive interiors, nopma ceramics - abrasive more resistant textile surfaces and nopma silicones - silicone coatings on textile surfaces.

Textination talked to the managing director, Jens Meiser, who joined the company in 2005, realigned the division and developed it into a service provider, about his plans and objectives.

Founded in 1952, Carl Meiser GmbH & Co.KG has changed from a day- and nightwear manufacturer to an innovator in the field of technical textiles, presenting themselves as a specialist for plastic-based coating processes. If you had to introduce yourself in 100 words to someone who does not know the company: What has influenced you most in this development process and what makes you unique?
Innovation is the new normal - This has been true for the textile industry not just since Sars CoV-2. Our industry was one of the first to be disrupted in the early 1990s and has always been subject to constant change. This urge for further development, which is essential for survival, has left its mark on us intensively and has enabled us to manage huge leaps in innovation in recent years

Today we regard ourselves as an innovative development and production service provider with a focus on textile coating. We develop and produce almost exclusively customized special solutions.

Through the combination of coatings on textiles these hybrid materials receive completely new properties.

You manufacture exclusively at your location in Germany. Why? Have you never been tempted to set up subsidiaries in other countries, for example to benefit from lower wage levels?
Today we supply global supply chains from our headquarter in southern Germany. Although we produce in a high-wage country, much more important for us are know-how and the drive of our team to create something new. Globalization will continue to be the key to success in the future. Therefore, subsidiaries in North America and Asia could be very interesting for us in the medium- and long-term perspective. However, this is still too early for us.

You use CIP and Kaizen techniques intensively in your company. How did a Japanese concept come about in the Swabian Alb?
KAIZEN, the change for the better, are actually German virtues. The urge to improve and optimize things is in all of us. Due to the continuous improvement process we do not stand still but evolve constantly. Besides, there is the personal affinity to Japan. A look at another culture simply opens the horizon. And if you additionally recognize parallels in the working methods, it’s even better. 

10 years ago, you turned your attention to new markets: aviation, automotive, protection, caravan and furniture manufacturing, to name just a few. Some of these segments have collapsed significantly during the Covid 19 pandemic. What market development do you expect in the medium term and what consequences will this have for your company?
Of course, the aviation or automotive industry, for example, have substantial problems during or due to the Covid-19 pandemic. Quite honestly, many of these problems existed before. They were further tightened, as if a fire accelerator has been used. Of course, these cut-backs are also hitting us hard economically. But we are pursuing long-term goals. As a medium-sized company, you have to have the resilience to continue on your path. Thanks to our specialisation and the split of our industrial sectors, which we drive forward every day, we manage to decouple ourselves more and more from economic developments in individual industries. For our customers this is a great advantage of relying on a very stable partner with long-term orientation.

We are positive about the future. Megatrends like sustainability, digitization and ongoing globalization will lead to new business models in the above-mentioned sectors, as in many others, and to renewed growth. Our coatings on textiles and flexible woven materials can contribute a wide range of solutions to this. If, for example, materials become lighter with identical usage properties or suddenly become biodegradable, because of biodegradable plastics, many new opportunities will arise.

Tailor-made instead of solutions for major customers: The topic of individualization down to batch size 1 is making up a large part of the discussion today. In 2015, you opened a large development laboratory where you have a wide range of testing technologies for textiles and plastics available. What do you think about individual product solutions, and in which application areas have you successfully implemented them?
In principle, we do not use any standards. We live individualization with the smallest possible batch sizes. In our field, we do not manage batch size 1, but we start with MOQs of 300 running meters at process-safe series production. We have very few finished products, and above all we have no collections. Our development laboratory is the key for this. Together with our customers we have the possibilities to realize very lean development processes.

Even on a laboratory scale, we can develop and test new products within just a few hours. We then strive to scale up to production at a very early stage in order to obtain production series results. This way, we offer our clients speed and power that represent a special potential for our partners.

You register important input factors in the production process and evaluate them in monthly environmental analyses. What are these factors in concrete terms and to what extent have their analyses already changed production operations? How do you define environmental management for your company?
For us, environmental management means a holistic approach. In principle, we operate production units and manufacture products that consume many resources. Due to the high production volumes, this continues to accumulate. Because of this, it is self-understanding that we record and evaluate our input and output flows and derive measures from them. This makes economic sense, but is also necessary because of our responsibility for our environment. Specifically, these are energy consumption values, consumption data of primary chemicals, electricity load peaks, our Co2 footprint, just to name a few. This consideration has changed us in many areas. Today we operate a power plant with gas condensing technology, our free roof areas are greened or carry photovoltaic modules, we offer our employees and visitors electric filling stations and finally we have converted the entire power supply of our factory to environmentally friendly hydroelectric power.

With nopma, you have been building up a brand for the technical textiles industry since several years and communicate this via an Individual website parallel to Carl Meiser GmbH & Co. KG. How did this brand name come about and what is the product portfolio behind it?
This is the name of a first technical textile product from the 1990s. It was a textile - coated with dots. Dots on a knitted fabric. NOPMA. My father created this brand.

In 2016 you invested in an additional production line for nopma products and were able to start a directly serial delivery in the NAFTA area. How do you currently assess the market opportunities for North America and Mexico?
We continue to see opportunities in globalization and thus on the North American market also. However, these markets are still severely affected by the pandemic and there are major distortions. When these return to normal, we surely will see more success on these markets again.

