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North Carolina State University
17.01.2023

Embroidery as Low-Cost Solution for Making Wearable Electronics

Embroidering power-generating yarns onto fabric allowed researchers to embed a self-powered, numerical touch-pad and movement sensors into clothing. The technique offers a low-cost, scalable potential method for making wearable devices.

“Our technique uses embroidery, which is pretty simple – you can stitch our yarns directly on the fabric,” said the study’s lead author Rong Yin, assistant professor of textile engineering, chemistry and science at North Carolina State University. “During fabric production, you don’t need to consider anything about the wearable devices. You can integrate the power-generating yarns after the clothing item has been made.”

Embroidering power-generating yarns onto fabric allowed researchers to embed a self-powered, numerical touch-pad and movement sensors into clothing. The technique offers a low-cost, scalable potential method for making wearable devices.

“Our technique uses embroidery, which is pretty simple – you can stitch our yarns directly on the fabric,” said the study’s lead author Rong Yin, assistant professor of textile engineering, chemistry and science at North Carolina State University. “During fabric production, you don’t need to consider anything about the wearable devices. You can integrate the power-generating yarns after the clothing item has been made.”

In the study published in Nano Energy, researchers tested multiple designs for power-generating yarns. To make them durable enough to withstand the tension and bending of the embroidery stitching process, they ultimately used five commercially available copper wires, which had a thin polyurethane coating, together. Then, they stitched them onto cotton fabric with another material called PTFE.

“This is a low-cost method for making wearable electronics using commercially available products,” Yin said. “The electrical properties of our prototypes were comparable to other designs that relied on the same power generation mechanism.”

The researchers relied on a method of generating electricity called the “triboelectric effect,” which involves harnessing electrons exchanged by two different materials, like static electricity. They found the PTFE fabric had the best performance in terms of voltage and current when in contact with the polyurethane-coated copper wires, as compared to other types of fabric that they tested, including cotton and silk. They also tested coating the embroidery samples in plasma to increase the effect.

“In our design, you have two layers – one is your conductive, polyurethane-coated copper wires, and the other is PTFE, and they have a gap between them,” Yin said. “When the two non-conductive materials come into contact with each other, one material will lose some electrons, and some will get some electrons. When you link them together, there will be a current.”
Researchers tested their yarns as motion sensors by embroidering them with the PTFE fabric on denim. They placed the embroidery patches on the palm, under the arm, at the elbow and at the knee to track electrical signals generated as a person moves. They also attached fabric with their embroidery on the insole of a shoe to test its use as a pedometer, finding their electrical signals varied depending on whether the person was walking, running or jumping.

Lastly, they tested their yarns in a textile-based numeric keypad on the arm, which they made by embroidering numbers on a piece of cotton fabric, and attaching them to a piece of PTFE fabric. Depending on the number that the person pushed on the keypad, they saw different electrical signals generated for each number.

“You can embroider our yarns onto clothes, and when you move, it generates an electrical signal, and those signals can be used as a sensor,” Yin said. “When we put the embroidery in a shoe, if you are running, it generates a higher voltage than if you were just walking. When we stitched numbers onto fabric, and press them, it generates a different voltage for each number. It could be used as an interface.”

Since textile products will inevitably be washed, they tested the durability of their embroidery design in a series of washing and rubbing tests. After hand washing and rinsing the embroidery with detergent, and drying it in an oven, they found no difference or a slight increase in voltage. For the prototype coated in plasma, they found weakened but still superior performance compared with the original sample. After an abrasion test, they found that there was no significant change in electrical output performance of their designs after 10,000 rubbing cycles.

In future work, they plan to integrate their sensors with other devices to add more functions.
“The next step is to integrate these sensors into a wearable system,” Yin said.

The study, “Flexible, durable and washable triboelectric yarn and embroidery for self-powered sensing and human-machine interaction,” was published online in Nano Energy. Co-authors included Yu Chen, Erdong Chen, Zihao Wang, Yali Ling, Rosie Fisher, Mengjiao Li, Jacob Hart, Weilei Mu, Wei Gao, Xiaoming Tao and Bao Yang. Funding was provided by North Carolina State University through the NC State Faculty Research & Professional Development Fund and the NC State Summer REU program.

 

Source:

North Carolina State University, Rong Yin, Laura Oleniacz

04.01.2023

Circular Economy: It could all be so simple... or not

Interview with Henning Wehland & Robert Kapferer, Circularity Germany

Interview with Henning Wehland & Robert Kapferer, Circularity Germany

I'm a very curious guy by nature. That's why I offered to help out at a well-known hot dog station in Münster (Germany) this year, to draw attention to the shortage of staff in the gastronomy. I wrote an article about it on LinkedIn, which was in turn reacted to by Ines Chucholowius.
From her profile, I could see that she is a consultant for strategic marketing and communication in the textile industry. Not entirely serious, she offered me a job in her office. Like pushing a button, the pictures in my mind set in: Textile industry, exciting! Merchandising, contacts in the industry, collaborations, and I agreed to a short chat, at the end of which we spoke on the phone and arranged to meet.
 
She told me about her website TEXTINATION.de. And we were already involved in an exciting, heated exchange about perception and truth in the textile industry. Without further ado, we left it at that and I went home with a chunk of new information about an exciting field. Our dialogue on social media continued and eventually Ines offered me the chance to feed my die-hard curiosity with the support of TEXTINATION.de. I could write a blog on the site, about people, products, service providers, producers, startups or trends that interest me, to add to my half-knowledge about the textile industry.

Textile waste into the front ... new T-shirt out the back
During this exchange and a long brainstorming session, certain terms kept tickling my attention:
Circular economy, recycling, recyclable material loops. Circular Economy, Recycling, Recyclables. Even though there are many different definitions and some even distinguishing between different aspects: the former thought from waste that flows back into production as a secondary raw material, a more modern approach avoiding waste already in production - the general consensus is really only that circular economy is a cycle in which waste is used as a source for something new.

Sounds like useful additions for all areas of the manufacturing real economy to me. Ines introduced me to Robert Kapferer: He runs a startup called Circularity Germany in Hamburg. His company, founded in 2021 and consisting of Robert and another partner, is an offshoot of the Dutch-based company Circularity B.V. Its founder Han Hamers, with a degree in child psychology and a professional background in the textile dyeing industry, had the idea five years ago for a production facility that spins new yarn exclusively from textile production waste and old textiles turning it into T-shirts, polo shirts and sweatshirts.
Whether this works, and if so, how, is what I wanted to find out, and Ines and I arranged to meet Robert for a 90-minute online conference.

Robert, originally an industrial engineer, comes from a less sustainable industry. He worked for 11 years as managing director for AVECO Material und Service GmbH, where he was responsible for the workwear of more than 50,000 employees.

At the beginning of our conversation, he emphasizes that a moment in January 2021 changed his life and from then on, he wanted to dedicate himself to the topic of circular economy with all his might. That was when he met Han Hamers, who inspired him to found Circularity Germany. His enthusiasm and passion for the subject sound credible, and he begins to describe the differences between chemical and mechanical recycling methods. In summary, the mechanical process of shredding and the subsequent spinning shortens the fibers and thus restricts their properties for further processing. The advantage lies primarily in the comparatively uncomplicated, fast and more cost-efficient process. In the chemical variant, chemical waste remains, but the processed materials are broken down again into their basic building blocks in such a way that they have almost all the same properties as a so-called virgin raw material. Circularity Germany stands for the mechanical process.

And then comes the sentence that gets all our attention: "We've advanced a spinning technology so much that it relies exclusively on waste-based raw materials."
This sentence almost doesn't stand out because Robert still talks - quite excitingly - about the fact that they are planning a production and manufacturing facility where everything from knitting yarn to relatively fine thread can be spun and then further processed into fabric. And here Ines and I ask intensively: Essential requirements for industrial production still seem to be unresolved, and necessary processes are still in the planning stage. For example, the question of whether to work with pre-consumer or post-consumer waste. Pre-consumer waste is cutting waste from the production of clothes, which corresponds to about 10% of the processed material. Post-consumer waste we know as used textiles.

As long as production still takes place in India, Circularity currently uses mainly pre-consumer waste. These come exclusively from sewing factories in the Tirupur region in the south of India. When using used textiles, which exist in large quantities in Germany (according to a study, 28-40% of all garments produced are thrown away unworn), Circularity produces blended yarns of cotton and polyester. The company does not offer pure cotton yarns.

Textiles are treated with chemicals to varying degrees - workwear in particular cannot do without them. The fact that Han Hemers is also collecting used textile stocks from the Dutch army in order to reintroduce them renewed into the consumer cycle is therefore not reassuring. Military clothing has to be finished with all kinds of additives.

Therefor I ask how he can dispel doubts in a consumer’s mind like mine, with a healthy half-knowledge of mask deals and greenwashing, that a well-intentioned vision will be followed by a dark awakening. This concern cannot yet be resolved after the conversation.

We limit ourselves to what is planned: Robert has the dream of reversing the globalized process of textile production. He wants to end the decoupling of cotton growing regions and far-flung production such as Asia with subsequent shipping of ready-made goods to Europe. In the future, existing used textiles and/or cutting wastes are to be collected on site, recycled and processed locally into new textiles.

I believe him in having this dream. However, some of my questions about sustainability remain unanswered - which is why I have my doubts about whether the idea is currently capable of performing and competing.
What are the reasons for this? For one thing, I think it's always difficult to do necessary pioneering work. Especially when listening to smart comments at the regulars' table that large companies are already working intensively on the principle of circular economy. But sometimes, apart from the term "circular economy" and a vague commitment to it, not much remains.

