Textination Newsline

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:

• Master in Product Management Fashion & Textile
  www.stf.ch/kurse/master-pm/
• CAS in Sustainability Management in Textiles
  (in German with classroom instruction and in English as an online course of study)
  www.stf.ch/kurse/cas/ or www.stf.ch/kurse/cas-online/

• Projects worth USD 52 million planned

Tashkent (GTAI) - Uzbekistan wants to become an international player in the shoe and leather industry. The market offers foreign companies a lot of potential for cooperation.

The Government of Uzbekistan has adopted a new initiative for the modernization and expansion of the leather, footwear, leather goods and fur industries. It is aimed at increasing efficiency and expanding production as well as accelerating integration into the international market. Producers are focusing primarily on Russia and Kazakhstan, but also on Western markets such as France. Foreign companies are welcome to participate in the planned projects. In the long term, value chains are to be created, clusters established and exports promoted.

Cooperation with Uzbek companies are possible in the production of leather goods, passive contract finishing, supply of equipment, auxiliary materials and chemicals to companies or in the trade with footwear, leather and fur goods. There are plenty of high-quality raw materials and a large potential of available and motivated workers.

The framework conditions for companies in Uzbekistan have improved noticeably. Labor and energy costs are low. In 2017, the government initiated economic liberalization and opening of the country. Uzbekistan wants to more than double its shoe exports by 2020. In 2017 Uzbek manufacturers sold shoes worth USD 150 million abroad.

Foreign investors are planning new projects
The O´zcharmsanoat's key 2019 investment program lists projects valued at USD 52 million. In addition, there are other projects which have not yet been included in the program due to ongoing coordination with potential foreign investors or which are planned in companies that operate outside O´zcharmsanoat.
An overview of current and planned projects for the development of the leather, shoe, leather goods and fur industry in Uzbekistan can be downloaded here.

Association O´zcharmsanoat is the main contact partner
The Association of the Leather Industry O´zcharmsanoat acts on behalf of the state as the central regulator and coordinator of the sector. It was restructured in May 2018 and controls, among other things, investments and foreign trade. Almost all notable Uzbek players in the leather industry are active under its umbrella. These include 30 automated slaughterhouses (supplied by livestock farms), 63 tanneries, including pre-tanning facilities, 131 shoe manufacturers and 28 producers of other products, including fur products (as of June 30th 2018). It also operates 13 warehouses for the purchase of raw materials from private animal breeders.

The leather processing companies produce hard leather (foot and insole leather) and upper leather, mainly chrome leather goods and Russia leather. The annual raw material supply amounts to around nine million hides and five million skins. About two fifths of this volume is currently exported. Among the 252 companies, which are employing about 26,000 people, there are 47 companies with foreign capital participation as well as numerous purely private Uzbek companies.

Only about a dozen of the 131 shoe manufacturers, which are currently active at O´zcharmsanoat, employ 100 people or more. The development of efficient medium-sized structures in the sector is still in its infancy and is likely to gain momentum.

Government grants tax and tariff preferences for five years
The slaughterhouses and manufacturers of raw, semi-finished and finished goods as well as the new foreign trade company Uzcharmimpex will receive tax and customs relief. These apply to existing companies of the association O´zcharmsanoat until January 1st 2023. Newly established companies can benefit from the preferences for five years from the date of company foundation.
In detail, the following preferential conditions are granted:

• Exemption from the profit and wealth tax or the uniform tax levy for micro and small companies
• Exemption from compulsory contributions to earmarked central funds
• Exemption from import duties for the import of equipment, completion parts, raw materials and materials which cannot be procured in the country and are intended for production.
• Granting a 60-day deferment of payment of import duties (from the date of the customs declaration) for the import of all other equipment, completion parts, raw materials and supplies and other goods for production needs
• VAT exemption for imports of raw materials and intermediate products for the use in production and of equipment for footwear production

Uzcharmimpex imports equipment for Uzbek companies
The foreign trade company Uzcharmimpex is engaged both in the export of sector products and in the import of equipment, spare parts, auxiliary materials and chemicals. The list of imported capital goods includes butchery, cutting, slicer, splitting and shaping machines, vacuum dryers, electronic measuring instruments for leather surface measurement, sewing machines and footwear assembly equipment.