As an innovation leader, Meiser offers solvent-free PU adhesive systems as pre-coatings for lamination. How do you assess the importance of such innovations in the context of REACH?
These innovations offer our customers the opportunity to decouple themselves from the pressure REACH triggers in some industries. However, we also have some products that have been developed newly in recent months. This keeps us busy, but also creates opportunities to open up new market segments.

How have you felt about the corona era to date - as a company and personally? What would you on no account want to go through again and what might you even consider maintaining on a daily basis?
I think this time has also strengthened us as a society, as people and even as entrepreneurs. Each crisis you go through makes you a little more relaxed for the unforeseen, but also more motivated to achieve your goals. In my opinion, there have been a lot of positive things in the last few months. Suddenly, for example, digitalization tools have become accepted in our everyday lives, and I feel that people are paying more attention to others again. Hopefully this will stay this way.

The futuristic "tube" escalator at the Elbphilharmonie Concert Hall is just as impressive as the building itself and the longest escalator in western Europe. In August, a start-up based in Cologne installed an UV technology that keeps the handrails clean at all times. At the same time, you presented an antiviral functional coating that can be applied to all textiles in the form of yard goods. How does this work and for what purposes will this technology be suitable?
We have already been working with antimicrobial finishing techniques for many years. This already started with the swine flu in 2009/2010, when we made initial contacts with a young start-up and launched a development. Due to a lack of market interest, however, this had to be discontinued after a few months. Today we are experts in the field of "antimicrobial equipment by means of coatings". We were also able to build up an enormous amount of knowledge on the subject of approval and biocide regulation. Today, we can support our customers holistically in these areas. The function by skin-compatible active substances from the cosmetics sector with a vesicle booster can kill viruses and bacteria within a few minutes.
Since the pandemic has shown us the enormous importance of a new level of hygiene, the applications are very diverse and differentiated. We have already realized the use in personal protective equipment, work furniture, vehicles and for example gloves. In principle, every application is predestined where textile carriers are exposed to many touches by different persons in high frequency. Here our nopma products offer a new level of protection and hygiene.

To break new ground means decisiveness, overcoming fears - and thus the courage to fail. Not every project can succeed. In retrospect - about which entrepreneurial decision are you particularly glad to have made it?
We fail again and again. This is part of the game. But it has never happened that we did not learn anything. The pandemic situation is another good example. In spring we accepted our corporate responsibility for our society and were one of two companies in Baden-Württemberg to achieve certification for FFP protective masks. Since we did not want to participate in the revolver market at that time, we offered these products only to the public sector at favourable pre-crisis prices. However, the decision makers could not make up their minds for weeks and did not order. This disappointed our whole team very much at that time. Today we have overcome this and have taken a lot of knowledge with us from this development.

The interview was conducted by Ines Chucholowius, CEO Textination GmbH

The organisers of Intertextile Shanghai Apparel Fabrics are determined to make use of digitised solutions and provide support for exhibitors and visitors who originally intended to participate in the Spring Edition of Intertextile in Shanghai this March, as well as those unable to join the upcoming Autumn Edition from 23 – 25 September. This month’s fair is expecting about 3,400 exhibitors from over 20 countries and regions. With the Intertextile mobile app, an online business matching platform and more, Intertextile continues to utilise its diverse network in the textile industry to help address sourcing needs and generate new business opportunities.

“While we have been closely in touch with overseas exhibitors and visitors to prepare for the Autumn Edition of Intertextile, we are mindful that some may not be able to travel to China in September. We understand that alternative solutions are necessary at this time to help our exhibitors and visitors overcome the obstacles set by the outbreak of COVID-19, thus we have evaluated the online tools and services we currently have, as well as sought new ways to digitally connect the industry,” said Ms Wendy Wen, Senior General Manager of Messe Frankfurt (HK) Ltd.

“Our digitised solutions will cater for all scenarios – domestic and overseas suppliers and buyers who have been eager to connect with each other since missing out on the Spring Edition of Intertextile, while serving as pre-event promotion, business and networking opportunities for the Autumn Edition. This will facilitate a seamless exchange of information for doing international business online and offline before, during and after the fair to truly support the industry’s recovery,” continued Ms Wen.

Maximising brands’ exposure and business opportunities:
Intertextile’s digitised solutions will allow exhibitors to gain access to its valuable database – more than 100,000 buyers from over 100 countries and regions. To reach out to domestic buyers, exhibitors can download Intertextile’s mobile app and proactively upload product information and photos. They can interact with buyers by sharing their latest business updates, developments and sales promotions. Exhibitors will also have access to buyers’ contacts so that they can schedule online or onsite meetings in advance via the app’s built-in messenger function. The mobile app contains information about the fair, such as map, traffic and fringe programme updates, making it an all-in-one tool for exhibitors to enjoy convenience at the fair while gaining extra exposure not limited to the 3-day show period.

As a special measure in response to COVID-19, Intertextile is extending its offer for exhibitors and visitors to access its online business matching platform, Connect PLUS, which is normally only used to schedule onsite business meetings in advance of the fair. Connect PLUS is now available for online business matching before and after the fair. Based on data-driven intelligent recommendations, exhibitors can check out overseas buyer profiles from Intertextile’s valuable database and proactively send out requests to connect. With instant messaging and video call functions, this platform will be useful for exhibitors to connect with overseas buyers who are unable to attend Intertextile, serving as an ideal tool for post-event business matching and for enhancing sourcing efficiency. Sponsorship packages are also available for exhibitors to advertise on the platform and increase their exposure.