Circularity Germany is committed to developing a technology based exclusively on waste. The interview points out that this also includes making production more environmentally friendly and eliminating transport routes, which further reduces the burden on the environment. When all the requirements for realizing this dream have been met and a product that is competitive in terms of both quality and price can be launched on the market, it is up to the consumer to decide. Here one would have the credible argument of sustainability and a socially and environmentally fair process. Circularity would then not have to worry about PR.

It needs to be given time and, above all, attention. But perhaps the industry should get involved right here and now, and invest in startups like this and make sure that problems are cleared out of the way. Because one thing has become clear to us in this conversation:

It could all be so simple. Circular economy is achievable, but the road there is still costly and rocky. That's why we wish Robert and his team every success and, above all, perseverance. Thank you for the interview.

Short and sweet: the profile of the company in the attached factsheet for download.

 

 

Image: Gaharwar Laboratory
13.12.2022

New inks for 3D-printable wearable bioelectronics

Flexible electronics have enabled the design of sensors, actuators, microfluidics and electronics on flexible, conformal and/or stretchable sublayers for wearable, implantable or ingestible applications. However, these devices have very different mechanical and biological properties when compared to human tissue and thus cannot be integrated with the human body.

A team of researchers at Texas A&M University has developed a new class of biomaterial inks that mimic native characteristics of highly conductive human tissue, much like skin, which are essential for the ink to be used in 3D printing.

This biomaterial ink leverages a new class of 2D nanomaterials known as molybdenum disulfide (MoS2). The thin-layered structure of MoS2 contains defect centers to make it chemically active and, combined with modified gelatin to obtain a flexible hydrogel, comparable to the structure of Jell-O.

Flexible electronics have enabled the design of sensors, actuators, microfluidics and electronics on flexible, conformal and/or stretchable sublayers for wearable, implantable or ingestible applications. However, these devices have very different mechanical and biological properties when compared to human tissue and thus cannot be integrated with the human body.

A team of researchers at Texas A&M University has developed a new class of biomaterial inks that mimic native characteristics of highly conductive human tissue, much like skin, which are essential for the ink to be used in 3D printing.

This biomaterial ink leverages a new class of 2D nanomaterials known as molybdenum disulfide (MoS2). The thin-layered structure of MoS2 contains defect centers to make it chemically active and, combined with modified gelatin to obtain a flexible hydrogel, comparable to the structure of Jell-O.

“The impact of this work is far-reaching in 3D printing,” said Dr. Akhilesh Gaharwar, associate professor in the Department of Biomedical Engineering and Presidential Impact Fellow. “This newly designed hydrogel ink is highly biocompatible and electrically conductive, paving the way for the next generation of wearable and implantable bioelectronics.”1 

The ink has shear-thinning properties that decrease in viscosity as force increases, so it is solid inside the tube but flows more like a liquid when squeezed, similar to ketchup or toothpaste. The team incorporated these electrically conductive nanomaterials within a modified gelatin to make a hydrogel ink with characteristics that are essential for designing ink conducive to 3D printing.

“These 3D-printed devices are extremely elastomeric and can be compressed, bent or twisted without breaking,” said Kaivalya Deo, graduate student in the biomedical engineering department and lead author of the paper. “In addition, these devices are electronically active, enabling them to monitor dynamic human motion and paving the way for continuous motion monitoring.”

In order to 3D print the ink, researchers in the Gaharwar Laboratory designed a cost-effective, open-source, multi-head 3D bioprinter that is fully functional and customizable, running on open-source tools and freeware. This also allows any researcher to build 3D bioprinters tailored to fit their own research needs.

The electrically conductive 3D-printed hydrogel ink can create complex 3D circuits and is not limited to planar designs, allowing researchers to make customizable bioelectronics tailored to patient-specific requirements.

In utilizing these 3D printers, Deo was able to print electrically active and stretchable electronic devices. These devices demonstrate extraordinary strain-sensing capabilities and can be used for engineering customizable monitoring systems. This also opens up new possibilities for designing stretchable sensors with integrated microelectronic components.

One of the potential applications of the new ink is in 3D printing electronic tattoos for patients with Parkinson’s disease. Researchers envision that this printed e-tattoo can monitor a patient’s movement, including tremors.

This project is in collaboration with Dr. Anthony Guiseppi-Elie, vice president of academic affairs and workforce development at Tri-County Technical College in South Carolina, and Dr. Limei Tian, assistant professor of biomedical engineering at Texas A&M.
This study was funded by the National Institute of Biomedical Imaging and Bioengineering, the National Institute of Neurological Disorders and Stroke and the Texas A&M University President’s Excellence Fund. A provisional patent on this technology has been filed in association with the Texas A&M Engineering Experiment Station.

1 This study was published in ACS Nano.

Source:

Alleynah Veatch Cofas, Texas A & M University

Photo Pixabay
16.11.2022

Green chemistry transforms facemasks into Ethernet cables

Swansea University academics have pioneered a process which converts the carbon found in discarded facemasks to create high-quality single-walled carbon nanotubes (CNT) which were then used to make Ethernet cable with broadband quality.
 
The study, which has been published in Carbon Letters, outlines how this new green chemistry could be used to upcycle materials which would otherwise be thrown away and transform them into high value materials with real-world applications. The CNTs produced by this technique have the potential not only to be used in Ethernet cables, but also in the production of lightweight batteries used in electric cars and drones.

Swansea University academics have pioneered a process which converts the carbon found in discarded facemasks to create high-quality single-walled carbon nanotubes (CNT) which were then used to make Ethernet cable with broadband quality.
 
The study, which has been published in Carbon Letters, outlines how this new green chemistry could be used to upcycle materials which would otherwise be thrown away and transform them into high value materials with real-world applications. The CNTs produced by this technique have the potential not only to be used in Ethernet cables, but also in the production of lightweight batteries used in electric cars and drones.

Professor Alvin Orbaek White, of Swansea University’s Energy Safety Research Institute (ESRI):
“Single-use facemasks are a real travesty for the recycling system as they create vast amounts of plastic waste - much of it ending up in our oceans. During the study, we established that the carbon inside the facemask can be used as a pretty good feedstock to make high-quality materials like CNTs.

“CNTs are highly sought-after because they have preferential physical properties and tend to be much more costly on an industrial scale. So, through this study, we demonstrated that we could make very high value materials by processing the CNTs from what are, essentially, worthless waste facemasks.”

The team also studied the energy costs involved in using this process and concluded that the technique was green not only in levels of resource consumption but also in the product value generation as opposed to waste creation. Also, the Ethernet cable produced using the CNTs was good quality and adhered to Category 5 transmission speeds while easily exceeding the benchmarks set for broadband internet in most countries, including the UK.

Professor Orbaek White said:
“Using CNT films in batteries instead of metal films has a lower impact on the environment as the use of carbon offsets the need for mining and extraction activities. This is a crucial piece of work as it contributes to not only a circular economy but is also scalable and is viable for industrial processing and has green chemistry at its core.”

Source:

Swansea University

Photo: Pixabay
12.07.2022

Study on Click & Collect in the Fashion Industry

Study reveals need for action

How well are online and in-store businesses linked in the German fashion industry? How smoothly do omnichannel models like click & collect work? And how satisfactory is this for consumers? These questions were addressed by the Cologne-based company fulfillmenttools as part of its study "Click & Collect in the German Fashion Industry".

Study reveals need for action

How well are online and in-store businesses linked in the German fashion industry? How smoothly do omnichannel models like click & collect work? And how satisfactory is this for consumers? These questions were addressed by the Cologne-based company fulfillmenttools as part of its study "Click & Collect in the German Fashion Industry".

For the study, around 80 of the largest fashion retailers in Germany were examined in the first and second quarters of 2022. Of these, 22 companies in the sample offered Click & Collect as part of their service portfolio and could be analyzed in detail as part of test purchases. The mystery shoppers focused on how Click & Collect orders are processed via the retailers' online stores, the shopping experience when picking up the merchandise at the stores, and the handling of the returns process. The result: there is a clear need for optimization in all steps. According to the study, none of the retailers analyzed is currently in a position to offer its customers a consistent and convenient omnichannel experience.

In the fashion industry in particular, Click & Collect allows customers to benefit from on-site service and the convenience of online shopping. Immediate fitting, simple returns and no shipping costs are just a selection of the many advantages. Last but not least, the restrictions imposed in the wake of the Corona pandemic have accelerated the spread of Click & Collect in the retail sector. But how well does it work and how is it perceived by customers? "There is currently still a lack of data in operational practice that illustrates how well Click & Collect is implemented in reality from the customer's point of view. That's why we took a closer look at the status quo of Click & Collect models in the German fashion industry," says project manager Marleen Ratert.

In the study of around 80 of the largest fashion retailers in Germany, it was initially surprising that only 22 of the 80 (27%) retailers surveyed offer Click & Collect as an option for their customers in their service portfolio.

In analyzing and evaluating the companies that offer Click & Collect, the focus was on the entire journey of a customer order: ordering process, communication, pickup, returns processing and refunding.

According to the study's authors, a positive aspect is that the ordering process in the online store runs smoothly at most fashion retailers. However, customer communication before, during and after the click & collect order process was generally deficient. Missing order confirmations and non-existent information about delivery time and pick-up time were particularly negative.

he German fashion retailers performed worst in the area of the collection process. In particular, long delivery times, a lack of service points at the point of sale, and forms that have to be filled out by hand are the main reasons for dissatisfaction with the pickup process. In the area of returns processing, it was primarily the lack of digitization of the process that stood out: A large proportion still work with manual forms. However, the majority of fashion retailers in Germany have no problems processing the payment afterwards.

Monolithic IT structures, different solutions for many operational areas, traditional processes, missing interfaces - the reasons for the problems with the quick and easy introduction of omnichannel processes are numerous on the part of the companies. The demands of customers, on the other hand, have risen rapidly in recent years.

