From the Sector

The testing service provider and research partner Hohenstein is joining the Innovation Park for Artificial Intelligence (IPAI) in Heilbronn. There are already points of contact with AI applications in some interdisciplinary research projects. In addition, there is the cooperation with the Munich-based start-up Sizekick and its AI-based technology for size recommendations, which aims to reduce size-related returns in online fashion retail.

"We expect the connection to the IPAI AI network to provide us with valuable impulses to remain fit for the future," explains Hohenstein CEO Dr. Timo Hammer, "This unique platform brings together a wide variety of players with their experience and knowledge. New ideas, projects and even products can be generated with great dynamism in the network as an intelligent response to future requirements. Because one thing is clear - artificial intelligence is THE key technology of the future".

The Innovation Park for Artificial Intelligence (IPAI) in Heilbronn (www.ip.ai) sees itself as an innovation platform for applied AI and a German lighthouse project with international appeal. The center is intended to map the entire AI value chain, from the qualification of specialists to the application of ethically responsible AI. The aim is to use the AI ecosystem to bring together companies, start-ups, research institutions, scientists, and public institutions and to secure Germany's digital independence and competitiveness in a key future technology.

Aim: Reducing returns and thus increasing sustainability in fashion e-commerce

Hohenstein, a global market leader in apparel sizing and fit development, has invested in AI technology startup, Sizekick. The collaboration will enable accurate decisions on apparel size, improving online shopping experiences, reducing returns and preventing the associated CO2 emissions.

Hohenstein’s 1.3 million Euro investment in the 2022 startup will drive growth in the Sizekick team and enable the 2023 launch of its smartphone app for online shoppers.  The technology will enable online shoppers to find the right clothing size in a few seconds via smartphone.

Sizekick puts an end to unnecessary size-related returns in fashion online retail. The Munich-based company uses artificial intelligence and computer vision technology to recommend the right clothing size to customers in partner web stores. With the help of the integrated Sizekick software and a smartphone, anyone can find the right size in a few seconds. Fashion and sports brands, but also multi-brand stores or marketplaces can integrate the "Sizekick Button" in their online store. Sizekick offers its solution as Software-as-a-Service (SaaS).

"The strategic partnership with Hohenstein enables us, as a new AI solution, to meet the high demands of the market right at the start and to take on the role of technology leader. Our artificial intelligence is already learning thanks to the comprehensive Hohenstein database of 3D body scans. This is an extremely big advantage for our AI," highlights Jake Lydon, CTO at Sizekick.

• Collaboration with Red Points addresses consumers’ increasing expectations on transparency and highlights Lenzing’s commitment to trademark protection
• Protects interest of Lenzing customer and partners who are making real efforts to enhance the transparency of their value chains
• Builds upon Lenzing’s overall brand protection efforts that verify the authenticity of fibers up to the end products

Lenzing Group, a global producer of wood-based specialty fibers, has announced a partnership with Red Points, a company in online IP infringement detection and removal, to strengthen Lenzing’s existing brand protection efforts globally and enable round-the-clock brand monitoring services. As Lenzing’s textile brands TENCEL™, LENZING™, ECOVERO™, as well as nonwovens brand VEOCEL™ continue to generate widespread demand from industry partners and customers worldwide, it is becoming increasingly important to protect the company’s trademarks and provide full visibility into the brands’ presence online.

Protecting the interest of Lenzing’s partners and consumers
Red Points provides the ideal technology solution to help Lenzing monitor and remove unauthorized use of its trademarks and counterfeits online. The technology works by using Artificial Intelligence (AI) to automatically detect intellectual property infringements of Lenzing’ trademarks with high accuracy and efficiency.

Brand protection is just one of Lenzing’s ongoing proactive measures aimed at enhancing transparency in the supply chain and protecting the interest of Lenzing’s partners by ensuring they are purchasing genuine Lenzing fibers which meet their high standards.

In 2018, Lenzing launched the Lenzing E-Branding Service which allows Lenzing’s customers, retailers and brand partners to effectively use trademarks in their marketing materials. The platform has been welcomed by partners globally as it continues to deliver value to the fashion, textile and nonwoven sectors by facilitating the traceability of Lenzing’s fibers and enabling customers to promote them effectively.

Lectra, whose connected industrial equipment and software facilitate the digital transformation and Industry 4.0 transition of fashion, automotive and furniture companies, announces its selection for the new Euronext Tech Leaders stock market index. This brings Lectra into the community of European technology leaders identified by Euronext as innovative and high-growth companies.

The new Euronext Tech Leaders market index, launched on June 7, comprises 100 European technology companies listed on the Euronext markets, which meet various performance and growth criteria. With the launch of this initiative, Euronext aims to offer better visibility and new services to selected European technology leaders.

Lectra is one of the 41 French companies that are now members of Euronext Tech Leaders. The company, founded in 1973 on a close relationship with fashion industry players, has also for the last three decades worked globally with automotive equipment and furniture manufacturers. In its three strategic markets, Lectra sells connected equipment that optimizes the cutting processes of fabric, leather and other soft materials used by manufacturers, and markets software and services that streamline their production processes while enabling them to be more agile and make considerable material savings.

In fashion, through the use of market data – made accessible and exploitable by the Internet of Things, the cloud, artificial intelligence and big data – Lectra’s software solutions also enable a better understanding of consumers’ behavior. They therefore facilitate strategic decision-making for brands, manufacturers and distributors at the key steps in the value chain of design, production and distribution. In this industry, the impact of Lectra’s solutions on reducing material consumption is even greater because it takes effect as early as the garment design stage.

Technology and innovation are therefore at the heart of Lectra’s strategy, with the company aiming to become a key player in Industry 4.0 in its strategic markets by 2030.

Hohenstein, a leading specialist in fit and pattern engineering, has joined forces with digital size pioneer, Presize. The partnership now offers a variety of business services, including reliable size tables and digital scaling, that empower online retailers to automatically recommend appropriate garment sizes.

Merging traditional size tables, reliable garment fits and digital body measurements with smartphone technology reduces the number of returned online purchases. Proper fit also reduces waste, lowers footprint and bolsters customer loyalty.

“The better a brand understands sizes, fits and target groups, the more accurately they can automate size recommendations. We help brands meet the different requirements of various sizes, so the fit is comfortable across customer ranges, collections and suppliers,” states Simone Morlock, Head of Hohenstein’s Digital Fitting Lab.

This size and grading advice is now underpinned by digital measurement services and technology based on artificial intelligence. “All it takes to work out the right size, based on a user’s individual body measurements, are some quick questions regarding their age, height and weight, plus an optional video to take measurements. We use an algorithm that learns as it goes along, and this improves the advice given on sizes with each order or return,” states Presize co-founder and CEO, Leon Szeli.

Join the free webinar on “Hohenstein Meets Presize - How sizing fundamentals and reliable fit can increase the effectiveness of smartphone body measurements and reduce eCommerce returns” on March 24, 2022.*

*Click here for more information.

Berlin - 200 exhibitors, around 1,000 visitors and over 20 speakers from Germany and abroad – the ATSG textile fair premiered in Berlin from 11 to 13 September 2019 brought together exhibitors, speakers and trade visitors from all over the world. Jason Prescott, CEO of JP Communications, said he was satisfied with the event at the Estrel Conference Center: "The first step has been taken, now we will establish the ATSG as an important event of the Berlin fashion and textile world".

The ATSG was the first fair of its kind in Germany. "There are many fashion trade fairs for sale from wholesale to retail. Berlin has so far lacked an event for companies of all sizes, including micro-brands and small fashion labels," continues Jason Prescott. The exhibited product categories included fabrics, technical clothing, mixed and knitted fabrics, home textiles, leather, natural and synthetic fibres, readymade goods and fashion accessories. Visitors to major European fashion brands as well as small, independent brands from the Berlin fashion scene were able to take a close look at raw materials and finished garments and discuss their ideas personally with the exhibitors. In parallel, China Textile Brand Show (Berlin), sponsored by Chinese Ministry of Commerce (MOFCOM), made its debut bringing in more than 150 superb Chinese manufacturers with their best collections for Germany and EU market.

