Product Innovation (PI) Apparel 2016: Day two … · 2016-09-06 · Product Innovation (PI) Apparel...

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JULY8,2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

Product Innovation (PI) Apparel 2016: Day two Highlights

• The FungGlobal Retail& Technology teamattended the ProductInnovation(PI)Apparelconference,whichorganizersdescribeasaplacetodiscover thetechnologiesdisrupting the fashion,apparelandfootwearindustry.

• Key themes at the event included innovation, product lifecyclemanagement,3Dtechnology,supplychainanddigitalization.

• Anumber of speakers on day two focused on customization andtheimportanceofpartnerships.

The Fung Global Retail & Technology team attended the ProductInnovation (PI) Apparel conference, which organizers describe as aplace todiscover the technologiesdisrupting the fashion,apparelandfootwear industry.PIApparel focusedon innovation,product lifecyclemanagement,3D technology, supplychainanddigitalization thisyear.We heard from and met with representatives of large retailers,emerging brands, technology companies and vendors. Key takeawaysfromdayoneoftheeventincluded:

• Future fashion innovations may include clothes that can bedissolved in a salt bath—trendy attiremay disappear in a kind of“fashionSnapchat.”

• Establishedbrandsmust findways to innovatewhilekeeping theircorestrengths.

• Thekeytocustomizationistokeepitrelevant.Therearebarrierstoentry,socompanieshavetomaketheexperienceandtheproductcredibleandhighquality.

• In order to be successful, companies have to “connect theconnectors” between fashion, technology and design. This can beaccomplished by nontraditional partnerships, leveraging existinginfrastructure,andinvestinginresearchanddevelopment.

SUPPLYCHAINANDDIGITALIZATION

BobBland,CEOandFounder,ManufactureNewYork

BobBland,CEOandFounderofManufactureNewYork, said that shelaunchedManufacture New York, a fashion incubator/factory hybrid,becauseshewantedtohelpslowthetalentdrainfromNewYorkCity.ShestartedwithapilotintheGarmentDistrictin2013beforeopening

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JULY8,2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

a 160,000-square-foot industrial space in Sunset Park, Brooklyn, thatcan accommodate more than 30 designers and houses 12 privatestudios.ManufactureNewYorkcombinestheentiresupplychainunderoneroof,Blandsaid,notingthat“bringingpeopletogetherhasbeenagamechanger.”

Source:Manufactureny.org

Manufacture New York has three technology labs: one focuses ondigital processes and felting, one on soft circuits and wearableelectronics, and one on biology, chemistry and biofabrication. Blandsaidthat“biologyisthenexthardwarerevolution,”andthatpeoplearegrowingfurnitureandshoes.Withregardtosoftcircuitry,shesaidthatcreationofastretchable,commercialcircuitisprobablystilltwotofiveyearsaway.Shealsonotedthatnotallwearabletechiselectronic:

• Dropel, a Manufacture New York participant, is using ananotechnologyprocessthatcombineshydrophobicpolymerswithnaturalfiberstomakegarmentsliquidrepellent.

• Unmade, based in London, allows customers to customize theirsweaters. Bland said, “The more customer-facing we make ourprocesses,themoreexcitedourcustomerwillbe.”

• Yoshirt is smartphoneappthatprovidescustomizedshirtsandZielprovides customized activewear, while Automat, based inStockholm,hascreatedawearablestoolkitthatdesignerscanusetoweavecircuitryintofabrics.

Bland also suggested that future fashion innovations may includetrendyclothesthatcanbedissolvedinasaltbath—makingfastfashioninto a kind of “fashion Snapchat.” She noted that research andtechnologytakesalotlongerinfashion,andthatthatisactuallyagoodthing,as itallowsdesignerstoweedoutthingsthatdonotworkwell.“Embracetechnologywhereitmakessense,”sheconcluded.

INNOVATION

TimWilliams,CEO,YRStore

Tim Williams of YR Store presented a compelling case for offeringcustomization options. He said that customization increases the timecustomers spend in stores, in the surrounding area and at events;increases customer joy; creates revenue; and requires zero printed

ManufactureNewYorkcombinestheentiresupplychainunderoneroof,Blandsaid,notingthat“bringingpeopletogetherhasbeenagamechanger.”

ManufactureNewYorkcombinestheentiresupplychainunderoneroof,Blandsaid,notingthat“bringingpeopletogetherhasbeenagamechanger.”

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JULY8,2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

inventory.Hesaidthatthekeytocustomizationistokeepitrelevant.Therearebarrierstoentry,sotheexperienceandtheproductmustbecredible and high quality. Developing customization is costly, but theresultspayoff,hesaid.