The checklist for successful omnichannel retailers provides tips and tricks for optimizing online and offline business in a process- and customer-oriented manner:

SIMPLIFY ONLINE ORDERS

  • Prominently feature Click & Collect as a service in the online store in order to draw customers' attention to it more quickly and fully exploit sales potentials
  • Improve availability of Click & Collect products

CREATE SEAMLESS IN-STORE EXPERIENCES

  • Install service points for picking up orders and clearly mark them as such to avoid waiting times at the checkout and provide customers with better orientation
  • Make store staff aware of upselling and cross-selling opportunities to encourage additional purchases

OPTIMIZE PROCESSES

  • Pick online orders in the store to significantly speed up delivery times and easily meet delivery promises
  • Digitize handover and return processes to make store operations more efficient and reduce the workload on staff
  • Regularly test omnichannel processes to identify gaps in communication and potential for optimization

IMPROVE SERVICE QUALITY

  • Implement end-to-end communication throughout the process to keep customers informed about the status of their order at all times
  • Offer various return options to best meet customer expectations

Modular software-as-a-service solutions for fulfillment processes are available to simplify complex processes for retailers, reduce the workload of employees and prevent errors in order picking. The entire study (in German) is available for download here.

Source:

fulfillmenttools.com / REWE digital

Photo: Pixabay
28.06.2022

Individual plastic budget - Fraunhofer UMSICHT presents study results

When plastics enter the environment, this brings with it many negative effects: these range from suffocating living organisms to transfer within the food chain and physical effects on an ecosystem. In addition, there are dangers from the release of additives, monomers and critical intermediates of metabolic processes, the metabolites.

How great the long-term impact of plastic emissions actually is, is not yet clear at the present time. In order to create a political decision-making basis for dealing with plastic emissions, researchers from Fraunhofer UMSICHT and the Ruhr University Bochum have therefore developed a budget approach and an LCA impact assessment methodology in the "PlastikBudget" project from December 2017 to the end of August 2021. The researchers have now completed the project. The result: When driving a car, a person emits more than half of their individual plastic emission budget through tire wear.

When plastics enter the environment, this brings with it many negative effects: these range from suffocating living organisms to transfer within the food chain and physical effects on an ecosystem. In addition, there are dangers from the release of additives, monomers and critical intermediates of metabolic processes, the metabolites.

How great the long-term impact of plastic emissions actually is, is not yet clear at the present time. In order to create a political decision-making basis for dealing with plastic emissions, researchers from Fraunhofer UMSICHT and the Ruhr University Bochum have therefore developed a budget approach and an LCA impact assessment methodology in the "PlastikBudget" project from December 2017 to the end of August 2021. The researchers have now completed the project. The result: When driving a car, a person emits more than half of their individual plastic emission budget through tire wear.

How big is the long-term impact of plastic emissions?
Six percent of global petroleum consumption goes to the plastics industry - and the trend is rising. While the plastics industry is an important economic factor in many countries, more and more plastic waste ends up in soils and oceans. Mostly in the form of highly mobile, small to large plastic fragments, plastic emissions can no longer be recovered from the environment. At the same time, the long-term effects of plastic in the environment are hardly predictable.

Due to the global and cross-generational dimension of the problem, it is important that science, industry and consumers work together to find a solution. One goal of the joint project PlastikBudget is therefore to quantify today's plastic emissions and to derive a plastic emissions budget. On this basis, the researchers can formulate quantitative emission targets that can be used to legitimize political decisions. In particular, the path from empirically verified data and normative values to a concrete emissions budget forms the core objective of the project.

From research to per capita emissions budget
Starting with a basic research on plastic quantities in the environment, the project addresses two major topics: The development of a budget approach and the development of an impact assessment method that can be used in life cycle assessments to consider potential environmental impacts of plastic emissions. Participatory formats complete the project. In this way, the results are anchored in political and scientific discourse. In the course of the project, the researchers will answer the following questions: What quantities of plastic are currently being discharged and what quantities have already accumulated? What quantities of plastic in the environment are still acceptable? How long does it take for plastics to degrade in real environmental compartments? How are the risks posed by different plastic emissions adequately represented? Finally, from the answers, they calculate a value for current emissions and what they consider to be an acceptable emissions budget.

250 million tonnes of PPE for 7.8 billion people
To measure plastic pollution, the researchers in the PlastikBudget project have developed the persistence-weighted plastic emission equivalent (PPE for short). This represents a virtual mass that takes into account the period of time until a specific plastic emission is degraded, e.g. in soil, freshwater or seawater. Relevant properties for this are the location of the emission, the material type, the shape of the plastic emission as well as the size of the emitted plastic part and the final environmental compartment in which the plastic remains. In the case of plastics that degrade completely within one year, the plastic emission equivalent corresponds to the real mass. If the degradation time is longer, it increases accordingly.

"Based on the thesis that the total amount of plastics already accumulated in the environment today has just reached a critical quantity, we were able to calculate a global plastic emission budget of 250 million tonnes of PPE," explains Jürgen Bertling, project manager of the project and scientist at Fraunhofer UMSICHT. "If each of the 7.8 billion people is allocated the same emission rights, this results in an individual budget of 31.9 kilograms of PPE per person and year."

Driving consumes half of the individual plastic budget
However, tire wear from driving alone corresponds to a plastic emission equivalent of 16.5 kg PPE per year and thus consumes more than 50 per cent of an individual's budget. Even waste from ten coffee-to-go disposable cups would consume 13.5 kg of PPE per year, more than a third of one's budget. "This is because the plastics used in disposable cups are more difficult to degrade than the rubber in the tire," explains Jan Blömer from Fraunhofer UMSICHT, who played a key role in developing the calculation methodology. The consumption of a coil of polyamide for a lawn trimmer, which releases microplastics when used, also weighs in considerably at 5.1 kilograms of PPE. Microbeads in cosmetics or the one-time sanding of a front door, on the other hand, consume significantly less of the individual emissions budget with 1.1 kg PPE and 0.5 kg PPE, but are still quite relevant in the overall balance.

Many other everyday activities also lead to plastic emissions. Nevertheless, the researchers show that the calculated budget limits can be met in various scenarios. However, such a scenario also entails considerable effort and massive changes in the way we deal with plastics today. One possible scenario to meet the budget would be a reduction of emissions by more than 50 per cent, if at the same time at least 50 per cent of all emissions consisted of readily degradable plastics.

Further work on accounting for plastic emissions in life cycle assessments
The persistence-weighted plastic emission equivalent developed in the PlastikBudget project could also represent a new impact category in life cycle assessments in the future. "With the help of factors that reflect the persistence of plastics in the environment, it will be possible in future to compare different product alternatives in terms of their plastic emission footprints," says Dr Daniel Maga, who is coordinating the corresponding further development of the life cycle assessment methodology at Fraunhofer UMSICHT. A corresponding exchange with companies is taking place here. However, implementation in the life cycle assessment methodology and the associated software solutions requires broad acceptance in the scientific community and must be prepared in corresponding standardisation committees.

The project is part of the research priority "Plastics in the Environment" (PidU) of the Federal Ministry of Education and Research (BMBF), in which 18 collaborative projects with around 100 partners from science, industry, associations, municipalities and practice want to clarify fundamental questions about the production, use and disposal of plastics. The research focus "Plastics in the Environment - Sources, Shrinking, Solutions" is part of the Green Economy flagship initiative of the BMBF framework programme "Research for Sustainable Development" (FONA3).

Source:

Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT

(c) Vincentz Network GmbH & Co. KG / ALTENPFLEGE
26.04.2022

ALTENPFLEGE 2022: Intelligently equipped rooms for more independence in old age

Most people want to live as independently as possible in old age. Exhibitors at the industry's leading trade fair ALTENPFLEGE from April 26 to 28 in Essen, Germany will be showing how senior facilities with modern interior design and smart equipment meet this need.

Demand for forms of housing such as service living is on the rise. Studies predict a need for around 540,000 new service living units in the coming years. One of the major trends at this year's 32nd edition of the Altenpflege trade fair is how senior facilities are meeting the rapidly growing demand with flexible room design and digital support. They can be seen in the Aveneo special show, including intelligent systems for stove shut-off, lighting control and room temperature, as well as for fall sensors and emergency calls.

Most people want to live as independently as possible in old age. Exhibitors at the industry's leading trade fair ALTENPFLEGE from April 26 to 28 in Essen, Germany will be showing how senior facilities with modern interior design and smart equipment meet this need.

Demand for forms of housing such as service living is on the rise. Studies predict a need for around 540,000 new service living units in the coming years. One of the major trends at this year's 32nd edition of the Altenpflege trade fair is how senior facilities are meeting the rapidly growing demand with flexible room design and digital support. They can be seen in the Aveneo special show, including intelligent systems for stove shut-off, lighting control and room temperature, as well as for fall sensors and emergency calls.

Future tenants or buyers of serviced apartments are prepared to invest specifically in their own living environment (source: Terragon study 2021). The focus is on a feel-good atmosphere, a high level of security and the option of using care services if required. "This can be facilitated by a cleverly thought-out arrangement of the rooms within a serviced apartment, for example by arranging the bathroom and bedroom right next to each other and making the wall with the washbasin rotatable," explains Carolin Pauly, managing director of Universal Rooms, which considers itself to be the interface between the wishes of the operators and the products in the serviced apartment market. "The furniture and furnishings industry is called upon to design modern collections with hidden product features that make life easier in old age," Pauly demands. This could be, for example, a grab handle built into the washbasin or a dining table that can be accessed by a wheelchair.

Lighting management also plays an important role. It should convey a sense of well-being and security as well as provide orientation and safety. Age-related clinical pictures in particular place high demands on lighting. Here, lighting systems that simulate the natural day and night rhythm can provide help.

