Strategic Intelligence for Bodywear Industry Leaders
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1 Strategic Intelligence for Bodywear Industry Leaders Issue Week Contents BACKGROUND TRENDS QUICK SILVER: a move that signals the growing importance of Mexico as a market for aquatic bodywear - page 2 INDIA: State of Uttar Pradesh promises assistance to hosiery exporters - page 2 GERMANY: launch of national morphological study - Page 2 Contents SUPPLIER DEVELOPMENTS WILLY HERMANN: Superfine range of finest gauge fabrics improved further Page 3 ALSAFIL: new acquisition raises competitiveness Page 3 MAGLIFICIO RIPA: a new quality developed specially for swimwear - Page 3 DOGI: new collection places greater emphasis on natural fibres - Page 4 LENZING: a report of strong sales growth - Page 4 CARVICO: a new product destined to revolutionise the swimwear fabric field - Page 4 Contents THE APPAREL SCENE BIGHEADED.COM: a new approach to boxer short design Page 4 WOLFORD: adoption of a new distribution channel Page 5 SMART TEXTILES: a life saving investment for ageing babyboomers Page 5 SHAPELY SHADOW: an effective and practical help for bodywear designers - Page 5 Contents DISTRIBUTION CORTEFIEL: major expansion plans announced - Page 6 YAMAMAY: 2006 sales make leap forward - Page 6 CANELLE: first two stores opened outside France - Page 6 INTIMISSIMI: an expensive way to celebrate an anniversary - Page 6 1
2 Contents PEOPLE ERES: new designer named to take over from Irene Leroux- Page 7 Contents GETTING TOGETHER EUROVET: positive evolution of Paris lingerie and bodywear supplies fairs in February - Page 7 Contents FINISHING TOUCH MAFIA: lingerie purchases trap drug dealer Page 7 BACKGROUND TRENDS Elements of strategy development SURFWEAR CONCERN Quicksilver in the USA has created a joint venture with PBM International in Mexico, an apparel marketing and distribution specialist. The joint venture will establish a wholesale business, a chain of owned stores and a retail franchising operation in Mexico. These ambitious plans suggest that the American company sees considerable development potential for its products in Mexico.. HOSIERY EXPORTERS in the Indian state of Uttar Pradesh are being urged by the state s Industrial Development Corporation to take advantage of the benefits it offers. At the same time, a Special Economic Zone is being created with a view to boosting exports of all textile products. Currently, the 400 textile enterprises in the region, including hosiery mills, export about a fifth of their output, mainly to North America, the Middle East and the EU. Because it is very probable that other Indian states will take comparable action to boost exports of hosiery, the country could soon rival China as a source for these products. RESEARCH TO UPDATE current body measurement data for the German population is being launched. The research programme being conducted by the Hohensteiner Institute textile research centre will use 3D body scanners to measure men, women and children throughout the country. Measurement data used currently by the clothing industry date back to the 90s for women and to the 60s for men. Because the quality of research done by the Institute is admired throughout the world, and because Germany is such an important market for exporters elsewhere in Europe and on other continents, the measurement data will prove extremely valuable for all manufacturers selling there. The assured accuracy of the new data offers exporters to Germany the opportunity to provide the same quality of fit as local brands, thus adding to their competitive strengths. 2
3 SUPPLIER DEVELOPMENTS Opportunities for manufacturers FURTHER IMPROVEMENTS have been brought to the Superfine range of E54 and E50 gauge fabrics produced by Willy Hermann in Austria. The range now includes blends of natural fibres such as cotton, Micro-Modal, bamboo and Micro-Viscose, together with elasthane. Thanks to newly developed knitting and finishing techniques, the pilling associated with natural fibres is eliminated totally, ensuring perfect appearance through many wash cycles. For more upmarket and some new basic applications, a surface treatment can be applied to Superfine fabrics that produces a shiny and even smoother appearance. Other improvements include the use of coloured elasthane for deeper colours as well as greater colour fastness and the application of specially adapted spinning technologies to provide maximum stability of technical values. Weights range from 90 to 200 gr/m2, with different stretch and recovery properties and moulding performance that are adapted to intended end-use and customer requirements. The new characteristics enhance yet further the qualities of the fine gauge fabric collection. TEXTURISING SPECIALIST Alsafil in Italy acquired the Torcitura di Altri concern from Pompea for an undisclosed amount. The deal which is expected to be closed in January will provide Alsafil, that will have generated sales of EUR 20m this year, with the capacity to triple its turnover. The company will continue to supply Pompea as in the past for at least two years but it will also use its additional capacity to supply other users with textured and covered yarns. At the same time, Alsafil announced that it had been