From the Sector

Y-3 returns to present the closing chapter of its Fall/Winter 2022 collection. Representing the final iteration of the brand’s “20 Years: Recoded” thematic narrative, Chapter 4 boldly celebrates one of the label’s most revered and lasting motifs – exotic prints – as adidas and Yohji Yamamoto fearlessly reimagine historic looks and textures for a new era.

Subversively exploring the year-long theme of collective memory, the latest chapter draws on Yohji Yamamoto’s inherently rebellious spirit. With Y-3 shifting its creative focus to a distinctly textural concept – Memories of Exotics – the German sportswear brand and the Japanese visionary recall a legacy of animal prints and iconography, distorting iconic signifiers through a slew of all-over print graphics.  

The seasonal offering is highlighted by a selection of pieces that juxtapose leopard prints and fabrics with muted palettes, functional details, and dynamic sporting silhouettes. Curated as a daring blend of past and future, the collection clashes the brand’s heritage with its progressive vision for tomorrow.

Accompanying the launch of Fall/Winter 2022 Chapter 4 is a visual campaign that oscillates between mystery, intrigue, and sporting dynamism. Shot by Heji Shin with creative direction from Jamie Reid and styling from Robbie Spencer, the visuals channel a visceral, rather than understated, interpretation of Y-3’s past, present, and future.

• Growing geographic separation between cotton production and textile manufacturing since the 1990s

The United States Department of Agriculture (USDA) released a comprehensive study about Chinese cotton in August 2022. The authors, Fred Gale and Eric Davis, concentrate on textiles, imports and Xinjiang.

China is the world’s largest textile manufacturer and the largest cotton consumer, but changes in China’s economy are reshaping the geography of its cotton-textile sector. Nearly all of China’s cotton is produced in the Xinjiang Uyghur Autonomous Region (XUAR), also known more simply as Xinjiang.

Their study reviewed the regional patterns of China’s cotton textile industry development and identified growing geographic separation between cotton production and textile manufacturing since the 1990s using data from Chinese sources. The study investigated spatial patterns of demand for imported cotton by analyzing lists of Chinese companies applying for a share of the import quota from 2016 to 2022. Multiple regression analysis was used to control for potentially confounding influences when investigating whether companies in coastal provinces were more likely to use imported cotton than similarly sized companies in other regions.

Textile manufacturers — the main consumers of cotton — are concentrated in coastal and central regions where the share of China’s cotton production fell from over 50 percent to 10 percent during 2011–21. These geographic changes are a factor influencing global trade in cotton and textiles. Additionally, the use of forced labor in Xinjiang attracted more attention to the industry, prompting the United States and other countries to ban products produced in the region.

This study reviews the economic, geographic, and policy factors reshaping the industry and influencing the global trade of cotton and textile products. The study also examines data on Chinese companies applying for a share of China’s cotton import quota to gain insight about the demand for imported cotton.

China became the world’s largest producer, consumer, and importer of cotton soon after joining the World Trade Organization (WTO) in 2001. Despite adopting a tariff-rate quota (TRQ) system for cotton imports and issuing supplemental quotas in most years, the large number of cotton goods manufacturers that request shares of the quota suggests demand for imported cotton exceeds  the quota.

While the TRQ was intended to protect China’s cotton farmers, many farmers abandoned the labor-intensive crop as wages rose rapidly in many other industries and other crops produced higher returns. In response, officials encouraged cotton production in the relatively remote region of Xinjiang to prevent China from becoming reliant on imported cotton. Xinjiang growers receive a subsidy payment for cotton, and subsidies for machinery and seeds. A transportation subsidy induces textile manufacturers in eastern and central regions to purchase cotton from Xinjiang, which is about 2,200 to 2,900 miles from most of the country’s textile manufacturers. Financial support and other incentives encourage manufacturers to shift operations to Xinjiang.

Textile manufacturers in China are highly interested in importing cotton due to its lower price and quality. China imports about 20 percent of its cotton, and the United States is a chief exporter of cotton to China. While imported cotton is used in all provinces, manufacturers near the eastern seaboard show a greater propensity for imports. Nevertheless, in all regions, domestic cotton has the largest share of mill use.