Living, care and digitalization combined
The Chief Executive Officer of the Evangelische Heimstiftung (EHS - Evangelical Home Foundation), Bernhard Schneider, sees "an individually and comfortably furnished apartment that uses intelligent technology to provide a great deal of security and self-determination" as the senior living of the future. "I am certain: In the future, in a sector-free setting, we will have to understand housing, nursing and care, and digitalization even more strongly as building blocks that can be combined as needed."

According to Schneider, this starts with housing: In a nursing apartment or an assisted living apartment, in a shared apartment or other form of communal living, in a residence or an intergenerational project. All forms of housing should be well integrated into the neighborhood - this requires reliable, financed advisory structures, for example through neighborhood managers. In addition, there is care, support and assistance, in the form of day or night care, a mobile service or volunteers. "And technology, for example through our Aladien system, i.e. with intelligent home emergency call, fall sensors, stove shut-off, roller shutters and light control, video door telephony, etc. In the future, Aladien will evolve into a service robot," predicts Schneider.

This makes it possible for people to live a self-determined life and participate in society, even in old age. That's what people want, he says: a pleasant living environment, social contacts, cultural offerings and the certainty that someone will take care of them if necessary. "What we need for this is political commitment in the form of an ambitious funding program for modern forms of housing in old age," demands the EHS CEO. This would not only help the older generation, but young families could also benefit because this would free up the far too spacious apartments and terraced houses of the older generation for them.


ALTENPFLEGE – Trade fair and congress for the care industry since 1990
The traditional leading trade show for the care industry has so far been held alternately in Hanover and Nuremberg. From this year it alternates between Essen and Nuremberg. It covers all segments of professional geriatric care: services and products for care and therapy, occupation and education, IT and management, nutrition and home economics, textiles and hygiene as well as space and technology. In more than 30 lecture blocks, the accompanying trade congress covers the current topics of the industry, such as digitalization, the future of professional nursing care, hospice and palliative care, training or the new collectively agreed payment under the Healthcare Development Act (Gesundheitsversorgungsweiterentwicklungsgesetz - GVWG).

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
12.04.2022

Disrupted supply chains: Only nearshoring and digital technologies will help in the long term

  • McKinsey survey: Globally, more than 90 percent of supply chain managers are investing in the resilience of their supply chains during the Corona crisis.
  • But more often than not, they are simply increasing inventories instead of focusing on long-term effective measures such as regionalization of suppliers.
  • Only the healthcare industry has consistently relied on nearshoring and regionalization of suppliers so far.

Supply chain managers worldwide are under pressure: More than 90 percent invested during the Corona crisis to make their supply chains more resilient to external disruptions. More often than planned, however, supply chain managers resorted to the ad hoc measure of simply increasing inventories. And less often than planned, they also relied on long-term effects by regionalizing their supply base.

  • McKinsey survey: Globally, more than 90 percent of supply chain managers are investing in the resilience of their supply chains during the Corona crisis.
  • But more often than not, they are simply increasing inventories instead of focusing on long-term effective measures such as regionalization of suppliers.
  • Only the healthcare industry has consistently relied on nearshoring and regionalization of suppliers so far.

Supply chain managers worldwide are under pressure: More than 90 percent invested during the Corona crisis to make their supply chains more resilient to external disruptions. More often than planned, however, supply chain managers resorted to the ad hoc measure of simply increasing inventories. And less often than planned, they also relied on long-term effects by regionalizing their supply base. These are the key findings of a comparative study for which management consultants McKinsey & Company surveyed more than 70 supply chain managers from leading companies worldwide - for the first time in 2020 and again this year. Further results: Digital technologies are used much more frequently today than at the beginning of the pandemic, for example real-time monitoring or analytics based on artificial intelligence (AI).

The survey also quantifies the striking shortage of IT specialists in the area of supply management: in 2021, only one percent of the companies surveyed had enough IT specialists. "In the wake of the digitalization push, the need for IT skills is becoming even more of a bottleneck than it already has been," reports Vera Trautwein, McKinsey expert for supply chain management and co-author of the study. "As a result, the scope for action is also decreasing dramatically." In 2020, ten percent of the supply chain managers surveyed still had access to sufficient experts with the relevant IT know-how in their departments. How did the supply chain managers act during the crisis? Almost all respondents (92 percent) have invested in the resilience of their supply chains, and 80 percent have also invested in digital supply chain technologies. But while 40 percent of the 2020 respondents in McKinsey's first "Supply Chain Pulse" had still planned nearshoring and expanding their supplier base, only 15 percent ultimately put this into action. Instead, significantly more managers than expected - 42 percent versus 27 percent - expanded their inventories.

The 2020/21 comparative study also shows that supply chain managers have acted very differently in the crisis, depending on the industry. Healthcare can be considered a pioneer in the regionalization of the supply chain: 60 percent of the respondents in the industry have actually concentrated procurement, production and sales in a region such as Europe or North America, which they have also announced. In 2020, 33 percent of companies in the automotive, aerospace and defense industries had also announced this. However, according to their own figures, only 22 percent actually did so. This was despite the fact that more than three quarters of supply chain managers had given this measure priority. The chemicals and raw materials sectors made the fewest changes to their supply chains.

After the crisis is before the crisis
Over the years, supply chains have evolved into a high-frequency sensitive organism. Consistently globalized, optimized to fluctuations in consumer demand and with as little inventory as possible to cut costs. "This strategy has left companies vulnerable," notes McKinsey partner Knut Alicke. "And during the crisis, measures were taken that were more effective in the short term." As a result, supply chains are not yet resilient enough to prevent future disruptions. "For companies, nearshoring of suppliers remains a key factor in increasing their crisis resilience in the medium to long term." In addition, however, he said, the expansion and use of digital technologies are the key factors for resilient supply chains.

The pressure to act is great: Massive supply chain disruptions occur on average every 3.7 years and disrupt supply chains for at least one month. This was the conclusion of another McKinsey study on supply chains entitled "Risk, resilience, and rebalancing in global value chains" back in 2020.

Source:

McKinsey & Company [Düsseldorf, Germany]

Foto: Lalit Kumar, Unsplash
29.03.2022

The man-made fibers industry at the turning point of time

"You don't tear down a house before the new one is ready for occupancy."

Textination talked to the Managing Director of the Industrievereinigung Chemiefaser e.V., Dr. Wilhelm Rauch, about his assessment of the turning point that the man-made fibers industry is currently facing. What are the risks and threats, and what needs to change in order to remain a competitive player on the global market.

"You don't tear down a house before the new one is ready for occupancy."

Textination talked to the Managing Director of the Industrievereinigung Chemiefaser e.V., Dr. Wilhelm Rauch, about his assessment of the turning point that the man-made fibers industry is currently facing. What are the risks and threats, and what needs to change in order to remain a competitive player on the global market.

US President Joe Biden has called his Russian counterpart Vladimir Putin a war criminal in connection with the invasion of Ukraine. The United Nations' highest court, the International Court of Justice in The Hague, has ordered Russia to immediately end its war against Ukraine. How do you personally assess Russia's behavior?
Dr. Rauch:
With family roots in the Rhineland, Central and East Germany, I grew up at a time when, as a result of the division of Europe, families were separated and people were ruthlessly shot in the middle of Germany who wanted to cross the inner-German demarcation line towards the West. Since 1989, the fall of the Iron Curtain has led us into a period that lasted more than 30 years and allowed us, at least in Europe, to experience an era of peaceful coexistence between the great power blocs, intensive trade relations and prosperous states.

It is more than shocking to see today how Russia is trying to turn back the wheel of history in Europe with a brutality that the youngest generation growing up in Europe has fortunately not had to experience so far, and it brings back the worst memories of the Cold War, which everyone hoped would never return. If today in Ukraine even facilities for the peaceful use of nuclear energy are fired upon, a dimension has been reached that one does not want to extrapolate any further. In addition to the unspeakable human suffering caused, which we can only begin to alleviate by accepting Ukrainian refugees, in the long term all trust in political promises is being gambled away, which, however, is essential both for peaceful coexistence and for economic cooperation. We are facing a reordering of the world in which supply relationships and dependencies with or on autocratic states must be evaluated much more sensitively for each individual case.

The economic consequences of the Russia-Ukraine conflict are becoming increasingly clear. The Association of German Chambers of Commerce and Industry (DIHK) is correcting its forecast for 2022, but does not yet see a recession. What are your expectations for the industry in the current fiscal year?
Dr. Rauch:
The man-made fibers industry has been severely affected by the SARS-CoV-2 pandemic in the last two years. Planned investments were first postponed and then finally abandoned. By the end of 2022, three man-made fibers producers will close their doors in Germany compared to 2019. The industry started the current year on a very hopeful note, although previous issues such as REACH and, above all, energy costs were already increasing in severity before the Russia-Ukraine war. The economic consequences of the war will have a negative impact both directly in the form of increased energy prices and indirectly through changes in international competitive conditions.

What do the war in Ukraine and the economic sanctions against Russia entail for the upstream supply chains of the manmade fiber industry?
Dr. Rauch:
The immediate upstream supply chains will not be affected much by this war at first. However, we must expect supply chains in other industries to be disrupted. If, for example, certain raw materials or products are no longer available, this can have a noticeable impact, starting with logistics (mobility) and extending to components in production technology facilities. An example of this is the availability of cable harnesses, which were previously produced in Ukraine and are indispensable in many electronic components for man-made fibers production.

What is the relevance of Ukraine and Russia as sales markets for IVC member companies?
Dr. Rauch:
If we take the last year before the outbreak of the SARS-CoV-2 pandemic as the reference year, exports to Ukraine and the Russian Federation account for around 1.6% of total exports of man-made fibers from Germany. On average, a loss of sales to these countries can be tolerated, although it should not be forgotten that in individual cases - depending on a company's product portfolio - the impact can be quite significant. Looking beyond the horizon, it is not only the direct exports of man-made fibers to the war region that are of significance, but also deliveries of products in which man-made fibers are processed. Here, there are now interrupted supply relationships that result in order losses for the man-made fibers industry.

