Textile Insight

T h e corner office may not come equipped with a crystal ball but the top-level execs we talked to recently have a clear vision of what's on tap for 2018. Conversations revolved around key trends influencing industry direc- tion and what they foresee for the year ahead. Here, and on the following pages, we take a close look at how textile businesses approach today's need for speed and a corporate identity defined by values. Speed to Market & On Time Delivery With consumers demanding faster trend turnaround and Amazon — along with other retailers — offering delivery in a flash, textiles will need to keep pace. Similarly, as the industry shifts from pre-season to "ASAPs," and more brands adopt a direct-to-consumer model, investing in quick turn technology or speed to market strategies is top of mind for 2018. "There continues to be a drive toward shorter and shorter development cycles, and speed is the future," states Stephen Kerns, president, Schoeller Textil USA. Execs all along the supply chain agree. "We definitely feel it, experience it, and respond to it," says Lisa Owen, senior director, Global Textiles Business, Microban. "Speed to market has significant effect on all active/outdoor brands." Chad Altbaier, VP, Downlite Outdoor adds, "In this changing world, where consumers are going online for more and more of their purchasing needs, having effective and efficient logistical systems that will enable quick and accurate delivery of product is a requirement." David Parkes, founder, Concept III Textiles, mentions a recent WSJ article (11/28/17) that reports Walmart – and others in the grocery business – are charging fines for late delivery. "With the impact of Amazon, and more brands and retailers going direct to consumer, delivery will mean faster availability." Re-Thinking Sourcing Solutions "Local for local," "regional manufacturing" and "re-balancing sourcing," are now industry catch phases in the effort to compress supply chains as today's business world spins faster. "We are seeing shifts," Owen of Microban explains. "Whereas in the past sourcing was primarily in one region, now more companies are more likely to understand the need to produce in regional markets, and thinking along the lines of 'local for local.' These days it has to be the right product, the right time and the right place in the global supply chain." Microban has recently established new distributor relationships to expand services. An agreement with Tanatex Chemicals, for instance, will make the entire Microban textile product line available in Europe for the first time. "We are working collaboratively and doing regional re-balancing of product to help source from places like Turkey, Central America, Mexico, and Africa," says Owen. "It's happening!" Diversified sourcing that aligns with partner production is key, explains Pierluigi Berardi, director global marketing, Nilit. "Logistically you need to respond and adapt to the market." Nilit has strategic locales in Brazil; the U.S. (Virginia); Italy; and China. Berardi sees traction in Central America, too. Once described as "China + 1," sourcing conversations now are more along the lines of "1, 2, 3, 4 + China." textileinsight.com 26 • Textile Insight ~ January/February 2018 FINDING THE RIGHT FIT Market Forces Shaping the Future of Textile Innovation INDUSTRY REPORT / FORECAST 2018 ACTIVE ACCELERATION

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