appointed sole European distributor for the Sheiflex range of elasthane yarns produced by Sheico in Taiwan. Both these developments are likely to make competition keener, and thus put greater pressure on prices, in the covered yarn and elasthane yarn sectors. In particular, if Alsafil uses a presumably cheaper brand of elasthane for its covered yarns it could win appreciable market shares from its main competitors in Italy and France. A NEW QUALITY of circular knitted swimwear fabric has been added to the range of Light fabrics produced by Maglificio Ripa in Italy. Named Light Lucida the Only One, it is a brilliant fabric knitted on 44 gauge machines in 75/25% PA/EA; it weighs 160 gr/m2 and comes in 48 colours, including black and white. In addition to excellent two-way stretch, the fabric is water repellent for fast drying, provides lightness without being transparent, presents a soft hand and ensures high colour fastness. 3
4 The Light concept has already won an appreciable share of markets formerly dominated by warp knitted qualities and the new product should help to achieve further progress. THE NEW COLLECTION of lingerie fabrics from Dogi International for spring 2008 is characterised by lightness in order to meet the demand for lightweight garments that also provide a shaping action. The collection favours naturalness, expressed in natural fibres for plain as well as fancy fabrics. The bodywear fabric collection features four individual fashion themes. In recent years, natural fibres have tended to lose ground to synthetics but consumer perceptions and attitudes may be changing, helped by the excellent performance achieved by cellulosic fibres. DURING THE FIRST NINE months of this year Lenzing AG achieved a 16.7 per cent sales increase, to EUR 841.1m, and a 16.4 per cent rise in profits that reached EUR 80.1m. The results were attributed to the good performance of the company s textile fibre core business. Company CEO Thomas Fahneman said that increased output at all sites and the successful implementation of price adjustments made necessary by the rise in raw material prices made an important contribution to sales growth. He added that the company had strengthened its market share in high-quality fibre applications, including bodywear and that signs of recovery were seen in the nonwoven sector. Those users that object to a price adjustment that produces a rise in profits should bear in mind that all well managed companies need to generate a profit margin that allows them to maintain adequate investment on R&D as well as on production equipment. TRULY INNOVATIVE is the expression used by Carvico to describe a new stretch fabric launched at the MarediModa salon last week. Labelled (r)evolution, the fabric is said to involve advanced technology to achieve lightness and exceptional performance. It is ultrafine, only half the thickness of a traditional charmeuse fabric, lightweight at only 160 gr/m2, provides excellent coverage, stretches in two directions and is highly resistant to pilling and chlorine. For the consumer, (r)evolution has the added advantage of retaining much less sand within the fabric than does a standard charmeuse fabric, thus providing more comfort. For manufacturers, it also curls less, which simplifies production processes. If consumers can be made aware of the greater comfort to be derived from swimwear made in the new fabric, it could quickly gain substantial market share. 4
5 THE APPAREL SCENE What or how manufacturers are doing LATEST ADDITION to the range of online retailer Bigheaded.com in the USA is a product called Breakaway Boxer. This features a traditional boxer short outer part which is held together by snap closures and can be pulled off with a single tug to reveal the coordinated close fitting briefs underneath. Sold at prices ranging from USD 29 to USD 35, the models feature the signature BigHeaded red tape measure fly opening as well as a condom pocket. While the breakaway feature is of limited practical value, except on those occasions when the condom pocket is likely to be useful, the concept of boxer shorts coordinated with briefs is one which would be much appreciated by many consumers. FOR THE FIRST TIME, merchandise from Austrian hosiery and bodywear specialist Wolford, is available online from the company s new e-shop. It offers a comprehensive range of women s hosiery, underwear, lingerie and men s underwear, with free delivery worldwide on orders exceeding EUR 250. Because the company s merchandise is available only from more exclusive and fairly thinly spread outlets, the site is unlikely to siphon off sales from physical shops. At the same time, it promises to generate substantial sales volume in areas inadequately served by Wolford stores. DEMAND FOR ITEMS of underwear and hosiery that monitor heart rate and other indications of health problems is likely to grow rapidly as the baby boom generation enters a more vulnerable age group. The prediction was made by Andrew Carle, a researcher at the George Mason University in the USA when addressing an audience in Australia. The required smart fabrics already exist and development for commercial use is well advanced. Andrew Carle added that further development should allow smart underwear to provide Cardio Pulmonary Resuscitation (CPR) within 15 years. Work is also proceeding on smart socks that will signal when elderly people should sit to avoid falling. The first fabric suppliers and garment manufacturers to start using the new smart fabrics will benefit most from the considerable potential demand for such underwear and hosiery. SPECIAL FEATURES of the latest Shapely Shadow mannequins include a fleshlike finish and breast forms with a natural droop. These show the effects of padding and underwire shapes and even indentations created by straps. The 5