Certain industries are particularly affected by the consequences - what does this mean for the man-made fibers sector as a supplier industry?
Dr. Rauch:
Wherever production is cut back along the downstream value chain in which man-made fibers were used, the effects will be noticeable with a temporal delay. This applies, for example, to deliveries to the automotive sector, where the production of new vehicles comes to a standstill due to a lack of components originating from Ukraine.

How are exploding energy prices and the gas embargo affecting man-made fibers producers in the DACH region?
Dr. Rauch:
Even before the Russia-Ukraine war, European energy costs were already at a level that hit our members hard. For example, European gas costs currently rose by ten times from approx. 12 EUR/MWh to approx. 120 EUR/MWh as a result of the war, while in the USA they "only" rose by two and a half times from approx. 8 EUR/MWh to approx. 18 EUR/MWh. The situation is similar for electricity prices in Germany in particular, which have also risen by a factor of 10 from an already high level. Further price increases in Europe cannot be ruled out, but are more likely. Against this background, moderate adjustments in man-made fibers prices are only a drop in the bucket. A market development with virtually exploding energy costs cannot be reliably depicted by any company, nor can it be priced in such a way as to cover costs.

As the industry association of the man-made fibers industry, what do you think of "Freeze for Peace" or a stop to all Russian gas and raw material imports?
Dr. Rauch:
In Germany in particular, we have deliberately made ourselves dependent on Russian gas, contrary to all international warnings, by defining it as necessary for the bridge technology of electricity generation that we will need after the shutdown of coal- and nuclear-based power plants, before the availability of a sufficient amount of so-called "green" energy is assured. Gas is also needed for heating purposes and as a raw material, so it takes on the function of an all-rounder.

A boycott-related import stop would not only have serious negative consequences for the man-made fibers sector, but for the entire German industry and the majority of private households. As I mentioned at the beginning, it is the order of the day to help alleviate human suffering by taking in Ukrainian refugees. But this is not the end of the crisis. It must be assumed that the war situation will not be resolved in the near future. However, in order to cope with a protracted crisis situation, our economic strength must be maintained in order to be able to cope with the challenges ahead. An import freeze would be counterproductive in this respect. Since, due to the latest developments, gas deliveries are now to be paid for in rubles, there is rather a risk that Russia, for its part, will stop gas deliveries. In their effect, the two scenarios do not differ. The only thing that is certain is the fact that the availability of Russian gas to Europe is no longer guaranteed. Ultimately, the Russian demand to switch payments to rubles, which is not only aimed at revaluing the ruble, makes it clear that Russia is not dependent on Europe as a buyer of its gas. This would mean that a "freeze for peace" would lead to nothing. In the Far East, there is already a potential buyer of Russian gas to obtain it cheaply and safely, and which is also a major competitor of the European chemical fiber industry: China.

Are agreements with the United Arab Emirates and Qatar a good substitute solution for gas and oil supplies from Russia?
Dr. Rauch:
It is not a question of evaluating a measure in the sense of good or bad, but of whether it appears suitable in this particular situation to reduce unilateral dependencies on an aggressor before sustainable solutions are available in sufficient quantity. In this respect, there should initially be no ideological barriers in the measures to be examined for feasibility. The agreements concluded with the United Arab Emirates and Qatar after certainly careful political scrutiny are individual decisions and represent only one piece in the mosaic among many.

Does the saying "First we had bad luck, then we were not lucky at all" apply to the current economic performance of the industry - or: how do you assess the influence of the Corona pandemic and the war situation in this respect?
Dr. Rauch:
Both the SARS-CoV-2 pandemic and the Russia-Ukraine war are events with a global character. While the first event affected all countries equally sooner or later, the impact of the Russia-Ukraine war must be assessed in a more differentiated manner. The consequences of the war primarily affect companies in Europe, and there in particular those countries which - as mentioned above - have placed themselves in unilateral dependencies like Germany. This does not apply to the man-made fibers industry in particular. Although there are many fellow sufferers in other industries, this does not improve the situation, of course.

What does the industry expect from the political leaders in Berlin and Brussels in the future?
Dr. Rauch:
The wish list can be fixed to a few core elements:
In the long term, we need a supply of energy and raw materials that is not based on the dependence of a few autocratic states. On the way there, against the backdrop of the Russia-Ukraine war, previous exit scenarios from coal and nuclear energy must be reconsidered without prejudice with regard to their timeline. Or to put it more concisely: You don't tear down a house before the new one is ready for occupancy.

But energies from renewable raw materials must also be offered at prices that allow global competitiveness. According to a study by DECHEMA and FutureCamp, the chemical industry has calculated a price of 4 ct/kWh (including all taxes and fees). We are miles away from this today.

The revision of REACH must not lead to further bureaucracy and requirements that tie up capacity in companies. What we need in Europe is not dotting the i on Maslow's hierarchy of needs, but to ensure that we do not slide down the levels step by step and that the i dot floats in the air without an "i".

European economic policy must focus on the international competitiveness of European industry. It is not sufficient to consider and regulate the European Union only from the point of view of the internal market. The planned carbon border mechanism is such an example. It is intended to impose customs duties on imports that carry a high CO2 burden. This may protect the domestic market, but it does nothing at all to help export-oriented European industry such as the man-made fibers sector on the international world market, because European production costs remain too high by global standards despite the carbon border taxes.

The European Commission must increasingly recognize the European industry and with it the man-made fibers industry as problem solvers. Man-made fibers are indispensable as products for the energy turnaround (rotor blades for wind turbines), lightweight construction in mobility (lightweight car bodies in composite systems), sustainable road construction (geotextiles to reinforce the road surface and increase its service life), reduction of steel-reinforced concrete and thus cement, sand and gravel (reinforcement with high-tensile man-made fibers) and medical products (medical masks, bandaging materials, stents).

In Europe, we again need more market economy and no small-scale regulations that are adapted again and again and proliferate into an impenetrable thicket.

With all the wishes to politicians mentioned above, let me finally mention the following with regard to the current situation: In 1961, after the Berlin Wall was built, Russian and American tanks faced each other at Checkpoint Charlie at a distance of less than 50 meters, ready to fire.

A year later, in October 1962, nuclear-equipped American and Russian naval units met head-on in the Cuban Missile Crisis. Both John F. Kennedy and Nikita S. Khrushchev - bitter rivals in the contest of political systems - were sensible enough at the time not to let the situation escalate.

At present, I wish our national, European and transatlantic politicians’ unconditional determination in the defense of our free democratic values, but I also appeal to all politicians worldwide to take to heart one of Albert Einstein's fundamental perceptions: "I don't know what weapons will be used in the Third World War. But I can tell you what they'll use in the Fourth - rocks!"

Source:

Textination

The Interview was conducted by Ines Chucholowius, CEO Textination GmbH

Photo: Rostyslav Savchyn, Unsplash
22.03.2022

Again more Chinese company takeovers in Europe

  • Increase from 132 to 155 transactions - transaction value increases eightfold to 12.4 billion US dollars
  • Number of Chinese acquisitions in Germany rises from 28 to 35
  • UK most popular investment destination for Chinese companies followed by Germany

After the pandemic-related decline in Chinese company acquisitions in Europe in 2020, the number of transactions increased again in 2021: from 132 to 155. The transaction volume also increased: The value of investments and acquisitions has increased more than eightfold from $1.5 billion to $12.4 billion.

  • Increase from 132 to 155 transactions - transaction value increases eightfold to 12.4 billion US dollars
  • Number of Chinese acquisitions in Germany rises from 28 to 35
  • UK most popular investment destination for Chinese companies followed by Germany

After the pandemic-related decline in Chinese company acquisitions in Europe in 2020, the number of transactions increased again in 2021: from 132 to 155. The transaction volume also increased: The value of investments and acquisitions has increased more than eightfold from $1.5 billion to $12.4 billion.

Chinese investors also appeared more frequently again in Germany: After only 28 transactions by Chinese companies were counted in 2020, there were 35 of such investments or acquisitions in 2021. The investment volume rose from USD 0.4 billion to USD 2.0 billion. This figure does not include venture capital investments in German startups totaling USD 1.9 billion in 2021, in which Chinese companies were active as part of international investor groups.

These are the findings of a study by the audit and consulting firm EY, which examines investments by Chinese companies in Germany and Europe.

"Chinese companies remain cautious about investing in Europe overall," observes Yi Sun, partner and head of China Business Services in the Europe West region at EY. "One contributing factor is still the pandemic, which continued to cause disruptions in 2021 - partly because of mitigation measures such as travel restrictions, strict quarantine rules for people traveling to China from abroad, and lockdowns both in Europe and in China itself. Most Chinese companies that have already acquired companies abroad have been more concerned with restructuring in Europe in recent years rather than expanding further - especially in the automotive supply and machinery sectors."

According to Sun, the now high hurdles for foreign investments, especially in certain critical industries, as well as increasing competition from financial investors with strong capital, also had a dampening effect. "Purchase prices on the M&A market have risen sharply recently - in some cases, the Chinese interested parties didn't want to go along with that. Listed Chinese companies in particular fear putting pressure on their own share price with expensive acquisitions," Sun said. "In addition, some of the potential takeover candidates own production facilities or R&D centers in the US. In such cases, they may fear rejection by the Committee on Foreign Investment in the U.S. (CFIUS) - and potential Chinese bidders may not even be invited."

Declining interest in industrial companies
Traditional industrial companies continue to account for the majority of deals - especially in Germany: 12 of the 35 transactions in Germany and 30 of the 155 transactions in Europe took place in the industrial sector.

However, their number is declining: In 2020, 36 industrial transactions were counted across Europe. "Chinese investors are still interested in European automotive suppliers or mechanical engineering companies - but now more in the subsectors of electromobility, autonomous driving and high-tech materials," says Sun.

