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Photo: Walmart Inc.
15.01.2024

What is a Virtual Fitting Room? Advantages and Early Adopters

One of the major concerns of online shopping is a consumer’s inability to touch, feel and experience products. This concern is more problematic for fashion products, when the right fit is critical for purchase decisions. Virtual Fitting Room (VFR), a technology that allows consumers to test size and fit without having to try clothing on themselves, eases this concern.

What is a Virtual Fitting Room (VFR)?
A Virtual Fitting Room (VFR) is a function that shows and visualizes a shopper’s outfit without physically trying on and touching items. VFR utilizes Augmented Reality (AR) and Artificial Intelligence (AI). By using AR for VFR, a webcam scans the body shape of shoppers and creates a 360-degree, 3D model based on their body shape.

One of the major concerns of online shopping is a consumer’s inability to touch, feel and experience products. This concern is more problematic for fashion products, when the right fit is critical for purchase decisions. Virtual Fitting Room (VFR), a technology that allows consumers to test size and fit without having to try clothing on themselves, eases this concern.

What is a Virtual Fitting Room (VFR)?
A Virtual Fitting Room (VFR) is a function that shows and visualizes a shopper’s outfit without physically trying on and touching items. VFR utilizes Augmented Reality (AR) and Artificial Intelligence (AI). By using AR for VFR, a webcam scans the body shape of shoppers and creates a 360-degree, 3D model based on their body shape.

AI further operates VFR by using algorithms and machine learning to design a full-body 3D model of a shopper standing in front of the camera. A combination of AR and AI technology allows VFR to place items on real-time images as a live video so that customers can check the size, style and fit of the products they’re considering purchasing.

Shoppers can try on clothes and shoes at home without visiting a physical store. In order to do this, customers need to first make sure they have the right settings on their phone. Then, they download a brands’ mobile applications with the Virtual Fitting Room function or visit apparel brands’ websites that support this VFR function and upload a photo of their body shape. Some brands allow a customer to create an avatar using their body shape to test out the fashion items virtually, instead of uploading a photo of themselves.

How does using a Virtual Fitting Room benefit fashion retailers?

  • Provides a convenient shopping experience
    Research conducted by the National Retail Federation in 2020 stated that 97% of consumers have ended a shopping trip or stopped searching for the item they had in mind because the process was inconvenient.
    Shoppers surveyed not only said that in-person shopping was inconvenient but that online shopping felt even more inconvenient to them.
    VFR eliminates all of these processes. Shoppers can walk over to the VFR and see what the clothes look like quickly without needing to change them.
     
  • Overcomes the limitations of online shopping
    As of 2017, 62% of shoppers preferred to shop at physical apparel stores because they could see, touch, feel and experience products. This was a major problem that online shopping could not overcome.
    VFR solves this problem effectively. According to a Retail Perceptions Report, about 40% of buyers said they would be willing to pay more if they could experience the product through AR technology. By incorporating new technologies, VFR makes shopping fun and offers a personalized shopping experience to customers, which can attract more people to online channels.
     
  • Reduces the return rate
    High return rates are a big administrative headache for fashion brands. Moreover, it threatens to cut into the profits of fashion brands if they offer free returns. 30% of the return rate in e-commerce fashion shopping is due to purchases of small-sized products, and another 22% happens due to purchases of too large-sized products.
    However, VFR alleviates this problem. Whether in store or online, people can check the fit and size of items without having to wear them themselves.

Which brands are already using Virtual Fitting Room (VFR) technology?
Gucci

Gucci is the first luxury brand which adopted VFR. They partnered with Snapchat to launch an augmented reality shoe try-on campaign. It created a virtual lens that superimposed and overlaid a digital version of the shoe on the shopper’s foot when the foot was photographed using a cell phone camera.

Along with the Shop Now button, which guides shoppers to its online store, Gucci achieved 18.9 million Snapchat users and reported positive return on ad spend, which is a marketing metric that measures the amount of revenue earned on all dollars spent on advertising from this campaign.

Otero Menswear
Otero Menswear is a brand focused on apparel for men shorter than 5’10” (1,78 m). Otero added VFR software to its online store to provide perfect fitting sizes to its customers. First, it asks customers four quick questions about their height, leg length, waist size and body type. Then, it offers a virtual avatar corresponding with the answers. Shoppers then use this avatar to see how different sizes of Otero clothing would look on them.
 
Walmart
In May 2021, Walmart announced that they plan to acquire Zeekit, a virtual fitting room platform, to provide enhanced and social shopping experiences for customers during the pandemic.

When customers upload pictures of themselves and enter their body dimensions, Zeekit builds a virtual body and then customers can dress it accordingly. Customers will simply post their photos or choose virtual models on the platform that represent the best fitting of their height, body and skin tone. Shoppers can even share their virtual clothes with others to get various opinions. Walmart brings a comprehensive and social experience to digital shopping for customers through this acquisition of VFR.

According to research by Valuates Reports, it is expected that sales of the global virtual fitting room market will grow to $6.5 million by 2025. By adopting VFR, consumers will be able to experience convenience in an advanced shopping environment. At the same time, fashion retailers will be able to increase online sales and reduce return rates by offering customers personalized online shopping experiences using VFR technology.

Source:

Heekyeong Jo and B. Ellie Jin
This article was originally published by members of the Wilson College of Textiles’ Fashion Textile and Business Excellence Cooperative.

(c) Nadine Glad
18.07.2023

Promoting transparent supply chains and a more circular economy with digital product passports

Any prospective buyer interested in knowing more about the products they have set their eyes on will have to cope with limited information on print or online manuals or engage in time-consuming research. This may change soon, as the European Commission introduced a standardised digital product passport for the upcoming legislation. A project consortium has been formed with partners from industry and academia to set ground for the developments. The idea is for the proposed passports, supported by EU regulations, to make all product information available along the entire value chain and easily accessible e.g. by QR code.

Any prospective buyer interested in knowing more about the products they have set their eyes on will have to cope with limited information on print or online manuals or engage in time-consuming research. This may change soon, as the European Commission introduced a standardised digital product passport for the upcoming legislation. A project consortium has been formed with partners from industry and academia to set ground for the developments. The idea is for the proposed passports, supported by EU regulations, to make all product information available along the entire value chain and easily accessible e.g. by QR code.

ID cards and passports are usually the first things packed when one goes on a journey. They are internationally recognized and accepted documents with all the necessary information about the holder: Commonplace items for people that will soon become just as common for electronic devices, textiles, or batteries. But mobile phones, tablet computers, and their kin usually do not travel with a passport pouch, so their digital product passports with all their “personal details” will soon be accessible at every link in the value chain via a QR code or RFID chip.

Consumers looking to buy a new piece of clothing, a piece of electronics, or even furniture or toys should have more means to understand important information about their products, including their energy efficiency, the labor conditions during manufacturing, or their reparability, in order to make informed and sustainable purchasing choices.

Product passports also hold great potential for other actors, e.g. for repairs or recycling. Current electronic products, often highly miniaturized, make it hard to understand with materials, not least toxic substances are contained and how they could be separated from another. Use-specific certificates can regulate that this type of information is available to the people who need to know it.

No final decision has yet been made about the range of information that will be contained in the product passports. For the CIRPASS project, Eduard Wagner and his team at Fraunhofer ZM is currently surveying which types of information are already covered by current legal requirements and which additional information could be contained on a digital product passport. Their aim is to provide an information architecture that determines which types of information have added value for which actors in the value chain and at what cost this information could be provided. A reparability scale that shows how easily a product is to repair has been required in France since 2021 and might be a good inclusion in the digital, pan-European product passport. “Information about energy efficiency is already required, but this information still has to be prepared on a case-by-case basis, and there are no universal European disclosure requirements for other types of circularity related information. Meaningful standardization here is one of the top goals of the product passport. Imagine we could compare the durability of all t-shirts in the EU between each other,” says sustainability expert Eduard Wagner.

For the first product passports to be ready by 2026, many actors still need to be brought on board and a consensus be found for which information is most relevant. “Our project has identified 23 groups of stakeholders that we are including in our survey of requirements, in all three sectors”, Wagner explains. “We have suppliers of materials, manufacturers of electronics, and representatives of repair and recycling associations with us.” The results of these consultations will go to the European Commission to act as pointers for the political process en route to new legal requirements for the product passport. Small to medium-sized enterprises are given special attention and support in this, as providing the required information can mean a considerable effort on their part.

Source:

Fraunhofer Institute for Reliability and Microintegration IZM

Photo: pixabay
08.02.2023

6 out of 10 consumers pay attention to sustainability criteria when shopping

ESG aspects are most important to consumers when it comes to food and clothing. Young people in particular demand information and transparency: sustainability labels, certifications and reports ensure trust. For retailers and manufacturers, sustainability is becoming a must.

Under what conditions are the cows kept whose milk I drink? Does the manufacturer of my new T-shirt tolerate child labor? Does the retailer I trust deal fairly with employees and business partners? The majority of Germans ask themselves questions like these before making a purchasing decision. When shopping, 59 percent of consumers always or at least frequently pay attention to the ecological, economic or social sustainability of retailers and manufacturers. Among those under 35, the figure is even hugher with two-thirds, and among those over 55, one in two. These are the findings of a representative survey of 1,000 people in Germany commissioned by the auditing and consulting firm PwC Germany.

ESG aspects are most important to consumers when it comes to food and clothing. Young people in particular demand information and transparency: sustainability labels, certifications and reports ensure trust. For retailers and manufacturers, sustainability is becoming a must.

Under what conditions are the cows kept whose milk I drink? Does the manufacturer of my new T-shirt tolerate child labor? Does the retailer I trust deal fairly with employees and business partners? The majority of Germans ask themselves questions like these before making a purchasing decision. When shopping, 59 percent of consumers always or at least frequently pay attention to the ecological, economic or social sustainability of retailers and manufacturers. Among those under 35, the figure is even hugher with two-thirds, and among those over 55, one in two. These are the findings of a representative survey of 1,000 people in Germany commissioned by the auditing and consulting firm PwC Germany.

Sustainability is no longer a question of "if", but "how".
"Sustainability has become mainstream in recent years. For companies, paying attention to sustainability in their supply chains has already become a must," comments Dr. Christian Wulff. The Head of Retail and Consumer Goods at PwC Germany is convinced that companies will already have to give good reasons in the near future if they do not pay attention to the environment, social aspects and good corporate governance when producing a product. "The issue of sustainability is therefore no longer a question of whether, but of how," the retail expert continues.

Sustainability includes various aspects in the three areas of environment, social and sustainable governance (ESG). In the case of environmental sustainability, the focus is on issues relating to animal welfare - such as the conditions in which animals are kept or animal testing - and the use of recyclable materials. 40 percent of Germans would like to be informed about this before making a purchase. In the social sphere, the majority of respondents would like to know whether retailers and manufacturers comply with human rights (58 percent) - for example, whether they tolerate forced or child labor in their value chains. In terms of governance, one in two respondents would like to know about supply chains and be able to trace products before making a purchase.

Sustainability is particularly important for food
How closely consumers look at sustainability also depends on the product: For example, sustainability is particularly important to them when it comes to food. 81 percent of Germans pay attention to at least one of the three ESG criteria when buying food, i.e. environment, social issues or good corporate governance. But these criteria are also relevant when buying textiles: As many as 63 percent say they look at how sustainably the item was produced when buying clothing or shoes. While environmental aspects play the biggest role for food (62 percent), consumers are paying more attention to social aspects for clothing, shoes and accessories (52 percent).

Almost every second person has recently switched to sustainable products
The growing importance of ESG aspects in the purchasing behavior of German consumers is also evidenced by the shifts toward buying sustainable products. The trend toward sustainable products is clearest in the case of food: 45 percent of respondents state that they have consciously switched to more sustainable products within the past two years. By contrast, only 17 percent admit to switching (back) to less sustainable products, with one in three stating a lack of financial resources as the reason.

For just under half of those surveyed, a possible switch to more sustainable products would be supported by better availability in stationary retail. Legal regulations are also seen as helpful, both in terms of product labeling (38 percent) and for the production process (37 percent). More eye-catching product placement in stores would also help (37 percent).

Young people in particular demand transparency and education
Consumers' need for transparency in ESG matters is significant: According to the survey, almost three quarters of Germans obtain information about environmental sustainability issues at least occasionally. Two-thirds research aspects of social sustainability. A good half regularly find out about sustainable corporate governance.

Age has a major influence on how intensively people deal with the issue: While 80 percent of 16- to 24-year-olds find out about the environmental aspects of a product before buying it, only 59 percent of those over 65 do. "Younger people in particular are actively informing themselves and demanding transparency around ESG criteria," sums up Christian Wulff.

Consumers want information on packaging and online
To meet this need for information, the PwC expert advises manufacturers and retailers to provide detailed information about ESG aspects of products, especially online. "Keeping the associated, significantly increasing flood of data up to date at all times is increasingly becoming a challenge for companies that can only be solved by significant investments in new technologies."