Opening Ceremony, Lectures and Fashion Show

The ATSG was opened by Chinese government representatives and international association delegates. More than 20 lectures on the three days provided the latest impulses for thought and discussion. In their lectures and panel discussions, speakers from all over the world presented current positions on topics such as "All China? Or is there more to it?", "Application examples of artificial intelligence in the fashion industry", "Optimal logistics concepts for Europe", or "The importance of sustainability in the European fashion industry".

Wilson Zhu, COO at Li & Fung, one of the world's largest trading houses based in Hong Kong, explained in his keynote speech his view on the digitization of global supply chains: "From raw materials in the textile factory to consumer tracking: In retail, every step of the value chain is determined by digitization.

Companies need to be close to consumers and their supply chains must enable a seamless flow of data and information from start to finish". Customers and their requirements have also changed: "They want to know about origin, recyclability and production standards and use their information to adjust their purchasing behavior accordingly.” Other speakers included Jeff Streader of the brand investment platform Go Global and Salman Khokhar of Brand Lab Kollective Moda. The fashion show on the second day featured creations by local Berlin labels (Damur, Danny Reinke, Aline Celi, Yoona Tech) as well as Asian brands exhibiting at ATSG.

Successful kick-off

Exhibition organiser Jason Prescott draws a positive balance: "Looking back on the three days, I am very proud of what went well. Which has been confirmed for us: We're on an exciting path, have taken our first steps here in Berlin and will continue to develop the exhibition." The creators of ATSG 2019 are taking ideas for the year 2020 with them, especially from the many intensive discussions with exhibitors and visitors: "The ATSG has offered visitors and exhibitors a unique opportunity to identify new growth strategies, look around for market partners, learn from each other and establish networks. We are very pleased that the concept was used here in Berlin," concludes Chase Vance, Director of JP Communications.

"Datacenter in a box" is the new powerful, flexible and secure IT infrastructure solution for the textile industry of the future

Remscheid/Berlin – Oerlikon Manmade Fibers Segment Industrie 4.0 solutions for the production of polyester, nylon and polypropylene are based on the digitalization of the production landscape and the intelligent processing of the flood of data generated in this way. In the future, the segment will offer its customers a new powerful, flexible and, above all, secure IT infrastructure. The "Datacenter in a box" was presented for the first time at the OpenStack Summit in Berlin, Germany, to a broad specialist audience. The compact datacenter works on the basis of the open operating system OpenStack, which enables virtual computing in a secure private cloud environment.

Externally, the datacenter looks unspectacular: The box contains standard hardware such as server rack, network components, batteries for reliability, monitoring sensors and a few more things. But what counts are the inner values. The Open Source software OpenStack consists of many different services and allows the virtualization of a large pool of computing, storage and network resources in a flexible, scalable private cloud. This brings two central advantages: On the one hand, virtual operation reduces costs and simplifies configuration, adaptation and expansion of the IT infrastructure today and tomorrow. On the other hand, long-cherished wishes for high data protection are fulfilled, because a private cloud maintains secure, highly encrypted data connections away from the World Wide Web.

"The functional diversity of a cloud, operation and hardware in one's own four walls at the same time – our customers immediately understood these advantages" reports Mario Arcidiacono, specialist for Business Intelligence & Data Warehouse at the Oerlikon Manmade Fibers Segment. The IT architecture also guarantees infrastructure management without downtime, the system and virus protection are automatically kept up to date at all times. Another major advantage is the scalability of the hardware and software, which can be adapted to changing requirements.

OpenStack Summit: Project example with yarn manufacturer from Vietnam presented

With these trump cards and a project example, the Group segment confidently presented itself to a genuine specialist audience in mid-November. At this year's OpenStack Summit in Berlin, where thousands of cloud professionals met, Oerlikon Manmade Fibers Segment CEO Georg Stausberg presented the customer installation at Century Synthetic Fibre Corporation, which supplies many well-known sporting goods manufacturers. The Vietnamese producer of high-quality yarns not only uses the new datacenter, but also the connection to the new "Common Service Platform (CSP)" of the Oerlikon Manmade Fibers Segment as well as an innovative new dashboard solution in prototype status. In this case, the digital instrument panel supports employee communication during shift changes in the yarn factory and introduces agile methods into the work process. The board visualizes the progress of central key figures and operating parameters from the current production process. Based on this, the employees of the successive shifts can now exchange important process and quality information and possible instructions for action within a few minutes in a structured stand-up meeting. "For the customer this means an immediate improvement of the processes, and he can significantly increase the efficiency and quality of his employees' work," assures Joerg Gross, Senior Manager in the IT-architecture team at the Oerlikon Manmade Fibers Segment.

New IT-basis for the Plant Operation Center (POC) already successful established on the market

The fixed connection to the "Common Service Platform (CSP)" of the Oerlikon Manmade Fibers Segment plays a pioneering role in such solutions. This enables services and software updates to be provided smoothly, quickly and automatically. In this way, service applications can transform collected data into instructions or automated commands to secure and improve processes. For example, the secure availability of management solutions such as the Plant Operation Center (POC) for process monitoring can be increased and possible errors can be rectified very quickly. The new digital solution AIM4DTY (AIM = Artificial Intelligence Manufacturing), which was unveiled at the ITMA ASIA + CITME 2018 in Shanghai, China, a few weeks ago, can also be implemented in this way. AIM4DTY uses methods of machine learning, determines probable causes of errors in texturing and helps to improve quality during production.

Launch at ITMA Barcelona 2019

The Oerlikon Manmade Fibers Segment offers such remote-supported services on request. Data will therefore only be transferred to the “Common Service Platform (CSP)” with the customer's consent. In addition, all data is processed in accordance with the new European General Data Protection Regulation (GDPR) and all other international data protection standards. Against this backdrop, the Oerlikon Manmade Fibers Segment plans to provide its datacenter with graded or customer-specific solutions: from complete service to provision with customer training for its own operations. After initial practical experience with several pilot customers, the segment intends to launch its offering on the market next year and officially present it to the textile industry at ITMA 2019 in Barcelona, Spain.

Beijing - Tencent Holdings Limited (“Tencent”) (00700.HK), JD.com, Inc. (“JD.com”) (NASDAQ:JD), and Vipshop Holdings Limited (“Vipshop”) (NYSE:VIPS), today jointly announced that Tencent, a leading provider of internet value-added services in China, and JD.com, China’s largest retailer, have entered into definitive agreements with Vipshop, a leading online discount retailer for brands in China, such that Tencent and JD.com will invest an aggregate amount of approximately US$863 million in cash in Vipshop at the closing of the transaction.

Pursuant to the share subscription agreement, Tencent and JD.com will subscribe for newly issued Class A ordinary shares of Vipshop in the amount of approximately US$604 million and approximately US$259 million, respectively. The purchase price will be US$65.40 per Class A ordinary share, which is equivalent to US$13.08 per American Depositary Share (“ADS”) of Vipshop, five of which represent one Class A ordinary share. The purchase price represents a 55% premium over the closing price of the ADSs as of the last trading day on December 15, 2017.

The transaction is expected to close in the near future, subject to customary closing conditions.  Upon the closing, Tencent and JD.com will beneficially own, taking into account any existing holding, approximately 7% and 5.5%, respectively, of Vipshop’s total issued shares. The Class A ordinary shares issued to Tencent and JD.com will be subject to a two-year lock up restriction. Tencent and JD.com will have the right to appoint a director and an observer, respectively, to Vipshop’s board of directors during the two-year lockup period. After the end of the lock-up period, for so long as Tencent and JD.com hold approximately 12% and 8%, respectively, of Vipshop’s total issued shares, or otherwise by mutual agreement with Vipshop, they will maintain director and board observer rights.

Concurrently with the entry of the share subscription agreement, Tencent and JD.com have entered into business cooperation agreements with Vipshop, effective upon closing, establishing a cooperative relationship among Tencent, JD.com and Vipshop. Under these agreements, Tencent will grant Vipshop an entry on the interface of Weixin Wallet enabling Vipshop to utilize traffic from Tencent’s Weixin platform, and JD.com will grant Vipshop entries on both the main page of JD.com’s mobile application and the main page of its Weixin Discovery shopping entry, and will assist Vipshop in achieving certain GMV targets through JD.com’s platform.   

“I am truly delighted about Vipshop's new strategic cooperation relationships with Tencent and JD.com,” said Mr. Eric Ya Shen, Vipshop’s Co-founder, Chairman of the Board of Directors and Chief Executive Officer. “This undoubtedly is an important event for Vipshop as well as China's e-commerce and internet industries. We, together with Tencent and JD.com, will leverage our respective strengths to form a strategic cooperative alliance aiming to achieve a deep, win-win cooperation and to benefit internet users and consumers. We will develop a holistic cooperation with Tencent on the Weixin platform and expand our strategic alliance with Tencent into more and broader areas.  We will explore win-win opportunities in multiple areas with JD.com, including establishing a strategic alliance in collaboration with brand suppliers, and an on-line traffic alliance. We will continue to operate as an independent e-commerce platform and further deepen and enhance our leading e-commerce capabilities in fashion (including apparel, shoes, bags and accessories) and cosmetics categories as well as our strong female user base, thereby offering higher value and better user experience to our customers.”

“The strength of Vipshop’s flash sale and apparel businesses, as well as its outstanding management team, create clear and strong synergies with us,” said Richard Liu, Chairman and CEO of JD.com. “This partnership will further extend the strong inroads that we have made with female shoppers, and will expand the breadth and reach of our fashion business. We continue to add the top-notch partners to complement JD.com’s core strengths, ensuring that JD and our partners provide the best customer experience for every shopping need.”

Martin Lau, President of Tencent Holdings, said, “We are pleased to become strategic investor in and partner with Vipshop. We look forward to providing Vipshop with our audiences, marketing solutions, and payment support to help the company provide branded apparel and other product categories to China’s rising middle class. We already see substantial demand from our users to discover, discuss and purchase branded apparel in our applications, and we believe that connecting our users more deeply to products on Vipshop’s platform will enrich their online experiences while benefiting Vipshop. We are proud of the role our resources such as marketing technology, payments handling, and machine learning play in facilitating a healthy and diverse retail ecosystem, online and offline.” 

About JD.com, Inc.

JD.com is both the largest e-commerce company in China, and the largest Chinese retailer, by revenue. The company strives to offer consumers the best online shopping experience. Through its user-friendly website, native mobile apps, and WeChat and Mobile QQ entry points, JD offers consumers a superior shopping experience. The company has the largest fulfillment infrastructure of any e-commerce company in China. As of September 30, 2017, JD.com operated 7 fulfillment centers and 405 warehouses covering 2,830 counties and districts across China, staffed by its own employees. JD.com is a member of the NASDAQ100 and a Fortune Global 500 company.

About Vipshop Holdings Limited

Vipshop Holdings Limited is a leading online discount retailer for brands in China. Vipshop offers high quality and popular branded products to consumers throughout China at a significant discount to retail prices. Since it was founded in August 2008, the Company has rapidly built a sizeable and growing base of customers and brand partners. For more information, please visit www.vip.com.

About Tencent Holdings Limited

Tencent uses technology to enrich the lives of Internet users. Our social products Weixin and QQ link our users to a rich digital content catalogue including games, video, music and books. Our proprietary targeting technology helps advertisers reach out to hundreds of millions of consumers in China. Our infrastructure services including payment, security, cloud and artificial intelligence create differentiated offerings and support our partners’ business growth. Tencent invests heavily in people and innovation, enabling us to evolve with the Internet. Tencent was founded in Shenzhen, China, in 1998. Shares of Tencent (00700.hk) are traded on the Main Board of the Stock Exchange of Hong Kong.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Among other things, statements regarding the expected closing of the transactions and the quotations from management in this announcement are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to, those included in JD.com’s and Vipshop’s filings with the SEC and in Tencent’s filings with the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and none of Tencent, JD.com or Vipshop undertake any duty to update such information, except as required under applicable law.