Inhispresentation,WilliamsshowedvideosofYR’scollaborationswithABathingApe, Target, Liberty andTopshop. In each store, customerswereabletocustomizeaT-shirtwith in-storeprinting.YRStorehadamachinesetupatthePIApparelconference,andattendeescouldgetoneYRStore’scustomizedT-shirtswithinminutes.

Williamssaidthathebelievestherearemanyfutureopportunitiesforcustomizedlabelsandhomewares.

Source:YRStore

MikeGawtry,DirectorofSportingEquipment,TravelandInnovation,L.L.Bean

MikeGawtrysharedhowL.L.Bean,a104-year-oldbrand,ismaintainingits brand relevance. Gawtry presented slides of L.L.Bean’s heritage,recalling it roots,mission and core values. He said that the companytakes its customer satisfaction guarantee very seriously, and that itsinspirationandbusinessdecisionsarerootedintheoutdoors.

Gawtry said that L.L.Bean formerly reliedonoutmoded,nonstandard,highlycustomizedsystemsduetoitscomplexproductmix.Itsproductdevelopment lead times from concept to communication were twicetheindustrystandardandprocessesacrosscategorieswerealltrackeddifferently, he said. When the company implemented the FlexPLMsystem, teams were forced to talk about innovation, define it, andensurethatitwasbrandrelevantandscalable.

DespinaPapadopoulos,Founder,PrincipledDesign

DespinaPapadopoulosofPrincipledDesignpresentedaholisticviewofwearabletechnology,notingthattheSonyWalkman,created in1979,wasthefirstexampleofwearabletech.Shediscussedthebasicsofwhywewearclothes:tobelong,asastatussymbol,tosuittheneedsofourenvironmentandforperformance.

Papadopoulosnoted thatdifferentdemographicgroups, suchasbabyboomersandmillennials,viewwearablesdifferently,andthatdesigners

Source:LLBean.com

Customizationincreasesthetimecustomersspendinstores,inthesurroundingareaandatevents;increasescustomerjoy;createsrevenue;andrequireszeroprintedinventory.

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JULY8,2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

are creating products that reflect the differences in these consumergroups. She also talked about how thewearables industry is evolvingdue to technology, highlighting Google’s Project Jacquard, whichfocusesoncreatingflexiblecircuitry,andrecentadvancesinconductivethreads. She said thateven the language is changing,with companiesnolongercallingthemselves“thread”companies.

Papadopoulosemphasizedthat,inordertosucceed,companieshaveto“connecttheconnectors”betweenfashion,technologyanddesign.Shebelievesthiscanbeaccomplishedthroughnontraditionalpartnerships,leveraging existing infrastructure, and investing in research anddevelopment.

3DTECHNOLOGY

Alate-daypaneldiscussionon3Dtechnologyanditsapplicationsinthefashionindustryincluded:

• NatachaAlpert,SeniorManagerofInnovation,Caleres

• EdGribbin,President,Alvanon

• SimonKim,ChiefStrategyOfficer,CLOVirtualFashion

• StevenMadge,VPofIndustry&GlobalAffairs,DassaultSystèmes

• Bill Brewster, VP & General Manager of Enterprise SoftwareSolutions,GerberTechnology

• LuisVelazquez,DirectorofBusinessDevelopment,Lectra

• AsafLandau,CEP,Optitex

Belowaresomeofthequestionsthatthepanelwasasked,alongwithasummaryoftheiranswers:

Q:Howdoweinspiretrustinadopting3D?

• The3Dpathisnotthesameforeveryone,buttalkingandsharingishelpful.

• Peoplethinkin3D.Onehastobeopentotryingnewideasandnotworryaboutinfrastructure.Youcannotpartiallyimplementproductlifecyclemanagement—exceptwith3D.Forexample,UnderArmourandTargetstartedsmallandgrewgreatwiththetechnology.

• Q:Howdoyougetthefirstwins?

• Findquickwinsandprovesmallproofpoints.Theseusuallyinvolvevisuals,virtualprototypingandgraphics.

• Thereareintangiblewins,suchasareductionininternalchaos.

• Q:Whatdoesthefuturewiththeconsumerlooklike?

• Usepersonalizationtocreateapremiumproduct.

• Innovative retailerswill use the items that the customer does nottryontoinformthenextseasonwithregardtofit,sizingandbodydiversity.

Inordertosucceed,companieshaveto“connecttheconnectors”betweenfashion,technologyanddesign.

Usepersonalizationtocreateapremiumproduct.Innovativeretailerswillusetheitemsthatthecustomerdoesnottryontoinformthenextseasonwithregardtofit,sizingandbodydiversity.

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JULY8,2016

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&TECHNOLOGYDEBORAHWEINSWIG@FUNG1937.COMUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comErinShimdtResearchAssociate

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