For more details about Intertextile’s digitised solutions, please visit: https://intertextile-shanghai-apparel-fabrics-autumn.hk.messefrankfurt.com/shanghai/en/Online_Platforms.html

Online content for overseas participants
The team at Intertextile is preparing for more pre-event content sharing in the form of webinars called the ‘Textile e-Dialogue’ series. By promoting exhibitors’ pre-event webinars through the fair’s e-newsletters and website, this will allow the online audience to catch up with the latest industry news while being able to interact with exhibitors via Q&A sessions.

During the fair, fringe programme events such as product presentations will also be livestreamed with real-time Q&A for onsite buyers and online audience. Presentations will be recorded and made available for viewing and sharing on social media platforms, so that overseas exhibitors and buyers in different time zones can learn about the fair’s highlights at their convenience.

Intertextile Shanghai Apparel Fabrics – Autumn Edition 2020 will be held concurrently with Yarn Expo Autumn, CHIC and PH Value from 23 – 25 September at the National Exhibition and Convention Center (Shanghai). The fair is co-organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Centre.

Interview with Steffen Jost, President of BTE e.V. and General Manager, Jakob Jost GmbH
 
On July 31 2020, the German Retail Association - HDE e.V. reported in addition to the current sales figures published by the Federal Statistical Office: “Many clothing retailers are still in danger of existence.” An HDE survey of 500 retailers showed that around two thirds of the non-grocers achieved at least 75 percent of sales in comparison to the same week last year. The main reason for this is the slowly increasing number of customers.

For 27 percent of retailers, however, the situation is still very serious: They realize their entrepreneurial existence threatened due to the corona crisis. Most retail companies will not be able to make up for lost sales that have occurred in recent months. Accordingly, two-thirds of non-grocery retailers calculated that sales would also decline in the second half of the year. Many clothing retailers continue to face difficult times.

Textination spoke about the situation with Steffen Jost, long-time president of the BTE Federal Association of German Textile Retailers, owner and managing director of Jakob Jost GmbH. The family company, founded in 1892, operates five clothing stores in Rhineland-Palatinate and Baden-Württemberg in the medium to upper price segment with more than 300 employees and a sales area of around 20,900 square meters.

How have you felt about the corona era to date - as a company and personally? What would you on no account want to go through again and what might you even consider maintaining on a daily basis?
The corona era was a challenging time for the company and its employees. You realize very clearly which employees are loyal and committed to the challenges and which are not. It is frightening to experience the appearance of mask refusers among the customers, who claim to go shopping without a mask and demand freedom for themselves and at the same time presuppose the employees' willingness to make sacrifices. The tone, the impertinences as well as the aggressiveness are alarming, it is often pure egoism. And in this context the meaning of freedom is limited to their own freedom.    

What does the pandemic mean economically for your own company so far, how do you estimate the consequences for the entire sector?
The economic impact, especially in terms of profitability, is immense. Since it affects the entire sector and thus also many companies that entered the crisis without a solid equity base, a major shakeout is to be feared. Especially because it is also not yet possible to predict how long the crisis will last.
 
What adjustments or innovations have you considered necessary for your product range?
As a result of the crisis, occasion related and elegant clothing is tending to decline, while sporty clothing is on average a bit more successful, so that more we emphasis on these aspects. The stationary trade as well as the industry have big problems, nevertheless there are acceptable solutions with many suppliers after intensive exchanges. A few suppliers try to enforce their own interests exclusively. Of course, this will result in corresponding consequences for the cooperation.

How do you consider suppliers in the future, what experiences have you made and will you draw consequences for your procurement policy?
A good cooperation between retail and industry is essential for economic success. If this basis does not exist (it has suffered considerably as a result of corona), it is also assumed that future economic success will be worse. A profit-oriented corporate management must take this into account in its procurement policy.
          
Which initiatives or instruments at politico-economic level did you welcome for the sector, of which have you been critical?
For many companies, including ours, both - the short-time working allowance and the KfW loans are essential components to secure the company's long-term future. For the first time the retail sector is applying for short-time work. We are critical of the lack of willingness on the political level to enforce the mask obligation and to punish violations of it accordingly. This has been passed on to the retailers and other sectors of the economy with corresponding problems in customer relations.
The interim aid was a great help for many small companies, but unfortunately medium-sized companies were not able to benefit from that. Corona has certainly massively accelerated the structural processes and developments in the retail sector, whereby the one-sided consideration of online sales, as currently can be seen, certainly falls short. It is also a question of the ability to generate profitable sales in normal times in order to build up business substance and also to finance necessary investments.

Did the corona era also have a positive effect, while the sector has brought forward innovations that would have been necessary anyway?
This might have happened in some cases. Especially companies that were not yet sufficiently digitally positioned may have taken action here very fast. In width, however, times of crisis seldom mean large investment periods.

What needs the stationary retail trade has to meet in future, what services must be offered in order to get a stable future?
The retail trade must be more than a place where goods are stocked in large quantities. The internet can do this on a much larger scale. Real customer service will play an increasingly important role, as will the length of stay and the design quality of the retail space. At the same time, it is important to make an optimum use of the digital possibilities. In addition, it is important to curate the product ranges in such a way, that the customers’ respective requirements are matched by an assortment that meets their expectations. Basically, this has been the original task of purchasing for decades. It is frightening to experience the appearance of mask refusers among the customers.
          