Consumers agree on what companies can do to lend more credibility to their sustainability activities: A solid two-thirds consider recognized sustainability labels, certifications or independently audited sustainability reports to be suitable for credibly communicating activities in terms of ESG. "The results of our survey show that labels and independent certifications are very important in gaining the trust of customers. It is therefore worthwhile to have ESG measures confirmed by external organizations," says Christian Wulff.

Retailers and manufacturers should focus on transparency
"Manufacturers and retailers are faced with the task of ensuring a high level of transparency with regard to the sustainability of their products. This calls for honesty, but also creativity: In the case of fashion, for example, it is conceivable to trace the individual stages of the supply chain in detail and to show the costs incurred in the process. In this way, consumers can understand exactly how a price comes about," concludes Christian Wulff.

Source:

PwC / Textination

Photo: Bcomp
22.11.2022

Made in Switzerland: Is Flax the New Carbon?

  • Bcomp wins BMW Group Supplier Innovation Award in the category “Newcomer of the Year”

The sixth BMW Group Supplier Innovation Awards were presented at the BMW Welt in Munich on 17 November 2022. The coveted award was presented in a total of six categories: powertrain & e-mobility, sustainability, digitalisation, customer experience, newcomer of the year and exceptional team performance.

Bcomp won the BMW Group Supplier Innovation Award in the Newcomer of the Year category. Following a successful collaboration with BMW M Motorsport for the new BMW M4 GT4 that extensively uses Bcomp’s powerRibs™ and ampliTex™ natural fibre solutions and BMW iVentures recently taking a stake in Bcomp as lead investor in the Series B round, this award is another major step and recognition on the path to decarbonizing mobility.

  • Bcomp wins BMW Group Supplier Innovation Award in the category “Newcomer of the Year”

The sixth BMW Group Supplier Innovation Awards were presented at the BMW Welt in Munich on 17 November 2022. The coveted award was presented in a total of six categories: powertrain & e-mobility, sustainability, digitalisation, customer experience, newcomer of the year and exceptional team performance.

Bcomp won the BMW Group Supplier Innovation Award in the Newcomer of the Year category. Following a successful collaboration with BMW M Motorsport for the new BMW M4 GT4 that extensively uses Bcomp’s powerRibs™ and ampliTex™ natural fibre solutions and BMW iVentures recently taking a stake in Bcomp as lead investor in the Series B round, this award is another major step and recognition on the path to decarbonizing mobility.

“Innovations are key to the success of our transformation towards electromobility, digitalisation and sustainability. Our award ceremony recognises innovation and cooperative partnership with our suppliers – especially in challenging times,” said Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network at the ceremony held at BMW Welt in Munich.

BMW first started to work with Bcomp’s materials in 2019 when they used high-performance natural fibre composites in the BMW iFE.20 Formula E car. From this flax fibre reinforced cooling shaft, the collaboration evolved and soon after, the proprietary ampliTex™ and powerRibs™ natural fibre solutions were found successfully substituting selected carbon fibre components in DTM touring cars from BMW M Motorsport. By trickling down and expanding into other vehicle programs, such developments highlight the vital role that BMW M Motorsports plays as a technology lab for the entire BMW Group. This continues in the form of the latest collaboration with Bcomp to include a higher proportion of renewable raw materials in the successor of the BMW M4 GT4.

With the launch of the new BMW M4 GT4, it will be the serial GT car with the highest proportion of natural fibre components. Bcomp’s ampliTex™ and powerRibs™ flax fibre solutions can be found throughout the interior on the dashboard and centre console, as well as on bodywork components such as the hood, front splitter, doors, trunk, and rear wing. Aside from the roof, there are almost no carbon fibre reinforced plastic (CFRP) components that were not replaced by the renewable high-performance flax materials. “Product sustainability is increasing in importance in the world of motorsport too,” says Franciscus van Meel, Chairman of the Board of Management at BMW M GmbH.

Bcomp is a leading solutions provider for natural fibre reinforcements in high performance applications from race to space.

The company started as a garage project in 2011 with a mission to create lightweight yet high performance skis. The bCores™ were launched and successfully adopted by some of the biggest names in freeride skiing. The founders, material science PhDs from École Polytechnique Fédérale de Lausanne (EPFL), used flax fibres to reinforce the balsa cores and improve shear stiffness. Impressed by the excellent mechanical properties of flax fibres, the development to create sustainable lightweighting solutions for the wider mobility markets started.

Flax is an indigenous plant that grows naturally in Europe and has been part of the agricultural history for centuries. It requires very little water and nutrients to grow successfully. In addition, it acts as a rotational crop, thus enhancing harvests on existing farmland. Neither cultivation nor processing of the flax plants requires any chemicals that could contaminate ground water and harvesting is a completely mechanical process. After harvesting the entire flax plant can be used for feed, to make oil and its fibres are especially used for home textiles and clothing. The long fibre that comes from the flax plant possesses very good mechanical properties and outstanding damping properties in relation to its density, making it especially suited as a natural fibre reinforcement for all kinds of polymers.

The harvesting and processing of flax takes place locally in the rural areas it was grown in. Using European flax sourced through a well-established and transparent supply chain it allows to support the economic and social structure in rural areas thanks to the large and skilled workforce required to sustain the flax production. When it comes to the production of technical products like the powerRibs™ reinforcement grid, Bcomp is investing in local production capacities close to its headquarters in the city of Fribourg, Switzerland, thus creating new jobs and maintaining technical know-how in the area. The production is built to be as efficient as possible and with minimal environmental impact and waste.

Further strengthening the local economy, Bcomp aims to hire local companies for missions and with the headquarters being located in Fribourg’s “Blue Factory” district, Bcomp can both benefit from and contribute to the development of this sustainable and diverse quarter.

Source:

Bcomp; BMW Group

(c) Oeti
31.05.2022

OEKO-TEX® Association celebrates 30th birthday

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

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

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

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

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

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

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

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

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


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

Photo: unsplash
19.04.2022

Off-price - Boom in bargain hunting

  • Off-price becomes a growth machine for the fashion industry
  • Off-price segment grows five times faster than regular offer
  • Growth of online sales in the off-price segment tripled - market share 40%
  • Future growth almost exclusively online

Fashion consumers in Germany appreciate bargain hunting. The off-price segment, in which high-end fashion brands are offered at lower prices in online and offline outlets, was already growing faster than the entire fashion industry before 2020 and has shrunk less during the pandemic. Between 2025 and 2030, the segment is expected to grow five times faster than the entire fashion industry. One reason for this is the strong online presence of this product offering, which benefited from the boom in online shopping during the pandemic.

  • Off-price becomes a growth machine for the fashion industry
  • Off-price segment grows five times faster than regular offer
  • Growth of online sales in the off-price segment tripled - market share 40%
  • Future growth almost exclusively online

Fashion consumers in Germany appreciate bargain hunting. The off-price segment, in which high-end fashion brands are offered at lower prices in online and offline outlets, was already growing faster than the entire fashion industry before 2020 and has shrunk less during the pandemic. Between 2025 and 2030, the segment is expected to grow five times faster than the entire fashion industry. One reason for this is the strong online presence of this product offering, which benefited from the boom in online shopping during the pandemic.

"Online accounts for 40% of the market in the off-price segment and is growing rapidly at an average of 13% per year. Almost all of the growth in off-price will take place online in the next three years," says Katharina Schumacher, digital expert and author of the study entitled "Mastering off-price fashion in an omnichannel world". "This opens up opportunities for fashion companies to reach new consumers with their brand who would not normally consider a full-price purchase."
          
For the study, global data on the off-price market was analysed and 11,000 consumers in ten countries were surveyed. German shoppers are particularly interested in bargains. In the past year, many consumers in Germany have increasingly shopped online. In the off-price segment, the growth of the online market has tripled: from 9% compound annual growth rate (CAGR) in 2020 to 27% in 2021.

By 2025, growth in Germany as well as in Austria could amount to 16% per year. The average in the EU lies at 13%. In addition, offprice offers fashion brands the opportunity to sell their surplus goods in a sustainable way.

Typical online off-price consumers, so-called enthusiasts, are particularly interested in luxury, affordable luxury and premium products and buy on specialised platforms such as dress-for-less, BestSecret, brands4friends or Scarce. They value style and usually start without a specific brand in mind. They enjoy comparing prices and spend 2.3 times more than other fashion consumers. In Germany, 30% of off-price shoppers who spend more than 1,000 euros per year account for 70% of total fashion spending. "However, these shoppers are generally willing to pay full price for premium and luxury brands," says Achim Berg, fashion industry expert at McKinsey. "Fashion suppliers should therefore carefully consider which goods they offer off-price."

Offline purchases with increasing expectations
Off-price shoppers who shop in stores are often younger and have a higher purchasing power than other fashion consumers. They like to shop in outlet centres, while they often shy away from going to a regular luxury shop on a shopping mall.
"Outlets therefore offer luxury fashion companies the opportunity not only to increase their profitability but also to reach new groups of shoppers without cannibalising their full-price assortment and damaging their brand," says Felix Rölkens, McKinsey expert for the fashion industry and co-author of the study. "However, shoppers expect more and more from outlets: comparable shop layouts as in regular brick-and-mortar retail, multilingual shoppers, restaurants and a good shopping experience."
          

Source:

McKinsey & Company

Photo: Pixabay
21.12.2021

Consumption after Corona: Consumers focus on Quality and Sustainability

Study by Roland Berger and Potloc

  • Consumers expect more quality (67%) and sustainability (51%) from brands and products
  • Small retail stores are trendy and score with exclusive product range
  • Furniture, household and garden articles remain in focus

The Covid pandemic has changed the purchasing behavior. Consumers are focusing primarily on brands with high quality standards (67%) and sustainable products (51%). Even though the trend towards online shopping remains unbroken, small stores in particular can score points with exclusive product ranges. Almost a third (32%) of consumers visit these types of stores more frequently than before the crisis. These are the core findings of the "Decoding Consumer Behavior" study published in fall 2021 by Roland Berger and Potloc, for which 2,100 consumers from twelve countries were surveyed.

Study by Roland Berger and Potloc

  • Consumers expect more quality (67%) and sustainability (51%) from brands and products
  • Small retail stores are trendy and score with exclusive product range
  • Furniture, household and garden articles remain in focus

The Covid pandemic has changed the purchasing behavior. Consumers are focusing primarily on brands with high quality standards (67%) and sustainable products (51%). Even though the trend towards online shopping remains unbroken, small stores in particular can score points with exclusive product ranges. Almost a third (32%) of consumers visit these types of stores more frequently than before the crisis. These are the core findings of the "Decoding Consumer Behavior" study published in fall 2021 by Roland Berger and Potloc, for which 2,100 consumers from twelve countries were surveyed.

"Overall, consumers are much more positive about the future and, for the most part, do not want to cut back further in 2022. This is good news for retailers, who had to overcome an unprecedented cut with the pandemic," says Thorsten de Boer, Partner at Roland Berger. "However, brands and retailers should take into account that consumers have different priorities when making decisions today. They also expect a consistent online presence across platforms and devices more than ever. And when they enter a store, they are looking for an exclusive experience."

Customers focus on goods for their own homes and everyday needs
In the immediate purchasing decision, value for money (68%) and quality (56%) are the most important criteria for consumers. Here, too, sustainability is becoming increasingly important. One-third want to give even greater consideration to this criterion in the future. Sustainability has finally reached the consumer," says Richard Federowski, Partner at Roland Berger.

A look at the shopping baskets shows that the focus continues to be on products for everyday needs and the home (furniture, household and garden articles). 37% have spent more money on food this year, for example, and 29% also want to make additional investments here in 2022. "The trend towards cocooning, i.e. retreating into a private domestic life, continues to have an impact. The demand for business outfits, will tend to remain at a low level in the near future," says Federowski. "Fashion from the sports and leisure sector also continues to be in high demand, and sustainability aspects will increasingly have to be taken into account in collections. However, purchases here will be made primarily online because it is simply more convenient for most people."

City center retailers can score with customer service and product ranges
Online retailing continues to gain ground globally. Online retailing continues to gain ground globally. A third of the people surveyed said they would order more online in 2021 than in the previous year. Above all, free delivery and the ability to return items easily and free of charge are important to customers. "Consumers have learned how convenient and fast online shopping can be, and this is true across all product categories - including groceries to an increasing extent," says de Boer. Services such as (virtual) advice, click-and-collect or live shopping currently play only a minor role in online shopping, but will become essential in the future.

The situation is very different when it comes to shopping in stores. German consumers in particular are flocking to city centers to enjoy the benefits of personal advice (51%). While frequencies are not yet at pre-Corona levels, conversion rates are very good. They also want to access exclusive product ranges (37%) and celebrate their shopping. "Therein lies an opportunity for retailers and city centers," says de Boer. "However, in order to compete, even small retailers can no longer do it without a digital component. To do so, they need to take their exclusive experiences to social platforms. They also know their clientele well and often sit on valuable data - this potential of 'small data' and 'communities' needs to be tapped."

The study in English can be downloaded here.

