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24.03.2020

Coronavirus: Cancellations and Postponements of German Exhibitions May Cost up to 3 Billion Euro

  • Calculation by AUMA - Association of the German Trade Fair Industry concerning the macroeconomic impact for Germany based on ifo-survey

Germany as a trade fair venue has already been hit hard by cancellations and postponements of trade fairs. Trade fair organisers and service providers like booth constructors are already suffering from heavy financial losses. Many other branches of business are affected as well, especially the hotel and catering industry, the transport industry and numerous local suppliers and contractors. These industries are suffering considerable losses in sales with a direct impact on employees. Due to sales losses the tax revenue will fail, hence cities or regions are directly affected economically.

  • Calculation by AUMA - Association of the German Trade Fair Industry concerning the macroeconomic impact for Germany based on ifo-survey

Germany as a trade fair venue has already been hit hard by cancellations and postponements of trade fairs. Trade fair organisers and service providers like booth constructors are already suffering from heavy financial losses. Many other branches of business are affected as well, especially the hotel and catering industry, the transport industry and numerous local suppliers and contractors. These industries are suffering considerable losses in sales with a direct impact on employees. Due to sales losses the tax revenue will fail, hence cities or regions are directly affected economically.

AUMA’s Institute of the German Trade Fair Industry has forecasted the consequences for Germany for the first time based on the calculation of the ifo Institut in regard to the macroeconomic relevance of German trade fairs in 2018.

Thus a loss of about three billion Euro for the national economy is to be expected – just by cancellations and postponements of trade fairs. This affects more than 24,000 jobs and tax authorities will miss over 470 million Euro of tax revenue.

These sums do not include lost sales of companies, which had expected to generate turnover during the trade fair. These figures are many times higher than the above-mentioned sums and can only be substituted to a limited extent through other measures. No other marketing device is able to represent a company and its products as comprehensively as the personal contact.

“Almost all plans for trade fairs during the next months are null and void. Organisers, exhibitors, visitors and contractors are losing any planning reliability. They have high up-front costs without the prospect of any benefit or they suffer from severe and acute loss of sales. The trade fairs’ annual contribution of more than 28 billion Euro to the national economy could decrease by 10%. It has to be made sure that the (German) economy – particularly small and medium-sized enterprises – in future will be able to utilise the highly effective instrument called “Messe” (trade fair) and can continue cooperating with potent contractors. Without governmental support this can hardly be realised, despite great efforts of the exhibition industry itself.”

Germany is number one worldwide in terms of organising international trade fairs. Annually 160 to 180 international trade fairs take place in Germany, with 180.000 exhibitors and ten million visitors. Partners from all over the world meet up on German exhibition sites.

German exhibiting companies are investing almost half of their b2b communication budgets in trade fair participations. The expenses of exhibitors and visitors for trade fairs in Germany result in macroeconomic production effects of more than 28 billion Euro. More than 230,000 jobs are ensured by the organisation of trade fairs. Tax revenues based on trade fairs sum up to approx. 4.5 billion Euro annually.

More information:
trade fairs Coronavirus
Source:

AUMA Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V.

Foto: Pixabay
18.03.2020

CORONA CRISIS: BTE CALLS FOR RETHINKING OF AUTUMN DELIVERIES AND CONCESSION OF LESSORS

The effects of the corona virus on the textile and fashion trade are dramatic. The vast majority of businesses have suffered high double-digit sales losses in recent weeks, which are already leading to initial liquidity bottlenecks. Business closures that have already been forecast or decided upon will further aggravate the situation considerably.
 
At the moment, no one can seriously predict how long the corona crisis will last and whether it will not flare up again in autumn after an interim slowdown. "The entire textile and fashion industry must therefore take precautions now so that there is a chance that trade and industry will return to reasonably calm waters in the second half of the year," recommends BTE President Steffen Jost.

The effects of the corona virus on the textile and fashion trade are dramatic. The vast majority of businesses have suffered high double-digit sales losses in recent weeks, which are already leading to initial liquidity bottlenecks. Business closures that have already been forecast or decided upon will further aggravate the situation considerably.
 
At the moment, no one can seriously predict how long the corona crisis will last and whether it will not flare up again in autumn after an interim slowdown. "The entire textile and fashion industry must therefore take precautions now so that there is a chance that trade and industry will return to reasonably calm waters in the second half of the year," recommends BTE President Steffen Jost.

Because it is already clear that at the end of the spring/summer season there will be high losses and many insolvencies because the actual merchandise can no longer be sold. Jost: "A repetition of this situation in autumn is likely to irreversibly damage the diverse structure of the fashion retail landscape!