Which initiatives or approaches by or for your sector would you appreciate as support for such a future?
The cooperation between industry and multi-label retailers must definitely become more intensively and, above all, faster. Up to now, the possibilities of electronic data processing in a mutual flow of information, have been used by far too little and the corresponding consequences have not been drawn. In addition, the procurement times need to be reduced significantly.  The order and delivery dates must be set much later, and the possibility of using the digital world for ordering must also be implemented, in order to compensate at least the great systemic advantages of the vertical trade and thus also to reduce significantly the rates of write-offs and returns.

Until now the big issues have been globalisation, sustainability / climate change / environmental protection, digitisation, the labour market situation and so on. How must we rate them against the backdrop of the Covid-19 pandemic?
Covid 19 will not change the big issues seriously, they will remain with us. Possibly the negative labor market situation, which is to be feared, can push them into the background, because if existential needs have to be solved, experience shows, that there is much less attention for the other problems.
 
What are the lessons for the textile retail trade with regard to these goals for the post-corona era?
The long lead times between ordering and delivery must finally be shortened. We have to become faster, better in our product ranges and adopt a more strategic approach. We may not lose sight of our own interests and the overall strategy of a company through the specifications of individual suppliers.
The strategic goal can only be to strive for permanently profitable sales and to implement all necessary measures consistently.

The interview was conducted by Ines Chucholowius,
CEO Textination GmbH

• Interview with Klaus Kottmeier, Elke Giese, Markus Gotta, Prof. Dr.-Ing. habil. Maike Rabe

In June 1988, the shareholders and management of Deutscher Fachverlag announced the Wilhelm Lorch Foundation to the textile and garment industry. Its purpose is to promote vocational training, including student assistance as well as science and research.

Upon its establishment, the Foundation received an initial endowment of DM 300,000 from Deut-scher Fachverlag. Today, the Foundation has assets of approx. 2,85 m. Euro (as at Dec 2019). Since 1988, the foundation has awarded sponsorship prizes of around EUR 1,933,564 (as of June 2020) to date, in order to fund the initial and further training of young people from all areas of the textile industry, with a particular focus on young and up-and-coming talents.

Textination talked to the former chairman of the supervisory board of Deutscher Fachverlag GmbH, the current member of the executive board and founding member of the foundation, Klaus Kottmeier, as well as three members of the board of trustees: Mrs. Elke Giese - trend analyst and fashion journalist, Markus Gotta, managing director of Deutscher Fachverlag GmbH, and Prof. Dr.-Ing. habil. Maike Rabe, who will take over the chairmanship of the foundation board on September 1, 2020, about the challenging task of continuing successfully the foundation's work in an environment characterized by the pandemic.

The figure 3 seems to play a very special role for the Wilhelm Lorch Foundation (WLS). In 1988 announced on the occasion of the 30th Forum of the TextilWirtschaft, it was endowed with assets of DM 300,000. 2019 marked the 30th anniversary of the award of the sponsorship prizes. If you had to introduce the WLS in 100 words to someone who does not know the foundation: Which 3 aspects have particularly influenced its development and made it unique?

Klaus Kottmeier: In more than 30 years the WLS has been in existence, the foundation has received great support all over the sector from the very beginning. This continues to this day and is not only reflected in the financial support provided by generous grants, but above all in an active commitment of many sector leaders on the foundation board and board of trustees. A second aspect is the unique range in the topics of the support, which extends across design, business and technology, covering young talents in retail as well as university graduates, but also involving educational institutions themselves. And thirdly, the motivation of so many applicants we experience every year, who prepare their applications with incredible diligence and thus impressively demonstrate their willingness to perform.

 

The name of the foundation is a tribute to Wilhelm Lorch, the publisher and founder of the trade journal Textil-Wirtschaft and thus of Deutscher Fachverlag, who died in 1966. Which of his characteristics and traits do you still see as exemplary for the next generation in our industry today?

Klaus Kottmeier: We are a publishing media house where professional journalism based on sound research always forms the basis. This is associated with classic values such as entrepreneurial courage and will, diligence and discipline, but also a sense of responsibility and team spirit, which were exemplified by our founder and which still form the culture of our company today. These all are qualities young people should take to heart and which, coupled with a passion for their profession, encourage them to continue on their path.

 

According to its statutes, the primary purpose of the foundation is the awarding of "... awards and prizes to graduates of continuation schools of the German retail textile trade, textile-technical training institutes and [...] for final degree or doctoral theses from universities, as far as these deal with textile topics.” How nationally and internationally does the WLS work?

Prof. Maike Rabe: The prizes are mainly awarded to graduates and applicants from Germany and German-speaking countries, but there are also always talents from Europe, who have close ties to the German market.

Markus Gotta: The focus is clearly on the core market of Germany or Germany-Austria-Switzerland respectively, which we cover with the TW - accordingly, we do not advertise internationally, but there is no exclusion for foreign applicants, the only requirement is that the submitted works and reports must be written in German or English.

 

Over the past 31 years in which the foundation has been awarding prizes to people, projects and works, you have met many young talents who have moved our industry or will certainly do so. Are there any unusual stories or special award winners that have remained in your memory? And how do you assess the development of the applicants' educational level over the years?

