product innovation (pi) apparel 2016: day one highlights · continually learn from the outside and...

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DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

Product Innovation (PI) Apparel 2016: Day One 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.

• Anumberofspeakersemphasizedthat3Dtechnology,prototypingand digitalization are already here—that it is not a question ofwhentoimplementthesetechnologies,buthow.

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:

• 3D technology, prototyping and digitalization are already here;companies should focusnotonwhen toadopt these technologies,buthow.

• Innovations inthedesignprocessareshorteningitfrommonthstodays.

• Being a persuasive change agent is critical to implementingorganizational change, and changes shouldbepresentedas simplyandcoherentlyaspossible.

OpeningRemarks:CraigCrawford,ITStrategist,CrawfordIT

ITstrategistCraigCrawfordofCrawfordITchairedPIApparelthisyear.Heopenedtheeventwithapresentationcoveringproductinnovation,technology,sustainabilityandthefutureoffashion.“Augmentedrealityhas found its place,” he said, pointing to futuristic images ofmannequins with hologram faces and the ability to capture userinformation and data analytics. Crawford highlighted designer BrookeRoberts, a formermedical-imaging resident who is currently a digitalknitwear designer. Roberts looks to technology for inspiration, and isknownforincorporatingimagesofbrainscansintoherdesigns.

Technologyneedstobetransparent,anditdoesn’tneedtobedifficult.

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Crawfordsaidthat“technologyneedstobetransparent,anditdoesn’tneedtobedifficult.”Heconcludedhisopeningremarksbydescribingacontest called Apps for Good, whose goal is to “transform the waytechnology is taught in schools; to empower students from allbackgrounds to seize the opportunities of our digital age and createsolutionstotheproblemstheycareabout,usingtechnology.”Studentsranging in age from 8 to 18 created apps to submit to the contest.Crawford said that these are great examples of the next generationusinginnovativetechnologytofindsolutionsforuniqueopportunities:

Source:Appsforgood.com

FollowingCrawford’sremarks,presentersfromanumberofcompaniesspokeon the topics of innovation, product lifecyclemanagement and3Dtechnology.

INNOVATION

SoonYu,GlobalVPofInnovation,VFCorporation

Soon Yu, Global VP of Innovation at VF Corporation, presented anoverview of why even themost successful companies fail sometimesand he shared a plan for how to effectively enact change at anorganization.He said that the threemainbarriers to changeare fear,apathy and disbelief. Therefore, innovation requires a champion,someonewhohascourageandisapersuasivechangeagent.

Yu cited tips for effecting change from book called Switch, How toChangeThingsWhenChangeIsHard,byChipHeathandDanHeath:

• Direct—focusonchangingbehavior.Keepitsimple.

• Motivate—winonemotion.

• Shape—leveragetheexistingroutine.Setupreminders.

OneofBrookeRoberts’knits,inspiredbyadigitalbrainscanSource:Dezeen.com

Innovationrequiresachampion,someonewhohascourageandisapersuasivechangeagent.

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YusaidtheideasinthebookwereinstrumentalinhelpingVF—alargecompanywithmorethan30brands,16officesand60,000employees—mitigaterisk,enableshort-termcostsavingandavoid insularthinking.He emphasized the importance of the “do, feel, think” sequence ineffecting change as opposed to “think, feel, do.” Yu also said that, inordertoinnovate,companiesshoulddefineonecriticalmoveandkeepitsimple.Toillustratethis,hecitedastudythataskedpeopletoreducefat intakebymakingoneswitch, to1%milk, fromhigher-fatversions.Thetrialworkedbecauseitwassimpleandeasytofollow,Yusaid.

Alongthesamelines,heencouragedleadersintheaudienceto“shrinkthechange”whenpresentingideas.HesaidthatVFhadcreatedaone-pagedocumentlistingcriticalitems,sothatnecessarychangesdidnotseem too overwhelming. He also said that VF investigates what isworking, and then clones it. For example, VF’s teams looked at howbackpackswerebeingusedtodayanddiscoveredthatpeopleusethemformorethantransportingbooks—thattheyarelifestylebags.