6 company was recently retained by Adidas to design mannequins with Asian morphology for use in its factories in Asia. Another of the company s products, the Fast-Fit software that allow virtual garments to be viewed through 360 to analyse the fit of a physical garment, is said to have been adopted by British volume distributor Marks & Spencer. Shapely Shadow added that the Fast-Fit program will soon be accessible via the internet. If the mannequins and software perform as claimed, they could make a major contribution to a bodywear company s competitive strengths. DISTRIBUTION Who moves what and how TO SPEED THE EXPANSION outside Spain of its Women s Secret chain of lingerie stores, Grupo Cortefiel is launching a major franchising operation in major markets around the world. First franchised outlets are due to open as shop-inshops in four V&D stores in the Netherlands. More ambitious plans are made for France where the company expects to franchise some 100 outlets within four years, with the first opening scheduled in the first half of Plans for other countries have not been revealed but, with adequate financial resources available, there is little doubt that the chain will expand dramatically in the coming years. THE FIRST ONLINE shop operated by the Yamamay chain in Italy should have started operating on Friday 1 st December but the site could not be found as this issue was being prepared. When it opens, the site, offering only a limited assortment, will supplement sales through 380 franchised stores in Italy and 20 elsewhere. The company expects to achieve a 37 per cent rise in sales this year, reaching EUR 70m. Even with a limited range of merchandise, the online shop could antagonise franchisees who may fear the loss of sales. TWO STORE OPENINGS in Belgium marked the first expansion outside France of the Canelle lingerie chain operated by the Mulliez family, one of the most powerful retailing specialists in Europe. The chain opened 20 new outlets this year to reach a total of 110 stores, which makes it one of the fastest growing retail business in its field. This franchise operation distributing a private label collection has access to ample financial resources that promise rapid growth for years to come. A SHORT FILM directed by Sergio Castellito commissioned by the Intimissimi lingerie chain in Italy to celebrate its tenth anniversary is said to represent an investment of EUR 1m. But the company s manager of communications, Michela Gottardello, is reported to have said that the investment is proportionate to its objective. Founder Sandro Veronesi said that the chain was now nearing outlets worldwide, with 559 stores in Italy alone. He 6
7 added that his current strategy was to reinforce the chain s position in Europe and the USA where the company had recently concluded a distribution agreement with the Victoria s Secret chain. This is another rapidly growing franchised chain with its own private label collection. Together with other Italian chains, such as the similarly successful Calzedonia business, it has prospered by supplying attractive and good quality merchandise at an easily affordable price when such products could not be found in independent specialist stores. PEOPLE Corporate appointments VALERIE DELAFOSSE, currently a freelance designer working with the Princesse tam tam concern was designated by Irene Leroux as her successor to the post of chief designer for Eres. The appointment becomes effective at the end of this month and the first collection designed by Ms Delafosse will be presented for spring/summer GETTING TOGETHER - Markets for goods and ideas MORE EXHIBITORS than last year, with 580 against 570, will be present at the February 2007 edition of the Salon International de la Lingerie (SIL), organised in Paris by Eurovet. The salon will welcome 150 new exhibitors, of which 50 will be showing in the Spicy Garden section for young creative upmarket labels. The men s underwear section will also feature new exhibitors and will have its own trend section within the general forum. The Interfilière salon for bodywear materials and accessories, staged alongside the lingerie event from 2 to 4 February, expects to attract 203 exhibitors including suppliers of fibres, yarns and machinery. FINISHING TOUCH The smile for this week TAX AUDITORS checking financial records of an alleged member of the Montreal Mafia charged with corrupting two female border agents found that he had spent over CND on lingerie in less than two months. This became part of their indictment for fiscal fraud. The next time the man tries to corrupt border guards, he should pick men and bribe them with Havanas. 7
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