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The Road Ahead for the Global Product Supply Chain
The Global Product Supply Chain (GPSC) Division is the largest of Cotton Incorporated’s components in terms of number of personnel and geographic coverage. The division focuses its efforts on the product phase of the cotton supply chain and conducts work with three strategic objectives:
- increase the global presence for cotton;
- foster the development of product and technology ideas; and
- provide technical assistance and training.
The goal of this division is to increase cotton utilization in products by influencing supply chain decision-makers through trade shows and industry events, direct meetings with accounts, trade advertising, and working with equipment manufacturers and other suppliers.
In 2008, the GPSC Division targeted cotton’s market share in three key areas: athletic apparel, denim, and nonwovens.
The cotton share of the athletic apparel market has been on the decline for several years; cotton’s share of the tee shirt market, alone, declined by roughly 20% over the past decade. The athletic apparel segment represents about 25% of the total apparel market, or in more relevant terms, a 5.8 million-bale opportunity for cotton. As such, the Global Product Supply Chain Division identified it as a significant growth opportunity in 2006 and introduced the moisture-managing WICKING WINDOWS™ technology. This finish, applied in fabric or garment form, enhances cotton’s natural wicking properties without changing the hand of the garment.
A notable adoption of the WICKING WINDOWS finish in 2008 occurred in China. The country’s leading sports and athletic apparel brand and retailer, Li Ning Sportswear, worked with a leading Chinese mill to adopt the technology. Their initial order of 500,000 units will reach store shelves in June 2009. In addition, the Seoul-based Dong-Il Corporation has adopted the WICKING WINDOWS technology for its line of Arnold Palmer Golf shirts. While the initial order is relatively small, it is an important test for the commercialization of the technology.
To further increase cotton’s opportunities in athletic apparel, a second moisture-managing technology, TransDRY™, was introduced in 2007. The TransDRY technology is applied at the yarn level, creating a multitude of construction possibilities to meet the needs of brands and consumers, alike.
The development of the new TransDRY technology is a major breakthrough for cotton, allowing it to compete with and, in many cases, outperform synthetic performance fabrics. A significant amount
of time and resources were devoted to the development of this technology, its mill implementation to establish global suppliers, and its introduction to leading brands and retailers in an attempt to encourage increased use of cotton for athletic apparel products.
The use of 100% cotton in Pampers
® Sensitive Baby Wipes is being heavily promoted through advertising and on the product packaging.
The retail success of the Dakota jean with STORM DENIM technology has encouraged MWG Apparel and Mark’s Work Wearhouse to increase order volumes and expand STORM DENIM offerings to jackets and shirts.
Seoul-based Dong-Il Corporation adopted the
WICKING WINDOWS technology for its line of Arnold Palmer Golf shirts.
The adoption of the TransDRY™ technology by Nice Dyeing/Texwinca represents a major opportunity for its success. Nice Dyeing/Texwinca is one of the largest mills in China that has the necessary yarn dyeing or yarn package treatment capability to produce TransDRY treated products.
To date, one brand has licensed the TransDRY technology, with 15 additional brands evaluating it for use. In addition, across the Americas, Europe and Asia, seven mills are already supplying the marketplace with TransDRY fabric, and 32 more mills are currently running trials.
Apparel brand adoptions of moisture-management technologies will go far in furthering cotton’s viability in the desirable athletic apparel category, but the Global Product Supply Chain Division also works to maintain cotton’s competitiveness in the denim category. The water-repellent and breathable STORM DENIM™ finish, first introduced in 2006, has proven to be a success in the marketplace. The adoption of the STORM DENIM technology by MWG Apparel and retailer Mark’s Work Wearhouse resulted in initial orders of 100,000 units in 2007. The product proved so successful at retail that additional jeans orders have been placed and the technology is being extended to other products such as shirting, jackets and casual slacks.
Pursuing opportunities in the nonwovens area continues to be one of the division’s strategic initiatives. Nonwovens represent less than 5% of the current usage of cotton fibers in end products. However, the nonwovens industry’s use of fiber in manufacturing continues to grow, creating a market opportunity for the increased utilization of cotton.
In 1998, the Global Product Supply Chain Division introduced two nonwovens-specific Seal of Cotton marks: the ENHANCED™ mark for products containing at least 15% cotton fiber; and the ABSORBLEND™ mark for products with a minimum of 60% cotton fiber. That year, Kirkland Baby Wipes (available at Costco) became the first licensee for the ENHANCED trademark. This was followed in 2007 by the addition of Playskool® Cottony Wipes and Kotex® Security Tampons.
The success of cotton fiber in these products at retail generated interest at Procter & Gamble. The division worked with that company’s Pampers® brand on trials to include cotton fiber in a line of sensitive baby wipes. In September of 2008, Pampers Sensitive Baby Wipes appeared on store shelves. Although Procter & Gamble opted to create their own cotton-identifying mark for the outer packaging, their decision to use 100% cotton has made the fiber a primary ingredient and marketing focus for one of the fastest-growing wipe products, by one of the largest consumer products companies in the world.
The division’s nonwovens initiatives are not solely U.S. in scope. In 2007, China’s Winner Medical Group became a licensee of both the ABSORBLEND™ and ENHANCED™ marks for a range of their disposable products aimed at the medical sector. In 2008, additional international adoptions followed. Pigeon Corp. introduced the Habi-Nurse cotton-enhanced tooth wipes in the fall of 2008, becoming the company’s first nonwovens licensee from Japan. The tooth wipes, which contain 50% cotton, launched with 65,000 units and the company plans to increase production to 130,000 units in 2009.
