Textile Insight

STRATEGIES | STATE OF THE MARKET 48 • Textile Insight ~ July/August 2018 textileinsight.com customers excited. "Sustainability and using materials that can be recycled from the get go is the trend right now," states MeiLin Wan, VP Textiles, ADNAS. According to the Textile Exchange 2017 Preferred Fiber & Materials Market Report, recycled PET is the fastest growing synthetic fiber worldwide. ADNAS started its rPET and recycled program initially in the automotive segment but caught the attention of the home textile market in the last few years. (Brands PimaCott and Loftex both use the CertainT technology in their collection of towels; cotton and rPET respectively.) "Our whole effort in the last two years has been to set up a foundation of credibility and proof that we can scale to 200 million pounds in cotton, but also other materials. Now it makes sense to take what we've learned from our experience in home textiles with big volume and really set the right foundation for apparel," explains Wan. Knowing where a product comes from and the authenticity of materi- als used has escalated in consumers' minds says Wan. "We've been around for 13 years, in the textile area, since 2013 and in the past two years the conversation about our platform as gone from "interesting technology" to "we need it!" Consumers desire for "newer faster" product is also on the rise. To clamp down on lead times PrimaLoft has been strategic in the global positioning of its supply chain; 20 manufacturing partners support PrimaLoft's product portfolio, a selection that has increased significantly and now runs the gamut from Aerogel footwear product and insulations to technical fabrics and base layers. If something happens in one area of the world, the company is able to supply from another location "We have dramatically reduced lead times, to a four to six week delivery at peak," says Joyce. "That is extraordi- narily quick. About five years ago at peak we were at nine to 12 weeks." The better PrimaLoft is at just in time, the less risk brand partners have in the supply chain. Explains Joyce "They don't have to build out inven- tory in advance without knowing what consumption is going to be. Our brand partners are really watching inventory. They want to empty the shelves so they can start anew with the next season product. And if you're dealing with inventory, that limiting. And cascades down through the supply chain." With the lead time manufacturing lifecycle tightening, a flexible supply chain with proximity to factories is an effective model. "If we can move where the market goes, we can move our manufacturing accordingly," Joyce states. "We are trying to create value, beyond the product." Unifi, too, is taking proactive steps to create supply chain efficiency. For example, the company has formed a joint venture with the owners of Complast S.A. (Complast) and Technologia Textil Avanzada (TTA), existing recycling, spinning and tex- turing companies in Guatemala. In a prepared statement Unifi president Tom Caudle states, "Central America has been a region of focus for brands and retailers over the past few years, as apparel programs are sourced closer to the U.S. The growth in the region is key to our strategy of building our Repreve and other value-added brands." Earlier this year Unifi purchased the dyed yarn business of National Spinning Company moving assets to Unifi's dye-house operations in Reidsville. The acquisition looks to enhance Unifi's position as a leading producer of dyed staple and filament yarn in the region and will add acrylic and wool products to the company's dyed-yarn portfolio. Hyosung also reports new pro- duction opportunities. The global spandex producer plans to invest $100M in a new cost-competitive creora spandex facility in India. This plant will be near Aurangabad in the western state of Maharashtra and is expected to be commercial by 2019. "We are investing in India to meet the needs for comfort by the growing consumer market in India as well as to better serve the textiles industry in India, Pakistan, and Bangladesh. Our state of the art facility will enable creora spandex to deliver the best quality, consistency, and value to meet customer's needs," says chairman Cho Hyun-joon in a prepared statement. "We continue to invest in all dimensions of our creora spandex business with new global marketing team members, new products, a new development center, customized development workshops and new capacity." Since 2015, Hyosung has added 93,000 tons in new creora spandex capacity with a new plant in Quzhou, China plus additional investment in Turkey and Vietnam. By 2020, the total capacity is expected to be 390,000 tons. Pierluigi Berardi, VP global marketing, Nilit talked about the importance of a having a global footprint that connects the value chain but also services on the micro-region level. Nilit has plants in Brazil, U.S., China, Europe and Turkey. "We are ready to serve wherever the market is moving," says Berardi. Strategic Moves in Shifting Landscape Just as supply chain models are re-adjusting to new market forces strategies are underway re-evaluating product viability for long-term growth. PrimaLoft, for example is shifting away from its yarn business. "We've been in the yarn business for many years, and always worked through a third party. At the same time our product line has evolved, and now we have developed a full-blown fabric business — making technical stretch products, textured fleeces, and next to skin base layers," explains Joyce. "We're actually creating a finished roll good that has a higher value to our partners than just selling them yarn." The strategic decision to focus on product, not on yarn, unfolded earlier this Spring and PrimaLoft will be work- ing closely with brand partners and existing customers to make for smooth transition. "Then instead of us manu- facturing the yarn, we'll allow them to manufacture it. It will be PrimaLoft recipes, but we're out of the manufac- turing side," Joyce confirms. Focusing on core competencies is allowing suppliers to shift out of low margin areas to ingredient solutions that today's consumers are willing to pay a premium for. Part of get- ting higher margins is presenting a better value proposition to consum- ers. "Consumers want value and that includes performance, durability and versatility," states Kerns, who highlights Schoeller's ongoing capi- tal investments such as the recent purchase of four new state-of-the-art weaving machines and a top-of-the-line dyeing machine. "In terms of pricing pressure, you can't go any lower, you have to look beyond the cost of the textile, and focus on operational efficiencies." Execs agree that strategic invest- ments are necessary to do right by the customer and what's right in the supply chain. "You just can't cut, cut, cut price," says John Shearman, VP sales, Applied DNA Sciences. "We are all concerned about the last mile of the supply chain how we're going to get product to the consumer, but invest- ment in the first mile of the value chain helps the whole process. You have to work both sides of the equation." O "We are ready to serve wherever the market is moving." Pierluigi Berardi, Nilit "Our state of the art facility will enable creora spandex to deliver the best quality, consistency, and value to meet customer's needs." Cho Hyun-joon, Hyosung "We have dramatically reduced lead times, to a four to six week delivery at peak; About five years ago at peak we were at nine to 12 weeks." Mike Joyce, PrimaLoft "Our whole effort in the last two years has been to set up a foundation of credibility and proof that we can scale to 200M pounds in cotton, but also do that with other materials." MeiLin Wan, Applied DNA Sciences "In the textile world, sustainability and non- fluorinated technology is the driver. The thinking is what's next." Lisa Hardy, Chemours "Factory-to- consumer modeling is happening. The model is taking shape as a way to achieve higher margins." Stephen Kerns, Schoeller "Unifi has invested an estimated $150M in manufacturing and technology around our recycled polyester Repreve." Jay Hertwig, Unifi

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