Lastly, Yu shared that VF incentivizes its employees to continue toinnovate with an innovation fund and a collaboration tool. Thecompanyalsohostsanoutside-inspeakerseriesthathelpsemployeescontinually learn from the outside and collaborate to gain consumerinsights.Theinnovationfundhasresultedinmorethan100newideas,97 of which have been completed and 54 of which have beenconsidered successful. VF’s innovationmodel has resulted in over $2billionofrevenueinthepipeline,aswellasthecreationofaTechnicalDesignInnovationCenterinCalifornia,aFootwearInnovationCenterinNew Hampshire and a Jeanswear Innovation Center in Greensboro,NorthCarolina.

Source:SoonYu,VFCorporation

PRODUCTLIFECYCLEMANAGMENT

Cindy Payero, VP of DKNY Wholesale Systems, The Donna KaranCompany

Cindy Payero of DKNY provided a comprehensive overview of hercompany’s IT transition.Shespokeabout the importanceof language,partnerships, personalities, communication and having a system roadmap,whetherusingaproductlifecyclemanagementsystemoranykind

Thecompanyalsohostsanoutside-inspeakerseriesthathelpsemployeescontinuallylearnfromtheoutsideandcollaboratetogainconsumerinsights.

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of IT system.With regard to language, Payero said that organizationsshould make it a priority to understand the new audience’s needsduringanytransitiontoanewsystem.Shealsorecommendedgainingasmuchknowledgeaspossibleaboutthesystem’slimitationsandwhatcanandcannotbedoneintermsofreporting.

Payero recommended building relationships and establishing newallianceswithnewleaders,notingthat:

• Researching questions that people are asking usually leads tounderstandingupcomingprocesschanges.

• It is important to understand the process and what is currentlyhappening manually and automatically to ensure a smoothtransitionand tounderstand the impact tostandard reportingandkeyperformanceindicators.

• Goodtrainingiscriticalbecausesometeamsmaybegoingthroughalotofchanges,particularlyifthecompanyhasrestructured.

Company changes introduce new personalities, and PayerorecommendedthatIToptimizemeet-and-greetsessionstoengagewithnewmanagement andprovide a systemdemo, if applicable. She saidthatthesemeetingspresentagreatopportunitytocommunicatenewsystem capabilities, show how the system can be utilized andenhanced, and support new strategies. She also highlighted that it isimportant to recalibrate the IT team to support the new companyvision and that the team must accept that it is supporting a newcompany with new solutions. Communication should always bepositive, and system updates should contain five bullets summarizinganyattachments,shesaid.

Whenleadersareaskedifachangecanbemade,Payerosuggeststhattheyfocusonthepossibility,notthechallenge.Shesaidthatherteamwas often asked, “Can this be done, and how longwill this take?” Inresponse,theteamwouldcreateamock-upofthesuggestedchangestothelayouts(toshowthelookandfeel),basedondesiredresults,andexplainhowtheprocesswouldchange.

Payeroconcludedbytalkingthroughhercompany’ssystemroadmap.Shesaid thatproduct lifecyclemanagementcontinues tobeapriorityandthatallDKNYteamsareworkingtogethertowardrelyingonsystemtools. She said that all of the building blocks are in place to expandsystem utilization in the planning process and performance reportingandtoenhancedevelopmentvisibility.

3DTECHNOLOGY

LisaStruble,VPofApparelDevelopment&Quality,UnderArmourJamiDunbar,VPofApparel&Virtualization,UnderArmour

Lisa Struble and Jami Dunbar of Under Armour shared insightsregarding Under Armour’s 3D product strategy. Using the Optitexdesignsoftware,UnderArmourrecentlychangedhowitdoesbusiness.The company decided to redesign its entire collection before itsWomen’s Fall/Winter 2016 sales meeting, but there was not enoughtime to remake and replace the samples. So, Under Armour used

Whenleadersareaskedifachangecanbemade,Payerosuggeststhattheyfocusonthepossibility,notthechallenge.

