1. 1: What do you see as the biggest challenges – and opportunities – facing the apparel
industry in 2016, and why?
A huge opportunity for the industry is to continue on the path of ‘improving production, not
moving production’. In 2016 it can show to itself and to the world outside of the industry
that indeed investments in factories and in the supply chain can create durable
improvements in sustainability, productivity and labour conditions and save money all at
once.
Exciting innovation in functionality of fabrics and garments have the potential to improve the
image of apparel. Smart wearables and fabrics that are both more comfortable and more
eco friendly can create a new sense of value with consumers. Innovation can act as an
antidote against continuous sales periods and images of sweatshops.
The biggest challenge for the industry is to translate all of the technological and organization
potential for improvement into reality, into the supply chain. Implementation is happening in
big tier 1 factories or factory groups. For the second layer of manufacturers, investments in
improvements, i.e. in productivity and/or sustainability are more difficult to make as they
face more financial, time and knowledge constraints.
2: What’s happening with sourcing? How is the sourcing landscape likely to shift in 2016,
and what strategies can help apparel firms and their suppliers to stay ahead?
The sourcing map is always changing and it will also change in 2016. Trends from 2015 such
as a decline in volume of imports from China and an increase in imports from Vietnam,
Myanmar, Cambodia and perhaps Ethiopia will continue. Bangladesh and Turkey will retain a
strong position and imports from Indonesia, Pakistan and India will grow. Most likely, the
trend of producing closer to the home markets will grow, although not in high volumes. But
even more interesting in 2016 will be the trends that don’t necessarily show on the map. We
will see that big manufacturing groups from China, Hong Kong, Taiwan, Korea and Turkey are
more and more driving forces behind the changing sourcing maps. Certain tier 1
manufacturers will become more and more supply chain coordinators. And another ‘non
shift’ occurs as companies reduce costs by improving productivity rather than moving to
lower cost locations.
With so many choices, the best CPOs are the ones with open minds and cool heads. It is
important not to be restricted by engrained practices. In some cases investments in
manufacturing partners are required which need longer term relations. In other cases,
relocation is still the best option. Decisions must fit the company, the product and the
future.
3: What should apparel firms be doing now if they want to remain competitive into the
future? What will separate the winners from the losers?
The winners just do it. In matters of sustainability for instance they don’t wait till the
consumer formulates a specific demand for a sustainable product. They have already moved.
And they communicate what they do well. They invest in their supply chain, they have

2. invested in upstream relations and they have invested in the right software providing
visibility across their supply chain.
Reducing waste will be a theme growing from ‘nice’ to ‘imperative’. Winners look at it
holistically. Reduction of waste covers preventing waste in the design fase and engineering
fases, going as far as ‘design for recycling’ and trimming down on the number of styles and
investing in 3D digital visualization. And on the consumer end of the chain, winners will
collaborate and press for more effective collection systems of discarded clothing so that an
economically viable market for used materials can be established.
Reduction of waste will free resources for necessary investments in manufacturing chains.
For the winners, catering better to consumer demand, reduction of environmental impact,
innovation, improvement of productivity and improvement of labour conditions are,
fortunately, very much interconnected.
4: What keeps you awake at night? Is there anything else you think the apparel industry
should be keeping a close eye on in the year ahead? Do you expect 2016 to be better than
2015, and why?
I am optimistic about 2016. Investments in the supply chain are coming to fruition showing
others the road to take. Global groups of companies are tackling industry wide problems in
Bangladesh, Cambodia and working on harmonization of audits and measurements of
environmental performance. However, what could keep me awake at night is the fact that
the changes are fragile. Another large industrial accident could tip the balance and set
legislators across the world in overdrive, creating a jungle of fragmented rules for industry.
The global industry initiatives need to keep their momentum and to overcome the inevitable
hurdles they will encounter. In Bangladesh for instance, it is crucial to see continued
progress on collaboration between buyers and manufacturers in financing improvements.
Barring unexpected big events, the industry in 2016 can do itself a huge favour by keeping up
the momentum of numerous positive changes it has itself initiated.