Source:

Roland Berger and Potloc

(c) FESPA
02.11.2021

FESPA back with first live events in Europe

FESPA has kick-started business recovery in the speciality print and signage communities with the successful return of FESPA Global Print Expo and European Sign Expo 2021 (12 – 15 October 2021) after a two-year gap.

The first live FESPA events in Europe since Spring 2019 attracted a strong audience dominated by business leaders, who came with an appetite to update their industry knowledge with a view to short- and medium-term investment.

FESPA has kick-started business recovery in the speciality print and signage communities with the successful return of FESPA Global Print Expo and European Sign Expo 2021 (12 – 15 October 2021) after a two-year gap.

The first live FESPA events in Europe since Spring 2019 attracted a strong audience dominated by business leaders, who came with an appetite to update their industry knowledge with a view to short- and medium-term investment.

International audience of senior decision-makers
Visitors came from more than 100 countries, with a strong emphasis on the Benelux region and Germany which accounted for 49% of the audience, in line with expectations given the location in Amsterdam. Other strongly represented countries were Italy, France, the United Kingdom, Spain and Poland. As anticipated, the challenges for long-haul travellers due to COVID-related restrictions resulted in fewer visitors from outside Europe than usual for a Global Print Expo event. In total, the events attracted 7,850 unique visitors, 42% of whom attended for more than one day, bringing total visits to 11,130.

Close to half of all visitors (44%) were owners or managing directors, reinforcing the significance of the event as a springboard for business recovery and forward planning. Two in three visitors influence or make final purchasing decisions in their business.

54% of visitors stated that they were visiting FESPA for the first time, indicating a thirst for market knowledge, insight and inspiration following the commercial challenges of the pandemic.

Sources of inspiration
Printeriors was once again a popular attraction for visitors. Inspired by nature and curated by FESPA’s Textile Ambassador, Debbie McKeegan, the feature highlighted digitally printed applications targeted at printers operating in or looking to expand into interior décor. In collaboration with industry suppliers including Imageco, Kornit Digital, PONGS, swissQprint and TTS, the products displayed were produced using a series of high-end technologies, print processes and materials.

The World Wrap Masters Europe 2021 competition was also a key area of interest. In addition to a series of demonstrations and workshops from wrap experts, visitors saw competitors battle it out for the title of the “World Wrap Master of Europe 2021”. On day four, Norman Brübach from Germany was crowned the winner and will go on to compete against regional champions in the World Wrap Masters Final 2022 at FESPA Global Print Expo 2022 in Berlin.

For members of the community unable to attend the event in person, FESPA and its exhibitors provided an array of live-streamed and virtual content. The FESPA Live sessions involved conversations with key exhibitors, printers and print experts on the latest trends and innovations and these attracted 5,125 views throughout the four-day event. The recordings of the sessions are also still available to watch on demand.

Neil Felton, FESPA CEO comments: “Feedback from exhibitors was effusive, with many commenting on the upbeat mood among visitors, the unmatched value of face-to-face conversations with senior decision-makers, the enthusiasm for the new technologies and consumables on display, and the overriding sense of optimism for the future. The buzz in the halls was energising and the impression was that delegates felt very confident and happy to be in a live event environment again after such a long time.”

Neil Felton concludes: “The past two years have undoubtedly been challenging for everyone in our community. To move forward, printers and signmakers need to unearth new opportunities, explore the latest technologies and meet with peers to share ideas. This year’s events were an important milestone in our collective recovery and we hope that our next Global Print Expo and European Sign Expo, which will return to Messe Berlin, Germany, from 31 May – 3 June 2022, will finally put our whole global community back in motion.”

(c) Checkpoint Systems
28.09.2021

Checkpoint Systems: Retail Technology Solutions – Success needs a Team

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

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

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

 

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

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

 

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

 

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

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

 

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

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

 

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

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

 

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

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

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

 

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

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

 

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

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

 

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

 

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

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

Source:

The Interview was conducted by Ines Chucholowius, Managing Partner, Textination GmbH.

Photo: pixabay
13.04.2021

KPMG Study in Cooperation with EHI: Fashion 2030

For years now, fashion retail has been able to show a moderate but steady growth in sales. However, the share of sales accounted for by online retail is becoming significantly stronger, and consequently that of stationary retail is becoming weaker. In just 10 years, online fashion retail will have a market share as high as that of local fashion stores, according to one of the findings of the study "Fashion 2030 - Seeing what fashion will be tomorrow" by KPMG in cooperation with EHI. "For retailers, the decline in sales in the stationary sector means that they have to reduce their stationary areas," says Marco Atzberger, Managing Director of EHI. A dilemma, because the majority of customers prefer to shop in their local fashion store, despite all the online alternatives.

For years now, fashion retail has been able to show a moderate but steady growth in sales. However, the share of sales accounted for by online retail is becoming significantly stronger, and consequently that of stationary retail is becoming weaker. In just 10 years, online fashion retail will have a market share as high as that of local fashion stores, according to one of the findings of the study "Fashion 2030 - Seeing what fashion will be tomorrow" by KPMG in cooperation with EHI. "For retailers, the decline in sales in the stationary sector means that they have to reduce their stationary areas," says Marco Atzberger, Managing Director of EHI. A dilemma, because the majority of customers prefer to shop in their local fashion store, despite all the online alternatives.

Textiles, media and electrical goods are currently the categories most frequently purchased online. Consumers believe that online shopping in these categories will also be particularly attractive in the future, although there is also considerable interest in online purchasing of furniture, drugstore and hardware store products.

With sales of 16.5 billion euros, online fashion retail already accounts for 25 percent of total fashion sales, which were around 66 billion euros in 2020. The experts at KPMG and EHI predict that this share will double in the next ten years. The forecasted annual sales of 79.2 billion euros in 2030 are to be divided equally between online and stationary stores. In order to position itself correctly here, the textile trade is facing strategic changes in terms of sustainability and digitization in addition to reductions in retail space. Concepts such as circular economy (recycling) or re-commerce (second-hand) are just as much part of the customer's demands as a smooth (channel-independent) shopping experience or a targeted customer approach.

Online information sources are becoming increasingly important for customers. However, browsing in stores continues to be the main source of information when shopping. One exception, however, is electrical goods - the independent opinion of reviews is the most important source of information here.

Reductions in retail space
As the market share of online fashion retail is becoming increasingly stronger than that of the overall fashion market, there will be a scissor effect for the stationary clothing retail – unless decisive parameters such as store rents change. Permanently reducing the share of fixed costs in the stationary sector can lead to a harmonization of both sales channels and prevent massive cannibalization effects, according to the authors of the study. The reduction in retail space will have the most severe impact on department stores and multi-story formats. Interviews with retail experts show that the retail expects a reduction in space of around 50 percent by 2030 and anticipates shrinkages of up to 70 percent at peak times. However, the current crisis also offers fashion retailers a greater choice of appealing rental spaces and therefore the opportunity to position themselves for the future by strategically streamlining their own store networks, adapting their space and differentiating their concepts to suit their target customers - in combination with smart digital solutions.

Multi-channel approaches are continuing to grow. On the one hand, stationary retailers will increasingly enter the online market; on the other hand, it can be observed that the opening of their own local stores by previously online-only retailers is on the rise.

Shopping experience
For a successful shopping experience, the city centers must be vibrant as well as attractive and should offer entertainment. All of this requires cooperation between all of the local players involved and collaboration with conceptually oriented urban development. To increase the individual customer loyalty and build real trust, fashion retailers must invest more in emotionality and use IT solutions. Whether in-store or online, customers want a targeted and smooth shopping experience, which for retailers means cleverly linking the systems. Availability and finding clothes in the right size also play a significant role in the stationary fashion retail. 42 percent of customers say that they would shop more often in stores, if these factors were guaranteed.

Already today, a concrete shortage of qualified personnel can be observed in certain regions and areas of responsibility. This is likely to become even more severe in the future. The retail’s own qualification measures will increase, and the industry's image will have to be improved.

Despite all technological support, the human being remains the most important factor in retailing - 88 percent agree on this. For 60 percent of consumers, encounters with people in a retail store are becoming increasingly important.

Sustainability
For almost half of the consumers surveyed (46 percent), sustainability is already a worthwhile concept today. This also includes re-commerce and second-hand. 34 percent of customers already buy used clothing, and another 28 percent can imagine doing so. In terms of occasions, a large proportion can also imagine renting clothing. The second-hand clothing trend has the potential to claim a market share of up to 20 percent in the next ten years and therefore to become a significant market segment in fashion retail.

In addition to the sustainability debate, the main factors driving this trend are the digitalization of the "second-hand store around the corner" and the large online fashion platforms that are discovering this market for themselves and making consumers increasingly aware of the models of temporary use.

Laws and regulations as well as increasing pressure from stakeholders have contributed to the growing importance of sustainability. However, the consumer goods sector attaches greater importance than other sectors to the aspect of being able to achieve a reputational gain through a sustainability strategy.

When it comes to the circular economy or rather the recycling of raw materials from used clothing, many companies are already involved in non-profit initiatives and research projects to develop the relevant technologies. In 2030, also due to legal initiatives, many clothing items will probably be made from recycled textile raw materials or fibers, which would substantially shorten the supply chains. "Automated fiber recovery, increasing unit labor costs in the Far East and fewer used textiles, this is the starting point for a perspective revival of textile production in countries close to Europe as well as in Europe itself," says Stephan Fetsch, Head of Retail EMA at KPMG. Although circular economy does not yet play a major role due to the current limited availability, it shows great potential: 28 percent have already purchased recycled textiles, and over 50 percent are positive about it.

Customers believe that retailers and manufacturers are responsible for sustainability. They, on the other hand, would like consumers to initiate the upswing of re-commerce by changing their behavior. New compliance guidelines will have an accelerating effect on the development of the re-commerce market.

Source:

(Studies; KPMG/EHI or rather KPMG):
- Fashion 2030: Sehen, was morgen Mode ist (Seeing what fashion will be tomorrow - only available in German)
- CONSUMER MARKETS: Trends in Handel 2020 (Trends in Retail 2020 - only available in German)

(c) pixabay
02.03.2021

Study on Purchasing Behavior during the Corona Crisis in Germany, Austria, Switzerland and Sweden

Rogator / exeo investigate for the second time the purchasing behavior during the Corona crisis in Germany, Austria, Switzerland and Sweden ("OpinionTRAIN") and presented the results:

Rogator / exeo investigate for the second time the purchasing behavior during the Corona crisis in Germany, Austria, Switzerland and Sweden ("OpinionTRAIN") and presented the results:

  • Declining frequency of visits to discounters and more visits to hypermarkets
  • Significant shift in consumer behavior: More spending on groceries
  • Dynamic pricing is rejected by consumers
  • Online retail: The crisis winner (especially among younger consumers)

Supermarkets and hypermarkets have benefited from the Corona crisis in multiple ways. Firstly, the spending on groceries by German households has risen significantly (more home office, less traveling, more time spent with family and on cooking). Secondly, in 2020, the sales market share of discounters fell by around 1 percentage point to 42.1%, while full-range retailers gained 1.5 percentage points (to 34.8% market share).

“With the continuously growing competition and the existing distribution struggles, it is not surprising if the news on the grocery trade increasingly contain the tenor price war again in the new year. The increase in VAT at the beginning of the year has speeded up the price competition”, says Johannes Hercher, CEO of Rogator AG and co-author of the OpinionTRAIN study

An overview of the results:

Declining frequency of visits to discounters and more visits to hypermarkets
While shopping in all four countries surveyed most frequently took place in supermarkets in the past 2 months (Visits in the past 2 months: Germany 81%, Austria 86%, Switzerland 79%, and Sweden 79%), Germany has the highest percentage of respondents (71%), compared to other countries, who purchased groceries at discounters. Against all expectations, the leading discounters such as Aldi and Lidl have performed relatively worse than the full-range retailers during the Corona crisis. Compared to the first data collection (Apr./May2020), the share of consumers with purchases in discounters in Germany decreased from 74% to currently 71%, the share of shoppers in supermarkets remained unchanged (81%), and the consumer rate for hypermarkets (e.g. Real, Kaufland) increased significantly (from 34% to 44%). While especially older consumers are staying more loyal to the discounter, the consumer rate in the <30 age group is particularly low at 53%. Instead, online grocery shopping shows a high relevance among younger consumers. Almost one in three respondents said, that they had ordered groceries online in the past 2 months.

Significant shift in consumer behavior: More spending on groceries
The crisis situation is leading to massive changes in purchasing behavior. In almost all types of grocery shops, the frequency of visits has decreased, except for online shopping and organic food stores. The reaction patterns of the consumers are becoming increasingly entrenched. As already observed in Apr./May 2020, consumers are going less frequently to grocery stores, but are purchasing more items per visit. In many cases, the discounters do not meet the consumers' need for complete purchases. This is bitter in many respects. In Germany, for example, around a quarter of respondents say, that their spending on food increased during the Corona crisis (5 % are assuming a decrease), while this is the exact opposite (8% increase and 21% decrease in expenses) for clothing (textile, without sports). These figures reflect a massive shift in consumption. This is an indicator that Corona has also changed the statistical market basket. For 2020, the inflation rate for groceries is reported at 2.4%. In this case, most of the change in spending habits can be explained by a quantity effect.

