Epson & Robustelli Examine Digital Textile Printing & The Fashion Industry Post-Covid

Image Courtesy of Epson

Very negative data for the fashion industry during the first half of the year. Brands ask themselves what the new potential consumer behaviours might be and increase their focus on a totally green supply chain. 

The results of the research project carried out by Confindustria Moda to assess the impact of the lockdown on the Italian fashion system point to a loss of over 3.5 billions euros  in revenue during the first half of the year.

Production was also significantly impacted: over 80% of staff in 65% of the companies who participated in the research used welfare support provisions. 

The closure of all non-essential shops nearly brought sales volumes in shops to zero. Even online shopping did not bring to the fashion & lifestyle sector the same benefits it brought to other consumer goods. According to BVA Doxa, the clothing sector lost 32% of traffic on its e-Commerce platforms. This is probably caused by the fact that often buying is not linked to real needs, but to emotional and social choices. 

The Moves Made By Brands And Retailers

Big fashion and fast-fashion brands have interpreted and reacted to the effects of the pandemic differently.

Many have converted their production to support the health system when it lacked personal protective equipment and clothing (first of all Armani).

Others have focused their investments on strengthening their e-commerce platform, even closing down physical shops (for example Zara recently announced the closure of over 1.200 retail points).  

The retail market is also facing the need to streamline their structure, as demonstrated by the striking cases of Texan Jc Penney, in Chapter 11 since mid-May, and J. Crew, which declared bankruptcy in May. 

There are signs of big moves in the online sales segment, if it’s true that Amazon itself is interested in Jc Penney to expand its presence in the clothing sector (this has not been confirmed by the Seattle giant). 

The Impact On The Printing Sector

Because of this, the textile printing industry has experienced a nearly total halt of production and the risk of skipping an entire season is more and more palpable.

This means that even if the demand for clothing went back to pre-Covid19 levels, producers and retailers could find themselves with warehouses full of unsold winter and spring clothing.

A renewed demand for these products would only come in a year’s time, and unsold stock could cause a drastic reduction of winter and spring 2021 collections, and therefore a drastic reduction in orders for printed products. 

It is worth highlighting that in contrast to the reduction in demand for clothing between March and May, the demand for PPE significantly grew. Some printers converted their machinery to the production of masks and gowns for healthcare workers.

In Italy we can bring the example of textile companies such as Miroglio in the Alba factory, of some of the Calzedonia factories, or of companies who work in car upholstery such as Dreoni Giovanna in Prato. The same approach was taken by many printers all over the world. 

Furthermore, many printers used digital printing to create new collections of face masks, which are becoming daily accessories, investing in aesthetic quality and customization in order to create ‘must have’ items. 

Digital Textile Printing And Covid-19

Covid19 has significantly affected the entire textile industry, but if we want to focus on the digital textile printing sector we can highlight some factors that make it better suited to respond to the new demands created by the pandemic.

Firstly it is competitive in terms of costs when volume decreases, which is happening in comparison to pre-Covid trends. 

Secondly it offers logistical advantages, due to reshoring trends (caused by uncertainties surrounding second waves and geographic limits) and to the identification of production centres closer to the distribution market.

Finally, it answers a growing demand in all markets for more attention to the sustainability of the supply chain. This is especially true for the textile market, which is known as the second most polluting industry, after oil industries. 

Sustainability also has economic value, as shown by a recent study by McKinsey. T

he study collected the opinions of buyers from the main luxury stores, who stated they could soon expand purchases of sustainable products from the current 23% to 40%. 

The sustainability of the Monna Lisa project, the first digital high quality printer on fabric, has been recognized and rewarded with various environmental awards, including the "Green Label" for eco-sustainability, a project promoted by ACIMIT, the Association of Italian Machinery Manufacturers for the Textile Industry, and supported by the Ministry for Economic Development and the ICE (Foreign Trade Institute).