However, Yi Sun identifies a significant increase in interest elsewhere: "Chinese private equity funds and venture capitalists are becoming increasingly active. In Germany in particular, there were some very large investments in startups last year in which Chinese investors were significantly involved. In addition to German engineering skills, e-commerce expertise is increasingly in demand."

High tech/software companies accounted for 27 transactions across Europe last year (previous year: 20). "We see an increased interest in game developers and software programmers, for example. Especially the most active Chinese investor last year, Tencent, has recently become heavily involved in this segment," observes Sun.

The number of acquisitions and investments in the healthcare sector also increased: from 16 to 26 transactions. "The healthcare sector - whether pharma, biotech or medical technology - is increasingly becoming one of the most important target sectors for Chinese companies because there is a lot of pent-up demand in this sector in China, especially in research and development."

Great Britain replaces Germany as top destination in Europe
Most transactions were recorded in the UK last year. With 36 acquisitions and investments, the UK is just ahead of Germany (35 transactions) and well ahead of the third-placed Netherlands (13).

In the previous year, the order at the top was reversed: in 2020, Germany with 28 transactions was ahead of the UK with 21 deals.

"To the extent that the interest of Chinese investors is moving away from classic industrial companies toward technology, software and media companies, the target market of Great Britain is gaining in importance," says Sun. However, she is convinced that Germany remains an attractive market for Chinese investors: "Many Chinese companies have had good experiences with their investments in Germany in particular. In addition, there are now close and resilient ties between China and Germany at many levels. We will see more Chinese transactions in Germany in the coming months - especially when the impact of the pandemic on the economy subsides," Sun expects.

The largest investment in Europe last year was the sale of Philips' home appliances division to Hong Kong-based investment firm Hillhouse Capital for $4.4 billion.

The second largest transaction was Tencent's acquisition of the British developer studio Sumo Digital for US$1.1 billion, followed by China International Marine Containers' takeover of the Danish reefer container manufacturer Maersk Container Industry for also US$1.1 billion.

Study Design:

  • Sources: EY research, Thomson ONE, Merger Market, communications from the companies or consulting firms and law firms involved.
  • Acquisitions and investments originating from companies headquartered in China and Hong Kong or their subsidiaries were examined.
  • The target companies are headquartered in Europe and are operationally active.
  • Pure real estate transactions were not included.
  • The analysis also included transactions that had not yet been completed as of the reporting date of Feb. 17, 2022

Increasingly, Chinese investors are also participating in venture capital financing rounds, mostly as part of investor groups. In these cases, it is often not possible to determine the amount provided by the Chinese investor. Therefore, these transactions are included in the number of transactions but not in the total values.

Source:

Ernst & Young Global Limited (EYG)

Nicolas Meletiou, Pixabay
01.03.2022

Textiles and the environment: the role of design in Europe’s circular economy

From the perspective of European consumption, textiles have on average the fourth highest negative life cycle impact on the environment and climate change, after food, housing and mobility. A shift to a circular textile production and consumption system with longer use, and more reuse and recycling could reduce those impacts along with reductions in overall consumption. One important measure is circular design of textiles to improve product durability, repairability and recyclability and to ensure the uptake of secondary raw materials in new products.

Key messages

From the perspective of European consumption, textiles have on average the fourth highest negative life cycle impact on the environment and climate change, after food, housing and mobility. A shift to a circular textile production and consumption system with longer use, and more reuse and recycling could reduce those impacts along with reductions in overall consumption. One important measure is circular design of textiles to improve product durability, repairability and recyclability and to ensure the uptake of secondary raw materials in new products.

Key messages

  • In 2019, the EU textile and clothing sector had a turnover of EUR162 billion, employing over 1.5 million people across 160,000 companies. As was the case in many sectors, between 2019 and 2020, the COVID-19 crisis decreased turnover by 9% for textiles as a whole and by 17% for clothing.
  • In 2020, textile consumption in Europe had on average the fourth highest impact on the environment and climate change from a global life cycle perspective. It was the consumption area with the third highest impact on water and land use, and the fifth highest in terms of raw material use and greenhouse gas emissions.
  • To reduce the environmental impacts of textiles, a shift towards circular business models, including circular design, is crucial. This will need technical, social and business model innovation, as well as behavioural change and policy support.
  • Circular design is an important enabler of the transition towards sustainable production and consumption of textiles through circular business models. The design phase plays a critical role in each of the four pathways to achieving a circular textile sector: longevity and durability; optimised resource use; collection and reuse; and recycling and material use.

Textiles are identified as a key value chain in the EU circular economy action plan and will be addressed in the forthcoming European Commission’s 2022 EU strategy for sustainable and circular textiles and EU sustainable products initiative. This briefing aims to improve our understanding of the environmental and climate impacts of textiles from a European perspective and to identify design principles and measures to increase circularity in textiles. It is underpinned by a report from the EEA’s European Topic Centre on Circular Economy and Resource Use available here.

1. Production, trade and consumption of textiles
Textiles is an important sector for the EU economy. In 2019, the EU textile and clothing sector had a turnover of EUR162 billion, employing over 1.5 million people in 160,000 companies. As was the case for many sectors, between 2019 and 2020, the COVID-19 health and economic crisis decreased turnover by 9% for textiles as a whole and by 17% for clothing (Euratex, 2021).

In 2020, 6.9 million tonnes of finished textile products were produced in the EU-27. EU production specialises in carpets, household textiles and other textiles (including non-woven textiles, technical and industrial textiles, ropes and fabrics). In addition to finished products, the EU produces intermediate products for textiles, such as fibres, yarns and fabrics (Köhler et al., 2021).

The textiles sector is labour intensive compared with others. Almost 13 million full-time equivalent workers were employed worldwide in the supply chain to produce the amount of clothing, textiles and footwear consumed in the EU-27 in 2020. This makes the textiles sector the third largest employer worldwide, after food and housing. Most production takes place in Asia, where low production costs come at the expense of workers’ health and safety.
 
Textiles are highly globalised, with Europe being a significant importer and exporter. In 2020, 8.7 million tonnes of finished textile products, with a value of EUR125 billion, were imported into the EU-27. Clothing accounts for 45% of imports in terms of volume, followed by household textiles, other textiles and footwear (Eurostat, 2021a). The EU imports mainly from China, Bangladesh and Turkey, and exports mainly to the United Kingdom, Switzerland and the United States (Euratex, 2020).

Consumption
European households consume large amounts of textile products. In 2019, as in 2018, Europeans spent on average EUR600 on clothing, EUR150 on footwear and EUR70 on household textiles (Köhler et al., 2021; Eurostat, 2021b).

The response to the COVID-19 pandemic, involving stay-at-home measures and the closure of companies and shops, decreased textile production and demand overall (Euratex, 2021). As a result, the consumption of clothing and footwear per person decreased in 2020, relative to 2019, while the consumption of household textiles slightly increased. Average textile consumption per person amounted to 6.0kg of clothing, 6.1kg of household textiles and 2.7kg of shoes in 2020 (see Figure 1).

Apart from this COVID-related drop in consumption in 2020, the estimated consumption of clothing and footwear stayed relatively constant over the last decade, with slight fluctuations between years (see Figure 2). Similarly, the consumption of household textiles was also relatively steady, with a slight increase over the decade.

When calculating the ‘estimated consumption’ based on production and trade data from 2020, and excluding industrial/technical textiles and carpets, total textile consumption is 15kg per person per year, consisting of, on average:

  • 6.0kg of clothing
  • 6.1kg of household textiles
  • 2.7kg footwear.

For 2020, this amounts to a total consumption of 6.6 million tonnes of textile products in Europe. Textile consumption estimates are uncertain, as they vary by study, often using different scopes and calculation methods.

2. Environmental and climate impacts of textiles
The production and consumption of textiles has significant impacts on the environment and climate change. Environmental impacts in the production phase result from the cultivation and production of natural fibres such as cotton, hemp and linen (e.g. use of land and water, fertilisers and pesticides) and from the production of synthetic fibres such as polyester and elastane (e.g. energy use, chemical feedstock) (ETC/WMGE, 2021b). Manufacturing textiles requires large amounts of energy and water and uses a variety of chemicals across various production processes. Distribution and retail are responsible for transport emissions and packaging waste.

During use and maintenance — washing, drying and ironing — electricity, water and detergents are used. Chemicals and microfibres are also emitted into the waste water. Meanwhile, textiles contribute to significant amounts of textile waste. At the end of their life, textiles often end up in general waste and are incinerated or landfilled. When textile waste is collected separately, textiles are sorted and reused, recycled or disposed of, depending on their quality and material composition. In 2017, it was estimated that less than 1% of all textiles worldwide are recycled into new products (Ellen MacArthur Foundation, 2017).

To illustrate the magnitude of the impacts of textile consumption on raw material use, water and land use and greenhouse gas emissions compared with other consumption categories, we have updated our calculations of the life cycle environmental and climate impacts in the EU. We used input-output modelling based on data from the Exiobase database and Eurostat. In line with the reduced textile consumption level in 2020 because of the COVID-19 pandemic, the environmental impacts decreased from 2019 to 2020.

Raw material use
Large amounts of raw materials are used for textile production. To produce all clothing, footwear and household textiles purchased by EU households in 2020, an estimated 175 million tonnes of primary raw materials were used, amounting to 391kg per person. Roughly 40% of this is attributable to clothes, 30% to household textiles and 30% to footwear. This ranks textiles as the fifth highest consumption category in Europe in terms of primary raw material use (see Figure 3).