Dynamic pricing is rejected by consumers
Since price flexibility is being discussed in retail as the new "silver bullet to increase margins," the OpinionTRAIN study took a closer look at consumers' views on dynamic pricing ("when demand goes up, the price goes up; when demand goes down, the price goes down"). Results: The consumers' enthusiasm for dynamic pricing in retailing is rather limited. This is not a German phenomenon. In all four countries, the rejection of dynamic pricing is greater than the approval. For retail companies, the "total rejection" segment presents a major threat in particular. This group includes about one-third of consumers and rejects flexible pricing in all 20 product categories presented. Many consumers clearly long for continuity, especially in times of significant changes in terms of retail prices. Although consumers who have already had experience of dynamic pricing (prices can change every hour) in online retailing are more relaxed about the issue, the implementation of dynamic pricing nevertheless involves a significant risk of damage to the customer relationship and a lasting loss of trust.

Online retail: The crisis winner (especially among younger consumers)
The reinforcement of online sales observed in recent years is receiving a new boost due to Corona. The shift in purchasing in favor of online retailing is evident in all four countries, with the strongest showing in Sweden. Here, 40% of consumers say that they ordered more online during the Corona crisis (8% less). Similar results, slightly more moderate, are also seen in Germany (29% more, 9% less ordered online). The demand shift in favor of online purchasing is particularly strong among younger consumers under the age of 30, while it is relatively weak among the age group of 60+.

“It is becoming increasingly apparent, that Corona will also have a medium-term impact on demand behavior. For instance, consumer preferences also seem to diverge more along age segments: On the one hand, the younger consumers are directing towards omnichannel shopping, where even fluctuating prices are not a major problem. And on the other hand, the older consumers prefer in-store shopping and have a strong desire for stable and reliable prices”, summarizes Prof. Dr. Andreas Krämer, CEO of exeo Strategic Consulting AG and professor at the University of Applied Sciences in Iserlohn as co-author of the OpinionTRAIN study.

Source:

Rogator AG

(c) STF Swiss Textile & Fashion Institute
23.02.2021

Sustainability Management in Textiles - Interview with Sonja Amport, Director of STF

Contact restrictions, mandatory use of face masks, home office: The Coronavirus has turned our daily lives upside down and reduced public life almost to zero. The impact of the pandemic has even further in-creased the existing pressure for action to achieve the Sustainable Development Goals. And that is why, it is not surprising that the issues of sustainability, climate protection and digitization are gaining ground in the industry's and consumers' awareness. New management qualities are required.

Textination talked to Sonja Amport, Director of the STF Swiss Textile & Fashion Institute, about the new training course CAS Sustainability Management in Textiles. After career experiences in the industry and in associations, the business economist with a master's degree in International Management has been contributing her knowledge of textiles, education, business administration, as well as marketing and sales to STF with vigor and passion since 2015.

Contact restrictions, mandatory use of face masks, home office: The Coronavirus has turned our daily lives upside down and reduced public life almost to zero. The impact of the pandemic has even further in-creased the existing pressure for action to achieve the Sustainable Development Goals. And that is why, it is not surprising that the issues of sustainability, climate protection and digitization are gaining ground in the industry's and consumers' awareness. New management qualities are required.

Textination talked to Sonja Amport, Director of the STF Swiss Textile & Fashion Institute, about the new training course CAS Sustainability Management in Textiles. After career experiences in the industry and in associations, the business economist with a master's degree in International Management has been contributing her knowledge of textiles, education, business administration, as well as marketing and sales to STF with vigor and passion since 2015.

The history of the STF Swiss Textile & Fashion Institute began in 1881. In this year Pablo Picasso was born and Billy the Kid was shot. The Tales of Hoffmann by Jacques Offenbach was premiered and Thomas Alva Edison built the world's first electric power station. The Breuninger department store opened at Stuttgart's market square and Rudolph Karstadt's first store in Wismar.
What led to the foundation of STF during this period of time and what values do you still feel committed to today?

In 1881, the textile industry in Switzerland was thriving. Companies in the sector of spinning, weaving, finishing and others burgeoned. However, there was a shortage of trained specialists who could have operated or repaired the machines. This is why the companies teamed up and founded the STF Swiss Textile & Fashion Institute - a place for education and training of specialists for the Swiss textile and clothing industry. For this reason, the STF is still organized as a cooperative today. Therefore, we are still committed to the values of competence, customer orientation, innovation, inspiration and passion to this day.

If you had to introduce your educational institution in 100 words to someone who doesn't know the Schweizerische Textilfachschule: How does the school define itself today and on which fields of activity does it focus?
The STF Swiss Textile & Fashion Institute stands for sustainable educational competence covering the entire life cycle of a textile, fashion or lifestyle product. With the "STF-LAB", the STF positions itself as an educational service provider with three business fields. The core field is "Education", where the STF offers numerous training and further education courses, from basic education to bachelor's and master's degrees. In the "Incubator & Makerspace" (STF Studio), the main focus is on shared infrastructure, mutual inspiration and the thereby together achieved progress. In the third business field, "Think Tank & Consulting", the school acts as a think tank, where experts can be "hired" and part-time management is offered.

Keyword life-long education: What further education programs does the STF offer for the textile and clothing industry, even after a successful degree?
Which industry sectors and which countries are you focusing on?

Firstly, we offer a variety of informal modular courses for the textile and clothing industry as well as retail, in which one can achieve a good overview of a specific topic within 45 lessons. Such as: Welding & Bonding, Smart & Functional Textiles, Start-up in Fashion or the Steiger Stitch Module, where you learn to program your own knitting designs and then knit them on a "Shared Machine" at STF. We also offer two-week intensive summer courses each year, for example in Sustainable Fashion Design. In terms of formal education, I can recommend our master’s program in Product Management Fashion & Textile in German or our two CAS in Sustainability Management in Textiles. Once with face-to-face classes in German and once via e-learning in English. At the moment, we are focusing our programs on Germany, Austria and Switzerland (DACH region). Our internationalization strategy was abruptly stopped due to Covid-19. With our English master's programs, we were focusing particularly on the Indian and Chinese markets We are now strategically repositioning ourselves with English language courses and will start marketing again from 2022 onwards. The goal is to provide flexible, modular master's programs with a high e-learning component, so that costs remain moderate and travelling can be reduced.

Sustainability has changed from a buzzword to a matter of course: The latest OTTO Trend Study even says, that sustainable consumption has entered the mainstream society. What does this mean for the textile and clothing industry? Are the companies positioned in terms of personnel in such a way, that they have professionally incorporated this complex of topics into their service portfolio?
Swiss companies have recognized, that they only have a chance against foreign competitors, if they are capable of innovation, consistently operating in a niche and can stand out through sustainable production. Sustainability is therefore an absolutely central USP. With this in mind, many companies are dealing this and, of course, also send their employees to us for further training.

The STF offers - so far being the only one in the German-speaking area - an internationally recognized further education in the field of Sustainability Management in Textiles as a Certificate of Advanced Studies CAS. Which sub-areas from design, production, process optimization to marketing does the certificate cover?
The STF offers the internationally recognized University of Applied Sciences certificate in collaboration with SUPSI, the Scuola Universitaria Professionale della Svizzera Italiana in Ticino.

In the degree program, we look from a holistic perspective and at the entire value chain of a textile, i.e. from design to production and to marketing, global challenges, where sustainability acts as a multilateral solution. In addition, the normative and strategic management of sustainability, topics related to social responsibility as well as initiatives and standards for the textile industry are highlighted. An important element of the CAS are raw materials and products, i.e. not only sustainable fibers but also fabrics or the use of chemical agents. Last but not least, aspects around biodiversity, animal welfare, marketing, labeling as well as possible future scenarios and best practice examples are highlighted.

Who could be interested in the CAS Sustainability Management in Textiles and why? What impact can the certificate have on a career?
The CAS is attractive for managers who are generally concerned about the strategic orientation of a company, as well as for specialist employees in design, product development, purchasing, sales or quality management who are responsible for operationalizing the sustainability strategy. And of course we always welcome young designers with their own fashion labels willing to break new, sustainable grounds and to stand out from the rest. The push in professional life is strongly related to one's own personality. So far, however, all graduates have found attending the further education program to be extremely beneficial for their own career paths.

What about the formal aspects of the CAS? For example, are there selection criteria, by when do you have to register, what does the curriculum look like, and what are the fees for attendants?
We start the educational courses at the end of August each year. Early registration, preferably by mid-May, is recommended to secure a place. In the face-to-face course, 120 lessons take place in Zurich and Ticino, costs of CHF 5,900. -, including teaching materials and examination fees, can be expected. In the e-learning course, with a few days of on-site attendance, the content is taught synchronously by Microsoft Teams, usually by the same lecturers. Here, the fee is CHF 5,600.

These costs do not include personal expenses as well as travel and accommodation costs.

Those who are interested can find the facts & figures on our homepage (available in German only):
(www.stf.ch/kurse/cas or www.stf.ch/kurse/cas-online)

The COVID-19 pandemic has clearly shown us the limitations of mobility. How have you responded to this as an educational institution?
Physical limitations can easily be overcome with e-learning. One of the reasons why our classes continued regularly throughout the pandemic period. For the period after Covid-19, we are planning, in addition to face-to-face study modules, further online-only seminars, such as our CAS-Online. These will be offered increasingly in English as well. We are also currently testing possible forms of hybrid lessons. Meaning, while some are educated on-site in Zurich, people who have to travel a long way, such as those from Germany, Austria and Switzerland (DACH region), can attend the lessons virtually and live from a distance.

The past year has left its mark on the textile and apparel industry. When you look back on a year of "state of emergency" - what positive experiences do you take with you, where do you see a need for improvement?
It was definitely a year of a state of emergency! One positive aspect is, that we at STF were ready and able to teach online from day one of the lockdown. The learners, students and my team all showed the greatest understanding and flexibility. But as an institute in the textile, fashion and lifestyle sector, teaching also thrives on visual materials. Being able to feel and smell the yarns and fabrics, as well as to discuss the experiences in person, are important learning experiences. It is definitely a challenge to implement such key learning elements online. Overall, Covid-19 has catapulted us forward as an institution in regards to the topic of digitization by what feels like two years. However, I would be grateful if we could return to normality as soon as possible and to an everyday life with "less distance".

Breaking new ground means willingness to make decisions, overcoming fears - and thus courage to fail. Not every project can succeed. In retrospect, which decision that you made for the STF profile are you particularly pleased about?
I'm proud to say that most of the projects we tackle are successful. There is almost always a way. Sometimes, as you move forward, you just have to adjust the direction a bit to get where you want to go. A groundbreaking innovation was certainly the modularization of (almost) all degree programs. Students can therefore benefit from a wide range of choices and create their own curriculum.

A second decision I'm grateful for was that, as a small institute, we invested a lot in expanding our digital capabilities and infrastructure at a very early stage, which we are now benefiting from. With very well-trained lecturers and a learning platform, a VM platform and modern 3D software in various subject areas, we consider ourselves a pioneer in e-learning and digitalization across Europe. Capabilities, which also pay off in terms of sustainability.

The interview was conducted by Ines Chucholowius, Managing Director of Textination GmbH

 

Further information:

Bild Gerd Altmann, Pixabay
02.02.2021

5th Otto Group Trend Study: Ethical consumption established in German mainstream

Ethical consumption seems to have arrived at the center of society. 70 percent of respondents in the current trend study state that ethical criteria have become a fixed component of their purchasing decisions. 82 percent are in favor of a longer product life and greater material efficiency. And 63 percent are now even willing to bear the additional costs for climate-neutral products. The Otto Group's fifth Trend Study 2020 on ethical consumption formulates provocative theses that encourage rethinking and a new fresh view on the post-Corona world. 

Ethical consumption seems to have arrived at the center of society. 70 percent of respondents in the current trend study state that ethical criteria have become a fixed component of their purchasing decisions. 82 percent are in favor of a longer product life and greater material efficiency. And 63 percent are now even willing to bear the additional costs for climate-neutral products. The Otto Group's fifth Trend Study 2020 on ethical consumption formulates provocative theses that encourage rethinking and a new fresh view on the post-Corona world. 

The trend towards ethical consumption has been observed for many years. Meanwhile, the focus of consumers has changed significantly. They no longer just want to do something good for themselves, they increasingly want to make a difference for others with their consumption. This has noticeable consequences for companies now, because those whose business activities demonstrably harm the environment and nature are finding it increasingly difficult to compete. Companies that do not share the values of their customers, which they believe in and hold on to, quickly lose the trust of their customers. And those who evade their responsibility for the common welfare, are sometimes even boycotted.

"The demands for sustainable changes in our economic system to politics and companies, and the willingness to take responsibility have reached the center of society," says the head of the study, Prof. Peter Wippermann of Trendbuero.

