MESSAGE FROM THE PRESIDENT of WERNER INTERNATIONAL,
Mr. CONSTANTINE RAPTIS
Dear colleagues and friends,
Welcome to our latest newsletter, the NewTwist, all of which we hope will keep you informed on our latest news and provide you with vital information for your textile and apparel businesses. For over 80 years, Werner International has provided professional management consulting services to well over 5,500 organizations in more than 75 countries. We are the undisputed leader of management consulting practices that specialize solely in the textile and fashion industries – our commitment to our clients is unrivaled.
I would like to begin by making the following exciting announcement – Werner has signed an agreement in Egypt with CTIHC (Cotton, Textile Industries Holding Co.) This contract has been signed with the Chairman of Egypt Textile Holding Company, Dr. Ahmed Mustafa, and in the presence of HE Dr. Hesham Tawfik, Minister of Public Enterprise in Egypt.
Through this new agreement, Werner International will be responsible for the project management of the foreseen 1.1 Billion USD investment which includes planning, monitoring and evaluation of the project implementation over a two-year period.
Werner International will support the Holding Company with technical assistance in manufacturing, financial, information technology, sales, product development and human resource development through introducing the Werner training methods and applying the Werner A.M.P.S (Analytical Method and Productivity System).
Speaking of our A.M.P.S training methods, training is the biggest and most important requirement for the future. A perfectly trained operator is an assurance for the consistency of the quality and the overall productivity (hence the financial results) of the plant. Werner is the only firm in the world that has developed and perfected the A.M.P.S which has proven to be the best of any training methods. In fact, we are proud to say that our A.M.P.S system has been successfully installed in over 700 mills worldwide. We are currently applying our systems within several large companies in India, including Ramco and JayaShree.
The understanding of the complexity and the organization of a modern textile unit equipped with state-of-the-art technology, is crucial for the competitiveness of this challenging industry. Werner International is the ideal partner to provide detailed feasibility studies, elaborated by international consultants with many years of experience in areas going from ginning, spinning, weaving, knitting, dyeing, finishing, printing, making up, IT management, HR management, Financial, Marketing and Strategy.
Werner International has the organization, competence and capacity to provide first-rate feasibility studies, including conception of production unit and ancillary services, detailed layouts, organizational and manpower requirements, product mix selection and marketing development, quality control systems, IT management and business plan. Werner is currently in the process of assisting several large confidential companies with this type of assistance. Werner also has successfully provided Marketing and Strategic assistance to such long-term clients as Miroglio and Monti.
I am pleased to announce the following promotions within Werner International:
Mrs. Beth Govoni Marshall: Executive Vice President
Mr. Lieven Verraest: Vice President, as well as Director of D&F Department
Mr. Stylianos Moraitis: Director of Spinning Department
Mr. Ivano Cazzaniga: Director of Weaving Department
Mr. Joao Barros: Director of Knitting and Making Up Department
Mr. Nicola Mentore: Director of Marketing & Strategy
Mr. Mahesh Ranpariya: Area Manager, India
I thank you for our past and future collaborations and look forward to the years ahead, changing the face of the textile and apparel industries.
With my best regards,
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During the end of the 18th century, manufacturing has undergone a transition through industrialization with the introduction of water and steam powered machinery. We now call this Industry 1.0. It was followed by the introduction of electrically powered mass production machinery in the late 19th Century, which would be referred to as Industry 2.0.
As technology developed and the needs of the consumers evolved, Industry 3.0 was introduced in the late 1970s through more complex usage of electronics and information technology and systems to further automate the production process. In this way, companies were able to meet the increasing demands of the consumers for accurate, high-quality, wide range of products in a speedy way.
For some years now, we are experiencing the transition towards Industry 4.0 where cyber systems, enhanced software, mechatronics and automation are the key elements in the entire production life cycle.
When we look at the various processes involved in the textile and fashion industry, the effects of Industry 4.0 can be seen starting at product design through the usage of CAD systems, automated machinery in all aspects of production and RFID tracking systems in logistics, warehousing and retailing.
In the textile and ready-to-wear industry, we see many applications all throughout the production processes, such as virtual reality technologies used in product design and communication between parties, 3D printing in prototype and sample production to optimize time used, digital color management and digital printing for flexibility and speedy response, robotic aids to transport goods within the production facility, etc.
On the retail and consumer side, with the aid of digital platforms and data centers, companies are able to collect data, and segment and analyze their customers in a more effective way and present product and services that match their requirements, thus gaining a competitive advantage over their competitors.
Our industry is already dominated with the fast-fashion cycle and production companies are looking into ways of improving their speed to market as well as attaining a specific level of quality. Through the automation of various processes and the usage of artificial intelligence these targets are more attainable and come at a lower cost. By using these technologies, companies can reduce the amount of waste and defects occurred during production and increase customer satisfaction.
It is evident that with each development and transition the complexity increases incrementally. Therefore, it is not possible to talk about a complete transition all at once. Companies need to analyze their current operations and identify areas for improvement and development. They also need to take a close look at their organizational structure and make gradual cultural changes and shift towards a more technology-based one.
In today’s world, the needs and expectations of the consumer, their request for speedy service and product, and simpler and user-friendly access to information and product characteristics are increasing. In order to be able to keep up with these increasing demands, companies need to focus their attention on constant improvement of their operations.
But does this mean that every company has to digitalize all of their operations? Or shall they adopt a phase by phase approach to transition into Industry 4.0?
This is a question that needs to be answered separately by each company. What is concrete is that each company has to think about this transition and has to create a Road Map for this transition if they want to keep up with the everchanging technology and its implications.