The raw materials used include all types of materials used in producing natural and synthetic fibres, such as fossil fuels, chemicals and fertilisers. It also includes all building materials, minerals and metals used in the construction of production facilities. Transport and retail of the textile products are included as well. Only 20% of these primary raw materials are produced or extracted in Europe, with the remainder extracted outside Europe. This shows the global nature of the textiles value chain and the high dependency of European consumption on imports. This implies that 80% of environmental impacts generated by Europe’s textile consumption takes place outside Europe. For example, cotton farming, fibre production and garment construction mostly take place in Asia (ETC/WMGE, 2019).

Water use
Producing and handling textiles requires large quantities of water. Water use distinguishes between ‘blue’ water (surface water or groundwater consumed or evaporated during irrigation, industry processes or household use) and ‘green’ water (rain water stored in the soil, typically used to grow crops) (Hoekstra et al., 2012).

To produce all clothing, footwear and household textiles purchased by EU households in 2020, about 4,000 million m³ of blue water were required, amounting to 9m³ per person, ranking textiles’ water consumption in third place, after food and recreation and culture (see Figure 4).

Additionally, about 20,000 million m³ of green water was used, mainly for producing cotton, which amounts to 44m³ per person. Blue water is used fairly equally in producing clothing (40%), footwear (30%) and household and other textiles (30%). Green water is mainly consumed in producing clothing (almost 50%) and household textiles (30%), of which cotton production consumes the most.

Water consumption for textiles consumed in Europe mostly takes place outside Europe. It is estimated that producing 1kg of cotton requires about 10m³ of water, typically outside Europe (Chapagain et al., 2006).

Land use
Producing textiles, in particular natural textiles, requires large amounts of land. The land used in the supply chain of textiles purchased by European households in 2020 is estimated at 180,000 km², or 400m² per person. Only 8% of the land used is in Europe. Over 90% of the land use impact occurs outside Europe, mostly related to (cotton) fibre production in China and India (ETC/WMGE, 2019). Animal-based fibres, such as wool, also have a significant land use impact (Lehmann et al., 2018). This makes textiles the sector with the third highest impact on land use, after food and housing (see Figure 5). Of this, 43% is attributable to clothes, 35% to footwear (including leather shoes, which have a high land use impact because of the need for cattle pasture) and 23% to household and other textiles.

Greenhouse gas emissions
The production and consumption of textiles generate greenhouse gas emissions, in particular from resource extraction, production, washing and drying, and waste incineration. In 2020, producing textile products consumed in the EU generated greenhouse gas emissions of 121 million tonnes carbon dioxide equivalent (CO2e) in total, or 270kg CO2e per person. This makes textiles the household consumption domain responsible for the fifth largest impact on climate change, after housing, food, transport and mobility, and recreation and culture (see Figure 6). Of this, 50% is attributable to clothes, 30% to household and other textiles, and 20% to footwear. While greenhouse gas emissions have a global effect, almost 75% are released outside Europe, mainly in the important textile-producing regions in Asia (ETC/WMGE, 2019).

About 80% of the total climate change impact of textiles occurs in the production phase. A further 3% occurs in distribution and retail, 14% in the use phase (washing, drying and ironing), and 3% during end of life (collection, sorting, recycling, incineration and disposal) (ECOS, 2021; Östlund et al., 2020).

Textiles made from natural fibres, such as cotton, generally have the lowest climate impact. Those made from synthetic fibres (especially nylon and acrylic) generally have a higher climate impact because of their fossil fuel origin and the energy consumed during production (ETC/WMGE, 2021b; Beton et al., 2014).

3. Design as an enabler of circular business models for textiles
To reduce the environmental and climate change impacts of textiles, shifting towards circular business models is crucial to save on raw materials, energy, water and land use, emissions and waste (ETC/WMGE, 2019). Implementing and scaling circular business models requires technical, social and business model innovation; as well as enablers from policy, consumption and education (EEA, 2021).

Circular design is an important component of circular business models for textiles. It can ensure higher quality, longer lifetimes, better use of materials, and better options for reuse and recycling. While it is important to enable the recycling and reuse of materials, life-extending strategies, such as design for durability, ease of reuse, repair and remanufacturing, should be prioritised. Preventing the use of hazardous chemicals and limiting toxic emissions and release of microplastics at all life cycle stages should be incorporated into product design.

Designing for circularity is the most recent development in design for sustainability. Expanding a technical and product-centric focus to a focus on large-scale system-level changes (considering both production and consumption systems) shows that this latest development requires many more disciplines than traditional engineering design. Product design as a component of a circular business model depends on consumer behaviour and policy to realise its potential and enable implementation. Figure 7 shows the linkages between the circular business model, product design, consumer behaviour and policy. All are needed to slow down and close the loop, making it circular.

(c) Empa
08.02.2022

Early detection of dementia with a textile belt

Alzheimer's and other dementias are among the most widespread diseases today. Diagnosis is complex and can often only be established with certainty late in the course of the disease. A team of Empa researchers, together with clinical partners, is now developing a new diagnostic tool that can detect the first signs of neurodegenerative changes using a sensor belt.

Forgetfulness and confusion can be signs of a currently incurable ailment: Alzheimer's disease. It is the most common form of dementia that currently affect around 50 million people worldwide. It mainly afflicts older people. The fact that this number will increase sharply in the future is therefore also related to the general increase in life expectancy.

Alzheimer's and other dementias are among the most widespread diseases today. Diagnosis is complex and can often only be established with certainty late in the course of the disease. A team of Empa researchers, together with clinical partners, is now developing a new diagnostic tool that can detect the first signs of neurodegenerative changes using a sensor belt.

Forgetfulness and confusion can be signs of a currently incurable ailment: Alzheimer's disease. It is the most common form of dementia that currently affect around 50 million people worldwide. It mainly afflicts older people. The fact that this number will increase sharply in the future is therefore also related to the general increase in life expectancy.

If dementia is suspected, neuropsychological examinations, laboratory tests and demanding procedures in the hospital are required. However, the first neurodegenerative changes in the brain occur decades before a reduced cognitive ability becomes apparent. Currently, these can only be detected by expensive or invasive procedures. These methods are thus not suitable for extensive early screenings on a larger scale. Empa researchers are working with partners from the Cantonal Hospital and the Geriatric Clinic in St. Gallen on a non-invasive diagnostic method that detects the early processes of dementia.

Signs in the unconscious
For the new method, the researchers Patrick Eggenberger and Simon Annaheim from Empa's Biomimetic Membranes and Textiles lab in St. Gallen relied on a sensor belt that has already been used successfully for ECG measurements and has now been equipped with sensors for other relevant parameters such as body temperature and gait pattern. This is because long before memory starts to deteriorate in dementia, subtle changes appear in the brain, which are expressed through unconscious bodily reactions.

These changes can only be recorded precisely when measurements are taken over a longer period of time, though. "It should be possible to integrate the long-term measurements into everyday life," explains Simon Annaheim. Skin-friendly and comfortable monitoring systems are essential for measurements that are suitable for everyday use. The diagnostic belt is therefore based on flexible sensors with electrically conductive or light-conducting fibers as well as sensors for motion and temperature measurement.

To enable such long-term measurements to be used for monitoring neurocognitive health, the researchers are integrating the collected data into in-house developed mathematical models. The goal: an early warning system that can estimate the progression of cognitive impairment. Another advantage is that the data measurements can be integrated into telemonitoring solutions and can thus improve patient care in their familiar environment.

Suspicious monotony
The human body is able to keep its temperature constant in a range of 1 degree Celsius. The values naturally oscillate in the course of the day. This daily rhythm changes with age and is conspicuous in neurodegenerative diseases such as dementia or Parkinson's disease. In Alzheimer's patients, for example, the core body temperature is elevated by up to 0.2 degrees Celsius. At the same time, the spikes in daily temperature fluctuations are dampened.

In a study, the researchers have now been able to show that altered skin temperature readings measured with the sensor belt actually provide an indication of the cognitive performance of test subjects – and can do so well before dementia develops. The test subjects in the study included healthy people with or without mild brain impairment. This mild cognitive impairment (MCI) does not represent a disability in everyday life, but it is considered a possible precursor to Alzheimer's disease. The subjects took part in long-term measurements and neuropsychological tests. It was found that a lower body temperature, which fluctuated more throughout the day, was linked to a better cognitive performance. In individuals with MCI, body temperature varied less and was slightly elevated overall.

The heartbeat is also subject to natural variations that show how our nervous system adapts to sudden challenges. The small silence between two heartbeats, about one second in duration, has great significance for our health: If this pause always remains the same, our nervous system is not at its best.

A study by researchers from ETH Zurich determined that poorer measurements in older, healthy people can be improved within six months through cognitive-motor dance training. In these "exergames," the test subjects imitated sequences of steps from a video. In contrast, participants who instead only trained in straight lines on a treadmill, but also trained their memory, benefited less.

"The point is to intervene early with appropriate training as soon as the first negative signs can be measured," says Patrick Eggenberger. "With our sensor system, any improvements in cognitive performance can be tracked through movement-based forms of therapy." Studies with long-term monitoring will now be used to clarify how the sensor measurements can be used to predict the progression of mild brain disorders.

Further information
Dr. Simon Annaheim
Biomimetic Membranes and Textiles   
Phone +41 58 765 77 68
Simon.Annaheim@empa.ch

More information:
Empa Membrane Medical & Healthcare
Source:

EMPA, Andrea Six

Photo: pixabay
25.01.2022

momox fashion presents Second Hand Fashion Report 2022

  • Representative study with almost 8,000 participants regarding the second hand fashion market in Germany
  • Second hand replaces new: 84 percent have bought less new goods due to second hand shopping
  • 71 percent have spent less money on new goods because they have bought second-hand clothing
  • For just under one in two (45 percent), buying second-hand clothing has become a matter of course
  • When buying second-hand fashion, sustainable production is more important (60 percent) than the brand name (48 percent)

Second hand replaces new - that's what 84 percent of second hand shoppers in Germany say, stating that buying second hand items has replaced buying a new clothing item for them.