Key results of the current 2020 trend study include:

Ethical consumption becomes mainstream
For 70 percent of Germans, ethical criteria have become an essential part of their purchasing decisions. 20 percent of the respondents even say that they buy more consciously according to ethical criteria since the Corona crisis. Corona has led many people to rethink; purchasing decisions better thought-out, check whether they are necessary they seem to be taking on a different significance in the lives of individuals.
 
The throwaway society is becoming a discontinued model
82 percent of those surveyed are prepared to join the path from a throwaway society to a circular economy, and they are in favor of longer product lives and greater material efficiency. In addition, 63 percent would bear the additional costs for climate-neutral products. Here, too, is a change in the attitude of consumers, who appear to be increasingly willing to pay for the emissions they cause.
     
Sharing and second-hand are trending among consumers
The study shows that 73 percent of respondents think it is good to buy or sell used things such as worn fashion or old furniture. 54 percent of respondents even plan to borrow more in the future. While in 2013 52 percent of respondents were willing to share, swap, borrow or buy used things, by 2020 this figure had already risen to 64 percent.

Consumers increasingly recognize the limits of unbridled growth
70 percent of those surveyed foresee serious difficulties for people and the environment if we continue to consume without restraint. 77 percent of Germans are in favor of industrialized countries taking on more responsibility in the fight against climate change and providing more support for poorer countries. 60 percent can now imagine paying the true costs of environmental pollution and climate change when making purchases. These results suggest that the importance of ethical consumption has not only been established in the people’s minds, but there is also an increasing willingness to dig deeper into their pockets for it.

Politics should set the framework for more ethical consumption
There is also a turnaround in the question of who should ensure more ethical consumption. 41 percent of Germans consider politics to be the driving force behind ethical consumption, 23 percent the economy and 22 percent each individual. In 2011 and 2013, only 27 percent of respondents thought that politicians should be held more accountable for this.

It is also interesting to note that the issue of consumer responsibility continues to grow: 70 percent of all respondents say that ethical criteria are now an essential part of their purchasing considerations. In 2013, the figure was only by 63 percent. Baby boomers (born up to 1964) in particular are pushing the purchase of ethical products. While in 2013 it was 65 percent who bought ethical products more often, by 2020 79 percent were already purchasing according to ethical criteria more frequently. Also interesting: 68 percent of those surveyed would boycott a supplier that behaves unfairly toward its employees and creates poor working conditions.

Alexander Birken, Chairman of the Executive Board of the Otto Group: "The question of whether our way of living and doing business needs to be adjusted is being asked more and more loudly. At least, this is confirmed by the results of this fifth trend study. We in the Otto Group want to make a difference, because it has been our belief for generations that, in the end, the economy must serve the people, not the other way around. However, to achieve this, we all have to change. Away from the throwaway society, toward sustainable and recyclable products, and a resource-friendly production method in which human rights are regarded higher and in which respect and mindfulness toward nature take on a new significance."

For the study, the results of a survey of 1,149 Germans between the ages of 14 and 74 from October 2020 were combined with perspectives based on trend research.
Download (only available in German)

More information:
ethical consumption Otto study
Source:

Otto Group

Photo: Jakob Jost GmbH
25.08.2020

Steffen Jost: “We have to become faster, better in our Product Ranges and adopt a more strategic Approach.”

Interview with Steffen Jost, President of BTE e.V. and General Manager, Jakob Jost GmbH
 
On July 31 2020, the German Retail Association - HDE e.V. reported in addition to the current sales figures published by the Federal Statistical Office: “Many clothing retailers are still in danger of existence.” An HDE survey of 500 retailers showed that around two thirds of the non-grocers achieved at least 75 percent of sales in comparison to the same week last year. The main reason for this is the slowly increasing number of customers.

Interview with Steffen Jost, President of BTE e.V. and General Manager, Jakob Jost GmbH
 
On July 31 2020, the German Retail Association - HDE e.V. reported in addition to the current sales figures published by the Federal Statistical Office: “Many clothing retailers are still in danger of existence.” An HDE survey of 500 retailers showed that around two thirds of the non-grocers achieved at least 75 percent of sales in comparison to the same week last year. The main reason for this is the slowly increasing number of customers.

For 27 percent of retailers, however, the situation is still very serious: They realize their entrepreneurial existence threatened due to the corona crisis. Most retail companies will not be able to make up for lost sales that have occurred in recent months. Accordingly, two-thirds of non-grocery retailers calculated that sales would also decline in the second half of the year. Many clothing retailers continue to face difficult times.

Textination spoke about the situation with Steffen Jost, long-time president of the BTE Federal Association of German Textile Retailers, owner and managing director of Jakob Jost GmbH. The family company, founded in 1892, operates five clothing stores in Rhineland-Palatinate and Baden-Württemberg in the medium to upper price segment with more than 300 employees and a sales area of around 20,900 square meters.

How have you felt about the corona era to date - as a company and personally? What would you on no account want to go through again and what might you even consider maintaining on a daily basis?
The corona era was a challenging time for the company and its employees. You realize very clearly which employees are loyal and committed to the challenges and which are not. It is frightening to experience the appearance of mask refusers among the customers, who claim to go shopping without a mask and demand freedom for themselves and at the same time presuppose the employees' willingness to make sacrifices. The tone, the impertinences as well as the aggressiveness are alarming, it is often pure egoism. And in this context the meaning of freedom is limited to their own freedom.    

What does the pandemic mean economically for your own company so far, how do you estimate the consequences for the entire sector?
The economic impact, especially in terms of profitability, is immense. Since it affects the entire sector and thus also many companies that entered the crisis without a solid equity base, a major shakeout is to be feared. Especially because it is also not yet possible to predict how long the crisis will last.
 
What adjustments or innovations have you considered necessary for your product range?
As a result of the crisis, occasion related and elegant clothing is tending to decline, while sporty clothing is on average a bit more successful, so that more we emphasis on these aspects. The stationary trade as well as the industry have big problems, nevertheless there are acceptable solutions with many suppliers after intensive exchanges. A few suppliers try to enforce their own interests exclusively. Of course, this will result in corresponding consequences for the cooperation.

How do you consider suppliers in the future, what experiences have you made and will you draw consequences for your procurement policy?
A good cooperation between retail and industry is essential for economic success. If this basis does not exist (it has suffered considerably as a result of corona), it is also assumed that future economic success will be worse. A profit-oriented corporate management must take this into account in its procurement policy.
          
Which initiatives or instruments at politico-economic level did you welcome for the sector, of which have you been critical?
For many companies, including ours, both - the short-time working allowance and the KfW loans are essential components to secure the company's long-term future. For the first time the retail sector is applying for short-time work. We are critical of the lack of willingness on the political level to enforce the mask obligation and to punish violations of it accordingly. This has been passed on to the retailers and other sectors of the economy with corresponding problems in customer relations.
The interim aid was a great help for many small companies, but unfortunately medium-sized companies were not able to benefit from that. Corona has certainly massively accelerated the structural processes and developments in the retail sector, whereby the one-sided consideration of online sales, as currently can be seen, certainly falls short. It is also a question of the ability to generate profitable sales in normal times in order to build up business substance and also to finance necessary investments.

Did the corona era also have a positive effect, while the sector has brought forward innovations that would have been necessary anyway?
This might have happened in some cases. Especially companies that were not yet sufficiently digitally positioned may have taken action here very fast. In width, however, times of crisis seldom mean large investment periods.

What needs the stationary retail trade has to meet in future, what services must be offered in order to get a stable future?
The retail trade must be more than a place where goods are stocked in large quantities. The internet can do this on a much larger scale. Real customer service will play an increasingly important role, as will the length of stay and the design quality of the retail space. At the same time, it is important to make an optimum use of the digital possibilities. In addition, it is important to curate the product ranges in such a way, that the customers’ respective requirements are matched by an assortment that meets their expectations. Basically, this has been the original task of purchasing for decades. It is frightening to experience the appearance of mask refusers among the customers.
          
Which initiatives or approaches by or for your sector would you appreciate as support for such a future?
The cooperation between industry and multi-label retailers must definitely become more intensively and, above all, faster. Up to now, the possibilities of electronic data processing in a mutual flow of information, have been used by far too little and the corresponding consequences have not been drawn. In addition, the procurement times need to be reduced significantly.  The order and delivery dates must be set much later, and the possibility of using the digital world for ordering must also be implemented, in order to compensate at least the great systemic advantages of the vertical trade and thus also to reduce significantly the rates of write-offs and returns.

Until now the big issues have been globalisation, sustainability / climate change / environmental protection, digitisation, the labour market situation and so on. How must we rate them against the backdrop of the Covid-19 pandemic?
Covid 19 will not change the big issues seriously, they will remain with us. Possibly the negative labor market situation, which is to be feared, can push them into the background, because if existential needs have to be solved, experience shows, that there is much less attention for the other problems.
 
What are the lessons for the textile retail trade with regard to these goals for the post-corona era?
The long lead times between ordering and delivery must finally be shortened. We have to become faster, better in our product ranges and adopt a more strategic approach. We may not lose sight of our own interests and the overall strategy of a company through the specifications of individual suppliers.
The strategic goal can only be to strive for permanently profitable sales and to implement all necessary measures consistently.

The interview was conducted by Ines Chucholowius,
CEO Textination GmbH

GOTTFRIED SCHMIDT OHG (c) Weitblick, Gottfried Schmidt OHG
18.02.2020

WE HAVE OUR PRINCIPLES ... WEITBLICK | GOTTFRIED SCHMIDT OHG

WORKWEAR AS A SUSTAINABLE TEXTILE LOOP!

WEITBLICK | Gottfried Schmidt OHG with about 130 members of staff in Bavaria and more than 1,000 employees in European production plants is one of the leading German textile companies in the workwear and corporate fashion segments. Originally founded 1931 in Frankfurt / Main, the traditional family-owned company, now in its fourth generation, achieves a medium sized eight figure turnover.

Quick decision-making processes, a familiar atmosphere, production exclusively in Europe, customer-specific innovations and comprehensive sustainability concepts - what does the workwear professional do differently than others?

Sales Director Philipp Hartmann (Sales Support and Customer Service) and Janine Gonglach, Head of Marketing, together with Managing Director Felix Blumenauer, responsible for Marketing, Sales, Logistics and Controlling faced the questions of Textination.

WORKWEAR AS A SUSTAINABLE TEXTILE LOOP!

WEITBLICK | Gottfried Schmidt OHG with about 130 members of staff in Bavaria and more than 1,000 employees in European production plants is one of the leading German textile companies in the workwear and corporate fashion segments. Originally founded 1931 in Frankfurt / Main, the traditional family-owned company, now in its fourth generation, achieves a medium sized eight figure turnover.

Quick decision-making processes, a familiar atmosphere, production exclusively in Europe, customer-specific innovations and comprehensive sustainability concepts - what does the workwear professional do differently than others?

Sales Director Philipp Hartmann (Sales Support and Customer Service) and Janine Gonglach, Head of Marketing, together with Managing Director Felix Blumenauer, responsible for Marketing, Sales, Logistics and Controlling faced the questions of Textination.

Gottfried Schmidt OHG, a family company that will celebrate its 90th birthday next year, is considered as a professional when it comes to premium workwear. If you had to introduce yourself in 100 words to someone who doesn't know the company: What makes you unique?
Felix Blumenauer – Managing Director
We are a long-established family company that has reinvented itself again and again over the course of history. In the field of workwear, we stand for the highest quality across a wide range of industry segments and attach great importance to sustainability - this is also shown by our long-standing partners who produce our clothing in Europe. With our state-of-the-art logistics center, we prove that digitization and Industry 4.0 are not just buzzwords for us.   

In which markets and by which partners do you feel particularly challenged? And with which product innovations in the workwear sector do you think you can move the most?
Philipp Hartmann – Sales Director
Markets are changing faster and faster and that is a challenge per se. We want to continue to be reliable today and, in the future, that also means continuity for our partners. But how do we deal with ever new requirements from ever faster moving markets?
Focusing on the customer, we cannot remain in rigid structures. We at WEITBLICK achieve this through our corporate culture and our guidelines: courage, strength and confidence.
This culture holds our team together and this enables us to adapt structures more quickly. Due to our personal contact to our partners and our experience as a fourth-generation family business, we enjoy great trust in all markets and this assists us to make quick adjustments and changes without questioning our DNA.
The basis of our products is the quality of the materials used, the processing by a very well-trained staff in our own European production sites and, first and foremost, a team of experts who controls everything in-house from the fiber and the design idea to production and logistics and bring it all together under one roof. So, if you ask me whether all products will be flashing in the near future, the answer is: no. Our strength is the implementation of our customers' wishes and above all we put the brand, the CI of our customers, in the foreground on the product. Because a satisfied employee in the right workwear is the best business card for a company. So, if it should flash in the clothing in the near future, this is not a problem, but we realize ourselves much more concerned with our customer requirements around the products. Based on quality and sustainability we have been driving very well for a long time.