In this situation, trade and industry must work closely together and act in partnership. It is imperative that the orders placed a few weeks ago need to be renegotiated. Under no circumstances the situation should arise, that new autumn goods are delivered without consultation, although the retail warehouses are still full of spring goods and at the same time new waves of infection are rolling through the country!
     
BTE President Steffen Jost therefore urgently appeals to the partners in the industry to coordinate the organization of deliveries of autumn goods with the fashion trade already now. "In order not to jeopardize the existence of small, medium and even larger fashion retailers even more, there must be no prohibitions on thinking here." Otherwise, there will be an even stronger wave of insolvencies, which cannot be in the interest of the suppliers either. "A fashion trade, that essentially consists only of verticals and large online retailers, is causing major problems for the vast majority of brand producers".
 
The official business closings in almost all federal states lead many textile and fashion shops to the economic abyss. The top priority now is to cut costs and secure liquidity. In this context, the lessors would also have to pay their share. "Landlords must not ignore the corona crisis and continue to charge their usual rents," says BTE President Steffen Jost.

It would be best if the landlords completely waived their rent claims during the time of the forced business closures. At least a significant cut is absolutely necessary.

"Otherwise, many businesses will not survive the next few months and we will see an explosion in vacancies," warns Jost. This could not be in the interests of the landlords, since empty stores do not generate rental income and even depress the general level of rents.

"Above all, institutional investors and lessors have to put aside their return considerations and save the livelihoods of their tenants in their own interests," warns the BTE President. "Otherwise the landlords slaughter the cow they want to milk!"

 

More information:
Coronavirus corona virus
Source:

BTE e.V.

FULLY AUTOMATED QUALITY CONTROL MAKES HIGH-VISIBILITY CLOTHING EVEN SAFER Photo: LEEROY Agency, Pixabay
10.03.2020

FULLY AUTOMATED QUALITY CONTROL MAKES HIGH-VISIBILITY CLOTHING EVEN SAFER

High-visibility or “high-vis” clothing provides many people safety in their day-to-day work. Fraunhofer IGD has paired with textile service provider MEWA to develop an automated system for inspecting the quality of this clothing faster and more reliably, and thereby guarantee safety. Both companies have filed a joint patent for the system.

High-vis and protective clothing, like the kind worn by road workers, must meet certain standards prescribed by law for the safety of the wearer. Employers are liable for meeting these legal safety standards. On behalf of MEWA, the Fraunhofer Institute for Computer Graphics Research IGD has developed a system to automate and optimize quality testing.

High-visibility or “high-vis” clothing provides many people safety in their day-to-day work. Fraunhofer IGD has paired with textile service provider MEWA to develop an automated system for inspecting the quality of this clothing faster and more reliably, and thereby guarantee safety. Both companies have filed a joint patent for the system.

High-vis and protective clothing, like the kind worn by road workers, must meet certain standards prescribed by law for the safety of the wearer. Employers are liable for meeting these legal safety standards. On behalf of MEWA, the Fraunhofer Institute for Computer Graphics Research IGD has developed a system to automate and optimize quality testing.

Integrated optical quality control
Fraunhofer IGD has developed its quality control system with the assistance of MEWA Textil-Service AG and it will be used daily at two sites starting in 2020.
After being washed and dried, the articles of clothing run through a special photographing box on hangers and pictures are taken of the front and back. Fraunhofer software analyzes these pictures in real time and sends to the result to control software, which sends the clothing to other stations in the quality control process. The results of the inspection are saved in the system a valuable collection of data that is made available to MEWA in order to analyze and optimize the system as well as internal processes, such as the washing process.

Faster and more precise inspection
The high-vis clothing is inspected manually for quality by qualified employees. They inspect the washed articles of clothing for a number of aspects, including brightness and colorfastness of the high-visibility color as well as the integrity of the reflective strips. The automated solution by Fraunhofer IGD can assist employees with this visual inspection while speeding up the process at the same time. “With the help of the automated analysis, we can ensure to an even greater degree and with greater precision that the high-vis clothing meets strict safety standards even after being washed,” said Uwe Schmidt, head of engineering at MEWA. At MEWA’s locations in Schönbuch near Stuttgart and Gross Kienitz near Berlin, Fraunhofer IGD’s system is now being used in trials, with implementation at more locations being planned.

Inspection system is applicable to other industries
Fraunhofer IGD’s inspection system is available for implementation as a software module. This technology could also support other industries: Automated returns classification for the mail-order trade or use in textile recycling would be conceivable, though the technology would need to be seamlessly integrated into existing systems and processes. The development team at Fraunhofer IGD is currently working on quality controls that use not only photographs but also video recordings as well as on analyzing the recordings in real time. The significantly increased number of product views will cover every aspect of the inspection with even greater precision.

About IGD
Fraunhofer IGD is the international leading research institution for applied visual computing — image- and model-based information technology that combines computer graphics and computer vision. In simple terms, it is the ability to turn information into images and to extract information from images. All technological solutions by Fraunhofer IGD and its partners are based on visual computing.

In computer graphics, people generate, edit, and process images, graphs, and multi-dimensional models in a computeraided manner. Examples are applications of virtual and simulated reality.

Computer vision is the discipline that teaches computers how to “see”. In the process, a machine sees its environment by means of a camera and processes information using software. Typical applications can be found in the field of Augmented Reality.

INVENTING TECHNOLOGIES NO ONE CAN COPY… I.S.T © I.S.T Corporation
03.03.2020

INVENTING TECHNOLOGIES NO ONE CAN COPY… I.S.T

NEW HIGH-TECH FIBERS AND YARNS FOR THE SPORTS AND LEISURE MARKET 

With its trade fair premiere at this year's ISPO Munich at the end of January, a newcomer in the sportswear and outdoor market has achieved a well-received appearance: For the first time in Europe, the Japanese company I.S.T Corporation presented its new high-tech fiber and a spinning technology with amazing possibilities at their booth with extensive augmented reality technology. In the sports industry, I.S.T is only known to a few, although there have been first cooperations with well-known manufacturers such as Patagonia in the last seasons.

NEW HIGH-TECH FIBERS AND YARNS FOR THE SPORTS AND LEISURE MARKET 

With its trade fair premiere at this year's ISPO Munich at the end of January, a newcomer in the sportswear and outdoor market has achieved a well-received appearance: For the first time in Europe, the Japanese company I.S.T Corporation presented its new high-tech fiber and a spinning technology with amazing possibilities at their booth with extensive augmented reality technology. In the sports industry, I.S.T is only known to a few, although there have been first cooperations with well-known manufacturers such as Patagonia in the last seasons.

The CEO and president, Ms. Toshiko “Toko” Sakane, answered Textination's questions. She has been running the company - founded by her father - since November 2016. After completing her bachelor's degree in sociology / human sciences, she worked in the office of the House of Representatives of the Japanese Parliament and the former Japanese Minister of Health and Social Affairs. Later she was managing director of the I.S.T Corporation in Parlin, New Jersey, USA, founded in 2000 - a manufacturer of unique, high-temperature resistant resin materials.

I.S.T is a Japanese company with a comparatively young history. Originally founded in 1983 as an R&D company, you are now also based in the United States and in China. If you had to introduce yourself in 100 words to someone who doesn't know the company: What makes you unique?
I.S.T Corporation is an R&D-oriented Japanese material company with the claim to "invent technologies that no one can imitate". What makes us uniquely competent is our integrated process of material development, innovating our own in-house production methodologies and advancing production technologies. Through this end-to-end cycle, we can achieve various advantages including developing complete original products, securing best quality assurance, and, most importantly, letting us discover new innovations. I.S.T is committed to keep innovating new technologies so they can contribute to enriching people’s lives more.   

Your slogan is: make the impossible possible. In which markets and from which industries do you feel particularly challenged? And with which product innovations for the textile industry do you think you can move the most?
I.S.T’s focus is sporting goods and apparel industry because materials used in this industry demand a wide variety of functionalities and are likely used in extreme conditions. We find it challenging and exciting to offer our advanced innovations. As for the textile industry, we believe our KARL KARL™ spinning technology offers a new great solution for winter active inner wears because it offers all the functions they want, such as warmness, being light-weighted, and easy-care.

A central guideline of the company is the motto "Inventing technologies no-one can copy". Patent protection and a consistent brand policy characterize your activities in the market. But patents can expire and brands can be copied, what makes you uncopiable?
A patent or brand can be copied. However, what makes it impossible to copy us is that our core technologies are embedded throughout our integrated process of material development, in-house production methodologies and advancing production technologies. For example, our KARL KARL™ technology is spinning technology that offers multiple functionalities in one yarn and also can be applied to all different types of and hybrid yarns.
There are some other companies that claim their yarns having a similar function with ours, but those are single function and in a particular type of yarn. This is the most fundamental and significant difference between technologies and competitors. Other companies may be able to copy a single function from us, but it will never be the same as our products that are the results of layers and layers of our integrated innovations.
          
Initially focused on selling technology, you are now a major fiber producer yourself. In addition, you have expanded your portfolio in the past 15 years - for example in the wool market - through acquisitions in Japan and China. Where do you see I.S.T as a player in the textile sector in 2030?
Just as you see a GORE-TEX tag on any outerwear, I would like to see brand names produced by I.S.T on every sports and fashion apparel and people instantly recognize it as the sign of most advanced functional materials.