Researchingquestionsthatpeopleareaskingusuallyleadstounderstandingupcomingprocesschanges

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Optitex to create virtual samples using 3D visualization. Through this,thecompanydiscovereditcouldreduceproductdevelopmenttimebyalmost50%.Theprocessalsoallowedforpartnerstocollaborateearliertoimprovefitandmakefasterdecisions.

Struble and Dunbar showed how the company is now using 3Ddigitalization for athletes such as Sloane Stephens, a top-ranked UStennis player. A prototyping tool helps fit garments on a digitalprototype(acomputerizedmannequin),sothatStephenscanfocusonplayingtennisinsteadofcominginforfittings.

UnderArmour isalsonowusingbodyscans tobuilda libraryofdata.Since athletes’ bodies change on and off seasons, the data can helpenable thecorrect fitofgarmentsandanalyze, in labs,howgarmentsmove on the body. Volume and shape are more important thanmeasurements,andbodyscandatacanhelpinformgarmentdesigninwaysthattraditionalmetricscannot.Puttingafootballjerseyonadressformdoesnotmakesense,but,byusing3Dtechnology,UnderArmourcanseehowhighorlowanarmholeisonajersey.

Howcantheoldandthenewdesignersworktogether?Thedesignerscanchoosetheshirttheylikebeforetheyevenmakeafirstprototype,which cuts down on time significantly. Another benefit is that colorplacement, scale and graphics can all be seen immediately andcorrectly,whereas sketches are often distorted andnot to scale. Andthedigitalprocesscanbecompletedinafewhours,whereassamplescantakeupto45daystocreate.

Under Armour is taking 3D into the future with its new Lighthouseinnovation facility. It is incorporating design leadership and a localmanufacturingmodelunderoneroof,whichDunbarreferredtoas“thefactoryofthefuture.”Lighthousewillbemoreadvanced,projectdrivenand forward looking, and Under Armour is hoping to create aninnovative process that can work anywhere in the world to bringproductstomarketmoreseamlesslywhilestreamliningthefrontend.

Alexis Kantor, VP of Apparel and Accessories Product Development,TargetSandraGagnon,SeniorGroupManagerofNITand3DVirtualProductDevelopment,Target

Alexis Kantor and Sandra Gagnon of Target presented insights onTarget’s use of 3D technology. They encouraged the audience torevolutionize product development, as it can help provide faster andsmarterwaystoshopandpromotesustainabilitybyreducingfabricandwater wastage. They said that Target has used 3D technology inprototyping, product presentation, visual presentation, packaging andin-storevisualization,aswellasinguest-facingapplications.KantorandGagnon said Target has reduced its sample creation timeline from45daystooneweekusing3Dtechnology,andthataccuracyhasimproved.Also, designers are now able to view in-store visualization and hangtagsbeforetheyareprinted—decisionsaboutsuchcollateralpreviouslyhad to bemade very early due to long printing lead times, but now,with3D,theycanbemadenearertodeployment.

Howcantheoldandthenewdesignersworktogether?Thedesignerscanchoosetheshirttheylikebeforetheyevenmakeafirstprototype,whichcutsdownontimesignificantly.Anotherbenefitisthatcolorplacement,scaleandgraphicscanallbeseenimmediatelyandcorrectly,whereassketchesareoftendistortedandnottoscale.

Optitextocreatevirtualsamplesusing3Dvisualization.Throughthis,thecompanydiscovereditcouldreduceproductdevelopmenttimebyalmost50%.Theprocessalsoallowedforpartnerstocollaborateearliertoimprovefitandmakefasterdecisions.

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The speakers also highlighted the sustainability benefits that 3Dtechnology presents in apparel production. They said that producingoneT-shirtbytraditionalmethodstakesupto700gallonsofwater,butthat3Dtechallowsformuchmoreefficientuseofresources.