Elke Giese: The applicants come from very different schools and universities, differing significantly in their profiles and focus. The demands on teaching have grown enormously, especially as a result of increasing digitization. Since the job profiles in the fashion business are also constantly changing and will continue to be subject to major changes in the future, the challenges for schools and students remain very high.
From each year, particularly talented and creative personalities remain in one's memory. To name one, Elisa Paulina Herrmann from Pforzheim, who was twice among the prize winners in 2017 and 2019 with her bachelor's and then master's thesis. Her ability and originality were overwhelming for the board of trustees. She now creates exclusive knitwear collections for Gucci. Among the young men is Niels Holger Wien, who received WLS funding in 1995. He has been the specialist for color trends and zeitgeist of the German Fashion Institute for many years and is currently president of the world's most important color committee INTERCOLOR.

Klaus Kottmeier: There are many award winners who have subsequently made a great career, to name just one example, Dr. Oliver Pabst, current CEO of Mammut Sports Group AG and WLS award winner in 1994.

 

Due to its proximity to TextilWirtschaft, the foundation is primarily associated with fashion design and topics related to clothing production or marketing. In 2020 you have put Smart Textiles in the virtual spotlight with two project sponsorships. How do you see future topics in the field of technical textiles? Can you imagine creating a new focus on that field?

Prof. Maike Rabe: First of all, the WLS supports talented young people who, thanks to their training, can take up a career in the entire textile and clothing industry. Of course, this also includes the field of technical textiles, which is of great importance in terms of production in Germany being a technological leader. Here the boundaries to clothing are fluid, just think of outdoor or sports equipment.    „    

Klaus Kottmeier: Our excellently staffed board of trustees is open to all innovative topics in the industry. Innovations in the field of technical textiles in particular are important topics for the future. In 2017, for example, the sponsorship award went to the Anna-Siemsen-School, a vocational school for textile technology and clothing in Hanover, through which we supported the procurement of a pattern design software.

 

The Wilhelm Lorch Foundation has set itself the goal of supporting qualified young people in the textile and fashion industry. However, you preclude the support for business start-ups. In times, in which start-ups receive increasing attention not only through corresponding TV formats but also through industry associations, there must be reasons for this. What are they and how do you assess future prospects?

Klaus Kottmeier: Support for business start-ups is precluded by §2 of our statutes, which defines the purpose of the foundation. The WLS is exclusively dedicated to the charitable purpose. Support for start-ups and business start-ups would contradict this. We therefore concentrate fully on the further education of young professionals in the sector and the promotion of educational institutions, from which the entire sector benefits.

Prof. Maike Rabe: WLS funding is aimed at further developing the skills of graduates and young talents from the sector. They should receive specific further training, possibly reach a further academic degree, and also learn in an interdisciplinary manner. All of this benefits the sector as a whole and this is our strict objective.

          
The foundation also promotes the training and further education of young and up-and-coming talents who are already working in the textile retail trade. Grants are available to cover course or study fees for further qualification. The closure of shops caused by the lockdown  during the pandemic hit the stationary retail trade hard, and even today we are still miles away from regular business operations. Against this background, how do you see focused funding opportunities for further training in the e-commerce sector?

Markus Gotta: The topics of stationary retail and e-commerce can't really be separated, both have long since become part of the basic requirements in fashion sales and thus also of the topics of training and further education in general.
 
Prof. Maike Rabe: E-commerce has become an integral part of our industry and is naturally reflected in many grants and subsidies. The junior staff members are allowed to make their own suggestions as to where and how they would like to train. We support this. But we would also like to strengthen the connection between stationary and digital trade in particular. Our prize winners have come up with wonderful concepts for both sales channels, and of course they can be combined.

 

Breaking new ground means willingness to make decisions, overcoming fears - and thus courage to fail. Not every project can succeed. In retrospect, which decisions in your foundation work are you particularly happy to have made?

Markus Gotta: That we implemented the Summer School project last year. We broke new ground with the foundation, and this - in cooperation with the Niederrhein University of Applied Sciences - was very successful.

Elke Giese: Especially in the field of design and creation, it is important to recognize an applicant's future creative potential from the work at hand and the information provided by the applicant. I am therefore always particularly pleased when the board of trustees makes courageous and progressive decisions.    

 

The Wilhelm Lorch Foundation offers project funding of € 10,000 to universities and educational institutions. They do not make any thematic restrictions here, but simply demand that there must be a clear reference to the sustainable further training of young up-and-coming talents in the textile and fashion industry. According to which criteria do you finally decide which project will be funded?

Elke Giese: One criterion is the relevance for future developments in the textile and fashion industry. Projects in recent years have enabled schools and educational institutions to train on laser cutters and 3D printers, for example, but also to purchase modern knitting machines or software programs.

Prof. Maike Rabe: All the projects submitted are evaluated very strictly by the jury's experts using a points-based system. This results in a shortlist which is presented to the board of trustees and intensively discussed by them. In this way, we ensure that all submitted applications are honored and that we then award the Wilhelm Lorch Prize to the outstanding project submissions in a joint consensus. The most important criteria are sustainable teaching of innovative learning content, practical training and the feasibility of the submitted project.

 

There are many different definitions of sustainability. Customers expect everything under this term - from climate protection to ecology, from on-site production in the region to the exclusion of child labor etc. Public procurement is increasingly switching to sustainable textiles. What does this mean for WLS, and what are you doing to promote sustainable thinking and acting, not only among young professionals?

Prof. Maike Rabe: At the foundation, we base our definition of "sustainability" on the 1987 report of the United Nations World Commission on Environment and Development, the so-called Brundtland Commission: "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs". The textile and clothing sector plays a pioneering role as a globally enormously connected industry with complex supply chains, which should definitely also play a model role. We therefore make it a priority for all award winners to observe these criteria and at the same time try to provide a platform for people who, through their work and actions, offer suggestions for improvement or even already implement improvements.