For the first time you attended ISPO Munich 2020 in January as an exhibitor to present the high-tech fiber IMIDETEX® and new KARL KARL™ yarns to the sporting goods and outdoor industry. What is so special about these two products and what makes them so suitable for use in these markets?  
IMIDETEX®, made of 100% polyimide resin and commonly used in outer space, has possess various advantageous characteristics that other existing super fibers couldn’t overcome, including it being high UV resistant, heat resistant, low water absorption, and has a high tensile strength.
Examples of possible applications for the outdoor market as in composites, would include highly resistive but also durable golf shafts or tennis rackets that can minimize the impact sent to players, and a bicycle that can absorb the shock from the ground throughout a long and competitive race. As for textile, it makes an incredibly durable sail that endures an unforgiving sun. Finally, as yarns IMIDETEX® makes a light-weighted but super strong ropes that people can trust their lives with. IMIDETEX® can provide great performances in extreme natural conditions.
KARL KARL™ is the patented spinning technology that multiplies one core thread with another thread. By expanding the yarn structure itself, it achieves lightness and warmness, which are two seemingly opposite characters to coexist. This technology can be applied to wool, cotton, silk, polyester, nylon … plus there are endless possibilities of developing new yarns by combining different characteristic yarns.
These materials by I.S.T are unrivaled and present infinite possibilities for richer designs in sports fashion scenes.

In a world in which great value is placed on nature and natural materials, man-made fibers are not always welcome. On your website you postulate, I.S.T contributes to the people around the world through chemistry for a better life style. Which aspects make a good case for that?
Our brand-new product, faux-fur, made with KARL KARL™ technology is a good example of our contribution to keep the good balance of natural and synthetic.
The real fur is fashionable but it’s a symbol of animal abuse nowadays. To conserve the nature, our KARL KARL™ faux-fur offers an alternative to fashion, while preventing polluting the ocean from using micro fibers.    

In which socially relevant subject areas do you see a particularly great need for innovation and action during the next 5 years? What is your assessment that your company will be able to offer solutions for this with its products?
We believe that light-weight is a major key factor for better lives and the planet because it allows to save energies and expand the performances.
As the first step, we are bringing in our light-weight technologies, such as IMIDETEX® composites and KARL KARL™ technology, to sporting gears and apparels to support our active lifestyle before extending those technologies to all other markets that can benefit from them.

There are various definitions for sustainability. Customers expect everything under this term - from climate protection to ecology, from local on-site production to the exclusion of child labor etc. What do you do to bring this term to life for your company and what activities or certifications do you rely on?
I.S.T's taking this subject seriously in any aspects. We aggressively approach to research and develop technologies and materials that can support human lives and planet, as well as bringing in sustainable methods and materials to our operations. For instance, we are developing a yarn making from cellulose taken out of used papers without using any harmful chemicals to humans. Also, we invested in a state-of-the-art low emission production facility to make Polyimide materials.
We are RWS (Responsible Wool Standard) certified yarn spinner as far as wool is concerned and we are using RWS certified wool fiber. As for polyester, we are using GRS (Global Recycled Standard) certified recycled polyester and as for cotton, we are using organic cotton fiber. Moreover, our company values producing materials that last forever and not to produce any wastes and/or one-time use materials.
          
Where do you get your inspiration from to research certain technologies or products? Which orders or inquiries from the textile supply chain play a decisive role?
You may think that our life is already filled with things and there isn’t a thing that we cannot get in this world. And yes, we have everything. Yet there are some functions you wish you had in addition to full of those things.
The original idea of developing KARL KARL™ technology was that we wanted to adapt functions like lightness, warmness, quick-drying and easy-care that synthetic fibers have, into natural fibers such as wool and cotton because, obviously natural fibers are much friendlier to human and the earth than petroleum-based fibers.
We believe in and keep our corporate missions: “Develop and manufacture products no others have tried before” and “Handle high-value added products”. Our inspirations for R&D come from our belief, “bringing a wish into a reality”. We do not get an inspiration from others. Our innovations inspire customers and the market.

Breaking new ground means willingness to make decisions, overcoming fears - and thus courage to fail. Not every project can succeed. In retrospect, which entrepreneurial decision are you particularly happy to have made?
Actually, for us, there is no such thing as failed projects because we never give up until each and every project becomes successful.
By carrying on our original corporate missions of “Develop and manufacture products no others have tried before” and “Confront difficulties” that my father, the founder of I.S.T, established almost forty years ago, I.S.T members including myself have learned the joy of overcoming problems and of feeling the victory.
When I took over the business, I have set my goal to “move forward to the global market to inspire the world with our technologies”.
Most recently, by making the decision to enter the sporting gears and apparel market and receiving very positive responses at the ISPO Munich 2020, I’m very pleased that we have made one step forward toward my goal.

The interview was conducted by Ines Chucholowius, CEO Textination GmbH