  • Representative study with almost 8,000 participants regarding the second hand fashion market in Germany
  • Second hand replaces new: 84 percent have bought less new goods due to second hand shopping
  • 71 percent have spent less money on new goods because they have bought second-hand clothing
  • For just under one in two (45 percent), buying second-hand clothing has become a matter of course
  • When buying second-hand fashion, sustainable production is more important (60 percent) than the brand name (48 percent)

Second hand replaces new - that's what 84 percent of second hand shoppers in Germany say, stating that buying second hand items has replaced buying a new clothing item for them. Another 71 percent state that they have spent less money on clothing because they have bought used items.** These are the results of the current Second Hand Fashion Report 2022, for which the second hand online store momox fashion has conducted two studies for the third time in a row: A representative survey in cooperation with the market research institute Kantar as well as a customer survey among momox fashion customers to get detailed insights into the second hand clothing market. A total of 7,826 people took part in the surveys.

Buying second hand clothes has become a matter of course for every second person
The representative Kantar survey shows that buying second-hand clothing has become routine: 67 percent of Germans have already bought second-hand clothing at some point - an increase of eleven percent on the previous year. More than one in two (56 percent) do so regularly - at least once a year. For 45 percent, buying second-hand clothing has become a matter of course or very much a matter of course. In addition, more than half of Germans (53 percent) estimate that their closet consists of up to 20 percent second-hand clothing.*

Second hand clothing is not only shopped online, but also sold
The most popular way to buy used clothing is online shopping: 44 percent of respondents buy their second-hand fashion pieces online. Around one in three (28 percent) go to second-hand stores in search of their next favorite second-hand item, followed by flea markets with 14 percent. Surprisingly, the 50+ generation in particular likes to buy online (44 percent). Generation Z (under 25s), however, prefers second-hand stores (30 percent).*

But it is not only second-hand online shopping that is popular. Almost one in two (45 percent) resells used clothing, preferably online (76 percent). Only 11 percent sell at flea markets and 8 percent at second-hand stores.*

Sustainability remains main motivation for buying used clothing
To find out more about the reasons for buying second-hand clothing, momox fashion conducted a customer survey among almost 7,000 participants. The main motivation for buying second-hand clothing continues to be the sustainability aspect with 87 percent. 83 percent buy second-hand clothing because of the price savings compared to new goods. Around one in two (49 percent) goes in search of clothing in second-hand stores because the desired items are no longer available in regular stores.**

Almost all respondents (91 percent) generally consider sustainability and environmental protection to be important or very important when buying clothing. This is also reflected in consumer behavior: Around three quarters (85 percent) try to buy second-hand whenever possible. 58 percent make sure to purchase sustainable clothing. And 31 percent use environmentally friendly products for the care and cleaning of clothing.**

Sustainable production or brand name - which is more important?
For more than half (51 percent) of the respondents, the brand name is less important or unimportant when buying used clothing. Whether the clothing was produced sustainably, on the other hand, is considered by 60 percent to be very important or important. Especially for the 60+ generation (75 percent), sustainable production of second-hand clothing is very important or important.**

Second hand clothing is especially popular among parents
However, second-hand clothing is not only bought for oneself, almost every fifth person (18 percent) also buys it for his/her children.* Among the parents of the second-hand shoppers, 85 percent buy second-hand clothing for their children. Online stores (58 percent) and online marketplaces and second-hand online stores (51 percent) are the most popular. 43 percent buy used children's clothing from friends. 33 percent like to go shopping in second-hand stores and another 23 percent in stationary children's clothing stores. At the same time, 63 percent of respondents say they buy more second-hand clothing since becoming parents.**

Jackets and coats are second hand top sellers
Second-hand jackets and coats (70 percent) are the most popular items, followed by sweaters (60 percent), dresses and skirts (56 percent) and pants (49 percent). Pants and sweaters seem to have become more popular among second-hand shoppers compared to the previous year (previous year: 46 percent and 51 percent). Younger shoppers (18-29 year olds) prefer to buy their sweaters second hand even more than jackets and coats (80 percent).**

Sources:
* Kantar survey
** momox fashion survey
 
Method:
Kantar survey: number of cases (n=1,037), target group: 16-64 years; method: online survey in the survey period (13.-16.11.2021), conducted by Kantar Deutschland GmbH on behalf of momox AG.
 
momox fashion survey: number of cases (n=6,789), survey period (21.-26.10.2021), target group: momox fashion customers aged under 18 to over 60; method: online survey, conducted by momox AG

Download of study (in German)

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) Messe Düsseldorf / ctillmann
26.10.2021

A+A 2021: Restart for Trade Fairs in Düsseldorf

  • World's leading trade fair for safe and healthy working offers central platform for personal exchange within the industry

The responsible handling of the issues of safety and health at work has once again moved into the focus of society and politics due to the pandemic. At A+A 2021, which begins on 26, October 2021, these topics have been the focus since its premiere. Under the motto "People matter", A+A 2021 will present everything to do with personal protection, occupational safety and health at work from 26 to 29 October. More than 1,200 exhibitors from 56 nations will present themselves to trade visitors in 10 halls at the Düsseldorf exhibition centre.

  • World's leading trade fair for safe and healthy working offers central platform for personal exchange within the industry

The responsible handling of the issues of safety and health at work has once again moved into the focus of society and politics due to the pandemic. At A+A 2021, which begins on 26, October 2021, these topics have been the focus since its premiere. Under the motto "People matter", A+A 2021 will present everything to do with personal protection, occupational safety and health at work from 26 to 29 October. More than 1,200 exhibitors from 56 nations will present themselves to trade visitors in 10 halls at the Düsseldorf exhibition centre.

"The anticipation for the fair was great. This year we were particularly looking forward to the personal exchange with the industry. The positive exhibitor feedback confirms that the players in occupational health and safety want a live platform. And with the A+A we deliver what only a trade fair can offer. Tactile product presentations and innovations as well as planned and accidental encounters with the entire industry," says Birgit Horn, Project Director A+A.

Exciting topics and best practices at the A+A Congress
Parallel to the A+A trade fair, the 37th International Congress for Occupational Safety and Health deals with numerous current topics and challenges of the scene. It is organised by the Federal Working Group for Safety and Health at Work (Bundesarbeitsgemeinschaft für Sicherheit und Gesundheit bei der Arbeit, Basi). In more than 25 series of events, well-founded specialist knowledge and current political topics are conveyed and intensively discussed for all stakeholders in matters of safety and health at work, on site and in some cases also digitally. "Even the opening event will be interesting. Social partners and other stakeholders will discuss the impact of the pandemic on occupational safety and health and the return to the 'new normal' that is now beginning," says Basi Managing Director Dr Christian Felten.

At the A+A Congress, renowned experts from the field of occupational safety and health will provide answers to central questions such as: How does the digitalisation of work affect the health and safety of employees? How do I, as an occupational safety specialist, advise companies and employees on this? How should decentralised workplaces be managed in a safe and healthy way? How do you determine a healthy balance between mobile and stationary work? What is the need for occupational prevention in the case of musculoskeletal stress and what is the current need for prevention in the case of activities involving carcinogenic hazardous substances and bio-substances? There are many interesting events on this and many other topics, further information can be found at www.basi.de/kongress. .

Trend topics at the A+A 2021
Digital performance and sustainability determine the current discussion and will continue to strongly influence the future of work. In addition to these two megatrends at A+A 2021, the focus of the framework programme is on solutions for the future (Future Solutions), new working worlds (New Work) and the topic of hygiene and pandemics.

A+A Live: Experience safe and healthy work with all senses
Best practices using state-of-the-art products and processes will be communicated under the label "A+A live" in the Trend Forum, the Theme Park Operational Fire Protection and Emergency Management, the Robotics Park and the Start UP Zone.

In Hall 10, trade visitors will find the Safety and Health Meeting Point, the competence centre for all occupational health and safety issues. This is where Basi's member and partner organisations present themselves..

The Robotics Park is also located in Hall 10, it is divided into the Self Experience Space and the Exoworkathlon. The partner of the Robotics Park is the Fraunhofer IPA from Stuttgart.
In the Self Experience Space, the following manufacturers of exoskeleton solutions will be presenting their products, which visitors can try out for themselves:  Ottobock SE & Co. KGaA, Japet Medical Devices SAS, Iturri, German Bionic Systems GmbH, Ergoschutz GmbH, suitX Inc, hTRIUS GmbH, Levitate Technologies Inc. and Laevo B.V.

The Exoworkathlon is a live study conducted by the Fraunhofer Institute for Manufacturing Engineering and Automation (IPA) and the Institute for Industrial Manufacturing and Management at the University of Stuttgart (IFF) in which young test subjects (trainees and technical students) run through a course once with and once without an exoskeleton. The data collected during the Exoworkathlon is used to scientifically evaluate the extent to which these exoskeletons reduce muscular and skeletal strain and increase performance.

In Hall 4, expert lectures on the topics of digitalisation + safety, digitalisation + health, sustainability, protection and hygiene as well as safe handling of hazardous substances will provide an insight into current developments in the Trend Forum.

The Corporate Fashion Lounge is located in Hall 5. Here, trade visitors can find out about the latest trends in fashionable workwear and experience how versatile modern workwear is today. At the same time, the lounge provides an outlook on the future role that corporate fashion will play at the trade fair from A+A 2023 onwards.

In Hall 6, trade visitors will find the action area on industrial fire protection and emergency management, organised by the Bundesverband Betrieblicher Brandschutz / Werkfeuerwehrverband Deutschland (WFVD). Several live demonstrations will simulate the use of chemical protective suits (CSA) in the event of the escape of toxic substances in the event of an accident and demonstrate the correct prevention.

More information:
A+A
Source:

Messe Düsseldorf

(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: