Textination Newsline

The Heimtextil Trend Preview 23/24 presented future-oriented design concepts and inspiration for the textile furnishing sector. With ‘Textiles Matter’, Heimtextil 2023 wants to set the benchmark for tomorrow’s forward-facing and sustainable textile furnishing. Hence, the focus is on circularity. Marta Giralt Dunjó of futures research agency FranklinTill (Great Britain) presented the design prognoses for 23/24. At the coming Heimtextil in Frankfurt am Main from 10 to 13 January 2023, the presentations of new products will generate stimulating impulses in the Trend Space.

The Heimtextil Trend Council – consisting of FranklinTill Studio (London), Stijlinstituut Amsterdam and Denmark’s SPOTT Trends & Business agency – offers insights into the future of the national and international market. The focus is more than ever before on sustainability and the circular economy, the main factors in setting the trends for the season 23/24.

Textiles Matter: bear responsibility
Textiles are an integral part of modern life. The material applications and the manufacturing processes are no less multifarious than user expectations. And this represents a great challenge for the international textile industry, which obtains its raw materials from a broad spectrum of sources and uses numerous processes to make a huge variety of products. This offers a great potential for the sustainable development of the textile industry in the future. The Heimtextil Trends show ways in which this potential can be utilized and sustainable developments promoted. Under the motto ‘Textiles Matter’, visitors can explore concepts for increased circularity, which will generate new impulses for the sustainable market of the future.

"Considering the state of environmental emergency we are currently living through, the textile industry has a responsibility to examine its processes, and change for the better. That is why for this edition of the Heimtextil Trends we are taking a material’s first approach, and focusing on the sourcing, design, and sustainability of materials. Textiles Matter showcases the potential of circularity and celebrates design initiatives that are beautiful, relevant and importantly sustainable”, explains Marta Giralt Dunjó of FranklinTill.

Change via circularity
The Trend Space at the coming Heimtextil 2023 will revolve around ideas and solutions for circularity in the textile sector. How can textiles be produced in a sustainable way? What recycling options are there? What does the optimum recycling of textile products look like? Within the framework of the circular economy, materials are continuously reused. On the one hand, this reduces the need for new raw materials and, on the other hand, cuts the amount of waste generated. In the technical cycle, inorganic materials, such as nylon, polyester, plastic and metal, can be recycled with no loss of quality. In the biological cycle, organic materials, such as linen and bast fibres, are returned to nature at the end of their useful life. This is the basis of the four trend themes: ‘Make and Remake’, ‘Continuous’, ‘From Earth’ and ‘Nature Engineered’.

Make and Remake
Pre-used materials, deadstock and remnant textiles are given a new lease of life with the focus shifting to the aesthetics of repair and taking the form of a specific design element of the recycled product. Bright and joyful colours and techniques, such as overprinting, overdyeing, bricolage, collage and patchwork, result in new and creative products. Layered colour patterns and graphics lead to bold and maximalist, yet conscious, designs.

Continuous
The Continuous trend theme describes closed-loop systems in which materials are recycled into new, waste-free products again and again. Putative waste materials are separated out and reprocessed as new fibres, composites and textiles. Thus, synthetic and cellulose yarns can be produced zero-waste. Thanks to technically advanced reclamation processes, the materials retain their original quality and aesthetic. Practicality, essentialism and longevity determine the design of Continuous products.

From Earth
This theme focuses on the natural world and harmony with the nature of organic materials. Natural colours communicate warmth and softness. Imperfect textures, signs of wear and irregularities create ecological and earth-born aesthetics. Earthen and botanic shades, natural variation and tactile richness dominate the From Earth segment. Unrefined and raw surfaces, unbleached textiles and natural dyes celebrate materials in their original states.

Nature Engineered
Nature Engineered uses mechanical means to elevate and perfect organic materials, such as bast fibres, hemp, linen and nettles. Cutting-edge techniques process natural textiles into sophisticated and smart products. Combined with shades of beige and brown, clean lines and shapes are the distinguishing features of this theme.

With a record of nearly 21,000 specialist visitors as well as 350 brands from 200 exhibiting companies, ISPO Shanghai took place as a one-off happening in the Nanjing International Exhibition Center (NIEC) from 29 to 31 July, 2022.

ISPO Shanghai presented the latest trends and innovative products from the areas of camping lifestyle, outdoors and running as well as health and fitness, watersports, climbing, surfing, boxing and yoga in the Nanjing International Exhibition Center (NIEC). The key topics of textiles and technology, sports design, and e-commerce were newly integrated, further strengthening ISPO Shanghai’s position as one of the most important sports and lifestyle trade fairs in the Asia-Pacific region.

Due to the difficult pandemic situation, the meeting of the Asian sports and outdoors community at ISPO Shanghai 2022 took place in Nanjing for one time only. It achieved a new record with 21,000 specialist visitors, reflecting the industry’s determination to present and develop sporting goods and related industries together even in difficult times. For comparison, 17,800 visitors came in 2020, and 19,000 the following year. The many sports professionals and sports fans, as well as up-and-coming sports and free-time trends such as camping, surfing and frisbee, demonstrated the numerous possibilities in the sports market and underlined the fact that even the outdoors sector is booming following the coronavirus pandemic.

The industry discussed innovations and new opportunities at the five big topic forums – namely the summit for the sustainable development of the outdoors industry in the Asia-Pacific region, the trend forum for sports fashion, the innovation salon for the outdoor sports industry, the summit for cross-border e-commerce in the Chinese sporting goods industry and for fitness and rehabilitation.

The main focus was on the topic of sustainability. ISPO has been driving this topic for years: Starting with the “Brands for Good” initiative in 2018, ISPO offers not only a platform for brands’ initiatives on sustainable development, but also actively participates in the discussion about sustainable products and their production.

Tobias Gröber, Executive Director of the Consumer Goods Business Unit at Messe München and Head of the ISPO Group, says: “The urban sports style that we showed at ISPO Shanghai this year, including frisbee, surfing and climbing, is continuing to develop. Seasons and categories are becoming increasingly blurred, which is why we will continue to expand the product segments on our Chinese platforms and pursue a cross-category approach. In future, ISPO will concentrate on expanding its offering and will also include new sports and outdoor topics such as cycling and off-road vehicles.”

The next ISPO Shanghai will be held at the Shanghai New International Expo Center (SNIEC) again in June 2023, while ISPO Beijing 2022 will take place from December 9 to 11, 2022 at the National Convention Center in Beijing.

The fashion industry is massively influenced by the change in social values. Which trends can be observed and in which direction is the fashion future developing - an excerpt from the Retail Report 2023¹ by Theresa Schleicher.

The fashion industry has been slowed down by the global health pandemic and further affected by the measures taken in the wake of the Ukraine war: Fragile supply chains, increased transportation and energy costs, and rising prices are having an impact on the globalized fashion industry. Those who were moving the fastest are being hit the hardest. Fast fashion based on the principle of "faster and faster, cheaper and cheaper, more and more" - which has been in the fast lane for years - is now experiencing an unprecedented crash. Even without these momentous events, the fashion system would have reached its limits. What could have developed evolutionarily is now being revolutionized. Now and in the future, it will be particularly difficult for brands and retail companies that do not have a sharp profile or that have lost many customers in the attempt to offer mass-produced goods at prices that are still lower than those of their competitors.

New value paradigm in society - also for fashion
While fashion retailers and fashion brands are focusing on expanding online and have been putting their foot on the gas pedal since the corona pandemic at the latest, a parallel change in values is taking place in society. Many behaviors that have been practiced, tested and lived for months will continue to shape our consumer behavior and lifestyles in the future. The uncertainty in society as well as a shrinking economy and rising consumer prices as a result of the Ukraine war will further contribute to this shift in values.

The old paradigm was "primarily shaped by pragmatic factors such as price, quantity, safety and convenience, so consumer behavior was predominantly based on relatively simple cost-benefit calculations." The new value paradigm, on the other hand, is more strongly influenced by "soft factors". For example, the quality of a product is defined more holistically. In addition to price, "ecological, [...] ethical and social aspects are also taken into account. It is about positive or negative experiences that one has had with producers and about the visions that they pursue with their companies". This new value paradigm is forcing the large chain stores in particular to rethink. They have to develop their business models further in the direction of sustainability, transparency and responsibility - and show attitude. The influence of the neo-ecology megatrend combined with the push towards the sense economy is reshuffling the cards in the fashion industry.

The most important driver for the change in consumer behavior is climate protection, which is also becoming personally more important to more and more people because they are feeling the effects of climate change themselves in their everyday lives. The transition to a sustainable, bio-based and circular economy is accompanied by fundamental changes in the technical, economic and social environment.

Circular fashion as an opportunity for fast fashion
The development of the fashion industry - especially the fast fashion industry - towards a more circular economy is not a short-term trend, but one of the most long-term and at the same time forward-looking trends in retailing of all.

Even before the pandemic, a growing proportion of consumers placed value on sustainably produced clothing instead of constantly shopping the latest trends. A reset is needed, but the fashion industry faces a difficult question: How can it respond to the demand for new trends without neglecting its responsibility for the environment?

The solution for reducing emissions and conserving raw materials and resources seems obvious: produce less. On average, 2,700 liters of water are needed to produce a T-shirt - that much drinking water would last a person for two and a half years. In Europe, each person buys an average of 26 kilograms of textiles per year - and disposes eleven kilograms. Of this, almost 90 percent is incinerated or ends up in landfills. Overproduction, precarious working conditions during production and the use of non-sustainable materials are the major problems of the fast fashion industry. It is time to slow down fast fashion.

Fashion recycling by Design & Recycling as a Service
A first step towards keeping fashion and textiles in the cycle for longer is to recycle materials properly. In the future, recycling must be considered as early as the design stage - not only for sustainably produced fashion, but also for fast fashion. The H&M Group, for example, developed the Circulator for this purpose: The digital evaluation tool guides the designer through materials, components and design strategies that are best suited for the product depending on its purpose, and evaluates them in terms of their environmental impact, durability and recyclability.

However, more and more young companies are specializing in offering recycling for textiles as a service. They work directly with fashion retailers or fashion brands to enable the best possible recycling, re-circulation or even upcycling. Until now, it has not been worthwhile for large textile companies to invest in their own recycling systems. But Recycling as a Service is a market of the future, led by innovative start-ups such as Resortecs that are tackling previous hurdles in our recycling system. In the future, more and more new service providers will pop up around returns and recycling and help fashion retailers to align their material cycles more sustainably.

Secondhand conquers the fast fashion market
Another way to extend the life of clothing is to pass it on to new users. We are witnessing the triumph of vintage, retro and more - chic secondhand stores and chains like Resales and Humana are popping up everywhere. The renaming of secondhand to pre-owned or pre-loved also illustrates the increased appreciation of worn clothing. The trend toward secondhand also pays off economically for companies: The number of platforms whose business model revolves around the resale of clothing is increasing, and secondhand fashion is arriving in the middle of society. The luxury segment and especially vintage fashion are stable in price because the availability of these unique pieces is limited. Fast fashion, on the other hand, is available in sufficient quantities and is particularly interesting for price-sensitive customers, as secondhand is considered one of the most sustainable forms of consumption - meaning that fashion can be shopped with a clear conscience - and is usually even offered at a lower price than new goods. The second-hand market will continue to professionalize and become more socially acceptable. As a result, the fast fashion industry will also be forced to produce higher quality clothing in order to become or remain part of the circular system.

Slow fashion gains momentum thanks to technology
The development and orientation of fast fashion towards circular processes is also changing sustainable fashion. In the future, fast fashion and slow fashion can learn from each other to fully exploit their potential: fast fashion will become more sustainable, while slow fashion will focus on faster availability and delivery and make the customer experience as pleasant as possible. Fast and slow fashion are no longer compelling opposites - because the sustainable fashion movement can also benefit from technological innovations that are being established above all by the fashion platforms, and lift slow fashion to a new level.

At the same time, Sustainable Luxury is a new form of luxury consumption - especially in the field of designer fashion, sustainability is becoming the all-important criterion. Sustainability as a means of distinction for true luxury and sustainability as a basic prerequisite for a functioning fashion industry are increasingly converging. This is where the transition between a slowdown of fast fashion and an acceleration of slow fashion takes place.

Trend Sustainable Luxury
Luxury is defined less and less by the object and its possession and is increasingly becoming an expression of one's own lifestyle and values. Consumers' understanding of premium and luxury has changed - not least driven by the neo-ecology megatrend. In the future, it will no longer be just about owning something as expensive and ostentatious as possible. What began as a rebellion against careless consumption of luxury brands that promise high-end products but accept unfair and environmentally damaging manufacturing conditions in the process has increasingly become accepted as a value attitude. Luxury products have no less a claim than to improve the world.

Sustainable and ethical products and services made from innovative materials that have the power to solve problems and make the world a better place. At the same time, this highly ethically and morally charged form of sustainability is turning into a means of distinction: For the materials are so new, the manufacturing processes still so experimental, that the products are unique and often only available in very small quantities or on order. And this exclusive sustainability naturally comes at a price. After all, a company that pursues a mission is not concerned with simply cutting costs - certainly not at the expense of others or the environment. Instead of leather and fur, luxury fashion is now made from oranges, pineapples, hemp, cacti: there are more and more new, innovative and sustainable materials from which unique garments and accessories can be made.

Predictive, Pre-Order & Made-to-Order
Artificial intelligence and Big Data analysis can help predict fashion demand. Fast fashion leaders like Shein are characterized by agile production which is supported by AI algorithms for trend prediction fed with data from TikTok and other social media services. This could sustainably reduce overproduction and unsaleable goods in the future. As critical as Shein's practices are, the automation of processes also offers immense opportunities for a more sustainable fashion industry, as production only starts when goods are in demand.

AI support in the design process can be used to produce more sustainable fashion - and make it available more quickly. In a future of an avatar economy and in the world of virtual influencers, it may even be possible to dispense with part of the production process: Fashion will remain virtual - and thus more resource-efficient. Digital fashion will become increasingly important as the metaverse is built.

5 Key Takeaways on the Future of Fashion

1. The current crisis in the fashion industry is an opportunity to move more in the direction of circular fashion. Above all, the new value paradigm in society, understanding quality more holistically and consuming more mindfully, is providing a push towards fairer, more ecological and more social fashion. Fast fashion and sustainability are not mutually exclusive.
2. There are already first approaches to keep fast fashion in the cycle longer or to return it to the cycle. One important development is to consider recycling or reuse as early as the design and manufacturing process - known as recycling by design. In addition, there is a growing number of start-ups specializing in the optimized recycling of textiles and cooperating with major fashion players.
3. Above all, the booming online trade in used fashion, often communicated as the pre-loved or pre-owned category, is making secondhand respectable for the mainstream. Such fashion, with a story and an aura of uniqueness, is also a cost-effective but more sustainable alternative to fast fashion.
4. But slow fashion is also changing, especially due to the dominance of new technologies. Slow fashion can also benefit from processes that are currently manifesting themselves in the online fashion market, such as fast delivery or pre-order services. Slow fashion thus becomes more convenient, better and faster available. It will be easier for sustainably oriented fashion enthusiasts to consume according to their values and attitudes.
5. The trend toward sustainable luxury continues: Sustainability as a means of distinction for a new form of luxury enables alternative manufacturing processes and innovative materials in the luxury fashion market. These are being showcased by an avant-garde and, if they prove successful, adapted by fast fashion.

¹ https://onlineshop.zukunftsinstitut.de/shop/retail-report-2023/

The international OEKO-TEX^® Association, which consists of a total of 17 independent research and testing institutes in Europe and Japan, turns thirty this year. As one of the founding members, OETI is taking this as an opportunity to talk to OEKO-TEX^® expert Helene Melnitzky (Head of the Ecology Department at OETI) about the role of the OEKO-TEX^® Association, market trends and current OEKO-TEX^® certifications and labels.

The international OEKO-TEX^® Association is celebrating its thirtieth anniversary this year. What role has it played so far with regard to the product safety of textile and leather products?
Helene Melnitzky: In the area product safety¹, OEKO-TEX^® has had a great impact over the last three decades by ensuring certain pollutant additives, some of which were found in large quantities in textiles 30 years ago, no longer exist. The OEKO-TEX^® Association was also the first to limit certain heavy metals. Based on our actions, legal provisions were ultimately passed. We have been testing banned dyes since before there even was an EU regulation in this regard. Of course, we now test according to the EU regulation, but in this respect OEKO-TEX^® was a clear trailblazer.

In addition to product safety, OEKO-TEX^® has been working on the topics of ‘environmentally friendly textile products manufactured under fair working conditions for 30 years, which also included leather products for the last five years, and with STeP by OEKO-TEX^® on the ‘certification of environmentally friendly production sites’ since 2013. In one way or another, we have been preparing the market for thirty years. In the process, we are always creating new things: currently the Impact Calculator and, in autumn-2022, a new certification for brands and retailers: RESPONSIBLE BUSINESS by OEKO-TEX^®.

How does that benefit the customers of OEKO-TEX^®?
Helene Melnitzky: Customers can use these calculations for external communication to demonstrate on their products or webpages that their products have a lower footprint than their competitors. This means that customers sourcing everything regionally will have a smaller footprint than companies that source products from different countries. In the future, it will be necessary to display the water and carbon footprint on the product, so that consumers can decide whether they want to buy product A or B.

How is the aspect of fair working conditions taken into account?
Helene Melnitzky: This topic has also been gaining significant momentum over the last ten years. There is now enough pressure on brands and retailers to improve local working conditions. We cover this area as part of our STeP by OEKO-TEX^® certification² with our ‘social responsibility’ module. The advantage for our customers is that they can subsequently use the MADE IN GREEN by OEKO-TEX^® label to show how they have performed in the social module.

What does Transparency with MADE IN GREEN by OEKO-TEX^® mean?
Helene Melnitzky: Everything that is written on the product is transparent. The MADE IN GREEN by OEKO-TEX^® label is a traceable product label for all types of textiles and leather items that have been produced in environmentally friendly factories and at safe and socially responsible workplaces. Furthermore, the MADE IN GREEN by OEKO-TEX^® label gives consumers the certainty that the textile or leather product is made from materials tested for harmful substances. In order to ensure that textile or leather products with the MADE IN GREEN by OEKO-TEX^® label have been produced using environmentally friendly processes under socially acceptable working conditions, manufacturing and wet production sites must be certified according to STeP by OEKO-TEX^®.

For a year now, it has been possible to have recycled materials STANDARD 100 certified and display that certification as a hangtag to communicate that the product consists of a certain proportion³ of recycled materials. Which market demand is this certification addressing?
Helene Melnitzky: There is an increasing demand that at least part of the product must be made from recycled material. This is partly attributable to market pressure because raw materials are scarce and expensive. However, we are also voluntarily informing consumers about recycling as part of the circular economy.

What is your outlook for the next few years?
Helene Melnitzky: Producing textile and leather products in a more environmentally friendly and fair manner, while making the value chain more transparent, is a global challenge that sets new environmental standards. In the long term, however, it also involves important economic and social aspects. The goal is to raise awareness of these interdependencies and a common understanding of environmental issues – among producers and, of course, end consumers. It is clear that the demand for certified and traceable products is growing among consumers. This trend is reflected in purchasing behaviour and thus in manufacturing. Nevertheless, there’s still a lot to do.

¹ STANDARD 100 by OEKO-TEX^® und LEATHER STANDARD by OEKO-TEX^®
2 The STeP by OEKO-TEX^® certification includes the modules Chemical Management, Environmental Performance, Environmental Management, Quality Management, Occupational Health and Safety, and Social Responsibility
³ To qualify, the product must contain at least 20 per cent recycled material.

• Increase from 132 to 155 transactions - transaction value increases eightfold to 12.4 billion US dollars
• Number of Chinese acquisitions in Germany rises from 28 to 35
• UK most popular investment destination for Chinese companies followed by Germany

After the pandemic-related decline in Chinese company acquisitions in Europe in 2020, the number of transactions increased again in 2021: from 132 to 155. The transaction volume also increased: The value of investments and acquisitions has increased more than eightfold from $1.5 billion to $12.4 billion.

Chinese investors also appeared more frequently again in Germany: After only 28 transactions by Chinese companies were counted in 2020, there were 35 of such investments or acquisitions in 2021. The investment volume rose from USD 0.4 billion to USD 2.0 billion. This figure does not include venture capital investments in German startups totaling USD 1.9 billion in 2021, in which Chinese companies were active as part of international investor groups.

These are the findings of a study by the audit and consulting firm EY, which examines investments by Chinese companies in Germany and Europe.

"Chinese companies remain cautious about investing in Europe overall," observes Yi Sun, partner and head of China Business Services in the Europe West region at EY. "One contributing factor is still the pandemic, which continued to cause disruptions in 2021 - partly because of mitigation measures such as travel restrictions, strict quarantine rules for people traveling to China from abroad, and lockdowns both in Europe and in China itself. Most Chinese companies that have already acquired companies abroad have been more concerned with restructuring in Europe in recent years rather than expanding further - especially in the automotive supply and machinery sectors."

According to Sun, the now high hurdles for foreign investments, especially in certain critical industries, as well as increasing competition from financial investors with strong capital, also had a dampening effect. "Purchase prices on the M&A market have risen sharply recently - in some cases, the Chinese interested parties didn't want to go along with that. Listed Chinese companies in particular fear putting pressure on their own share price with expensive acquisitions," Sun said. "In addition, some of the potential takeover candidates own production facilities or R&D centers in the US. In such cases, they may fear rejection by the Committee on Foreign Investment in the U.S. (CFIUS) - and potential Chinese bidders may not even be invited."

Declining interest in industrial companies
Traditional industrial companies continue to account for the majority of deals - especially in Germany: 12 of the 35 transactions in Germany and 30 of the 155 transactions in Europe took place in the industrial sector.

However, their number is declining: In 2020, 36 industrial transactions were counted across Europe. "Chinese investors are still interested in European automotive suppliers or mechanical engineering companies - but now more in the subsectors of electromobility, autonomous driving and high-tech materials," says Sun.

However, Yi Sun identifies a significant increase in interest elsewhere: "Chinese private equity funds and venture capitalists are becoming increasingly active. In Germany in particular, there were some very large investments in startups last year in which Chinese investors were significantly involved. In addition to German engineering skills, e-commerce expertise is increasingly in demand."

High tech/software companies accounted for 27 transactions across Europe last year (previous year: 20). "We see an increased interest in game developers and software programmers, for example. Especially the most active Chinese investor last year, Tencent, has recently become heavily involved in this segment," observes Sun.

The number of acquisitions and investments in the healthcare sector also increased: from 16 to 26 transactions. "The healthcare sector - whether pharma, biotech or medical technology - is increasingly becoming one of the most important target sectors for Chinese companies because there is a lot of pent-up demand in this sector in China, especially in research and development."

Great Britain replaces Germany as top destination in Europe
Most transactions were recorded in the UK last year. With 36 acquisitions and investments, the UK is just ahead of Germany (35 transactions) and well ahead of the third-placed Netherlands (13).

In the previous year, the order at the top was reversed: in 2020, Germany with 28 transactions was ahead of the UK with 21 deals.

"To the extent that the interest of Chinese investors is moving away from classic industrial companies toward technology, software and media companies, the target market of Great Britain is gaining in importance," says Sun. However, she is convinced that Germany remains an attractive market for Chinese investors: "Many Chinese companies have had good experiences with their investments in Germany in particular. In addition, there are now close and resilient ties between China and Germany at many levels. We will see more Chinese transactions in Germany in the coming months - especially when the impact of the pandemic on the economy subsides," Sun expects.

The largest investment in Europe last year was the sale of Philips' home appliances division to Hong Kong-based investment firm Hillhouse Capital for $4.4 billion.

The second largest transaction was Tencent's acquisition of the British developer studio Sumo Digital for US$1.1 billion, followed by China International Marine Containers' takeover of the Danish reefer container manufacturer Maersk Container Industry for also US$1.1 billion.