 

Virtual instead of red carpet: Usually the awards are presented in the festive setting of the TextilWirtschaft Forum. In 2020, due to the Covid-19, there was only a digital version in the form of a short film. How important do you consider networking opportunities that arise from meeting influential personalities face-to-face? Or has such a format become obsolete in the age of video conferencing?

Prof. Maike Rabe: It is certainly remarkable what digital event formats can achieve. But one thing doesn't work: spontaneity, personal contact and closeness. Therefor it is a real pity that the Forum had to be cancelled this year due to corona. Especially for career starters, the chance for direct networking is of great value.

Markus Gotta: The need for personal exchange and meetings will continue to be of great importance and demand in the future. And I can say at this point: We are already working on the plans for the TW Forum 2021 as a live and meeting event with the top decision-makers in the sector.

 

In which socially relevant areas do you see a particularly great need for innovation and action during the next five years? What is your assessment that funding - for example from the Wilhelm Lorch Foundation - can provide targeted support for solutions? And what role do the experiences from the corona pandemic play in this assessment?

Prof. Maike Rabe: We don't think in five-year periods, today's world requires much greater agility - this applies to the Foundation as well as to the entire industry. With each award we re-orientate ourselves towards current topics. Topics such as aesthetics, function and innovation will certainly continue to play a major role, as will quality instead of quantity, eco-social justice and customer loyalty. It is also important, however, that our economy, which is strongly supported by medium-sized companies, is clearly perceived by the public and in politics; we still have to work on that.

Klaus Kottmeier: I gladly agree with Prof. Rabe's closing statement. Agility is also of great importance in a media company like ours. We live in a constant transformation process with constant changes that have to be faced. The corona pandemic has shown us very impressively how quickly original plans can become waste. Today, and more than ever before in the future, a constant willingness to change is required, and this applies not only to us but also to our hopeful young employees.
 

The interview was conducted by Ines Chucholowius,
CEO Textination GmbH

"OTTO has already survived two world wars and a pandemic in 1918, we will survive this one as well"

At least Europe seems to be able to breathe a sigh of relief after weeks of lockdown during the corona pandemic. The textile industry, an industry that has lived globalisation for so many years, is facing the challenge of maintaining its place in the new normal and building on its previous performance as quickly as possible.

Textination talked to three company representatives along the textile chain about personal and operational experiences.

Andreas Merkel, Managing Director of Gebr. Otto Baumwollfeinzwirnerei GmbH & Co. KG, takes over the second part of our series of interviews and succeeds Wolfgang Müller, Head of Sales & Service at the textile machinery company Mayer & Cie. GmbH & Co. KG. The spinning mill, which was founded in Dietenheim in 1901, is now considered as one of the most modern ones in Europe. The management decided against relocating production abroad and relies on premium yarns made from natural fibers as well as tailor-made customer solutions.

How have you felt about the corona era to date - as a company and personally?
What would you on no account want to go through again and what might you even consider maintaining on a daily basis?
The lockdown period was something surreal to me. It was difficult to understand what was real and what was virtual. I found it positive that the crisis brought people closer together and that they gave more appreciation to things people had taken for granted, such as their own workplace.
Overall, I have remembered the past few months as not being such a negative time. Of course, this is also because we as a company have got off lightly so far. We have no external obligations such as rents, leasing contracts and so on to serve. We also see a clear upward trend again.    
          
What has the pandemic meant for your company so far?
The enterprise Gebrüder Otto has existed since 1901, we have already weathered a pandemic - the Spanish flu in 1918 - and we will survive this too. Of course, many orders suddenly broke off, and we had to cope with parts of the company in short-time work. Incidentally, an extremely sensible government offer that helped us to react quickly.
But I have the impression that the crisis is going to get off to a good start and I don't think we will stay at the current low level for a long time. As it looks now, we no longer need to take advantage of the short-time work in the spinning mill we had requested for July.
I am worried about the companies that will be hit hard by this crisis, especially in our industry, of course. We are already noticing insolvencies of long-established companies. The textile value chain in Germany is already very limited; let’s hope that this pandemic doesn’t shrink it any further.
 
What adjustments or innovations to your product portfolio have you felt obliged by the pandemic to undertake?
We saw a positive development even before the pandemic: More and more customers are asking about sustainable products, which we offer in a wide range.
Last year we started building up the brand "Cotton since 1901 - made in Germany" and launched it in April this year. We want to make the fact even clearer that we offer a regional, transparent and sustainable product with our cotton yarns made in Dietenheim. We have been based in Germany for almost 120 years and are part of our cityscape and local life. We - and our product - stand for consistency, responsibility and the highest quality standards.
Our yarns are the DNA of a high quality garment. Products that are made from "Cotton since 1901" are provided with a corresponding hang tag in the shops.
We are happy that we were able to launch this brand despite the difficulties that the corona measures implicated. Because now the topic is more important than ever. I recently had a conversation with a customer: Nothing works except in the sustainable segment. In short: high-quality products remain in demand, while it is becoming more and more difficult on the average market.