However, services, speed in logistics, controlling, order configurators and budget management as well as interface management are the actual innovations with which we convince our customers and partners today. For some time now, we have been relying on a team of employees who implements precisely these customer requirements across departments. For example, in addition to our own CI Workwear collection, a customer can also receive a protected customer shop from us, where employees can configure the coordinated collection and order according to a defined budget. The customer's purchasing and controlling departments have live insight into costs and inventories. The dispatch including personalization is RFID-controlled in Germany, picked on the carrier and sent all over the world. Does that sound innovative?

Tailor-made or solution for the major customer? The topic of individualization down to batch size 1 is gaining in importance today. How do you manage the balancing act between major customers and individual production - what does this mean for the processes of Gottfried Schmidt OHG? 
Philipp Hartmann – Sales Director
Why not the tailor-made solution for major and small customers? Until a few years ago, and even today in some cases, a customer’s logo in the colors red, green, blue and white was of course displayed by fabrics of the same color combined in a four-colored scheme. This is more or less a thing of the past. Nowadays, requests for different colors are additionally solved by the possibility of combining many articles. In doing so, we fall back on thousands of active articles of our own developments and a large selection of ingredients, fabrics and finishing options. CI collections can be produced very quickly in small quantities in our state-of-the-art production facilities. In one of our six European production plants, for example, we only manufacture made-to-measure orders from piece 1. This happens within very lean processes and just takes a few weeks.

At the same time, we have large capacities for the storage of our raw materials and a warehouse for prefabricated parts, which enables us to place them into stock for the customer. Companies are aware of the great importance of workwear and the partly missing transparency in processes or costs. Therefore, it is desirable to be able to order small quantities. We have access to dozens of wearer profiles and millions of wearers from almost all sectors and are able to combine this experience with today's requirements. I don't prefer the word "standard", but the fact is that we already offer our customers a wide range of articles and colors to choose from, as we are constantly releasing new collections for various industries. The processes, scrutinized with the possibilities of new tools and systems, are consistently adapted - the other way around. This enables us to work very automatically from small to large orders and thus process orders via our customer online shops or via interfaces with our customers' order portals. Order picking and logistics from piece 1 with the shipping method of your choice are no problem for us, because we have been operating the most modern logistics center in the industry since 2018.

With WEITBLICK you have chosen the look-and-feel of a German-language brand. What prompted you to take this step and what are the consequences for your international sales?
Janine Gonglach – Head of Marketing
The decision was made for WEITBLICK (Engl.: vision, foresightedness) because we always possessed it as a company. Not only the founder Gottfried Schmidt himself had shown vision or foresightedness. Each generation that followed also had and still has visions, that developed the company to what it is today. A company with thought leaders, doers, inventors, critics and perfectionists.
Also, in the future, we will meet the challenge of developing our products and our actions with foresightedness - for the continued existence of the company and for the benefit of our customers.

Philipp Hartmann – Sales Director
We serve a wide range of customers, from craft businesses to large global corporations. So, we have already been internationally active in previous generations. And the name has never been a limitation. Our employees in sales and customer service are trained accordingly, our documents and systems are multilingually available and maintained.

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?
Felix Blumenauer – Managing Director

We see a further growing importance of the topic of “sharing”. With our strong partners in professional service, we have been living this idea for many decades and see increasing importance in society. Clothing remains available in a cycle of the highest quality for many years - for us this is the sustainable counter trend to "fast fashion". In this context we offer digital solutions that satisfy our customers and our wearers and convince them, that WEITBLICK is the right choice.

We will act on these fields and consciously set the right accents – that’s how we understand corporate responsibility towards our employees and our customers.

For decades, the textile and clothing industry has been growing steadily worldwide. In terms of sustainability, to put it mildly, there is a rather mixed feedback for our industry. What is the Gottfried Schmidt OHG focusing on in order to meet its social responsibility?
Felix Blumenauer – Managing Director
We have long anchored sustainability in our company as one of the most important priorities in our strategy. This becomes apparent e.g. by the use of Fair-Trade cotton, which we bring to the market in large quantities together with other companies and suppliers in the industry. We think sustainability comprehensively. Each area of our company contributes to the fulfillment of corporate responsibility - towards our customers and our own employees.

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 seals or certifications do you rely on?
Felix Blumenauer – Managing Director
We have the highest standards in the entire supply chain, which we implement together with our partners and monitor closely. This includes fair production conditions in Europe with comparatively short distances, which are guaranteed by the internationally recognized SA 8000 seal. The avoidance of unnecessary packaging material, climate-neutral shipping and the reduction of plastic are also a matter of course for us. For example, we are currently working on using recycled polyester in the future. We are looking forward to the Green Button and want to qualify for this state seal of quality.

At WEITBLICK, you have chosen a consciously young form of communication. Whether Facebook, Instagram, YouTube, Pinterest or relevant business platforms - social media clearly take a central position in your media mix. This is not necessarily standard in the textile rental service. Why did you choose this form of addressing?
Janine Gonglach – Head of Marketing
For us, WEITBLICK - far-sightedness - also means “venturing something new”!
From my point of view, in the digital age, the question for companies is no longer whether social networks should be used or not, but only how and to what extent. With more than 3 billion people who are now represented in social media networks worldwide, we no longer speak of zeitgeist, but of a must-have in the marketing mix. Our communication follows the guiding principle: "We do not conduct a monologue, but an open dialogue at eye level." Social media achieve exactly that! 

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?
Felix Blumenauer – Managing Director
The transformation of our company. With courage, strength and confidence, we managed to reposition our company almost completely within a very short period of time. This includes the modern umbrella brand WEITBLICK, which for us is also an obligation to our actions. But also, the growth that we have achieved in the past four years with around 40 new employees. We have built a new logistics center - with highly modern processes that are largely automated, e.g. with intelligent RFID technology. In doing so, we are trying to take all employees with us on this journey, which is not always easy but the right track. The positive thing about it is that our long-standing as well as our new employees work for us on their own responsibility and with enthusiasm.

The interview was conducted by Ines Chucholowius, CEO Textination GmbH

TV TecSTyle Visions proved its status as a leading trade fair of the European textile decoration industry in an impressive way. (c) Messe Stuttgart
11.02.2020

TV TECSTYLE VISIONS: IMPRESSIVE CONFIRMATION OF STATUS AS LEADING TRADE FAIR

  • High internationality and excellent visitor quality ensure top ra-tings

The trade fair combination for visual communication and haptic adver-tising, EXPO 4.0, was an impressive event with 421 exhibitors and 12,518 visitors held from 30 January to 1 February 2020 in Stuttgart:

  • High internationality and excellent visitor quality ensure top ra-tings

The trade fair combination for visual communication and haptic adver-tising, EXPO 4.0, was an impressive event with 421 exhibitors and 12,518 visitors held from 30 January to 1 February 2020 in Stuttgart:
TV TecStyle Visions, trade fair for textile decoration and promotion, enriched the trade fair combination with a top-class exhibitor offering, high internationality and an accompanying programme characterised by innovations and know-how transfer. It proved its status as a leading trade fair for the European textile decoration industry in an impressive way: 262 exhibitors, including all relevant companies from the exhibition segments textiles and technology, mark the importance as a European industry get-together every two years in Stuttgart. The leading trade fair confronts the uncertain European market situation and uncertainties in trade, the number of exhibitors remained almost constant compared to the previous event (2018: 270). The 126 international exhibitors came from 21 countries to Stuttgart. The top 5 countries of origin are Germany, Great Britain, Spain, Poland and Italy.
 
Many decision-makers from the Germany/Austria/Switzerland region
Within the framework of TV TecStyle Visions the visitors were particularly interested in the different printing processes, embroidery and textiles. The EXPO 4.0 trade fair combination attracted 17 per cent international visitors from 50 countries to Stuttgart. The appeal of the leading European trade fair is manifested with the top visitor countries Switzerland and Austria. 35 percent of all visitors to TV TecStyle Visions travelled more than 300 kilometres to Stuttgart.

The quality of the visitors has been a reliable constant for years: four out of five visitors are actively involved in purchasing and procurement decisions, 87 percent have concrete intentions to invest and 84 percent of the visitors want to invest in the next 12 months. An overall rating of the trade fair combination of 2.0 ("good") and a return visit rate for 4 out of 5 visitors highlight the positive synergy effects created by the parallel timing of the three trade fairs in the trade fair combination EXPO 4.0. This is also reflected in the amount of time visitors spend at the event - on average 4.8 hours at the three trade fairs.
 
Comprehensive accompanying programme
Apart from the exhibition offering, TV TecStyle Visions has been convincing for years with a comprehensive accompanying programme. Not only real innovations and trends that move the industry are showcased at the stands. At this year's trade fair the TecCheck Area acts as a look into the near future. In the digital microfactory nine companies demonstrated the possibilities of digitalisation in production under the coordination of DITF (German Institutes for Textile and Fibre Research, Denkendorf). A polo-shirt was made in one hour, from the 3D design and conception, through to the printing, thermosetting, cutting and making-up of the garment. The trend topics of the industry and the degree of innovation were also shown in the forum, such as the option of personalisation and automation in textile finishing/textile decoration/garment decoration. The TecStyle Fashion Show, the forum and also Charlie's Corner gave visitors a platform to exchange information and ideas and for know-how transfer, as well as another presentation possibility for the exhibitors.
 
The next TV TecStyle Visions takes place in the EXPO 4.0 trade fair combination with WETEC and GiveADays in two years. The dates 10 to 12 February 2022 are currently reserved.

04.02.2020

The fashion market: A move towards responsible consumption?

A study by the IFM - Première Vision chair
The fashion market in Europe and the United States:  A move towards responsible consumption?

Eco-responsible consumption is no longer a fashion trend, but a major groundswell now impacting the entire sector, from material sourcing to the consumer and the textile and manufacturing industries.
This is one of the major findings of a recent study by the Institut Français de la Mode as part of the IFM - Première Vision Chair that surveyed 5,000 consumers, who constitute a representative sample for France, Germany, Italy and the United States.

A study by the IFM - Première Vision chair
The fashion market in Europe and the United States:  A move towards responsible consumption?

Eco-responsible consumption is no longer a fashion trend, but a major groundswell now impacting the entire sector, from material sourcing to the consumer and the textile and manufacturing industries.
This is one of the major findings of a recent study by the Institut Français de la Mode as part of the IFM - Première Vision Chair that surveyed 5,000 consumers, who constitute a representative sample for France, Germany, Italy and the United States.

"For the first time, this study helps us better understand consumers' perceptions of the responsible fashion market and its products, and decipher their buying motivations and obstacles," said Gilles Lasbordes, Managing Director of Première Vision.
 
A real enthusiasm  
Eco-responsible fashion products are essential. Nearly 50% of European consumers report having purchased an eco-friendly fashion item in 2019 along with 46% of French consumers (including recycled, organic, made in France, and second-hand textiles).  

"These figures show consumers are committed to a level well above the estimate we would have expected, and indicate a real maturity in terms of their expectations. However, fashion is lagging behind other sectors such as food: the proportion of consumers who have purchased organic food products is over 60% in all countries. By the same token, especially in France and Italy, organic beauty products are meeting with real success, with 57% of French consumers purchasing them in 2019," notes Gilles Lasbordes.

In France, the 46% of consumers who bought eco-responsible fashion products are projected to spend an average of 370 Euros on fashion products (clothing and shoes) in 2019. Nationally, the average budget for eco-responsible fashion purchases per French consumer is 170 Euros, which is about 25% of the average budget for clothing and shoes in France.

What's driving this enthusiasm? In France and Italy, preserving and protecting the environment are the principal motivations behind such purchases. Consumers also pay special attention to the non-use of toxic chemicals. These concerns are well reflected in initiatives such as the Fashion Pact launched in the run-up to the G7 in Biarritz last summer.
     
Natural fibres and prices
The study also shows that, when searching for more responsible fashion products, consumers are very strongly guided by the choice of materials. They prefer natural fibres and recycled raw materials when they can, in particular when they are informed of their presence. Preconceived ideas about which materials are considered most harmful to the environment concern polyester, acrylic, polyamide and leather, respectively.

One of the other findings of this survey concerns barriers to consuming more responsible fashions, with one of the main barriers being a lack of information. The consumers feel they have a genuine lack of knowledge about eco-responsibility (its definition and criteria). Some 50.4% of French consumers admit to not knowing enough to select the right products.
 
Beyond a lack of education, another difficulty is access to these fashions, which consumers report not knowing where to find. This is a genuine obstacle for 39.8% of the French consumers canvassed. A lack of clarity of the offer - not much transparency on the part of brands, a multiplicity of certificates - and an under-representation of players - only 23% of French consumers reported knowing responsible fashion brands - is compounded, to a lesser extent, by the question of price, which is a barrier for 33% of French consumers.

On the other hand, style no longer represents an obstacle to the purchase of responsible products. Contrary to perceptions of only a few years ago, consumers today are aware that responsible fashion can be creative, desirable and respectful of the environment and people.

Lastly, consumers seeking to buy more responsible products are now faced with an offer that is still insufficiently developed in terms of their expectations. At the same time, second-hand purchases are increasing and feeding this trend: 56.1% of American women and 42.2% of French women purchased second-hand goods in 2019.
     
Made in…
For a majority of the French consumers surveyed, an eco-responsible fashion product must be manufactured in France (80%) or Europe (46%). This preference for national production is slightly lower in Italy (65%) and Germany (71%) but remains strong. "A product has to be manufactured as close as possible to the market where it is sold in order to reduce the negative impact of transport as much as possible," says a French consumer.  

Also, among the criteria to be met for socially responsible production, consumers emphasise respect for the health and safety of employees, a criteria that ranks far ahead of issues related to wages and discrimination of people employed in the sector.
 
A guiding hand to the fashion ecosystem
"The fashion ecosystem is being shaken up by this environmental phenomenon, with consumption in a state of strain and a slight decline in the mid-range, for example. This study will be useful to steer the sector, guide the market, provide precise analytic keys for industry and brands wishing to expand their offer. And that is also our objective and the role of Première Vision," underlines Gilles Lasbordes.

The consumption of eco-responsible fashion represents a significant growth opportunity for brands and labels. The next few years will certainly see the introduction of a new system that is more respectful of the environment and the social conditions under which goods are produced.

The results of this study were also used to enrich the experience of the show's 2,055 exhibitors - spinners, weavers, tanners, textile designers, accessory manufacturers and fashion manufacturers - and its 56,000 visitors - international groups and fashion brands - at Première Vision Paris last year 17 to 19 September in Villepinte.

 

More information:
Sustainable Apparel
Source:

Chair Institut Français de la Mode - Première Vision

HEIMTEXTIL CELEBRATES ITS ANNIVERSARY (c) Messe Frankfurt Exhibition GmbH, Jochen Günther
07.01.2020

HEIMTEXTIL CELEBRATES ITS ANNIVERSARY

THE 50TH EDITION OF THE WORLD-LEADING TRADE FAIR WITH MAJOR FOCUS ON SUSTAINABILITY

Half a century shaped by textile design: for the 50th time, Heimtextil will bring together the international home textiles industry. From 7-10 January 2020, 2952 companies from 65 countries will present their innovations at the world’s largest trade fair for home and contract textiles.*

‘There is hardly any other trade fair in the world that can look back on such an eventful and successful history. Ever since the first event in January 1971 with 679 exhibitors, we have invested massively over the decades in the quality of the fair as well as in the range of information and inspiration we offer the industry. We are looking forward to a very special edition of Heimtextil, which is in very good shape as it approaches its 50th anniversary’, says Detlef Braun, CEO of Messe Frankfurt.

THE 50TH EDITION OF THE WORLD-LEADING TRADE FAIR WITH MAJOR FOCUS ON SUSTAINABILITY

Half a century shaped by textile design: for the 50th time, Heimtextil will bring together the international home textiles industry. From 7-10 January 2020, 2952 companies from 65 countries will present their innovations at the world’s largest trade fair for home and contract textiles.*

‘There is hardly any other trade fair in the world that can look back on such an eventful and successful history. Ever since the first event in January 1971 with 679 exhibitors, we have invested massively over the decades in the quality of the fair as well as in the range of information and inspiration we offer the industry. We are looking forward to a very special edition of Heimtextil, which is in very good shape as it approaches its 50th anniversary’, says Detlef Braun, CEO of Messe Frankfurt.

The textile furnishing sector faces major challenges in the anniversary year of Heimtextil: the digital revolution – key word ‘Industry 4.0’ – is currently leading to fundamental changes in the manufacture and processing of home textiles. Not all companies can keep up, meaning that the past year has been dominated by business closures and insolvencies. Digitisation opens up many opportunities on the production side – on the retail side, however, it leads to a significant shift in purchasing flows, making specialist bricks-and-mortar shops dependent on new concepts in the medium term. Here, too, there has been strong consolidation and a decline in the number of specialist shops.

Sales in the retail sector continue to decline
The latest industry report by the IFH Cologne shows that spending on home and household textiles continues to slide. Although the years 2015 to 2017 were still top notch, sales have fallen by almost €1 billion within two years and are now back to the levels seen in the tough financial years of 2008/09. The reasons for this sales trend can primarily be ascribed to the sluggish economy. As a result, German industry is pinning its hopes on foreign markets and the high proportion of Heimtextil trade visitors from abroad (75 percent).

Varied measures for greater sustainability
Sustainability is the major overarching theme of the industry. At Heimtextil 2020, green aspects will be at the top of the fair’s agenda for the tenth time. With its range of measures, Heimtextil is promoting the industry's commitment to sustainability and giving green pioneers a platform. The tenth edition of the Green Directory, the exhibitor directory for sustainable producers, includes more pioneers and newcomers than ever before with 259 companies. The ‘Green Village’ is also enjoying growth. In the sustainability area in hall 12.0, which acts as a first port of call for all questions relating to green issues, recognised certifiers and seal awarders will present themselves. New to this area is the German government's ‘Grüner Knopf’ textile seal, launched in September, and the United Nations Office for Partnerships, which will present the global Sustainable Development Goals at Heimtextil. For example, Lucie Brigham, Chief of Office at the United Nations Office for Partnerships, will report on the Sustainable Development Goals and cooperation with Heimtextil at the opening press conference of Heimtextil. Two showcases will illustrate which sustainable approaches the industry is pursuing and how they are already being applied in practice: the Portuguese textile industry will present the ‘iTechStyle Green Circle’ in hall 12.0 and Pakistani manufacturers will present pioneering projects under the ‘Sustainable Pakistan’ umbrella in the foyer of hall 10.2.

Trend Space focuses on sustainable concept
Sustainable aspects were also at the forefront of the concept for this year’s ‘Trend Spaces’. ‘Together with our designers, we have set ourselves the goal of creating a sustainable show and have adopted a material manifesto for this purpose. The aim was to minimise the environmental impact by selecting materials in an intelligent way. This means: wherever possible, alternative, sustainable materials were used’, explains Olaf Schmidt, Vice President Textiles & Textile Technologies of Messe Frankfurt. ‘Heimtextil thus invites you to a design show that not only talks about sustainability but also embraces it in practical terms and, thanks to this approach and its reputation, is unrivalled worldwide. With the motto WHERE I BELONG, visitors interested in design will experience around 1000 exhibits by international exhibitors in the “Trend Space” in hall 3.0 – integrated into a spectacular design concept by Stijlinstituut Amsterdam under the direction of Anne Marie Commandeur. The approach of the new Future Materials Library, part of the Trend Space, is also progressive and sustainable. Here, visitors can explore the nature and production method of innovative materials. The focus is on recycled fabrics and cultivated – so-called living – textiles, among other things.

Hotels etc.: contract furnishing in the spotlight
As another top theme, Heimtextil is focusing on the furnishing of hotels and public buildings under the title ‘Interior.Architecture.Hospitality’. The new highlight here is the ‘Interior.Architecture.Hospitality Library’, a textile materials library with 64 selected, high-quality products categorised according to functional properties especially for contract furnishing. With this library, Heimtextil clearly demonstrates the many and varied uses of functional textiles, in particular providing interior designers with a first-rate work tool. Every product on display is labelled with the name of the manufacturer, booth number and its functional properties. All information on this can also be accessed online throughout the year at www.textile-library.com. Furthermore, the fair offers interior designers, architects and hospitality experts an extremely attractive programme in hall 4.2 – with superb product presentations in the ‘Interior.Architecture.Hospitality Expo’, a four-day lecture programme, guided tours and a special exhibitor directory, the
‘Interior.Architecture.Hospitality Directory’.

For better sleep: professional tips and product innovations
The topic of ‘sleep’ is of huge power and importance for both personal well-being and for the home textiles industry. Heimtextil will be dedicating itself to this much-discussed lifestyle theme for the second time. in “Sleep! The Future Forum' in the foyer of hall 11.0, a four-day programme of talks with a wider range of topics and numerous experienced sleep experts awaits interested listeners. These sleep experts include professional athletes such as Olympic luge champion Susi Erdmann and scientists from Berlin’s Charité, the Fraunhofer Institute and the German Sleep Research Society. Heimtextil has also been able to attract speakers from Ikea, Hästens and Auping to talk about progressive sleep topics. Numerous products aimed at greater sleep comfort will celebrate their première in the context of the ‘Sleep’ programme at the world's leading trade fair.

50th Heimtextil: design classics from the past five decades
To mark the 50th edition of Heimtextil, the trade fair will be presenting design classics from the past 50 trade fair editions in a showcase area in hall 9.0. Under the motto ‘Heimtextil Journey through Time – Celebrating 50 Years of Interior Design’, the fair invites visitors to take a tour through five decades of Heimtextil history. Four specially designed rooms incorporate colours, shapes, furniture and design objects from past decades. The showcase is complemented by a café that will be realised in cooperation with Schöner Wohnen, Europe's largest living magazine.

_____________________
*For comparison: In 2019, 3,012 exhibitors from 65 countries took part (FKM figures, Gesellschaft zur Freiwilligen Kontrolle von Messe- und Ausstellungszahlen, Berlin)

(c) Deutsche Messe AG
22.01.2019

DOMOTEX 2019 - A TRADE FAIR TO CONNECT THE CONTINENTS

  • Final Release

The latest edition of DOMOTEX – the world’s leading showcase for carpets and floor coverings (January 11 to 14) – has underscored its reputation as the sector’s biggest and most important hub for business, innovations and trends. Over 1,400 exhibitors from more than 60 nations came to Hannover to kick off a successful new year of business. With close to 90 percent of all attendees having decision-making authority, the caliber of the show’s visitors remained extremely high – a fact confirmed by exhibitors. Due to growing market concentration, DOMOTEX recorded a slight dip in attendance. According to the exhibition survey, the order situation of exhibitors remained constant, while the purchasing volume per visitor went up. About 70 percent of all DOMOTEX attendees once again came from abroad – a clear sign of the flagship fair’s international appeal.

  • Final Release

The latest edition of DOMOTEX – the world’s leading showcase for carpets and floor coverings (January 11 to 14) – has underscored its reputation as the sector’s biggest and most important hub for business, innovations and trends. Over 1,400 exhibitors from more than 60 nations came to Hannover to kick off a successful new year of business. With close to 90 percent of all attendees having decision-making authority, the caliber of the show’s visitors remained extremely high – a fact confirmed by exhibitors. Due to growing market concentration, DOMOTEX recorded a slight dip in attendance. According to the exhibition survey, the order situation of exhibitors remained constant, while the purchasing volume per visitor went up. About 70 percent of all DOMOTEX attendees once again came from abroad – a clear sign of the flagship fair’s international appeal. In terms of visitor backgrounds, attendance was notably up on the part of wholesale and retail professionals. The figures also revealed an increase in attendance by architects, interior designers and contract business professionals. In addition, DOMOTEX 2019 saw an increase in the amount of display space sold.

“Thanks to its strong international drawing power, DOMOTEX serves as the sector’s definitive global marketplace. The positive and optimistic outlook on the 2019 business year that was tangible in the trade fair halls proves the success of this year’s exhibition,” said Dr. Andreas Gruchow, the Managing Board member in charge of DOMOTEX at Deutsche Messe.

“Manufacturers and customers as well as partners, architects and designers from all over the world come together to network at DOMOTEX, spawning new business relationships and collaborative opportunities previously not deemed possible,” remarked Sonia Wedell-Castellano, the new global director for DOMOTEX, adding: “That’s what this year’s theme of Create’N’Connect is all about.”

Upbeat mood among exhibitors
Fabian Kölliker, Head of Marketing at the Swiss Krono Group, voiced early praise for the professional nature of the event: “We are very satisfied with the number, quality and internationality of attendees. Even after day two of the fair, we are already extremely happy with our success so far.”

The Balta Group has remained faithful to DOMOTEX since the origin of the fair. As Marketing Director Geert Vanden Bossche reports: “The rug business is a global business and this is the best place to connect with people and customers from around the world. In only four days we can meet with a lot of customers, giving a good return on our investments.”

For Myriam Ragolle, Managing Director of Ragolle Rugs, DOMOTEX represents the ideal opportunity to present the new products to a worldwide audience within just a four-day period: “It is impossible to achieve that by traveling. We can also make contacts with new customers from all over the world. This makes DOMOTEX unique.”

Exhibitors from the skilled trades also expressed keen satisfaction with the run of the show: “Here at DOMOTEX 2019, we have once again succeeded in impressing a trade audience from Germany and abroad,” said Julian Utz, CEO of Uzin Utz, adding: “The show’s international focus gives us access to exactly the right potential customers.” As he pointed out, Uzin Utz is strongly focused on Asian and Arab-speaking markets. “So the strong turnout by customers from these regions is a real boon for us.”

The benefits of attending DOMOTEX
Susanne Gerken, a Color & Trim designer at Volkswagen, came to DOMOTEX 2019 to catch the latest trends and check out innovative materials. As she pointed out, color trends and issues such as sustainability, recycling and new material lifecycles are all equally applicable to the automotive industry, and her takeaway was much more than just new impressions: “At DOMOTEX I picked up several ideas I can use to great advantage in my work.”