The industry modernization initiative also provides for the creation of an industry development fund. This is fed by a levy amounting to 5 percent of export earnings from chrome-tanned hides and skins that have not yet been dressed (wet blue). These funds are intended for investment projects, the granting of loan guarantees, the financing of ISO certifications, the promotion of trade fair participations and the promotion of training and further education.

Usbekistan doubles shoe production
According to the Association of the Leather Industry O´zcharmsanoat, about 40 million pairs of shoes were produced in Uzbekistan in 2017, including 17 million pairs of full and partial leather shoes. An output of 34.2 million pairs of leather shoes is planned for 2020. Then the leather production is expected to reach a volume of 1.3 billion square decimeters. For 2018, the association expects 1 billion square decimeters of leather. O´zcharmsanoat aims to increase its total exports to USD 480 million by 2020 and to USD 1 billion by 2025 (Actual 2017: USD 150 million).

The collapse of the Soviet Union, a failed privatization policy and a difficult business climate led to a breakdown in production in the mid-1990s to around 2009/2010. On average, manufacturers produced less than four million pairs of shoes a year. Previously, around 30 medium-sized manufacturers brought 50 million pairs of shoes onto the market each year. In addition, 2.4 million bags and 200,000 pairs of gloves were produced annually. After 2010, there was a start-up boom in the sector thanks to preferential tax arrangements for particularly small companies.

Contact address
O´zcharmsanoat uyushmasi (Association of the Uzbek Leather Industry)
Contact person Sardor Uktamovich Umurzakov, Chairman of the Management Board
109, Mustakillik ave., 100192 Tashkent/Uzbekistan
T +99871 267 58 47, 268 40 66
F +99871 268 40 66rais@uzcharm.uz, info@uzcharm.uz,
Directory of companies http://www.uzcharmexpo.uz/spravochnik
rais@uzcharm.uz, info@uzcharm.uz
http://www.uzcharm.uz

• Sales decreases
• Middle Price Segments affected most
• Online Sale of Clothing growing

Moscow (GTAI) - Sales of apparel and home furnishings will continue to decline in 2016. Lower real income leads to falling demand. Russian customers buy fewer clothes and are increasingly watching the price. Most sales shrink in the medium price segment. Fashion chains react on the declining market volume by closing stores and focus on profitable locations. In contrast, the online trade is growing. In comparison to the year before Russia's clothing market shrank in 2015 year by 9% to a volume of Rubles 1.4 billion. Converted into USD the decline was even 43%. The discrepancy between the value in Rubles and in USD is due to the drastically fallen value of the Russian currency. For the textile and clothing industry, the Ruble devaluation means a fundamental change in the general framework: more expensive imports, lower personnel costs in Russia and rising export opportunities.
 
Customers change from the middle to the lower price segment
In addition, the real income of the Russian population declines and thus the purchasing power. Russian customers buy less clothing and watch more and more the price. Sales shrink at the most in the medium price segment. Many customers orientate themselves on low-price segments (mass market), which will increase in 2016 by 5 to10% to a share of 65 to 70%, the Fashion Consulting Group predicts. The proportion of the premium and luxury segment remains unchanged.
An average Russian household has cut its spending on clothing and home textiles by 30 to 50%, experts estimate. Especially the suppliers of imported textiles and clothing got to feel this, their prices had to be increased most, what damaged the business of foreign brand suppliers. In 2015 the Russian imports of textiles and clothing fell by 25%. This tendency continues in 2016.
    
Distribution networks in the stationary trade become thinned 
Because of the price pressure manufacturers and retailers in the fashion market shorten their staff, negotiate discounts for the shop rental, reduce the collections, simplify cuts and save on quality. While many Russian brands used to buy their materials in the EU and in Turkey, designers and producers now can only afford cheap synthetic fabrics from China. The advertising budgets were slashed in 2015 by 40 to 45%. Moreover clothing suppliers react by closing stores and concentrate on most profitable locations. Since 2014 more than eleven international brands have left the Russian market. These include Gerry Weber from the middle price segment, Laura Ashley, Chevignon and Seppälä; from the mass market segment Esprit, New Look, OVS, River Iceland and Wendys.  
 