What are your views on global supply chains in the future, and will you be drawing consequences for your procurement policy?
In Germany, we have a high degree of company-internal value-add, we spin, twist and dye. Our cotton is extra-long-staple and we source it from Spain and Israel, from long-term suppliers. Because of Corona, there was no reason for our procurement to take consequences.
However, the crisis will have made it clear to many people that mass products used in daily life are no longer so easy to manufacture on their doorstep. But we need a reliable and high availability in Germany. That is why we should strengthen regional production, also in the long term. Sure, this is only possible in cooperation with customers and partners who appreciate these values. That doesn't work if everyone just looks at the price. Pricing is not everything. From this perspective, the pandemic was certainly an important catalyst.
 
How do you rate the importance of partnerships within the industry in the future?
Does Covid-19 have the potential to promote the creation of new cooperation arrangements in the industry? Or have they already taken shape?
Vertical partnerships are becoming increasingly important. Well, the shrinkage of the industry implicates this anyway. But we have to work together even more and the quality of the partnerships needs to become closer.
If one of the remaining specialists fails - let's assume that the companies that are now going bankrupt would have to close completely - then everyone else will be affected. There are no such specialists ten a penny, if they fall away, then some products cannot be manufactured locally anymore. You can build a fantastic car, no matter how good, if you don't have someone who can provide you with the steering wheel, you don't have a finished car.

What initiatives or approaches for your industry would you welcome for the near future?
Regional products should be given a parent brand so that consumers can recognize a regionally manufactured product as such. There was something like this in Switzerland with Swisscotton. I have suggested this several times in the association of the textile industry. It would be best for the industry if all manufacturers jointly build up such a regional label. After all, consumers are ready to spend money if they know where a product comes from and that it was manufactured fairly and sustainably. Everyone would benefit from such transparent added value. And digitization offers the ideal platform for this.

What would you like to see as part of the German textile industry?
Do you feel that the status of the German textile industry has changed as a result of the pandemic, especially in respect of public procurement?
As far as public procurement is concerned, I cannot answer this question because it does not really affect us.
But of course the pandemic has shown how fatal it can be if products are no longer manufactured in Germany, for example if antibiotics are market under the name of German companies but are actually manufactured on the other side of the world.
At the end of the day, the question arises: being a part of the textile industry – are we systemically relevant? Partly yes, I think, because if tomorrow
nobody produces yarns in Germany or Europe anymore, this will have consequences for systemically relevant products. And, as you know, you only realise that things can get tight when there is a bang. That is why I think that in a country like Germany there must be a basic supply of products and technology. After all, it's also about further development, about innovations. If I want to make a virus-free mask, I need local partners.

Until now the big issues have been globalisation, sustainability / climate change / environmental protection, digitisation, the labour market situation and so on.
Where do they stand now and how must we rate them against the backdrop of the Covid-19 pandemic?
For us at Otto, sustainability and environmental protection have been a long-standing central corporate value. We produce our electricity partly independently, from hydropower. Our products and processes have been certified according to the highest standards. In my lectures, I often show how much water is needed to produce cotton, and how precious this raw material is in itself.
Together with the valuable regional added value, this gave rise to our new brand "Cotton since 1901". There will be a QR code on the hang tags on the finished garments, so that the buyer can check what is inside the product.
Such approaches, which are sustainable and regional, are a mega opportunity that we have to use. The corona crisis had demonstrated this very clearly.
 
What lessons are to be learnt in respect of these targets for the post-corona era?
I'm afraid things will go on as before in many areas. But still: We looked at the medical manufacturers who suddenly could no longer deliver everyday medicines. And we have seen the conditions under which meat products are produced.
Do we want that? No. In the end, consumers value flawless products - and we should deliver them.

This interview was conducted by Ines Chucholowius, CEO Textination GmbH

The measures to reduce the propagation speed of the COVID-19 epidemic require hourly new and flexible adjustments to system processes and business agreements. In these difficult times, the waste textile companies rely on a close solution-oriented dialogue with their contract partners.

The initiatives presented a common vision for social protection and responsible entrepreneurship in this crisis at the end of April.
 
The members of the board of directors at bvse textile recycling raise the alarm because the economic starting point for companies in the sector pf used textile is getting worse every day.
 
"An increasing number of sorting systems are applying for short-time work due to the corona crisis or are closing the factories completely due to quarantine measures," Martin Wittmann, the bvse vice president and chairman of the bvse textile recycling association, describes the current situation.

The amount of used clothing collected in Germany is declining sharply in many regions along with increasing social distancing, existing or expected curfew and associated closings of collection points and civic amenity sites.

"It looks even bleaker on the sales side. In the meantime, measures ordered worldwide, such as curfews and ban on meetings, prevent the opportunities to even generate any revenue. Due to official orders, second-hand shops have to close everywhere, including in Eastern Europe. This means that the demand for used clothing dries up almost completely.
The African markets are also suffering from the corresponding lack of demand, due to the lack of funds available from local consumers.

The markets necessary for the sale of sorted goods have collapsed globally since mid-March 2020. It is currently not possible to market wearable second-hand clothing, but also products in the recycling and cleaning rag segment. Thus, there are currently no prospects for generating revenue in the end customer area.
Since the transit time of a piece of used textile from the collection to the sorting to the final marketing in one of the global markets can take up to four months, this situation will certainly take just as long because a positive change in the current overall pandemic situation cannot be assumed.

The waste disposal companies active in Germany in the field of used textiles are therefore currently concerned only with maintaining the operational structures in order to find ways at a later time to be able to fulfill the previous agreements.