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E-COMMERCE AND FASHION
E-commerce is an essential part of today’s retail market. Globalization and digital advancements have paved the way and global consumer trends have shaped the e-commerce market from a small segment to a vital part of any brand’s success.
Fashion industry makes up the largest segment of e-commerce revenues worldwide. The industry has helped shape e-commerce sector as a whole and in turn also has shaped itself according to the ever-changing needs of e-commerce.
Increasing e-commerce revenues and fashion leading the way
The share of e-commerce is steadily growing in total retail revenues; according to eMarketer Report published in Jan. 2018 e-commerce sales made up 10.2% of total retail sales worldwide in 2017, in contrast to 8.6% in 2016.
In 2017 e-commerce revenues were recorded at 1,560,787 million USD and Fashion segment made up almost 29% of the total. According to Statista, the total market is expected to grow with a CAGR of 8.9% from 2018 to 2023. Fashion segment is expected to generate revenues of 524,871 million USD in 2018 and grow faster than the total market with a CAGR of 9.8% from 2018 to 2023.
According to Statista, China has the largest e-commerce market with 740 billion USD, followed by the US (560 billion USD), UK (93 billion USD), Japan (87 billion USD) and Germany (76 billion USD).
US is one of the biggest e-commerce markets in fashion and it is expected to grow further in the near future. According to Internet Retailer Online Apparel Report 2018, in the US online apparel sales made up 27% of total apparel sales and 266 of the top 1000 online retailers were sole apparel retailers and this figure excludes online retailers such as Amazon or Walmart. Macy’s is the largest apparel retailer and 6th on the overall list.
The US Fashion e-commerce retail revenues were estimated to be 93 billion USD in 2017 according to Statista. The growth trend is expected to continue with revenue estimates of 139 billion USD in 2022.
US Fashion and accessories e-retail revenue (2016-2022)
Fashion e-commerce to benefit both consumers and brands
E-commerce is an essential part of the consumption habits in clothing and accessories. Fashion brands and consumers all benefit from e-commerce. Consumers can browse through products, choose colors, learn about sizing, care and composition, compare prices, read reviews and make their choices considering all the possible alternatives. The e-commerce sites also enable the consumers to contact the brand and companies with questions, returns and comments. When done right, an e-commerce site for fashion retailers provides the perfect customer service.
There are many benefits to fashion brands as well. E-commerce sites enable the brands to follow the consumer preferences and buying patterns instantly and provide useful data to further connect with the consumers. E-commerce also lets brands test new markets with minimal initial investments.
There’s always room to grow more and be better in e-commerce
Main inducers for growth in e-commerce are increasing online access and smartphone penetration. For fashion industry another factor influencing growth is the variety of products and prices offered and the consumer experience offered. Increase in sharing economy will also further induce growth in e-commerce as marketplaces gain share.
In e-commerce the most important element is customer engagement; the consumers look for visually attractive sites that provide a seamless shopping experience, provide detailed information on the product and customized aspects for users. In the fashion segment information on the sizes, fitting and product composition as well as visuals from a 360 angle are vital.
Personalization is becoming even more important both in product offers and also in promotions directed to the consumer. As e-commerce infrastructures can provide data to the fashion brands on the consumer preferences and their decision patterns, brands can analyze this data and come up with personal recommendations or relevant online site architecture.
Needless to say, the technology behind e-commerce is also vital for success. The download speed, quality of images, search engine and criteria all affect the customer experience and the brand image in return.
Multi-channel management is another tool to increase e-commerce sales and fashion brand sales in total. Companies can be offering sales through many channels but omni-channel management, which defines how the multiple channels are managed in synchronization is of greater importance. Offline stores, e-commerce sites, marketplaces and social media all need to be working in connection with each other to attract the consumer and turn the interest into a buying pattern. Companies can measure clicks, analyze past purchases and calculate the accuracy of their targeted promotions. It is important to understand where the consumer’s decision to buy is made, be it social media, offline store or e-commerce site, to efficiently serve the customer. For example, if the decision to buy a certain brand or brand’s product is made on social media, the e-commerce site needs to provide a quick check out instead of showing more options.
Of course, another important factor for success is always following innovations such as internet of things, image recognition, virtual fitting rooms, e-commerce in offline stores, wearable technology and more.
It is easy to observe the success of e-commerce worldwide and estimates for further growth are very clear. Many major fashion retailers worldwide are investing on improving their e-commerce sales and some even estimate that a third of their sales will be generated through e-commerce in the near future.
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WERNER LABOR COST COMPARISON 2018 – Request for Submissions
Once again, we are in the process of compiling a new set of labour cost comparisons and you are invited to participate in this worldwide study which is a useful tool utilized globally throughout the textile and apparel industries.
The results will be published on our web site under the name “WERNER LABOR COST COMPARISON 2018”
Your participation will guaranty that you will receive the study before it is published.
Please contact Beth Govoni Marshall at email@example.com for the form that may be filled out by someone in your payroll or accounting department. We have tried to make the form as simple as possible so that only the basic data is required.
Your data will be kept confidential.
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Management consultants to the world textile, apparel & fashion industry Werner International is a management consulting practice specialized exclusively in the fiber, textile and fashion industry
globally active since 1939.
Werner’s services range from industrial and technology support
for setting-up, improving and restructuring
textile and clothing manufacturing operations
to strategy and marketing services for new market entry,
new product development, supply chain management,
branding, retailing, partner search
and future strategies build-up.
Werner is unique among world leading consulting companies
in being able to combine specialized expertise
in the technical areas with global marketing and
strategy know-how and supply chain integration.
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