The first Turkish adoption of a Cotton Incorporated nonwovens mark also occurred in 2008. Istanbul-based Sapro, Inc., a wet wipe manufacturer, introduced the Hops Baby Wipes. The 100% cotton product had an initial launch of 30,000 units and the company plans to increase production to 70,000 units in 2009.
Once a manufacturer or brand adopts a technology — be it in the traditional textile or the nonwovens sector — it creates a case study that can be used to influence other manufacturers and brands. However, convincing that first, key company to
invest in something new takes time and persistence. For this reason, the Global Product Supply Chain Division augments its client presentations with presences at influential trade shows around the world. Cotton Incorporated typically partners with Cotton Council International at trade shows such as Prèmiere Vision and TexWorld, which continue to be important in terms of reaching global contacts with new fabric development concepts, color and trend direction, and information on the environment and Sustainability. In 2008, the Global Product Supply Chain Division attended 34 trade shows and exhibited at 20; 13 of which were joint ventures with Cotton Council International.
“Cotton’s Revolutions,” an assessment of the global cotton industry by the Center for Strategic and International Studies, served as the theme for the Cotton Sourcing USA Summit near Austin, Texas.
Highlighting the past year’s collaborative events with affiliated organizations was the fifth Sourcing USA Summit. The event, held outside Austin, Texas, gathered nearly 500 representatives of the cotton industry for a three-day meeting that took a long view of the global supply chain. Anchoring the conference was an assessment by the Center for Strategic and International Studies that marked a unique application of that organization’s Seven Revolutions model to the entire cotton industry. Titled “Cotton’s Revolutions,” the study identified three key focal areas for global cotton: resources, technology and governance. Experts in fields as diverse as global economics, nanotechnology and biotechnology presented at the conference, sharing their expertise and forward-looking insights with the audience. During breaks, attendees were invited to explore displays of many of the technical innovations and services available from Cotton Incorporated and sponsors of the event.
Representatives from Tesco and Levi Strauss participate in a panel discussion with moderator Tim Sanders at the Second Cotton Sustainability Summit near Sundance, Utah. New to the Cotton Incorporated trade show roster this year was the company’s presence at the winter and summer Outdoor Retailer Shows. These trade shows, which are often a launchpad for new products and new technologies, were the ideal venues to introduce the TransDRY™ technology to the athletic apparel market. Over the course of the two shows, 24 brands and retailers visited the booth to learn more about using cotton, and 12 priority follow-up opportunities were established around the TransDRY, WICKING WINDOWS™ and STORM COTTON™ technologies. Attending media reported favorably on the TransDRY launch and the company’s sponsor status allowed for enhanced cotton messaging throughout the show venue.
The Cotton Incorporated booth at the Outdoor Retailer trade show exhibited a range of cotton technologies for the athletic apparel market. While trade shows are a necessary part of promoting cotton and technical innovations, the volume of attendees and exhibitors does not permit in-depth discussions. Conversely, one-to-one meetings with brands and manufacturers - who may or may not be able to implement a new technology - can be an inefficient use of time and resources. As a solution, the Global Product Supply Chain Division experimented with minifairs this past year. These small scale events allow for more personal contact with companies and provide an opportunity to share detailed information about technologies.
The three minifairs were conducted in China and leveraged the company’s relationships in the region to gather buyers, merchandisers and other apparel decision makers. The minifairs were well attended, with 160 people representing 26 suppliers and 15 brands and retailers. Interest in Cotton Incorporated technologies and services was high across the board. To date, the events have led to one company adopting a technology and another is currently running trials. Thus, the minifair concept has proven to be an ideal format to promote the advancements of the company’s technological innovations and other advancements.
No aspect of the cotton industry has seen more advancement in recent years than its gains in Sustainability.
No aspect of the cotton industry has seen more advancement in recent years than its gains in Sustainability. In 2008, the Cotton Board and Cotton Incorporated hosted the second Cotton Sustainability Summit. The event took place in Sundance, Utah, and targeted approximately 75 retail and industry professionals. The intimate size of the audience achieved a critical goal of the summit: the frank and open discussion among presenters and fellow attendees. Topics ranged from big-picture issues such as labeling standards and impending regulatory
The Cotton Incorporated booth at the Outdoor Retailer trade show exhibited a range of cotton technologies for the athletic apparel market.
changes, presented by experts in these fields, to case studies of sustainable initiatives by such well known brands as Tesco and Levi Strauss. The forum also provided another opportunity to showcase technical innovations and marry these innovations to the notion that cotton is a Sustainable fiber.
The idea of Sustainability is also applicable to our industry, at large. Ensuring that the next generation of textile designers and fashion marketers appreciate the many benefits of cotton is important in perpetuating its use and popularity with consumers. For this reason, Cotton Incorporated oversees a series of design and marketing activities at well-known educational institutions on behalf of the Importer Support Program of the Cotton Board. In 2008, the Global Product Supply Chain Division supervised these programs, reaching nearly 3,000 students at 14 universities. These educational programs and partnerships at conferences and trade shows are prime examples of how the various arms representing the U.S. cotton industry work in tandem to achieve a common goal.
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Cotton Incorporated 2008 Annual Report