Marks & Spencer closed 3% of its stores, Mango 7%, Gloria Jeans 12%. The largest drop in the number of stores are reported from the brands Vis-a-Vis (-65%), Motivi (-40%), Savage (-29%) and Incity (-17%). Maratex closed its franchise stores for clothing brands like Esprit, New Look, OVS and River Iceland 2015 in Russia. The Finnish Stockmann sold its seven department stores in Russia for EUR 5 million to Reviva Holdings Ltd. (owner of the franchise store chain Debenhams) and gave up the business of its brands Lindex and Seppälä.
 
Adidas has closed 2015 167 of its 1,100 shops in Russia, planned are 200. The German sportswear manufacturer acquired 2015 the central warehouse Chekhov-2 with an area of 120,000 square meters in the Moscow region. The purchase price is supposed at a total between USD 70 and 100 million. The Finnish Kesko informed in February 2016 that it wants to sell the Russian Intersport chain because of poor financial results.

The retail chain Modny continent (brands: Incity, Deseo) reduced the number of its stores by 35. At the end of the first quarter of 2016 they still owned 301 stores. The Melon Fashion Group disposed in 2015 27 unprofitable stores, for this they opened 37 new ones. Melon owned December 31st 604 stores throughout Russia (befree 234, Zarina 203, Love Republic 167), of which 134 are franchise stores (befree 56, Zarina 44, Love Republic 34). A new concept of the stores - larger retail space and more modern design – should help against the crisis.
The Spanish designer brand Desigual closed its Russian stores end of September 2015, but they remain on the market in multibrand stores. A similar course is followed by other brands. 

Eleven fashion brands enter the Russian market in the first half year of  2016
A small gleam of hope: Eleven fashion brands announced to enter the Russian market in the first half year of 2016. This happened already at the end of 2015 with budget brands like Cortefiel, Superdry and Violetta by Mango. H & M, Monki, Uniqlo and Forever 21 want to continue to expand in Russia.
Already in 2015 the number of H & M stores grew in Russia by 35% to 96 stores. On April 28th 2016 the menswear house Henderson opened a new salon in the shopping center "Zelenopark" in Zelenograd near Moscow. With this Henderson (brands: Henderson, Hayas) is now represented in 164 major shopping centers in 56 Russian cities. Hugo Boss inaugurated on April 8th 2016 a new shop in the Outlet Village Pulkovo.

The vertically integrated chain Gloria Jeans has changed it’s headquarter at the beginning of 2016 from Rostov-on-Don to Moscow and rented there 3,500 square meters in the Arma plant. Until the end of 2016 Gloria Jeans plans to extend on 5,000 square meters and further to 10,000 square meters until 2017. The capital should serve as a gateway to the world market: Gloria Jeans plans to open an office in Hong Kong. The company has eight regional offices and two large logistics complexes in Novosibirsk and Novoshakhtinsk.

Source: Retail.ru

Online sale with clothing is growing – Chinese suppliers are expanding
In contrast to the declining sales in the stationary apparel trade, the demand in outlets and on the Internet is rising. The number of visits and the average amount of receipts at the Fashion House Outlet Centre Moscow has risen by two times since July 2013, director Brendon O'Reily reports. The Fashion House Group offers online shopping since 2016.

The association of Internet trading companies (http://www.akit.ru) estimates that sales on the Internet in 2015 were Rubles 760 billion (+ 7%). The share of clothing and footwear was 35 %. Already in 2014 the online trade had grown by a third. Online stores are operated by KupiVIP, Lamoda and Finn Flare. Alone at KupiVIP the number of orders increased by 45% to a volume of Rubles 16.5 billion in 2015.

Manufacturers and distributors therefor boost the online trade. The government wants to promote the export of Russian goods and is planning a large Internet trading platform. Models are Alibaba (China) and JD.com. However Russian customers are buying increasingly from Asian webshops. Only in 2014 the popularity of online orders in China increased threefold.

Contac addresses
Fashion Consulting Group
(Consulting, Marketing, PR)
125009 Moskau, Maly Gnezdnikowskij pereulok 4
Tel.: 007 495/629 74 25, -629 76 23
E-Mail: info@fashionconsulting.ru, Internet: http://www.fashionconsulting.ru

Russian Buyers Union
119034 Moskau, ul. Prechistenka 40/2, Gebäude 3, Büro 110
Tel.: 007 499/350 51 40
E-Mail: info@buyersunion.ru, relations@buyersunion.ru
Internet: http://www.buyersunion.ru