In contrast, business matters were the prime objective for Alex Hosseinnia, CEO of Dallas Rugs in Dallas, Colorado: “My line of work is all about buying and selling,” he said, adding that what he liked about DOMOTEX was the way it made it easy for him to meet up with suppliers, and that it was an ideal place to discover the latest trends and fashions, for example colors and patterns, that were “likely to be showing up in U.S. retail channels in the course of the next year or two.”

“CREATE’N’CONNECT” at DOMOTEX 2019
The inspiring “Framing Trends” showcase in Hall 9 proved its worth. In its second year, it once again featured impressive displays of innovative products by manufacturers, artists, designers and students. International architects, designers, planners and influencers were particularly appreciative of “Framing Trends” as the beating heart of the event. The new showcase has proven to be highly effective at bringing visitors together and spawning lively interaction and business dialogue.

Under the motto of “Gaining Ground”, the “Treffpunkt Handwerk” skilled trades hub in Hall 13 proved popular among interior designers, parquet and floor layers, painters and varnishers. The hands-on demo area gave flooring experts an opportunity to see innovative floor treatment and finishing tools and machinery in action while comparing notes with fellow professionals.

Digital tools for sales and marketing in the floor covering industry
A key topic at the event involved solutions for the digital presentation of carpets and floor coverings. The new digital solutions ran the gamut of VR and AR applications, including visualization aids for every aspect of the marketing mix, plus innovative software which makes it easy for customers to discover and choose their favorite designs and collections while providing retailers with new options for digital product presentation and sales.

 

European press conference on 6 September 2018 in Madrid for imm cologne/LivingKitchen 2019 © Koelnmesse GmbH
02.10.2018

FURNITURE INDUSTRY GREW ONLY MARGINALLY BY 1% IN THE FIRST HALF-YEAR

  • Almost 1 in 3 pieces of furniture is exported
  • 14% of furniture sales now online

At the European press conference in September 2018 in Madrid for imm co-logne/LivingKitchen 2019, Jan Kurth, Chief Executive of the Association of the German Furniture Industry (VDM), reported on the state of business in the sector:

  • Almost 1 in 3 pieces of furniture is exported
  • 14% of furniture sales now online

At the European press conference in September 2018 in Madrid for imm co-logne/LivingKitchen 2019, Jan Kurth, Chief Executive of the Association of the German Furniture Industry (VDM), reported on the state of business in the sector:

At the end of an exceptionally hot summer, which has driven consumers to outdoor pools and beer gardens rather than furniture showrooms, the German furniture industry looks back on correspondingly subdued growth in the sector. Following a decline in sales in the second half of 2017, the business climate for manufacturers did improve slightly in the first half of 2018, but the bottom line is that furniture sales have stalled, especially within Germany. While the year began distinctly positively on the back of imm cologne, a significant slowdown in business subsequently set in.
From January to June, sales in the sector reached approximately Euro 9.1 billion, just 1 per cent higher than in the same period of the previous year. Following a 0.7 per cent fall in sales for 2017 as a whole, marked in particular by a negative trend in the second half-year (–1.6%), German furniture manufacturers were thus able to generate slight sales growth, but the situation remains disappointing.

Growth stimulus comes from abroad
This marginal increase in sales was exclusively attributable to international business, since sales outside Germany grew in the first six months by 2.7 per cent in comparison with the same period of the previous year. Domestic sales, on the other hand, stagnated with a minimal rise of 0.3 per cent. Export business benefitted from revived demand in key European sales markets and, increasingly, from the positive economic development in the major growth regions outside the EU. Almost one third of German furniture exports are now sold to non-EU countries.

Results of the latest VDM survey
In summer 2018, the VDM conducted a survey of the economic situation faced by companies in the sector. Participants rated the current business climate as satisfactory (34%) to poor (40%), with only 26 per cent judging it to be good. Compared with summer 2017, the situation for business had worsened in the view of 51 per cent of those surveyed.

State of export business better than domestic market
The disparity between the domestic market and export business is also reflected in the business survey. While most respondents (57%) judged the situation for domestic business as poor, an overwhelming number of manufacturers considered the situation for export business to be good (29%) to satisfactory (56%).

The current difficulties in domestic demand are largely confirmed by the furniture retail sector. Naturally, the long period of high temperatures moved many activities outdoors, but still this explanation falls short. To discover a little more about this, the VDM commissioned a representative study from the prestigious market research institute Kantar TNS, which put the furniture buying behaviour of Germans under the microscope. We were particularly interested to learn where people seek information about furniture and where they buy it. Do they look at advertising supplements in daily newspapers or rather retailers’ websites? Are people increasingly buying furniture online, or is the official sales channel statistic correct, which has been citing an almost stable figure of between 7 and 8 per cent for several years?

Customers increasingly seek information online
First, a look at the information sources. Overall, the furniture store itself – that is to say, looking at furniture in person – remains the most important source of information (68%), followed by brochures from furniture showrooms (54%). But 48 per cent of all those surveyed now use the Internet as a source of information and inspiration. In the younger target groups (<40 years old), the significance of the information source sees a clear shift, with the Internet dominating (77%) but furniture stores still being used by 63 per cent.

When it comes to formal educational attainment, there is a clear correlation with the information sources used. Those with a lower level of education favour brochures and advertising from furniture stores. The higher the level of education, the more buyers actively seek information online.

80% have bought large furniture items in the past 5 years
Online shopping or a trip to the shops? Generally speaking, over 80 per cent of Germans have bought relatively large items of furniture in the past five years. As can be expected, this proportion tails off with increasing age. Of those who bought furniture, 75 per cent carried out this latest transaction in a furniture store. Just under 10 per cent of shoppers bought from a purely online retailer and only 4 per cent purchased via the website of a furniture retailer. This gives a 14 per cent share of sales now taking place online and thus double the figure given out by the official sales channel statistics. In terms of online shoppers, people living alone and the under-30s lead by a clear margin. As young people get older, they are unlikely to move away from online shopping for furniture, and new “Internet savvy” consumers enter the market, the “normality threshold” for the remaining age groups is also expected to fall. There is therefore clearly still a great deal of potential for online furniture sales, and the industry and trade would be well advised to exploit this potential through engaging concepts and information suited to the target groups, moving away from discount and clearance promotions.

Additional online potential
We also see the growth of online business as offering opportunities for the furniture sector as a whole. Firstly, the fixation on prices and discounts is not as pronounced online as in highly concentrated bricks-and-mortar retail. Secondly, the short delivery times and short-notice availability typical of online trading tend to be served more flexibly from internal German sources than from Asia.

Official assessment: sales in the individual segments
According to official statistics, the individual segments in the German furniture industry developed unevenly between January and June 2018. Kitchen furniture manufacturers recorded sales growth of 4 per cent to around Euro 2.5 billion. The office furniture industry reported a distinctly positive result with sales of around Euro 1.1 billion (+7.9%). Manufacturers of shop and contract furniture saw a year-on-year increase of 7.2 per cent and generated sales of around Euro 920 million.

Manufacturers of upholstered furniture registered a noticeable decline, with sales falling by 5.3 per cent to around Euro 480 million from January to June 2018. With a drop of 1.6 per cent to Euro 3.7 billion, the sales performance in household furniture, other furniture and furniture parts was also more negative than the industry average. The smallest segment in the industry – mattresses – recorded the most significant decline in sales of 12.8 per cent to Euro 400 million. This must, however, be put in the context of the above-average growth in sales in this segment in recent years.

Furniture industry generates new jobs
We now take a look at the employment figures for the industry. The 482 businesses currently operating with more than 50 staff (–2.2%) employ 84,300 men and women, which is slightly above (+0.7%) the previous year’s level. Approximately 600 new jobs have been created in the industry in the last year, despite the difficult market conditions.

Compared with the same period of the previous year, German furniture exports in the first half of 2018 grew by 2.2 per cent to Euro 5.5 billion. With an increase of 1.2 per cent, sales to EU countries only crept slightly above the previous year’s level, thus developing much more sluggishly than exports as a whole. Having said this, exports to the German furniture industry’s largest external market, France, achieved growth of 3.5 per cent, and the Dutch (+6.2%), Polish (+10%) and Spanish (+6.1%) markets also saw positive developments from the perspective of the German furniture industry. However, furniture exports to the important sales markets of Austria (–1.3%) and Switzerland (–3.8%) declined.

Negative trend in Great Britain
The furniture industry also clearly felt the negative effects of the Brexit negotiations and the fall in the pound over the course of the previous year, with furniture exports to Great Britain contracting by 8.9 per cent in the first half of 2018. No other major export market performed as badly as the United Kingdom from the perspective of German furniture manufacturers.

Boom in exports to the USA, China and Russia
The key growth markets for German furniture now lie outside the EU. The outstanding performance of German furniture manufacturers in the largest growth markets of the USA (+9.5%), China (+25.9%) and Russia (+14%) is particularly noteworthy. Given the size of each of these markets and the strong demand for high-quality furniture, these figures are sure to see further growth. Other markets outside Europe, such as Canada, Mexico, Japan, South Korea and Singapore, are currently developing well, although exports to these countries are still at a relatively low level. Overall, the non-EU market is expected to become an important driver for growth for the German furniture industry in the years ahead.

Export ratio up by 32.6%
The industry’s export ratio – that is to say, the proportion of goods shipped directly abroad by domestic furniture manufacturers against total sales by the industry – climbed to 32.6 per cent in the first half of 2018, thereby achieving a new record. The corresponding figure for the first half of 2017 reached 32.1 per cent. This means that the furniture industry’s export ratio has doubled since the turn of the millennium.

Furniture “made in Germany” highly regarded
The success of German furniture manufacturers abroad can be put down to the quality, reliability of supply, design and individuality of our products. German manufacturers often have a better grip on processes and logistics than their international competitors. These are important selling points for consumers – whether they be in Shanghai, St Petersburg or San Francisco.

Greater support for exporters
In view of the increasing importance of exports for the industry, the VDM will be expanding the support it offers exporting companies. A new VDM Export working group aims to encourage dialogue between individual manufacturers, identify the main markets and coordinate export and trade fair activities for the industry as a whole. Information days and workshops for furniture manufacturers will be organised to share industry-specific expertise relating to the individual export markets. Practical tools will also be made available to support the successful involvement of German furniture manufacturers abroad. These additional export activities are intended to help German furniture manufacturers to grow their market share on the world market.

Slight increase in imports
Import competition remains strong: after German furniture imports achieved growth of 0.8 per cent to Euro 12.7 billion for 2017 as a whole, in the first half of 2018 they rose by a further 0.6 per cent to Euro 6.6 billion. However, the trade deficit reduced by 8.1 per cent to around Euro 1.2 billion in the same period as a result of substantially increased exports. Overall, furniture imports to Germany from eastern Europe are increasingly gaining ground from their Asian competitors. Poland enjoyed growth of 7.4 per cent and, as has been the case for a number of years, remained by far the largest source country in terms of furniture volume. Nowadays, more than one in four pieces of furniture (26.3%) imported into Germany originates from our neighbour to the east. The Czech Republic remains the third-largest source of imports with a slight rise of 0.7 per cent. Altogether, imports from EU countries achieved a significant increase of 1.8 per cent. By contrast, imports from Asia fell disproportionately (–5.9%), especially from Vietnam (–12.3%), Taiwan (–13.9%) and Indonesia (–9.8%). Imports from the second-largest originating country, China, declined significantly with a drop of 5.2 per cent. The structure of German furniture imports is highly concentrated, with around 56 per cent of all German furniture imports now attributable solely to the three largest supplier countries: Poland, China and the Czech Republic.

56% of all imports from Poland, China and the Czech Republic
Almost two thirds of participants in the VDM survey expect the business outlook to remain the same in the six months ahead. 24 per cent anticipate an improvement in the situation and just 12 per cent a worsening. According to the assessment of the respondents, the major factors affecting the trading climate in the next six months will be increasing prices of raw materials (33% of respondents), a shortage of skilled personnel (27%), growing pressure from imports (18%) and increasingly protectionist trade policies (9%).

Rising material costs hit the industry hard
The rising cost of materials as regards solid wood are seen as a particular obstacle for development in the sector. Companies in the German furniture industry taking part in the survey report an average increase of 9 per cent in the cost of solid wood when compared with summer 2017. Prices of wood-based materials increased by 5 per cent in the same period, with logistics costs also up by 5 per cent and staffing costs by 3 per cent. Given the market power of purchasing associations, it is not possible to pass on this rise in costs in full to the German furniture retail trade.

Forecast for the current year: +1%
While the contribution of foreign markets to German furniture industry sales is expected to remain positive in the second half-year, in view of the very significant growth in recent times, there are clouds on the horizon as far as domestic trade is concerned. Consumer confidence in Germany is also on the wane. Economic forecasts for this year have recently been revised downwards by leading economists. On this basis, we continue to anticipate sales growth at the end of the year by around 1 per cent in 2018.

 

More information:
imm cologne Furniture market
Source:

Jan Kurth, Chief Executive of the Association of the German Furniture Industry (VDM), at the European press conference on 6 September 2018 in Madrid for imm cologne/LivingKitchen 2019