Investing in the Future to Secure a Future

Innovation Why, What and Where?

Business along the entire supply chain is down. Consumers have dramatically cut back their spending. Why not? There isn’t anything people really need, and from what I have seen companies are not delivering compelling merchandise or “must have” items.

A recent article quoted the United States Patent and Trademark Office as saying, “The number of patent filings in the United States fell 2.3 percent in 2009 while at the same time, U.S. patents issued to inventors and businesses in foreign nations jumped 6.3 percent for the year.” So, not only is the U.S. patenting less but other countries are patenting more. It was similar at last year’s Techtextil. U.S. companies exhibited in smaller numbers than previously whereas overall Techtextil had more exhibitors from other countries. U.S. companies must invest in their future if they want one. Sustainability includes not only the environment but our businesses as well. We must invest in innovation.

Innovation, according various definitions, includes “incremental or evolutionary and revolutionary changes in thinking, products, processes, or organizations.” In many fields, something new must be substantially different to be innovative, not an insignificant change. The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy.

In the textile industry many of the recent innovations have been in sustainable textiles. These innovations, while fabulous for the environment and impactful at the manufacturing level, haven’t really changed the consumer experience. For example, there is no visual difference between a recycled polyester and conventional fabric. Stuart Hart, Samuel C. Johnson Chair in Sustainable Global Enterprise and Professor of Management explains, “With regard to sustainable innovation, I think it’s a tough sell at the top of the pyramid to convince people to buy premium priced products that are not discernibly different from conventional products. Until organic or recycled fibers can achieve a lower cost position or a higher level of functionality, they will be restricted to the niche “green” market in a place like the U.S.

That is why I think the Bottom of the Pyramid is the most likely place to incubate these sorts of leapfrog innovations. Perhaps we should think about incubating these industries in the underserved markets at the base of the pyramid?”

New Ideas and Places Along the Supply Chain

As a market that sources its products from Bottom of the Pyramid (BoP) countries, where do the innovations that make it into our markets come from? The extra long supply chain in textiles give us lots of options. In the past innovations have come from fiber development through garment manufacturing and everything in between. Based on our conversations with companies innovating these are still good places to start with the addition of a few new places.

One of those new ideas is an innovative system called Panjiva. According to Josh Green, founder and CEO, “Panjiva was invented as an intelligent platform that makes it easier for companies to find and vet suppliers around the world. We found that Panjiva improves the lives of our clients, entrepreneurs and sourcing executives at big companies by reducing the time they spend on the road, visiting suppliers that aren’t worth their time.” He continues, “At Panjiva, we innovate by bringing together people with different backgrounds. Our team consists of data analysts, MIT computer scientists, and account executives. We’re always talking to each other and of course to our clients and our partners.

It’s the sharing of information and perspectives that usually fosters the most exciting innovations. And of course our platform enables innovation on the part of our clients. By making sourcing easier, we free them up to innovate in other areas of their businesses.”

Panjiva allows companies to source product in new geographies in minutes rather than months. The end result is cutting the time and expense of the sourcing process. Finding the right sourcing partners is critical in today’s global supply chains.

Sourcing fabrics from the global supply chain doesn’t always provide for innovative design in countries where prices meet targets. Tom Miles of Circular Knit Services provides an innovative solution. His company designs fine-gauge knit fabrics through both custom development and seasonal collections. Circular Knit Services “streamlines the development process by turning concepts into fabrics within days, instead of weeks or months” according to Miles. The company keeps yarn on hand from both domestic and international spinners while specialty and custom yarns can be ordered. If necessary they can even do in-house dyeing of yarns and piece goods.

Technology has made the process of developing proprietary fabric even easier as file sharing capabilities have allowed preliminary designs to be sent to Circular Knit Services, developed and then sent out to production facilities around the world. In addition to working with brands to develop the latest fabric designs, fiber companies work with Circular Knit Services to develop concepts in new yarns.

Stepping Stones for Innovation

The development of new fibers or yarns can be the stepping stones for all sorts of new innovations. Two companies hoping to provide something new for consumers are Lenzing Fibers and AFT Yarns. Lenzing is launching Micro Tencel. This new fiber maintains the sustainable properties of the original Tencel but will now offer finer yarn counts. These new yarn counts will make it possible to develop stronger fiber which allows entry into new markets. Lenzing’s partner in the Micro Tencel launch is Bhuler Quality Yarns whose plan it is to send technical staff into the mills. The goal is to create innovation while at the same time making the launch as successful as possible.

AFT Yarns have created Aer8. This yarn was developed to provide warmth without weight. Aer8 is a 100 percent polyester fiber with multiple cross-sections, however when spun another dissolvable fiber is incorporated which is removed during dyeing and finishing. The removal of the fiber during finishing creates loft and reduces weight. As these fibers and yarns move into the supply chain mills and brands can use their imaginations, technical prowess and consumer demand to generate innovation.

In the technical arena it’s not only fabric but also the finishing, coatings and all the various processes that a fiber, fabric or garment goes through before getting to retail where it’s possible to create innovative solutions. One example is Malden’s Polartec Power Shield Pro.

This product, being launched for Fall 2010, is a combination of a proprietary membrane, fabric package and lamination process that results in a fabric with 5000mm water column and 2cfm air permeability, “Garment manufacturers have said this is the first time they’ve seen this type of performance” according to Nate Simmons, Polartec’s global marketing director. The process also allows for a wide variety of sub straights making it possible to customize solutions for various end uses and garment types.

Another company whose process will deliver innovation is Santana Textiles. The company’s latest innovation “Bi-elastic Movement” uses Hyosung’s newest Creora spandex which is low heat settable yarn and core spun by a new spinning technique. Delfino Neto of Santana says, “The result is two-way stretch fabric for the ultimate in comfort and value. We developed it in a way that is less expensive than traditional denim.

Plus the fabric is inherently soft and therefore, requires less finishing. We believe this has some environmental benefits as less chemicals and water need to be used.”

The textile supply chain in today’s world presents the opportunity to be at the forefront of innovation. Much of our products are sourced from BoP countries where we have the best opportunity for implementing sustainable leapfrog technologies. Communication and collaboration will continue to be at the center of innovation.

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