Kantor and Gagnon concluded by describing the future as a three-legged stool—industry, academia and retail. In terms of industry, thespeakersurgedconferenceattendeestojointheInstituteofElectrical&Electronics Engineers (IEEE), an organization working to formulatestandardsfor3Dbodyscanningandbodysoftware.Inacademia,TargethaspartneredwithOptitexandtheMinneapolisCommunityTechnicalCollege to train faculty and students at the college on 2D and 3Dsoftware. Target encourages other companies to enlist in similarcollaborations.Inretail,Targetiscollaboratingwithotherstoconnectaproduct lifecyclemanagement systemwith3DCADand isworkingondocumentcontrolandlibrarymanagement.

Alison Page, VP of Brand Operations Strategy and Projects, AdidasGroupRenate Eder, Senior Manager of Creation Technologies, BrandOperationsStrategyandProjects,AdidasGroup

AlisonPageandRenateEderdescribedthedigitalcreationprocessusedbyAdidas,emphasizinghowimportant it is to incorporate3D intotheactualprocess,andnotadditafterthefact.Pagedetailedeachstepofthe workflow process: 3D design, review and presentation, articledescription, pattern making, and product development. The biggestneedisend-to-endintegration,thepresenterssaid,asdesignersdonotwanttofilloutbillsofmaterials.Theyalsonotedthatitisimportanttostreamline administration, not creativity.Organizational change is thehardest part when transitioning to a new system, Page and Ederconcluded.

Source:AlisonPage,Adidas

Thatitisimportanttostreamlineadministration,notcreativity.Organizationalchangeisthehardestpartwhentransitioningtoanewsystem.

Thespeakersalsohighlightedthesustainabilitybenefitsthat3Dtechnologypresentsinapparelproduction.TheysaidthatproducingoneT-shirtbytraditionalmethodstakesupto700gallonsofwater,butthat3Dtechallowsformuchmoreefficientuseofresources.

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Source:AlisonPage,Adidas

SimonKim,ChiefStrategyOfficer,CLOVirtualFashion

SimonKimendeddayoneofPIApparelbymakingthecaseforwhy3Dtechnology needs to be at the center of process innovation. He saidthattherewerefourcommonmisconceptionsabout3Ddigitalization:

1. Itistimeconsuming.

2. Itdoesnotworkonalltypesofgarments.

3. Itisnotaccurateenough.

4. Onemustbeanexperttouseit.

Kim said that 48% of technical packages are misinterpreted. He saidthat3Dtechnologycanchangethisbecauseitallowsforafullviewofthegarment.Healsosaid itallowsmultiple iterationsofthedesigntobemadeveryeasily,andthat3Ddesign isanagile, flexibleprocess.ACLOVirtualFashiondesignerdemonstratedthetoolthatCLOusesandhighlightedhowquicklyashirtcouldbetransformedintoadress,howarufflecouldbeaddedwithafewclicks,howdartscouldbeaddedorremoved,andhowcolorsandpatterns couldbe changed, allwithinafew minutes. Kim said that 3D transforms the process by allowingchangestobeseenin3Donascreenandbyallowingdesignerstomakeand save iterative changes that can be shown to industry partners.Decisions can therefore be made more quickly through interactivedesignreviews.

Kimhighlightedthat3Disnotavirtualizationtool;itisanewlanguage.He recommended that companies choose the right 3D software andgivepeopleenoughtimeto learnhowtouse it.“3Dadoption ishere.Embracetheprocess,”hesaid.

Kimsaidthat48%oftechnicalpackagesaremisinterpreted.Hesaidthat3Dtechnologycanchangethisbecauseitallowsforafullviewofthegarment.

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

HONGKONG:10thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223002470LONDON:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017FBICGROUP.COM

product innovation (pi) apparel 2016: day one highlights · continually learn from the outside and...

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