Study Design:

• Sources: EY research, Thomson ONE, Merger Market, communications from the companies or consulting firms and law firms involved.
• Acquisitions and investments originating from companies headquartered in China and Hong Kong or their subsidiaries were examined.
• The target companies are headquartered in Europe and are operationally active.
• Pure real estate transactions were not included.
• The analysis also included transactions that had not yet been completed as of the reporting date of Feb. 17, 2022

Increasingly, Chinese investors are also participating in venture capital financing rounds, mostly as part of investor groups. In these cases, it is often not possible to determine the amount provided by the Chinese investor. Therefore, these transactions are included in the number of transactions but not in the total values.

SCIRT stands for System Circularity & Innovative Recycling of Textiles. Coordinated by VITO, an independent Flemish research organisation in the cleantech and sustainable development sector, SCIRT is a three year EU-funded project from the Horizon 2020 Programme.

It aims to demonstrate a complete textile-to-textile recycling system for discarded clothing—or post-consumer textiles—involving stakeholders throughout the value chain and focusing on the recycling of natural fibres, synthetic fibres and fibre blends. To reach this goal, the project has set four main objectives.

• Deliver a closed-loop recycling solution for discarded textiles.
• Stimulate and encourage conscious design as well as production practices.
• Create new business opportunities by boosting textile value chain activity.
• Raise awareness of the environmental and social impacts of buying clothes.

Gathering 18 partners from five countries, the SCIRT project held its virtual kick-off meeting in mid-2021 to begin tackling the issue of clothing waste and recyclability, one of the biggest challenges faced in the fashion industry today.

As clothing brands are setting ambitious targets and making promises to incorporate recycled fibres in their products, discarded textiles are piling up in abundance around the globe. Though it would seem that the stars of supply and demand have aligned for this part of the circular economy, the truth is that less than 1% of textile waste is recycled into new textile fibres, according to an Ellen MacArthur Foundation report published in 2017. This miniscule percentage is indicative of a greater problem-achieving circularity in the fashion industry is not just a question of supply and demand, but of the connection between the two. There is a lack of knowledge surrounding the technological, economic and environmental feasibility of recycling fibre mixtures, and a need to align the quality and cost of recycling processes with the demands of textile companies and fashion brands.

SCIRT will develop solutions to support systemic innovation towards a more circular fashion system and bridge this supply-demand gap. To address the demand side of the equation, SCIRT will demonstrate a complete textile-to-textile recycling system for discarded clothing, otherwise known as post-consumer textiles, involving stakeholders throughout the value chain and focusing on the recycling of natural and synthetic fibres, as well as fibre blends. With the support of technical partners and research institutes, clothing brands Decathlon, Petit Bateau, Bel & Bo, HNST and Xandres, will develop, prototype and produce six different representative types of apparel using post-consumer recycled fibres. These include formal and casual wear, sportswear, underwear and uniforms. Through this endeavour, SCIRT will prioritise quality and cost-effectiveness in order to ensure market confidence and encourage the broad uptake of post-consumer recycled fibres.

From a non-technological perspective, SCIRT will develop supporting policy measures and tools to facilitate the transition towards a circular system for apparel. This includes a framework for an eco-modulated Extended Producer Responsibility (EPR) system and a True Cost Model to quantify circularity and increase value chain transparency. Special attention will also be given to the consumer perspective. To this end, Citizen Labs engaging consumers in various European locations, as well as a wider online engagement platform, will be developed to engage citizens throughout the project in order to understand the perceptions, motivations and emotions shaping their behaviour regarding the purchase, use, and disposal of textiles.

Over the next three years, SCIRT project partners will work to overcome current technological, economic, socio-economic and regulatory barriers faced in textiles recycling to achieve a real, lasting circular fashion economy.

2021:
The SCIRT project kicks off and partners identify the current state-of-the-art in apparel design, production and recycling, challenges and market trends, and stakeholder needs.

2022:
Designing and testing a fibre-to-fibre system by producing recycled yarns and filaments, free from harmful substances.

2023:
Formal wear, casual wear, sportswear, underwear and uniforms will be designed and produced using the optimized yarns developed.

Partners

• Fashion companies: Bel&Bo, HNST, Decathlon, Xandres, Petit Bateau
• Research organisations: VITO, CETI, Prospex Institute
• Universities: BOKU, TU Wien, ESTIA
• Industry players: Altex, AVS Spinning - A European Spinning Group (ESG) Company, Valvan
• SMEs: Circular.fashion, FFact
• Non-profit organisations: Flanders DC, IID-SII

 

ALTEX
ALTEX is a textile recycling company based in Germany that employs state-of-the-art machinery to recycle textile waste into new high-quality products. Its products include teared fibres, natural fibres, synthetic fibres and fibre blends among others.

Bel & Bo
Bel&Bo is a family-owned Belgian business with about 95 retail stores located throughout Belgium. Its mission is to offer colourful, fashionable and sustainably produced clothing for men, women and children at an affordable price.

CETI
The European Center for Innovative Textiles (CETI) is a non-profit organisation dedicated to conceiving, experimenting with and prototyping innovative textile materials and products through both private and collaborative R&D projects.

circular.fashion
circular.fashion offers software for circular design, intelligent textile sorting and closed-loop recycling, including the Circular Design Software and the circularity.ID®, as well as training and hands-on support to fashion brands in their transitions.

Decathlon
With over 315 stores in France, and 1,511 around the world, Decathlon has been innovating since 1976 to become the main player for athletic people. It has been engaged in reducing its environmental impact through a number of actions.

ESG
The European Spinning Group (ESG) is a textile group based in Belgium that offers a range of yarns produced with a highly technological open-end spinning mill for different applications, such as for interiors, fashion and technical textiles.

ESTIA
ESTIA is a French institute that has provided education and training in the areas of industrial technologies for 20 years. Since 2017, ESTIA has had a program focused on new materials and disruptive process in the fashion and textile industry.

FFACT
FFact is a unique group of management consultants that facilitates the implementation of sustainability from a business perspective, and translates facts into useful management information. FFact is based in the Netherlands and Belgium.

Flanders DC
The Flanders District of Creativity, a non-profit organisation based in Belgium, informs, coaches, promotes and inspires creative entrepreneurs in various sectors, including the fashion industry, who want to build or grow their business.

HNST
HNST is a Belgian circular denim brand that recovers post-consumer denim and recycles it into new fabric in the EU, creating durable and 100% recyclable jeans that use 82% less water and emit 76% less carbon dioxide than conventional jeans.

Petit Bateau
Petit Bateau is a French apparel brand that specialises in knit products. As a vertical company, Petit Bateau carries out its own knitting, dyeing, making up and store management with the support of its 3,000 employees.

Prospex Institute
The Prospex Institute aims to promote the participation of citizens and stakeholders in socially relevant decision-making dialogue and development by engaging with theorists and practitioners both in Belgium and abroad.

IID-SII
The Sustainable Innovation Institute is a French non-profit association based in Paris. Initiated by LGI, a French SME, the purpose of IID-SII is to act as a think and do tank on sustainable innovation to support the adoption of novel solutions.

TU Wien
TU Wien is an open academic institution where research, teaching and learning have taken place under the motto “Technology for people” for the past 200 years. One of its key areas of research is on recycling technology and fibre innovation.

BOKU
Research at the Institute for Environmental Biotechnology of BOKU based in Vienna, Austria focus on the exploitation of enzymes as powerful biocatalysts for biomaterials processing within recycling applications.

Valvan
Valvan Baling Systems has 30 years of experience in designing and constructing custom-made machinery, specialising in Baling Machines and Sorting Facilities for fibre producers, collectors, sorters and recyclers of textiles.

VITO
VITO, a leading independent European research and technology organisation in the cleantech and sustainable development sectors, aims to accelerate the transition towards a sustainable society by developing sustainable technologies.

Xandres
Xandres is a brand inspired by and for women. It is rooted in a highly respected tradition of fashion, driven by quality and created for the life women lead today. Xandres offers innovative designs with respect for luxury and the environment.

Founded in January 1926, Tokyo-based Japanese chemical company Toray Industries, Inc. is known as the world's largest producer of PAN (polyacrylonitrile)-based carbon fibers. But its overall portfolio includes much more. Textination spoke with Koji Sasaki, General Manager of the Textile Division of Toray Industries, Inc. about innovative product solutions, new responsibilities and the special role of chemical companies in today's world.

Toray Industries is a Japanese company that - originating in 1926 as a producer of viscose yarns - is on the home stretch to its 100th birthday. Today, the Toray Group includes 102 Japanese companies and 180 overseas. They operate in 29 countries. What is the current significance of the fibers and textiles business unit for the success of your company?

The fibers’ and textiles’ business is both the starting point and the foundation of Toray's business development today. We started producing viscose yarns in 1926 and conducted our own research and development in nylon fibers as early as 1940. And since new materials usually require new processing methods, Toray also began investing in its own process technology at an early stage. On the one hand, we want to increase our sales, and on the other hand, we want to expand the application possibilities for our materials. For this reason, Toray also began to expand its business from pure fibers to textiles and even clothing. This allows us to better respond to our customers' needs while staying at the forefront of innovation.

Over the decades, Toray has accumulated a great deal of knowledge in polymer chemistry and organic synthesis chemistry - and this know-how is the foundation for almost all of our other business ventures. Today, we produce a wide range of advanced materials and high-value-added products in plastics, chemicals, foils, carbon fiber composites, electronics and information materials, pharmaceuticals, medicine and water treatment. However, fibers and textiles remain our most important business area, accounting for around 40% of the company's sales.

What understanding, what heritage is still important to you today? And how do you live out a corporate philosophy in the textile sector that you formulate as "Contributing to society through the creation of new value with innovative ideas, technologies and products"?

Toray has consistently developed new materials that the world has never seen before. We do this by focusing on our four core technologies: Polymer chemistry, organic synthetic chemistry, biotechnology and nanotechnology. We do this by focusing on our four core technologies: Polymer chemistry, organic synthetic chemistry, biotechnology and nanotechnology. For textiles, this means we use new polymer structures, spinning technologies and processing methods to develop yarns with unprecedented properties. We always focus on the needs and problems of the market and our customers.

This approach enables us to integrate textiles with new functions into our everyday lives that natural fibers and materials cannot accomplish. For example, we offer sportswear and underwear that absorb water excellently and dry very quickly, or rainwear and outdoor clothing with excellent water-repellent properties that feature a less bulky inner lining. Other examples include antibacterial underwear, uniforms, or inner linings that provide a hygienic environment and reduce the growth of odor-causing bacteria. People enjoy the convenience of these innovative textiles every day, and we hope to contribute to their daily comfort and improve their lives in some way.

In 2015, the United Nations adopted 17 sustainable development goals – simply known as the 2030 Agenda, which came into force on January 01, 2016. Countries were given 15 years to achieve them by 2030. In your company, there is a TORAY VISION 2030 and a TORAY SUSTAINABILITY VISION. How do you apply these principles and goals to the textile business? What role does sustainability play for this business area?

Sustainability is one of the most important issues facing the world today - not only in the textile sector, but in all industries. We in the Toray Group are convinced that we can contribute to solving various problems in this regard with our advanced materials. At the same time, the trend towards sustainability offers interesting new business approaches. In our sustainability vision, we have set four goals that the world should achieve by 2050. And we have defined which problems need to be addressed to achieve this.

We must:

1. accelerate measures to combat climate change,
2. implement sustainable, recycling-oriented solutions in the use of resources and in production,
3. provide clean water and air, and
4. contribute to better healthcare and hygiene for people around the world.

We will drive this agenda forward by promoting and expanding the use of materials that respond to environmental issues. In the textile sector, for example, we offer warming and cooling textiles – by eliminating the need for air conditioning or heating in certain situations, they can help reduce energy costs. We also produce environmentally friendly textiles that do not contain certain harmful substances such as fluorine, as well as textiles made from biomass, which use plant-based fibers instead of conventional petrochemical materials. Our product range also includes recycled materials that reduce waste and promote effective use of resources.

The TORAY VISION 2030, on the other hand, is our medium-term strategic plan and looks at the issue of sustainability from a different angle: Toray has defined the path to sustainable and healthy corporate growth in it. In this plan, we are focusing on two major growth areas: Our Green Innovation Business, which aims to solve environmental, resource and energy problems, and the Life Innovation Business, which focuses on improving medical care, public health, personal safety and ultimately a longer expectancy of life.

Innovation by Chemistry is the claim of the Toray Group. In a world where REACH and Fridays for Future severely restrict the scope of the chemical industry, the question arises as to what position chemistry can have in the textile industry. How do chemistry, innovation and sustainability fit together here?

The chemical industry is at a turning point today. The benefits that this industry can bring to civilization are still enormous, but at the same time, disadvantages such as the waste of resources and the negative impact on the environment and ecosystems are becoming increasingly apparent. In the future, the chemical industry will have to work much more towards sustainability - there is no way around it.

As far as textiles are concerned, we believe there are several ways to make synthetic materials more sustainable in the future. One of these, as I said, is materials made from plants instead of petrochemical raw materials. Another is to reduce the amount of raw materials used in production in the first place – this can be achieved, for example, by collecting and recycling waste materials from production or sales. Biodegradable materials that reduce the impact of waste products on the environment are another option worth pursuing, as is the reduction of environmentally harmful substances used in the production process. We are already looking at all of these possibilities in Toray's synthetic textiles business. At the same time, by the way, we make sure to save energy in our own production and minimize the impact on the environment.

Toray's fibers & textiles segment focuses on synthetic fibers such as nylon, polyester and acrylic, as well as other functional fibers. In recent years, there has been a clear trend on the market towards cellulosic fibers, which are also being traded as alternatives to synthetic products. How do you see this development – on the one hand for the Toray company, and on the other hand under the aspect of sustainability, which the cellulosic competitors claim for themselves with the renewable raw material base?

Natural fibers, including cellulose fibers and wool, are environmentally friendly in that they can be easily recycled and are rapidly biodegradable after disposal. However, to truly assess their environmental impact, a number of other factors must also be considered: Primarily, there is the issue of durability: precisely because natural fibers are natural, it is difficult to respond to a rapid increase in demand, and quality is not always stable due to weather and other factors.

Climatic changes such as extreme heat, drought, wind, floods and damages from freezing can affect the quantity and quality of the production of natural fibers, so that the supply is not always secured. In order to increase production, not only does land have to be cleared, but also large amounts of water and pesticides have to be used to cultivate it – all of which is harmful to the environment.

Synthetic fibers, on the other hand, are industrial products manufactured in controlled factory environments. This makes it easier to manage fluctuations in production volume and ensure consistent quality. In addition, certain functional properties such as resilience, water absorption, quick drying and antibacterial properties can be embedded into the material, which can result in textiles lasting longer in use.

So synthetic fibers and natural fibers, including cellulose fibers, have their own advantages and disadvantages – there is no panacea here, at least not at the moment. We believe: It is important to ensure that there are options that match the consumer's awareness and lifestyle. This includes comfort in everyday life and sustainability at the same time.

To what extent has the demand for recycled products increased? Under the brand name &+™, Toray offers a fiber made from recycled PET bottles. Especially with the "raw material base: PET bottles", problems can occur with the whiteness of the fiber. What distinguishes your process from that of other companies and to what extent can you compete with new fibers in terms of quality?

During the production of the "&+" fiber, the collected PET bottles are freed from all foreign substances using special washing and filtering processes. These processes have not only allowed us to solve the problem of fiber whiteness – by using filtered, high-purity recycled polyester chips, we can also produce very fine fibers and fibers with unique cross sections. Our proven process technologies can also be used to incorporate specific textures and functions of Toray into the fiber. In addition, "&+" contains a special substance in the polyester that allows the material to be traced back to the recycled PET bottle fibers used in it.

We believe that this combination of aesthetics, sustainability and functionality makes the recycled polyester fiber "&+" more competitive than those of other companies. And indeed, we have noticed that the number of requests is steadily increasing as companies develop a greater awareness of sustainability as early as the product planning stage.

How is innovation management practiced in Toray's textile division, and which developments that Toray has worked on recently are you particularly proud of?

The textile division consists of three sub-divisions focusing on the development and sale of fashion textiles (WOMEN'S & MEN'S WEAR FABRICS DEPT.), sports and outdoor textiles (SPORTS WEAR & CLOTHING MATERIALS FABRICS DEPT.) and, specifically for Japan, textiles for uniforms used in schools, businesses and the public sector (UNIFORM & ADVANCED TEXTILES DEPT.).

In the past, each division developed its own materials for their respective markets and customers. However, in 2021, we established a collaborative space to increase synergy and share information about textiles developed in different areas with the entire department. In this way, salespeople can also offer their customers materials developed in other departments and get ideas for developing new textiles themselves.

I believe that the new structure will also help us to respond better to changes in the market. We see, for example, that the boundaries between workwear and outdoor are blurring – brands like Engelbert Strauss are a good example of this trend. Another development that we believe will accelerate after the Corona pandemic is the focus on green technologies and materials. This applies to all textile sectors, and we need to work more closely together to be at the forefront of this.

How important are bio-based polyesters in your research projects? How do you assess the future importance of such alternatives?

I believe that these materials will play a major role in the coming years. Polyester is made from purified terephthalic acid (PTA), which again consists of paraxylene (PX) and ethylene glycol (EG). In a first step, we already offer a material called ECODEAR™, which uses sugar cane molasses waste as a raw material for EG production.

About 30% of this at least partially bio polyester fiber is therefore biologically produced, and the material is used on a large scale for sportswear and uniforms. In the next step, we are working on the development of a fully bio-based polyester fiber in which the PTA component is also obtained from biomass raw materials, such as the inedible parts of sugar cane and wood waste.

Already in 2011, we succeeded in producing a prototype of such a polyester fiber made entirely from biomass. However, the expansion of production at the PX manufacturer we are working with has proven to be challenging. Currently, we are only producing small sample quantities, but we hope to start mass production in the 2020s.

Originally starting with yarn, now a leading global producer of synthetic fibers for decades, you also work to the ready-made product. The range extends from protective clothing against dust and infections to smart textiles and functional textiles that record biometric data. What are you planning in these segments?

In the field of protective clothing, our LIVMOA™ brand is our flagship material. It combines high breathability to reduce moisture inside the garment with blocking properties that keep dust and other particles out. The textile is suitable for a wide range of work environments, including those with high dust or grease levels and even cleanrooms. LIVMOA™ 5000, a high quality, also demonstrates antiviral properties and helps to ease the burden on medical personnel. The material forms an effective barrier against bacteria and viruses and is resistant to hygroscopic pressure. Due to its high breathability, it also offers high wearing comfort.

Our smart textile is called hitoe™. This highly conductive fabric embeds a conductive polymer – a polymer compound that allows electricity to pass through - into the nanofiber fabric. hitoe™ is a high-performance material for detecting biosignals, weak electrical signals that we unconsciously emit from our bodies.

In Japan, Toray has developed products for electrocardiographic measurements (ECGs) that meet the safety and effectiveness standards of medical devices. And in 2016, we submitted an application to the Japanese medical administrative authorities to register a hitoe™ device as a general medical device – this registration process is now complete. Overall, we expect the healthcare sector, particularly medical and nursing applications, to grow – not least due to increasing infectious diseases and growing health awareness among the elderly population. We will therefore continue to develop and sell new products for this market.

In 1885, Joseph Wilson Swan introduced the term "artifical silk" for the nitrate cellulose filaments he artificially produced. Later, copper, viscose and acetate filament yarns spun on the basis of cellulose were also referred to as artifical silk. Toray has developed a new innovative spinning technology called NANODESIGN™, which enables nano-level control of the fineness and shape of synthetic fibers. This is expected to create functions, aesthetics and textures that have not existed before. For which applications do you intend to use these products?

In NANODESIGN™ technology, the polymer is split into a number of microscopic streams, which are then recombined in a specific pattern to form a new fiber. By controlling the polymer flow with extreme precision, the fineness and cross-sectional shape of the fiber can be determined much more accurately than was previously possible with conventional microfiber and nanofiber spinning technologies. In addition, this technology enables the combination of three or more polymer types with different properties in one fiber – conventional technologies only manage two polymer types. This technology therefore enables Toray to specify a wide range of textures and functions in the production of synthetic fibers that were not possible with conventional synthetic fibers – and even to outperform the texture and feel of natural fibers. Kinari, our artificial silk developed with NANODESIGN technology, is a prime example here, but the technology holds many more possibilities – especially with regard to our sustainability goals.

What has the past period of the pandemic meant for Toray's textile business so far? To what extent has it been a burden, but in which areas has it also been a driver of innovation? What do you expect of the next 12 months?

The Corona catastrophe had a dramatic impact on the company's results: The Corona catastrophe had a dramatic impact on the company's results: In the financial year 2020, Toray's total sales fell by about 10% to 188.36 billion yen (about 1.44 billion euros) and operating profit by about 28% to 90.3 billion yen (about 690 million euros). The impact on the fiber and textile business was also significant, with sales decreasing by around 13% to 719.2 billion yen (approx. 5.49 billion euros) and operating profit by around 39% to 36.6 billion yen (approx. 280 million euros).

In the financial year 2021, however, the outlook for the fibers and textiles sector is significantly better: So far, the segment has exceeded its goals overall, even if there are fluctuations in the individual areas and applications. In the period from April to June, we even returned to the level of 2019. This is partly due to the recovering sports and outdoor sector. The fashion apparel market, on the other hand, remains challenging due to changing lifestyles that have brought lock-downs and home-office. We believe that a full recovery in business will not occur until the travel and leisure sector returns to pre-Corona levels.

Another side effect of the pandemic that we feel very strongly, is the growing concern about environmental issues and climate change. As a result, the demand for sustainable materials has also increased in the apparel segment. In the future, sustainability will be mandatory for the development and marketing of new textiles in all market segments. Then again, there will always be the question of how sustainable a product really is, and data and traceability will become increasingly important. In the coming years, the textile division will keep a close eye on these developments and develop materials that meet customers' needs.

About the person:
Koji Sasaki joined Toray in 1987. In his more than 30 years with the company, he has held various positions, including a four-year position as Managing Director of Toray International Europe GmbH in Frankfurt from 2016 to 2020. Since 2020, Koji Sasaki has been responsible for Toray's textile division and serves as acting chairman of Toray Textiles Europe Ltd. In these roles, he supervises the company's development, sales and marketing activities in the apparel segment, including fashion, sports and work or school uniforms.

The interview was conducted by Ines Chucholowius, Managing partner Textination GmbH

Companies today face a variety of increasingly complex risks. Not least the pandemic has shown how crises can pose an existential threat to companies. The FReE tool of the Fraunhofer Institute for High-Speed Dynamics, Ernst-Mach-Institut, EMI, allows companies to measure their resilience and subsequently be prepared for upcoming crisis scenarios.
 
Our world is highly complex and prone to disruption: Natural disasters, cyberattacks, power outages, terrorist attacks, pandemics and other crisis scenarios can threaten companies existentially. The corona pandemic has shown us how vulnerable the German economy really is: According to the Federal Statistical Office, in 2020 the economy fell into a deep recession after ten years of growth; especially in the second quarter of 2020, economic output saw a historic slump. There will be other crises after this pandemic. The classic methods of risk analysis and risk management, which only take into account expected risks, do not adequately protect companies against major losses.

“Companies often only consider the most likely scenarios rather than focusing on possible crisis events,“ says Daniel Hiller, Head of business unit Security and Resilience at Fraunhofer EMI in Freiburg. Teams at Fraunhofer are establishing resilience as a new security concept to help prepare organizations and companies for crises. The results of their research work include the online tool Fraunhofer Resilience Evaluator FReE and the KMU-Lagebild software, both designed to enable companies to measure and evaluate their resilience and to carry out a resilience analysis before, during and after a disruptive event.
 
The five-stage concept “Prepare, Prevent, Protect, Respond and Recover”
The online tool FReE allows companies to plan resilience strategically, to implement the abstract concept in their company and to put it into practice on management level. FReE is based on the five-stage concept “Prepare, Prevent, Protect, Respond and Recover.”  

The software comes with a list of 68 questions related to the five resilience stages. The answers provide the company with some initial information needed to assess resilience. The five stages are ordered chronologically, starting with a what-if scenario. During this Prepare stage companies prepare for disruptive situations, which helps avert damage using preventive measures during the Prevent stage.

“An aluminum processing plant, for example, might want to protect its premises with security fences and cameras, because thieves usually break in at night to steal aluminum,“ says Hiller, illustrating the first two stages using a classic example. The Protect stage, as the name suggests, aims to protect; this might include safeguarding important infrastructures or buildings with additional concrete layers or walls. If it was not possible to stave off the disaster, the Respond stage comes into play. It is now important to quickly identify the cause and extent of the damage and to preserve critical supply functions. After the incident, companies should systematically draw lessons from the crisis in order to be better able to avert future risks and to boost their resilience in a cyclical iterative process – researchers call this stage Learn and Adapt.
 
The FReE tool takes the user through the list of questions, which are ordered chronologically into the sections before, during and after a disruption and cover all company divisions. These including personnel, finance, infrastructure and technology. The tool allows you to filter by division during the evaluation process. “For example, a controller can set the filter such that only results related to finance are shown,” says Hiller. Possible questions include: “Is there a disaster manager in the event of a disruption?“, “What are their qualifications and powers?” or “What are the financial reserves for emergencies?” The evaluation is shown in the radar chart, with the worst result being at zero percent in the graticule.

FReE is available in three versions: The free web-based quick version includes 15 questions. The full version, which includes the complete list of 68 questions, is available on a project basis. The accompanying consulting project is based on the paid version. As part of the consulting project, Hiller and his team work together with the companies to develop appropriate measures to boost resilience and eliminate weak spots. Furthermore, additional questions can be added to the FReE tool to adapt it to the needs of specific industries. Many SMEs are already using the quick version and are planning to update it to the full version.

KMU-Lagebild project
While FReE enables companies to assess their resilience on their own, the KMU-Lagebild project supports them in carrying out a comprehensive resilience assessment. The researchers model all procedures and processes on the computer using the available data. By inputting hypothetical disruption scenarios, you can see how the system reacts to them and which countermeasures have to be taken. “By asking yourself not only what the most likely disruptions are, but also what potential incidents there are, you broaden your view of the risks. What’s more, resilient companies exhibit a high level of adaptability and flexibility,” says Hiller in summary.

Checkpoint Systems, a division of CCL Industries, is a global leader in retail solutions. The portfolio ranges from electronic article surveillance as well as theft and loss prevention to RFID hardware and software and labeling solutions. The aim is to provide retailers with accurate, real-time inventory, speed up the replenishment cycle, prevent out-of-stocks and reduce theft to improve product availability and the customer shopping experience.

Textination spoke with Miguel Garcia Manso, Business Unit Director Germany at Checkpoint Systems, where the 44-year-old industrial engineering graduate has been working since 2018. With many years of international retail experience, he knows the needs of the retail industry very well. Before that, Miguel Garcia Manso lived in Madrid for almost 15 years, where he worked for the Spanish food retailer DIA. There he also accompanied the introduction and roll-out of article surveillance projects.

 

If you had to present Checkpoint Systems and its portfolio to someone who is not a retail professional – what would you say?

We are the retail partner and our job is to help retailers make shopping as pleasant as possible for their customers. Put simply, our solutions ensure that the right product is in the right place at the right time when the end consumer wants to buy it, instead of standing in front of an empty shelf in the worst-case scenario. Our portfolio ranges from individual anti-theft products to solutions that cover the entire supply chain and provide the greatest possible transparency of inventory.

 

It's been a long journey from the 1960s, when a small team in the U.S. developed a method to prevent the theft of books from public libraries, to becoming the international leader in 21st century article surveillance, operating in 35 countries. What legacy is still important to you today, and how would you describe the spirit at Checkpoint Systems?
 
Both questions have the same answer: On the one hand, innovative strength and, on the other, consistent exchange with the retail industry. Both have been in the focus at Checkpoint Systems from the very beginning. We develop our products and systems in close exchange with the industry, actively seek dialogue, listen to what is needed in everyday life, etc. This is very important to us and is also regularly used as a selling point for Checkpoint Systems. We definitely want to continue this.

 

You offer hardware and software technologies for retail, which is a very complex market. How do the requirements of retailers from the fashion, outdoor and textile industries differ from those of other industries?

The reasons why retail companies contact us are similar across all industries. They all want to delight their customers, retain them in the long term, and generate more sales. The ways to achieve this may differ: From omni-channel strategies for the fashion sector, to article surveillance solutions for high-priced electrical or cosmetic products, and to RFID-based fresh food solutions for food retailers to reduce food waste.
The requirements of the industries differ, especially when it comes to labels. Depending on the size and price of the product as well as the desired technology, we recommend different labels – or develop them in close coordination with the customer. For the Polish fashion company LPP, for example, we have just developed a special dual RF and RFID tag that blends harmoniously into the store design.

 

Magic word RFID – the contactless and automated reading and storing of data based on electromagnetic waves is the centerpiece of your technologies. You even encourage your customers to develop their own RFID strategy. What do you mean by this and are you sure that all retail companies will be able to do this on their own?

We develop the strategy together with our customers, usually as part of a pilot project. Until a few years ago, the introduction of RFID technology was actually more complex and usually involved a project lasting several years. Today, however, we can quickly calculate for each retailer in the context of a small pilot project, how much more profitable they can be with RFID and what their return on investment is. We usually start with a store scan, followed by pilot testing in selected stores, including individual training and on-site support. And by the time it is implemented in all stores, the customers themselves are RFID experts and have an understanding of what they can do with the real-time data. 

 

What does the keyword "customized" mean for Checkpoint Systems? To what extent can you map the individual needs of each customer? Or can you make every retail company – whether chain or boutique – "happy"?

We give high priority to personalized solutions. This concerns, on the one hand, the product itself and, on the other, the size of the company. As you already indicate, large retail chains obviously have different needs than small boutiques. For O₂, Telefónica Germany’s core brand, for example, we have just specially adapted our AutoPeg tags for theft protection. Instead of the standard yellow, the tags for O₂ are white with blue lettering to match the store design.
This also shows the development in the area of article surveillance in general: When article surveillance was still in its infancy, antennas and labels were mainly functional. Nowadays, they blend harmoniously into the overall look of the store design. Retailers no longer have to choose between design and functionality.

 

How is innovation management practiced in your company and which developments that Checkpoint has worked on recently are you particularly proud of?

In recent months, we have worked intensively – together with the German Employers' Liability Insurance Association (Berufsgenossenschaft Handel und Warenlogistik) – on the testing and certification of our article surveillance systems and now we can proudly say: We are the first manufacturer in Germany whose EAS systems have been tested by the CSA Group, an internationally recognized and accredited provider of testing and certification services. The CSA Group has confirmed that our radio frequency-based EAS systems comply with all standards and guidelines applicable in Germany with regard to exposure to electromagnetic fields. No safety distances need to be maintained.
The background is as follows: Retailers in Germany are obliged to prepare a risk assessment if they use an EAS system. The CE declaration of conformity, which they receive from the manufacturer when purchasing an EAS system, is not sufficient for this purpose. By testing our systems, we have created the best conditions for our customers to make such an assessment. We have also provided the relevant documents to the Employer's Liability Insurance Association.

We are also proud of the fact that we have managed to increase the clearance widths of our NEO antennas for article surveillance from two meters to 2.70 meters. This gives retailers significantly more freedom in store design. In general, store design is also a good keyword at this point: With our free-standing antennas, the design of the NS40 or even the possibility of incorporating antennas into checkout systems, we have contributed a great deal to making article surveillance aesthetically pleasing and harmoniously integrated into the whole.

 

The Covid-19 period was a disaster, especially for the stationary retail. In recent months, companies have increasingly moved in the direction of e-commerce – whether via individual store solutions or marketplaces – in order to compensate for at least part of the decline in sales. What is your advice to retailers: Can only omni-channel businesses be successful today and in the future?

Yes, that is definitely our advice to retailers. Omni-channel solutions are not going to disappear, but will continue to become more common and will be indispensable in the near future. Retailers are well advised to adapt to this new situation – also regardless of Corona – and to invest in the expansion of functioning omni-channel solutions. Customers expect the product they want, to be available when they enter a store. And if not, that they can easily have it delivered to the same store or shipped to their home. This only works with very high inventory transparency, for example through our RFID solutions.

 

Keyword: economic efficiency. Creating the much-vaunted personalized perfect shopping experience for the customer costs money, doesn't it? Stock availability, reducing inventories through clearance sales, shelf management, logistics and returns processing – to what extent can you support retailers in increasing their profitability?

NOT creating the perfect shopping experience costs a lot more – dissatisfied customers who haven't found what they want won't come back. To keep up with customer demand, many retailers therefore stock far too much products. In our experience, this amounts to an average of 42,000 items. That costs. These retailers pay high costs for warehouse space, need a lot of time for inventory processes, and end up having to reduce products significantly in order to reduce inventories.
The key to greater profitability lies in inventory accuracy. With the help of RFID technology, we can increase this to up to 99 percent. This allows us to avoid under- or overstocking, reduce the amount of storage space required, and optimize processes, including inventory. RFID can read hundreds of tags simultaneously and is more accurate and faster than manual counting. Experience shows that retailers can increase their sales by an average of three percent with our RFID technology.

 

Even if the situation in retail has eased to some extent as a result of the vaccinations, the shopping situation in on-site stores – viewed optimistically – also requires special precautions, at least for the next few months. With "safer shopping," you offer a package of various components for this purpose. What does it cover?
 
SmartOccupancy is our simple solution for controlling the number of people in salesrooms in real time. The system counts the number of people entering and leaving using Visiplus 3D, an overhead people counting sensor. When the maximum capacity is almost reached, SmartOccupancy sends an alert to the staff. This allows the staff to respond to current occupancy counts in real time, contributing to a safer environment for employees and customers. Those responsible can use SmartOccupancy to implement official instructions on the maximum number of people safely and reliably; manual counting is no longer necessary. A visual capacity indicator clearly shows customers at the door whether they are allowed to enter the store or not.
The second solution is primarily of interest to the textile and clothing industry as well as the footwear market: Inventory Quarantine is a software solution for secure, automated returns (SaaS-based). It allows retailers to park returned goods in an automated quarantine queue for a few hours. After the pre-defined time has passed, Inventory Quarantine notifies employees via push message that the piece of clothing or shoe can be cleared back to the floor or re-tagged as available in the online store. This means that items are only released when they are deemed safe for resale – while ensuring that items are put back on sale promptly. The solution helps retailers keep track of returned goods and minimize the time when products are not available on sale.

 

"Ethical consumption has finally become an attitude and has arrived in the middle of society," trend researcher Peter Wippermann commented on the results of the Otto Group's latest trend study "Living More Consciously". What does sustainability mean to Checkpoint Systems as a company, how do you reflect this finding in your product portfolio and how do you support your customers in achieving sustainability goals?

Sustainability is definitely an important topic for us at Checkpoint Systems. We regularly review our products and processes to see how we can work even more resource-efficiently, reduce production waste and lower our CO2 emissions. This also includes, how we can further reduce the power consumption of our antennas. We only develop and sell RF antennas. This technology is not only safer in terms of exposure to electromagnetic fields, but also more environmentally friendly: RF antennas require 40 to 70 percent less energy than other technologies.

How can the major sustainability challenges in the textile industry be met? The textile services industry, whose business model has always been based on durability and re-use, has an important role to play here as ambassador. In the run-up to Texcare International, Elena Lai, Secretary General European Textile Services Association (ETSA), talks about these challenges and her expectations for Texcare International from 27 November to 1 December 2021.

The textile sector was identified as a priority sector in the European Green Deal and in the Circular Economy Action Plan. What are the implications for the European textile services industry?
Elena Lai: We are in a truly historic and exciting time for the textile services industry. We are all well-aware that our industry is the key to providing sustainable solutions and ecofriendly best practice. We had a series of webinars at ETSA dedicated to sustainability and circular economy being key elements of the Green Deal and our larger companies such as industrial laundries, key textile manufacturers and innovative machinery companies, are all up to the task and providing effective solutions. Our national associations too, members of ETSA, are all working synergistically to exchange their best ways forward, in Europe and beyond as we have also partners from the US. These efforts within ETSA’s value chain make us really proud and eager to go the extra mile, guiding our members also towards those areas which seem to be the most challenging. For instance, the new EU Climate Law, which calls for 55% CO₂ reductions by 2030: this means that European industries will all have to do better to make us reach these targets in less than nine years. We know ETSA could represent the right network to identify the best way forward on this issue and truly perform and deliver what the EU is advocating for.

How can the textile services industry contribute to achieving circular economy in the textile industry?
Elena Lai: The business model of textile services is inherently circular. By having a business model which is focused on renting and reusing textiles we can see a litany of benefits that it can offer to the EU’s Circular Economy Action Plan. Firstly, in renting textiles. Through rented textile services, textile service companies can extend the lifecycle of products and thus reduce the amount of production that is necessary to occur in the first place, while also reducing the amount of wastewater and energy needed in the laundry process. Secondly, through re-use and repair textile products can remain in consumer hands for longer, which is paramount as our industry is one that battles against planned obsolescence. Both of these are important pillars to our industries that will help both consumers and the planet. Lastly, by continuing to expand recycling and upcycling we can minimise waste, ensuring that a product stays inside the European economy as long as possible. These are all important steps and help us do our part to help Europe reach its emissions and sustainability goals.

Textile recycling is a very important point. How do you think the textile recycling rate can be increased?
Elena Lai: The Commission will mandate separate waste sorting of textiles by the year 2025, thus recycling, upcycling and end of life re-use must be improved. A ban on the burning of unused textiles will also soon take effect, this will incentivise further recycling and waste reduction. Fundamentally what we in textiles services need to do is to continue to reduce, re-use and recycle. We can increase the rate of recycling by making consumers aware of rented textiles and textile services so to increase the public demand for such services.

How can sustainability in textile services be further improved?
Elena Lai: In order to boost sustainability in our industry we need to build on the existing culture of innovation and entrepreneurship where exciting, new, out-of-the-box ideas can be developed and refined. EU programs like Horizon Europe, which emphasise green and digital solutions to common problems are an excellent way to empower citizens, textile service firms and local communities to take the initiative and take matters into their own hands. The EU’s Due Diligence legislation is one example of somewhere we can see both consumers and firms come together and take proactive action to improve sustainability, not only in textiles and textile services, but in European industry more broadly. To put it clearly, we have to strengthen our technological innovation while also empowering consumers, authorities and textile service firms, we believe our work at the EU level helps to make this a reality.

How does ETSA promote new projects in the field of sustainability?
Elena Lai: We at ETSA have been hard at work lobbying EU policymakers for responsible legislation, while also spreading awareness of the industry’s best practice to the public. Recently ETSA has also become an EU Commission Climate Pact Ambassador. This is an exciting opportunity which will allow ETSA to work closely with European Institutions to inform and inspire real climate action amongst our members, national associations and the industry as a whole. ETSA is a platform where stakeholders, citizens, industries and European Union representatives can come together and have a dialogue on the best ways to improve Europe’s sustainability. Furthermore, we have been hard at work disseminating information on the best practice that will help Europe get to 55% emissions reductions, as well information on chemicals, waste-water, microplastics and other salient environmental issues. Our work is far from being done but we look forward to continuing to strive and advance via our focused Working Group on Environment and our webinars to make the world green and sustainable again.

What role will circular economy/sustainability play at Texcare?
Elena Lai: A central role, several European and World Leaders have underlined, is that Climate Change is the most important issue of our time and it is imperative we act now. Climate Change is also an issue with a global spill over and therefore we all have a clear incentive to find solutions and work in synergy with each other. We need future-oriented dialogue which understands the urgent need for sustainability across the entire textile value chain. ETSA in synergy with one of our members, DTV, is working hard to put together a panel at Texcare dedicated to the sustainability debate, with lots of members and participants to get engaged.

What does ETSA expect from this year's Texcare?
Elena Lai: We at ETSA are excited to be at Texcare, we think it’s a great opportunity to not only network and converse with other relevant actors in the industry but also to share best practice, concerns and most of all opportunities. Due to the pandemic we had a difficult year 2021 and this event will really enhance a stronger engagement of key actors in this sector. The need for green, sustainable and digital solutions is nonetheless imperative. We are looking forward to hearing of ways that the industry across the world not only continues to adapt to the evolving COVID situation, but also how it is embracing the green and digital transition that has been emphasised as being the futuristic approach by our EU policymakers. We at ETSA wholeheartedly look forward to this event.

Texcare International will take place from November 27 December 1, 2021 in Frankfurt am Main.