Textile Insight

chain conversation. "It opens a new world for suppliers to innovate and present these fiber solutions to brands and retail- ers," Simko remarks, explaining that textile suppliers are now helping brands and retailers with sourcing to find eco solutions. "I spent the last year talking with execs who wanted validation and were seeking solutions when spandex and cotton prices spiked," he says. "Relationships now are about helping to innovate, provide data, source and provide attributes to communicate to consumers." Simko continues, "We take a holistic approach to sales and marketing and its role in the supply chain partnerships." Based on the past two years, it's not too surprising that Simko is seeing more "disruption planning" and "dual-sourcing" strategies. There's more talk with the mill base about "what if extremes" and how to plan. According to Simko, currently these are lightweight discussions, but on the table. He, like others in the textile community, believe today's supply chain issues were not caused by Covid, but accelerated. Regarding localized supply chains, for example, Simko shares that businesses have been moving out of China into Vietnam for years and nearshoring has been talked about for a long time. Hyosung has 10 facilities in different regions around the globe, and just built a fifth plant in China. Each facility is tailored to the strength of the region — for Turkey that's cotton, for Vietnam its swim, for example. While the process is fundamentally the same, the equipment is suited to each region's needs. Regional Re-Boot? Execs agree that localized sourcing can afford a higher degree of control over one's supply chain, and for this reason, regionalism is increasingly top of mind. This trend is already gaining traction in Europe and other areas globally, and continues to be a talking point domestically. The recent Première Vision Paris trade event included a presentation during which attendees (virtual and in person) were invited to consider a new supply map for 2022. "The health crisis, rising raw material prices and supply problems are all issues forcing retail brands to rethink their supply strategies. We are witnessing a new momentum in favor of local sourcing," stated Gildas Minvielle, director of the Institut Français de la Mode (IFM) Economic Observatory that offers market research on changes and evolutions in the textile, fashion and luxury markets. For example, results of a recent IFM survey asking retail brands how Covid influenced supply strategies, showed 62 percent of respondents had increased their proximity of sourcing, and 47 percent of survey takers said they shifted sourcing to other manufactur- ing countries. Going deeper, in terms of eco-respon- sibility, when asked what priority action was taken in 2021, 42 percent of brands participating responded, "Partial reshoring of manufacturing to France or Europe," which is up from 18 percent in 2020. In addition, 27 per- cent of brands noted having reinforced sourcing in countries that respect social rights and environmental impacts, a bump increase from 23 percent in 2020. Regionalism extends beyond the EU. In a "Smart Voices" webinar hosted by Giusy Bettoni, CEO of C.L.A.S.S., in a discussion on "What's next? 2022 Trends and Directions in 2022," Global fashion advisor Orietta Pelizzari, a strategic brand/retail spe- cialist, stated, "Regionalism is back. It's no longer one way that works for all. The world has been in a global mood for two years, but shifting to regional." She noted how Korea, parts of the Americans, Japan and China are becom- ing more distinct. "There are different habits between these different regions. The pandemic has given back regional identity." In relation to this, Pelizzari highlighted the importance of values aligning within a supply chain. "Tracing a product origin should be accompanied by tracing the values of the source." The pandemic has focused atten- tion on USA-made and the viability of strengthened support and investment in a domestic supply chain. "I think the pandemic, raw materials shortages, backed-up ports, trucking issues and staffing issues will contribute to per- manent change in the textile business in the USA," said Karen Buscemi, presi- dent and CEO of Detroit Sewn, who was quoted in a recent SEAMS newsletter that queried members industry status. "I just hope that the government will see this and help textiles and manufactur- ing infrastructure with favorable tax rates and other incentives that keep Americans employed and the USA more self-sufficient." l In terms of eco-resourcing, what priority actions have you taken in 2021? textileinsight.com Reduction of volume purchased at the beginning of the season to limit the risk of unsold products. Partial reshoring of manufacturing to France or Europe. Increase in supplier audits. Reinforce sourcing countries that respect social rights and limit environmental risks. n 2020 n 2021 No particular action for an economic responsible supply. Chart source: IFM Survey, December, 2021 March/April 2022 ~ Textile Insight • 29 18% 2% 58% 38% 28% 31% 23% 27% 23% 11% "I spent the last year talking with execs who wanted validation and were seeking solutions when spandex and cotton prices spiked. Relationships now are about helping to innovate, provide data, source and provide attributes to communicate to consumers." MIKE SIMKO Global Marketing Director, Hyosung "Regionalism is back. It's no longer one way that works for all. The world has been in a global mood for two years, but shifting to regional." ORIETTA PELIZZARI Srategic Brand/ Retail Specialist "The health crisis, rising raw material prices and supply problems are all issues forcing retail brands to rethink their supply strategies. We are witnessing a new momentum in favor of local sourcing." GILDAS MINVIELLE Director of the Institut Français de la Mode (IFM) Economic Observatory

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