From the Sector

Neumünster – Oerlikon Neumag has successfully commissioned three staple fiber bicomponent systems in China. With capacities of 50 tons per day each, the systems are being used to manufacture coresheath bicomponent fibers made from PP/PE or PET/PE at two long-standing Oerlikon Manmade Fibers customers. These fibers are used to make hygiene products.

Oerlikon Neumag staple fiber technology still in demand

Despite coronavirus-related restrictions, the three new systems were installed within three and five months, all without any problems. They have meanwhile been operating under stable production conditions with optimum fiber quality of the very highest standards for several weeks now.

Many years of experience in bi-component spinning

Oerlikon Neumag looks back on many years of experience in constructing bicomponent staple fiber systems. The first system for this fiber type was commissioned as far back as 1995. Oerlikon Neumag offers solutions for the most varied cross-sections, ranging from sheath/core’, ‘side-by-side’, ‘island in the sea’, ‘orange type’ as well as ‘trilobal’. The applications are diverse: from self-crimping fibers, bonding fibers, super-microfibers all the way through to hollow fibers.

The Oerlikon Neumag bicomponent technology is particularly characterized by the extremely robust spin packs that have no expensive wear parts, which considerably reduces the costs here. The reconditioning costs when cleaning the spin packs are kept to an absolute minimum. Add to this the separate temperature transfer option in the spinning beam for the two polymers. As a result, the quality and the viscosity of the polymers can be accurately adjusted in accordance with the respective process requirements.

• Fiber prices and demand under pressure
• Measures to protect employees, customers and suppliers and to keep plants operational implemented successfully
• Joint venture Hygiene Austria established for industrial production of protective masks in the fight against the COVID-19 pandemic – new distribution channel via shop.hygiene-austria.at
• Strategic investment projects progress according to plan – financing agreements for construction of pulp plant in Brazil concluded as planned
• Revenue and operating result in the remaining quarters of 2020 expected to exceed that of the second quarter

Lenzing – In the first half of 2020, the Lenzing Group faced a historically difficult market environment with increased pressure on prices and volumes resulting from the COVID-19 crisis. To counteract that, Lenzing intensified its cooperation with partners along the value chains and adjusted its production volumes and sales prices to market reality. The disciplined implementation of the sCore TEN corporate strategy and the focus on specialty fibers continued to have a positive impact.*

*Please read the attached document for more information

•  Historically difficult market environment – trade tensions put textile value chain under pressure in 2019
•  Prices for standard viscose at a historic low
•  Positive development of the specialty fiber business with a revenue share of already 51 . 6 percent
•  Strategic investment projects are progressing according to plan
•  sCore TEN targets for 2024 defined – EBITDA of EUR 800 mn

Lenzing – Despite a generally difficult demand environment for textile fibers and a drastic drop in prices for standard viscose, the Lenzing Group recorded a solid business development in 2019. The disciplined implementation of the sCore TEN corporate strategy and the accompanying focus on specialty fibers once again helped to mitigate the effect of unprecedentedly low standard viscose prices.

As a result, revenue dropped by 3.3 percent from EUR 2.18 bn to EUR 2.11 bn in 2019, driven by lower selling prices as well as standard fiber volumes. Due to positive mix effects and more resilient specialty fiber prices, the share of specialty fibers increased from 45.5 percent to 51.6 percent of revenue. The earnings development was largely influenced by the decline in revenue, but also by negative currency effects on material and personnel costs. EBITDA (earnings before interest, tax, depreciation and amortization) fell by 14.4 percent from EUR 382 mn to EUR 326.9 mn. The EBITDA margin declined from 17.6 percent to 15.5 percent. Net profit, at EUR 114.9 mn, was 22.4 percent lower than in the previous year at EUR 148.2 mn. Earnings per share amounted to EUR 4. 63 ( 2018: EUR 5 . 61 ).

Retailers invest in emotionalisation and digitalisation +++ Top theme: linking online with offline shopping +++ Focus on sustainability +++ Accompanying Stages and Specials received very well

The World’s No.1 Retail Trade Fair, EuroShop 2020, drew to a close on Thursday (20 February 2020) after five successful days in Düsseldorf: 2,300 exhibitors from 57 nations reported of very good leads and concluded business deals. Furthermore, lively follow-up business is expected. 94,000 visitors travelled to the Rhine to gather information on the line-up of products, trends and concepts for retailers and their partners featured in 16 exhibition halls.  

“We are delighted that EuroShop once again successfully proved to be the most relevant platform for the global retail community when it comes to trends, inspirations and networking. Our exhibitors deserve the highest praise for their loyalty. With their innovative power they again proved the major attraction for an entire industry,” said Erhard Wienkamp, Managing Director at Messe Düsseldorf, voicing his great satisfaction with EuroShop 2020 results.

Exhibitors especially applauded the high international attendance at EuroShop. 70% of the EuroShop audience travelled to Düsseldorf from abroad. Large delegations came for example from Brazil, Australia and New Zealand. Trade visitors from a total of 142 countries attended EuroShop 2020.

“This high level of international interest clearly documents the dynamism of the global retail world and the exceptional position EuroShop enjoys as its economic engine,” said Michael Gerling, Chairman of the EuroShop Advisory Board and CEO of the EHI Retail Institute Cologne.

“The success of eCommerce is a real encouragement for retailers: they have understood they have to give their shoppers good reasons beyond the ranges to enter their stores. This competition has taken retail as a whole to the next quality level. Investment is being made in shop fitting so as to create customer journeys,” explains Gerling who adds: “Beyond this, retail digitalisation is booming. It enables retailers to offer their shoppers even more services and link online and offline channels, on the one hand, while simplifying process flows, logistics and lots more, on the other.” At EuroShop 2020 digital transformation was therefore a key focus, also in terms of achieving the highest energy efficiency and sustainability possible.

Exhibitors underlined the high level of expertise among visitors at the event, especially their pronounced decision-making powers, because 70% of the trade fair guests were in international top management. Many of them also used their visit to EuroShop to learn about best practice cases and forward-looking trends in retail at the in total eight Stages. The varied programme of lectures held on the individual Stages on such topics as Retail Technology, Architecture and Store Design or Expo & Event was well attended across the board. Meeting with the same high level of approval were the numerous Specials at EuroShop, including the Start-up Hub, the Designer Village and Premium City.

Numbers speak for themselves here: 96% of trade fair visitors were satisfied with their visit to the trade fair. Just as many confirmed the outstanding position of EuroShop as a trend barometer, networking platform and largest event for the retail sectors.

Due to the current situation associated with the Coronavirus 19.000 visitors less attended this time than at the record event 2017.

The next EuroShop will be held in Düsseldorf from 26 February to 2 March 2023.  

The National Council of Textile Organizations (NCTO) lauded Senate passage today of the U.S.-Mexico-Canada Agreement (USMCA).

“We are pleased the Senate voted swiftly to approve USMCA--a trade deal that we expect to significantly bolster textile exports to Mexico and the Western Hemisphere,” said NCTO President and CEO Kim Glas.

Mexico and Canada are the two largest export markets for the U.S. textile and apparel industry, totaling nearly $11.5 billion for the year ending Nov. 30, 2019, according to government data.

“USMCA is a win for the textile industry,” Glas said. “The improvements it makes to the North American Free Trade Agreement (NAFTA) will only serve to generate more business for domestic producers and create more jobs and investment in the U.S.”
NCTO worked with the administration during negotiations on USMCA and secured several provisions in the trade deal including stronger rules of origin for certain textile inputs and increased U.S. customs enforcement.

U.S. textile executives are ramping up to take advantage of the modifications in USMCA and some plan to build new business or expand existing business in areas such as pocketing, sewing thread and narrow elastics.

“Our member companies, making some of the most advanced textiles in the world, have long supported USMCA and are eagerly awaiting implementation of the trade deal,” Glas added. “We urge quick implementation of USMCA and thank the administration and Congress for their hard work to get the deal across the finish line.”

The USMCA updates and modifies the NAFTA and makes significant improvements, including:

• Creation of a separate chapter for textiles and apparel rules of origin with strong customs enforcement language.
• Stronger rules of origin for sewing thread, pocketing, narrow elastics and certain coated fabrics.  Under the current NAFTA, these items can be sourced from outside the region – USMCA modernizes this loophole and ensures these secondary components are originating to the region.
• Fixes the Kissell Amendment Buy American loophole, ensuring that a significant amount the Department of Homeland Security spends annually on clothing and textiles for the Transportation Security Administration is spent on domestically produced products.

EuroShop, the World’s no.1 Retail Trade Fair, is a must-see fixture for the retail world. From 16 to 20 February it will bring together to the tune of 2,300 exhibitors from over 60 countries with 114,000 trade visitors expected from throughout the world in Düsseldorf. And it is not only an indispensable information platform, trend hotspot and network for retail professionals but it also intensely impacts many other areas and sectors, delivers innovative blue-prints and addresses urgent themes of relevance to the future such as digitalisation, robotics, sustainability or climate neutrality.

The Side Events at EuroShop 2020:
The USPs of EuroShop include not only the extensive ranges of its exhibitors from throughout the world but also the quality and cross-section of its unrivalled line-up of side events.

8 Stages – 600 Speakers – 500 Lectures
The centrepiece of EuroShop are a total of eight Stages. They are lecture and discussion forums with high-calibre speakers addressing the latest developments, innovative trends and best practices amidst the hustle and bustle of the trade fair and accessible for EuroShop visitors free of charge and without prior registration (simultaneously interpreted in German-English or in English only). Boasting a total of 600 speakers and well over 500 expert talks delivered over five trade fair days this accompanying programme offers each trade fair visitor invaluable and right-on-target value added. All Stages at a glance: Retail Technology Stage, Omnichannel Stage, Start-up Stage, Store Design Stage, Retail Designers Stage, Energy Management Stage, Retail Marketing Stage and Expo + Event Stage.

In the relatively short space of time since the last EuroShop in 2017, a lot has changed in retail. Everywhere you look, technology is transforming the way that consumers interact and transact with brands. At EuroShop 2020, 16 to 20 February in Düsseldorf, the 550 international exhibitors of the experience dimension “Retail Technology” (from the more than 2,300 international EuroShop exhibitors) provide impressive proof of this. In the run-up to EuroShop, we had a look around the international stores to see what is already being offered to customers in terms of high-tech.

Spanish fast-fashion retailer Zara has introduced self-service checkouts in store as well as interactive mirrors equipped with RFID; Nike is using local data at its House of Innovation 000 in New York City to stock shelves and restock them based on what the community wants; and at skincare brand SK-II’s Future X Smart Stores in Tokyo, Shanghai and Singapore, visitors are able to experience next generation skin counselling through a magic scan (an AI-enabled skin analysis that unlocks skin age and personalises product recommendations by sitting in front of a mirror for three minutes). There are even coffee shops using robot baristas to serve drinks, such as Café X in San Francisco and Ratio in Shanghai. And then, of course, there is Amazon Go, where customers can pick up shopping and walk out, with payment made automatically through the app.

• Growing demand for natural fabrics and blends driving Brodelec business growth

September 25th, 2019, Rosh Ha’ayn, Israel – Kornit Digital (Nasdaq: KRNT), a worldwide market leader in digital textile printing technology, announced that Orleans, France-based Brodelec has installed the country’s first-ever Kornit Presto S system for roll-to-roll, pigment-based digital textile printing.

This installation will enable the multiservice marking brand to expand their business further into customized décor and on-demand fashion.

Brodelec has partnered with Kornit for over a decade and owns several direct-to-garment print systems. Based on demand for natural fabrics and blends in the home décor and fashion markets, they are now expanding their offerings to include bespoke direct-to-fabric services.

Brodelec chose the Kornit Presto S as it is the only single-step solution and therefore the fastest route from design to finished product, making it the most efficient and eco-friendly fabric printing solution in France today.

The 2019 World Textile Forum closes its doors after two successful and exciting days.

On September 9 and 10 renowned speakers and experts from the textile business gathered in Zurich to discuss opportunities in the changing textile world. Exciting talks and keynotes illustrated new possibilities for a more sustainable and digital textile industry. While one part of the versatile program focussed on “Sustainable Sourcing” with speakers such as Robert van de Kerkhof (Lenzing AG), Heinz Zeller (Hugo Boss), Daniel Gemperle (Calida) and Anna Maria Rugarli (VF), the topic of “Digital Production” became the centre of attention later thanks to experts like Torbjörn Netland (ETH), Maximilian Kürig (Karl Mayer), Maria Neidhold (Spoonflower) and Holger Max-Lang (Lectra). They offered new perspectives on the sustainable future of the textile industry, presenting innovative sustainable production and business models. The subsequent panels furthered the knowledge exchange between both attendees and speakers and led to lively discussions.

Swiss Textile Federation, Swiss Textile & Fashion Institute STF and Gherzi Textil Organisation would like to thank all attendees and look forward to the next World Textile Forum!

For years, media headlines have declared the death of the high street at the hands of e-commerce. But, while several well-known retailers have indeed shut up shop or cut back on store numbers, a growing number of digitally native brands are investing in bricks-and-mortar spaces to complement and support their online offer.

At the last EuroShop, the World´s No. 1Retail Trade Fairtrade, were already first signs that Pure Player and online start-ups are also increasingly looking offline. 3 years later, at EuroShop 2020 from 16 to 20 February in Düsseldorf, Germany, this will now be one of the major topics of the industry.

In fact, a report published by property firm JLL towards the end of 2018 predicts that online retailers in the U.S. will open 850 stores over the next five years, demonstrating the value these brands place on having a physical presence. “Everyone is saying that physical retail is dying, but online brands are opening at a pretty fast and aggressive rate,” says Taylor Coyne, Research Manager of Retail for JLL, in the report.

Despite the continuing growth in online sales, the majority of consumers still prefer the experience of shopping in-store, and more and more digitally native brands are using physical retail to their advantage.