Product Innovation (PI) Apparel 2016: Day two Highlights

Transcription

1 JULY 8, 2016 Product Innovation (PI) Apparel 2016: Day two Highlights The Fung Global Retail & Technology team attended the Product Innovation (PI) Apparel conference, which organizers describe as a place to discover the technologies disrupting the fashion, apparel and footwear industry. Key themes at the event included innovation, product lifecycle management, 3D technology, supply chain and digitalization. A number of speakers on day two focused on customization and the importance of partnerships. The Fung Global Retail & Technology team attended the Product Innovation (PI) Apparel conference, which organizers describe as a place to discover the technologies disrupting the fashion, apparel and footwear industry. PI Apparel focused on innovation, product lifecycle management, 3D technology, supply chain and digitalization this year. We heard from and met with representatives of large retailers, emerging brands, technology companies and vendors. Key takeaways from day one of the event included: Future fashion innovations may include clothes that can be dissolved in a salt bath trendy attire may disappear in a kind of fashion Snapchat. Established brands must find ways to innovate while keeping their core strengths. The key to customization is to keep it relevant. There are barriers to entry, so companies have to make the experience and the product credible and high quality. In order to be successful, companies have to connect the connectors between fashion, technology and design. This can be accomplished by nontraditional partnerships, leveraging existing infrastructure, and investing in research and development. SUPPLY CHAIN AND DIGITALIZATION Bob Bland, CEO and Founder, Manufacture New York Bob Bland, CEO and Founder of Manufacture New York, said that she launched Manufacture New York, a fashion incubator/factory hybrid, because she wanted to help slow the talent drain from New York City. She started with a pilot in the Garment District in 2013 before opening 1

2 a 160,000-square-foot industrial space in Sunset Park, Brooklyn, that can accommodate more than 30 designers and houses 12 private studios. Manufacture New York combines the entire supply chain under one roof, Bland said, noting that bringing people together has been a game changer. Manufacture New York combines the entire supply chain under one roof, Bland said, noting that bringing people together has been a game changer. Source: Manufactureny.org Manufacture New York has three technology labs: one focuses on digital processes and felting, one on soft circuits and wearable electronics, and one on biology, chemistry and biofabrication. Bland said that biology is the next hardware revolution, and that people are growing furniture and shoes. With regard to soft circuitry, she said that creation of a stretchable, commercial circuit is probably still two to five years away. She also noted that not all wearable tech is electronic: Dropel, a Manufacture New York participant, is using a nanotechnology process that combines hydrophobic polymers with natural fibers to make garments liquid repellent. Unmade, based in London, allows customers to customize their sweaters. Bland said, The more customer-facing we make our processes, the more excited our customer will be. Yoshirt is smartphone app that provides customized shirts and Ziel provides customized activewear, while Automat, based in Stockholm, has created a wearables toolkit that designers can use to weave circuitry into fabrics. Manufacture New York combines the entire supply chain under one roof, Bland said, noting that bringing people together has been a game changer. Bland also suggested that future fashion innovations may include trendy clothes that can be dissolved in a salt bath making fast fashion into a kind of fashion Snapchat. She noted that research and technology takes a lot longer in fashion, and that that is actually a good thing, as it allows designers to weed out things that do not work well. Embrace technology where it makes sense, she concluded. INNOVATION Tim Williams, CEO, YR Store Tim Williams of YR Store presented a compelling case for offering customization options. He said that customization increases the time customers spend in stores, in the surrounding area and at events; increases customer joy; creates revenue; and requires zero printed 2

3 JULY 8, 2016 inventory. He said that the key to customization is to keep it relevant. There are barriers to entry, so the experience and the product must be credible and high quality. Developing customization is costly, but the results pay off, he said. Customization increases the time customers spend in stores, in the surrounding area and at events; increases customer joy; creates revenue; and requires zero printed inventory. In his presentation, Williams showed videos of YR s collaborations with A Bathing Ape, Target, Liberty and Topshop. In each store, customers were able to customize a T-shirt with in-store printing. YR Store had a machine set up at the PI Apparel conference, and attendees could get one YR Store s customized T-shirts within minutes. Williams said that he believes there are many future opportunities for customized labels and homewares. Source: YR Store Mike Gawtry, Director of Sporting Equipment, Travel and Innovation, L.L.Bean Mike Gawtry shared how L.L.Bean, a 104-year-old brand, is maintaining its brand relevance. Gawtry presented slides of L.L.Bean s heritage, recalling it roots, mission and core values. He said that the company takes its customer satisfaction guarantee very seriously, and that its inspiration and business decisions are rooted in the outdoors. Source: LLBean.com Gawtry said that L.L.Bean formerly relied on outmoded, nonstandard, highly customized systems due to its complex product mix. Its product development lead times from concept to communication were twice the industry standard and processes across categories were all tracked differently, he said. When the company implemented the FlexPLM system, teams were forced to talk about innovation, define it, and ensure that it was brand relevant and scalable. Despina Papadopoulos, Founder, Principled Design Despina Papadopoulos of Principled Design presented a holistic view of wearable technology, noting that the Sony Walkman, created in 1979, was the first example of wearable tech. She discussed the basics of why we wear clothes: to belong, as a status symbol, to suit the needs of our environment and for performance. Papadopoulos noted that different demographic groups, such as baby boomers and millennials, view wearables differently, and that designers 3

4 are creating products that reflect the differences in these consumer groups. She also talked about how the wearables industry is evolving due to technology, highlighting Google s Project Jacquard, which focuses on creating flexible circuitry, and recent advances in conductive threads. She said that even the language is changing, with companies no longer calling themselves thread companies. In order to succeed, companies have to connect the connectors between fashion, technology and design. Use personalization to create a premium product.innovative retailers will use the items that the customer does not try on to inform the next season with regard to fit, sizing and body diversity. Papadopoulos emphasized that, in order to succeed, companies have to connect the connectors between fashion, technology and design. She believes this can be accomplished through nontraditional partnerships, leveraging existing infrastructure, and investing in research and development. 3D TECHNOLOGY A late-day panel discussion on 3D technology and its applications in the fashion industry included: Natacha Alpert, Senior Manager of Innovation, Caleres Ed Gribbin, President, Alvanon Simon Kim, Chief Strategy Officer, CLO Virtual Fashion Steven Madge, VP of Industry & Global Affairs, Dassault Systèmes Bill Brewster, VP & General Manager of Enterprise Software Solutions, Gerber Technology Luis Velazquez, Director of Business Development, Lectra Asaf Landau, CEP, Optitex Below are some of the questions that the panel was asked, along with a summary of their answers: Q: How do we inspire trust in adopting 3D? The 3D path is not the same for everyone, but talking and sharing is helpful. People think in 3D. One has to be open to trying new ideas and not worry about infrastructure. You cannot partially implement product lifecycle management except with 3D. For example, Under Armour and Target started small and grew great with the technology. Q: How do you get the first wins? Find quick wins and prove small proof points. These usually involve visuals, virtual prototyping and graphics. There are intangible wins, such as a reduction in internal chaos. Q: What does the future with the consumer look like? Use personalization to create a premium product. Innovative retailers will use the items that the customer does not try on to inform the next season with regard to fit, sizing and body diversity. 4

5 Deborah Weinswig, CPA Managing Director Fung Global Retail & Technology New York: Hong Kong: China: Erin Shimdt Research Associate HONG KONG: 10th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: LONDON: Marylebone Road London, NW1 6JQ United Kingdom Tel: 44 (0) NEW YORK: 1359 Broadway, 9 th Floor New York, NY Tel: FBICGROUP.COM 5