Between 2016 and 2022, 1,581 companies applied for a share of the TRQ, and 265 companies applied in all 7 years. Most of these companies also applied for supplemental quotas issued with slightly higher tariffs. This large number of applicants suggests that imports could be even greater if quotas did not limit them. The operation of the quota application process is not public information, but data submitted by applicants suggests access to imported cotton is uneven. About 14 percent of applicants said imported cotton comprised over half of the cotton they used. Another 20 percent of companies requesting import quota did not use any imported cotton, suggesting that many applicants are unable to import. Textile manufacturers coped with limits on cotton imports by increasing their use of synthetic, chemical-based fibers or by importing cotton yarn. From 2000 to 2020, China’s yarn imports doubled from under 1 million metric tons to around 2 million metric tons with Vietnam supplying about 45 percent of that total in 2020.

The number of textile manufacturers in Xinjiang applying for a share of the cotton import quota rose from 37 to 68 between 2016 and 2022. However, imports constituted less than 2 percent of  the cotton Xinjiang applicants reported using—and 66 percent of them reported using no imported cotton—suggesting that applications from Xinjiang textile companies were often denied.
Analysis found that applicants in coastal provinces used more imported cotton than similarly sized applicants in other regions. Each location of a multi-plant company must apply separately for tariff-rate quotas. Textile manufacturers in Xinjiang that requested a share of the import quota included branches of some of China’s largest textile companies, but the analysis found that Xinjiang applicants used less imported cotton than similar manufacturing plants located in other regions. China’s role as a cotton importer appears to have peaked, while other countries are increasing their share of imports.

USDA baseline projections suggest that by 2030 Vietnam, Pakistan, Indonesia, Bangladesh, and Turkey will together account for 47 percent of the world’s cotton imports while China will only account for 24 percent. The study cam be downloaded from the USDA website.

This season, adidas Originals returns with the next installment of its “Always Original” initiative. First assembled in 2021 to pay homage to the multifaceted identities of women and non-binary folks, the “Always Original Collective” takes centre stage again, as the brand with the Three Stripes turns its focus to representing allyship in originality with a new collection and campaign made to fit every story.

The drop one offering has been designed for everyone – no matter their size, shape, gender, or style. Celebrating all forms of originality each piece is available in an extended size run and boasts lace constructions that are as versatile as the moves of those the collection was designed for. Created to allow everyone to express their individuality, the garments on offer reimagine adidas’ sporting history for a new generation of changemakers while the footwear selection features updated takes on the Forum Low and the Astir W silhouettes.

Launching alongside the main Fall/Winter 2022 drop one selection is an expressive capsule collection co-created directly with the “Always Original Collective”. Inspired by each member’s interpretation of two key words – Belonging and Community – the capsule offers a host of bold and dynamic graphic pieces.

The first seasonal drop is accompanied by the arrival of an undeniably optimistic campaign centering on four members of the collective – Jari Jones, Amani, Naomi Otsu, and Lena Waithe – and inspired by the slogan: “They’ve been here for us. Now it’s our turn.”

The campaign visuals spotlight the shops and small businesses that helped to shape the lives of each dynamic changemaker: Yu & Me Book Store, Le’Jemalik Beauty Salon, Hibiscus Brew Coffee Shop, and Savant Studios. Putting the focus on those who have been there all along, the campaign seeks to demonstrate the power of allyship in communities around the world.

• adidas x Parley’s global impact initiative, Run for the Oceans, returns for its fifth year, uniting sporting communities across the planet
• More activities than ever will be eligible for Run for the Oceans, with the introduction of tennis, wheelchair movement, football and more
• People across the world can take part by signing-up to the challenge from today and logging activity between May 23 – June 8

As we approach World Oceans Day on June 8, adidas and its longstanding partner Parley for the Oceans are once again encouraging the global sporting community to turn activity into action and Run for the Oceans in 2022.

For the first time, new activities have been introduced to the challenge, making this the most inclusive Run for the Oceans yet. People from all parts of the global sporting community are invited to hit the streets, the tennis court and the football field, and unite to help protect the oceans from plastic waste. For every 10 minutes of running from select activities, such as running, tennis or football*, recorded by participants via the adidas Runtastic app, Joyrun, Codoon, Yeudongquan or Strava, Parley will clean up the equivalent weight of one plastic bottle from beaches, remote islands, and coastlines before it reaches the ocean (up to a maximum of 250,000kg).

Launching between May 23 – June 8, the event returns for its fifth year, with the ambition of mobilising a generation to help end plastic waste. Research shows that the world is at a tipping point, with it predicted that oceans will contain more plastic than fish by 2050.

Since the beginning of the partnership in 2015, adidas has made more than 50 million pairs of shoes with Parley Ocean Plastic and close to 18 million pairs in 2021 alone - this includes plastic waste intercepted from beaches and coastal communities, preventing it from polluting the oceans.

For 2022, adidas x Parley have announced the launch of Adizero X Parley and Ultraboost 22 X Parley . With a carbon footprint of just 3.5kg per pair, the Adizero X Parley is the first time adidas and Parley have combined to launch a lower footprint concept, a milestone for the partnership delivered through innovation and with no compromise on shoe performance.  

From raw material interception, processing, packaging, all the way to the end of product life, adidas calculate and communicate its carbon footprint, conforming to an internationally recognized standard: ISO 14067. The footprint results made available provide full transparency on the complete lifecycle of the product.

• DUARTE  brings on the runway its SEASON 2 “Eco-Street Dance” collection

By mixing C.L.A.S.S. responsible materials, colorful prints, urban feels and artistic inspiration, the Portuguese streetwear brand creates a new style and a clear yet cool message for conscious fashion consumers.  The rewarded 2021 C.L.A.S.S. Icon Award Portuguese brand Duarte is ready to presents its Fall/Winter 2022/23 collection developed in collaboration with C.L.A.S.S. Eco Hub at ModaLisboa after a first presentation at Milan Fashion Week. From February 24th until 27th, Duarte’s creations have been featured as a special project at WSM (WHITE Sustainable Milano) platform space inside “Unveiling the fashion Backstage”, a docu-event focusing on an immersive journey into the amazing world of premium and smart supply chains that make innovative and responsible fashion wardrobes a reality.

For its second collection Duarte still counts on C.L.A.S.S. support in sourcing materials and communication activities as part of the Icon Award yearly program. The streetwear designer Ana Duarte, with the help of the Milanese hub, is back with a renewed collection that counts 40 pieces continuing the concept and the story behind the previous World Keeper: the irresistible superhero Tadao - Ana Duarte’s dog – fighting against the environmental issues created by mankind and personified as Smog Man (air pollution), Fire Man (climate change), Deforestation Man (forests destruction) and Wave Man (water overconsumption). 

This time the inspiration is also Street Dance drawn directly from the city streets, with majorly unisex pieces (apart from some small specific details linked to sizes or ergonomics) and materials that both respect the planet and keep you warm. The prints drawn from ripped posters giving birth to a sort of new style that we can name “Eco-Street Dance”. The color palette explores the dark shades of grey, cream, blue and black, with artistic pops of color of a hopeful urban culture that tears apart posters from the past and turns them into a new brighter story. 

Talking about materials, the collection presents a selection of urban pieces for everyday superheroes, fighting against environmental issues - with a holistic approach to sustainability values thanks to the synergy with C.L.A.S.S. and its Back in the Loop area: a section dedicated to alternative and sustainable sourcing against the massive amount of materials and textiles produced that are not used and discarded by the fashion system. This is mostly powered by MAEBA International - and its ReLiveTex® fabrics - leader in selecting and repurposing premium Italian fabrics with exceptional 60 years of expertise in collecting high quality materials from leading brands and textile manufacturers, and the first company at an international level to be accredited for the UNI EN ISO 14021 certification which grants the traceability of the collected materials.

The linings complete the full sustainable picture, thanks to Bemberg™ by Asahi Kasei fabrics by Gianni Crespi Foderami. Bemberg™ is a new generation material made from the smart-tech transformation of cotton linter pre-consumer material, converted through a traceable and transparent closed loop process. Entirely made in Japan, it comes with Compostability and Ecotoxicity Certifications verified by Innovhub SSI, RCS, OEKOTEX® Standard 100 and the Eco Mark certifications. The factory is ISO 14001 certified, too. 

• Stephan Sielaff replaces interim CEO Cord Prinzhorn

• CFO Thomas Obendrauf will not extend his contract

• Chairman of the Supervisory Board Peter Edelmann will no longer be available as Chairman at the end of the Annual Shareholders’ Meeting

• Cord Prinzhorn returns to Supervisory Board and will take over as Chairman

The Supervisory Board of Lenzing AG has appointed Stephan Sielaff, the former CTO/COO of Lenzing AG, as the new CEO effective April 01, 2022. He succeeds Cord Prinzhorn, who took over as interim CEO in the fourth quarter of 2021. Cord Prinzhorn will return to the Supervisory Board of Lenzing AG. The Managing Board will thus be reduced again from five to four members.

Stephan Sielaff holds a degree in chemical engineering and held various management positions at Unilever and Symrise from 1993 to 2014. Between 2014 and 2020, he was responsible for the strategic development of the company as a Member of the Board of Directors (COO) at the Swiss specialty chemicals company Archroma – an important supplier of the textile and paper industry. He was appointed Chief Technology Officer and COO of Lenzing AG as of March 01, 2020.

CFO Thomas Obendrauf has informed the Supervisory Board that he will not be available for a further extension of his contract, which expires in June 2022. The Supervisory Board of Lenzing AG is already working on a timely replacement. Mr. Obendrauf will be available to the company in an advisory capacity until a successor is appointed.

Peter Edelmann will leave the Supervisory Board upon his own request, effective April 26, 2022. Cord Prinzhorn will return to the Supervisory Board and will take over as Chairman.

The 2021 C.L.A.S.S. Icon Award Portuguese brand Duarte is ready to presents its Fall/Winter 2022/23 collection developed in collaboration with C.L.A.S.S. Eco Hub during Milan Fashion Week. With the support of WHITE, Duarte’s creations will be featured as a special project at WSM (WHITE Sustainable Milano) platform space inside “Unveiling the fashion Backstage”, a docu-event focusing on an immersive journey into the amazing world of premium and smart supply chains that make innovative and responsible fashion wardrobes a reality.

For its second collection Duarte still counts on C.L.A.S.S. support in sourcing materials and communication activities as part of the Icon Award yearly program. The streetwear designer Ana Duarte, with the help of the Milanese hub, is back with a renewed collection that counts 40 pieces continuing the concept and the story behind the previous World Keeper: the irresistible superhero Tadao - Ana Duarte’s dog – fighting against the environmental issues created by mankind and personified as Smog Man (air pollution), Fire Man (climate change), Deforestation Man (forests destruction) and Wave Man (water overconsumption).

This time the inspiration is also Street Dance drawn directly from the city streets, with majorly unisex pieces (apart from some small specific details linked to sizes or ergonomics) and materials that both respect the planet and keep you warm. The prints drawn from ripped posters giving birth to a sort of new style named “Eco-Street Dance”.

The collection presents a selection of urban pieces for everyday superheroes, fighting against environmental issues - with a holistic approach to sustainability values thanks to the synergy with C.L.A.S.S. and its Back in the Loop area: a section dedicated to alternative and sustainable sourcing against the massive amount of materials and textiles produced that are not used and discarded by the fashion system. This is mostly powered by MAEBA International - and its ReLiveTex® fabrics - leader in selecting and repurposing premium Italian fabrics with exceptional 60 years of expertise in collecting high-quality materials from leading brands and textile manufacturers, and one of the first companies at an international level to be accredited for the UNI EN ISO 14021 certification which grants the traceability of the collected materials.

The linings complete the full sustainable picture, thanks to Bemberg™ by Asahi Kasei fabrics by Gianni Crespi Foderami. Bemberg™ is a new generation material made from the smart-tech transformation of cotton linter pre-consumer material, converted through a traceable and transparent closed loop process.

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.

• Multi-year share buyback program started

adidas today announced the start of the first tranche of its multi-year share buyback program announced in December 2021. The company intends to repurchase own shares in an amount of up to € 1 billion in the first quarter of 2022.

In total, under the new program, adidas plans to buy back own shares for up to € 4 billion until 2025. Taking into consideration the € 1 billion share buyback completed in 2021 already, the company intends to return up to € 5 billion to its shareholders through regular share buybacks alone during the five-year strategic cycle of the new company strategy ‘Own the Game’. The share buyback activities are complemented by annual dividend payouts in the range of 30% to 50% of net income from continuing operations.

Strong cash returns are a key component of the company’s strategy. As part of ‘Own the Game’ adidas intends to generate substantial cumulative free cash flow until 2025. The majority of it – between € 8 and € 9 billion – will be distributed to adidas’ shareholders. On top of that, the company plans to return most of the cash proceeds from the Reebok divestiture to its shareholders after closing of the transaction, which is expected to occur during the first quarter of 2022.

As with previous share buybacks, adidas intends to cancel most of the shares repurchased during the program, which would reduce the number of shares as well as the share capital accordingly.

For most textiles, finishing processes are not actually the last stage. Products often need an extra touch of expertise to make them perfectly ready for the customer. At this point in the value chain, that usually means manual tasks – but now there are technical solutions and intelligent systems which can handle complex operations better, while adding extra value and assured quality.
Automation brings reliability and efficiency, ultimately saving costs to produce the right quality every time. Swiss companies are specialized in many of these disciplines, with machinery for fabric inspection and presentation, labelling and tracking, folding and packaging. They have the technology to inspire a new vision at the post-production segment of the textile manufacturing processes. Optimization of workflows, with bottleneck management, is an obvious potential benefit. And it delivers measurable returns on investment. The wider picture with automation will prepare companies for the IoT and Industry 4.0.

New business models
The advantages of automation in mills with high-volume production are obvious: consistent quality, increased efficiency, waste reduction in some cases, as well as significant medium-term cost reductions in every case.
That description focuses on the aims of modern mills in low-cost markets. But producers in Europe and USA could reach out for more. For them, automation could be a game-changer, offering unique new opportunities.
Reshoring is a growing trend now. It shows great potential and is definitely driven by sustainability and changes in consumer mindsets. “We believe that the time is right – the machines and solutions certainly are – to push automation also to the very end of the production line, replacing intensive manual work and take the chance for reshoring. The current situation is kind of a transition time which is expected to last for a couple more years in the textile industry,” says Rueedi. He adds that any investments in these prime markets pay off much faster because of higher labour costs.
Innovation transformed through automation can do much more than simply replacing the nimble fingers of humans. It also enables new business models, guaranteeing prosperous future business, alongside greater job security.

Digital workflow and process control
The Swiss company Maag Brothers is a leading supplier of high-end machines for quality assurance in the final make-up processes, specifically fabric inspection, plating/folding, selvedge printing and packaging. Maag reports on a practical example from a mill in India which recognized the potential of automation.
An analysis at the customer’s mill identified the main goals as modernization of the workflow at quality control and packing processes. Maag’s new system covers tasks from fabric inspection to dispatch, and offers transparent and easily adjustable processes with real-time process control. It’s a digital solution, resulting in a slim organization, paperless, and the basis for further optimization towards Industry 4.0 to exploit its full potential. The customer’s own calculation showed a ROI for the installation at less than three years – along with a reduction in manpower and savings in fabric costs for shade samples.

Perfectly labelled, efficient data...
Smooth processes start with a label. Swiss company Norsel is an expert in grey fabric labelling systems, for piece tracking through all textile processes. High-quality label printing and proper sealing on all kind of fabrics ensure readability and sustainability after dyehouse processes such as mercerizing, high temperature dyeing and even hot calendering. No roll mix-up during dyeing, easy sorting of fabric rolls and rapid delivery make processes in the mill much more efficient. Using RFID codes lifts fabric inventory control to the highest level, with all information readily transferred to a database and integrated through any ERP software.
It’s a foolproof way to avoid the risk of human errors from hand-written notes on grey fabrics and article sheets, by opting for reliable, secure and forward-looking solutions.

Sample collections – the silent salesmen
First impressions count, so fabric producers like to present their collection perfectly – and that’s only possible with automated solutions. Swiss producer Polytex continuously refines its solutions, underlining its leading position in sample making equipment. Fully-automatic high-performance sample production lines are designed to satisfy the highest expectations. Fully-automatic lines or robotic machines set the standards for quality and performance. Even the most demanding clients can achieve their goals with impeccable samples, quickly and efficiently made, for flawless collections that are sure to impress.

Automation drives buying
First impressions are also the trigger for quick purchase decisions. The proof is there on every store shelf. Customers of Espritech are also well aware of it. They trust this Swiss producer of automated folding machinery to provide the final touch of class to home textiles and apparel products before they go on display. The folding systems are generally large mechatronic devices, loaded with latest technologies in mechanics, electronics, sensors and pneumatics. “Textile producers are amazed how folding machines solve the tricky task of reliably handling chaotically behaving materials. They see process optimization potential and the impact. We observe a slow but continuous change of mindset installing sophisticated technology even in the last steps of textile finishing,” says Philipp Rueedi, CFO at Espritech.