"What we urgently need now are common, fair and economically sound solutions with all of our contractual partners so that both sides can survive this crisis. The situation in many municipal, charitable and private places currently looks like that we maintain the services of waste collection and recycling at high costs, but currently do not know whether we will be compensated for this due to force majeure,” stated Wittmann.   

As a start, some companies in the industry have therefore already concluded agreements with municipalities. In return for a provisional suspension of payment obligations for the rental of container spaces or collected goods, the private companies want to do everything possible to ensure that the recycling of used clothes and cleaning of the collection points in the interest of the com-mon good, despite their own staff shortages and difficult conditions remains guaranteed.

“At the same time, we would like to appeal to everyone involved that there is understanding for late pick-ups and container empties caused by the crisis. We urge the citizens not to put any collectibles next to the containers. As long as we have enough staff, every container will be emptied,” promised Martin Wittmann, Vice President of the bvse.

• Update on the economic situation of the industry
• Supply availability secured for the next half-year
• E-commerce wins in the crisis
• Sector survey of the Association of the German Down and Feather Industry VDFI and Traumpass e.V. on the occasion of the Corona crisis

The corona pandemic not only poses great challenges for each and every one of us, but also for our businesses as an industry. The decisions of the Federal Government and the federal states to close down shops and restrict freedom of mobility have hit the predominantly medium-sized down and feather industry hard, not only on the sales side, but also through their trading partners. The declining demand was compounded by the industry's international dependencies within the supply chains, since the filling material, the covers and the packaging materials are largely imported. The closure of the borders within Europe and the overall tense global logistics situation contributed significantly to the worsening of the situation.
 
In the past few days, the federal and state governments have started cautious attempts to ease the contact bans and to revive the economy with a sense of proportion. The opening of shops and the continuation of business activities prompted the down and feather associations to question the status quo of the sector with an extensive survey.

Although the companies named significant losses in their turnover, they currently still got off relatively lightly compared with other sectors. Two thirds of the companies stated that they had suffered up to 25% sales losses due to the corona crisis. Approximately 17% reported a decline of up to 50%, the ones with same percentage were much harder hit with a decline of up to 75%.

On the occasion of Heimtextil in January 2020, the association's sector statement had described the position of the specialised trade as still stable from the bedding manufacturers' point of view: By expanding the range of services, such as cleaning down and feathers or refilling existing bedding, the local store was increasingly becoming a point of contact for consumers. Supporting the advisory competence and the deployment of sleep experts made an impact. This picture has changed significantly as a result of the contact ban:

The clear loser in terms of demand on the various sales channels, caused by the shop closures, was the traditional retail: 92% of the surveyed manufacturing companies registered declining demand for the retail trade, 90% for the furniture trade and 80% for the specialty stores. Even for the discounters, whose opening hours were not affected, 33% noted a drop in demand; 44% estimated the demand situation as unchanged. The winner in the crisis was the e-commerce, although perhaps to a lesser extent than expected: 45% of the German down and feather producers recorded an increase in demand, 36% estimated the level as unchanged.

In terms of supply capability, the industry in Germany considers itself as well positioned: Two thirds see no bottlenecks for the fulfilment of closed contracts within the next three months, and the majority also offers free capacities beyond that. And 55% guarantee this ability to deliver even for the next six months, including the satisfaction of additional requirements.

While 2019 was a year of consolidation for the German down and feather sector and, after difficult months with sharply increased raw material prices, a calming down on a high level prevailed, good results from the previous year were maintained and, in some cases, even increased, the assessment for 2020 is much more pessimistic.

As far as the price situation for the coming autumn/winter season is concerned, member companies were correspondingly cautious in their forecasts.    
The unresolved and in some cases very fragile situation in the supplier countries currently not allows to make reliable statements. At the earliest in late summer, a well-founded opinion can be obtained. Especially since 45% of the companies expect to be confronted with requests for price reductions.
 
The down and feather industry is a professional when it comes to hygiene. The highest purity requirements are placed on down and feathers: Before being used as filling material, they must be cleaned by thorough water washing and dried at a temperature of at least 100°C, usually higher. This ensures that bedding meets the hygiene requirements of European Standard EN 12935 with reliably killing bacteria, viruses and other germs. In addition to the applicable standards, the companies have taken additional precautions to protect employees, trade partners and consumers.

In addition to the intensive workplace and hand disinfection, which all manufacturers have increased, the companies focused particularly on the equalization of the workforce. 73% designed home office workplaces for employees outside production, 45% introduced strict shift separation, two thirds shifted working hours and changed the use of common rooms in order to have as few employees as possible in the company at the same time and thus minimized the risk of infection. At the same time, many companies started the production of mouth and nose masks and made their sewing facilities available for this purpose. A list of the manufacturing companies is available from the Association of the German Down and Feather Industry VDFI e.V.

With the start of the lockdown, the German government had announced extensive financial aid, which focused on bridging payments for small businesses, granting loans, short-time work and tax deferrals. Improvements had to be made for small and medium-sized enterprises. In the recent weeks, the sector has not primarily addressed the question for bridging loans nor reducing the interest burden; emergency aid in the form of financial injections and non-repayable grants was also of interest only to one third. The majority of the association members concentrated on measures to secure liquidity (45%), tax deferrals and the suspension of advance payments of VAT (73%) as well as the changeover to short-time work (73%) and the accelerated processing and granting of short-time work compensation (45%). Also, two thirds requested binding statements on the easing of the contact ban and on the economic upturn.

An update on the industry survey is planned for late summer 2020.