MOSCOW, August 21. /Offset. TASS Anna Toporova/. Russian fashion industry in the coming years may change drastically: students will wear a uniform is a chameleon that changes colors depending on mood, Teens – to walk in the shoes printed on a 3D printer, and the young Russian designers will take significant market share, surpassing major manufacturers. This opinion was expressed by TASS interviewed experts involved in FashionNet.
FashionNet project, created for implementation in the framework of the National technology initiative (NTI) of new technologies in the fashion industry. The initiator of FashionNet became the working group, uniting the leading Russian entrepreneurs in the sphere of fashion, design and IT.
“Among the participants of the working group FashionNet how market leaders are major producers of clothes, bags, retailers, and leading universities. In orbit are also companies that create services, products and software for logistics companies, manufacturers, designers, including creating new materials,” – said TASS co-head of the working group FashionNet, Deputy Minister of economic development Oleg Fomichev.
Globally, national technology initiative involves the creation of fundamentally new markets and creating conditions for global technological leadership of Russia to 2035. The initiative of Russian entrepreneurs are developing high-tech products in nine different areas. The tenth direction – in the field of fashion can be officially approved this fall, told TASS the Director of the direction “Young professionals” strategic initiatives Agency Dmitry Peskov, in charge of STI.
A new market to grow
FashionNet is aimed at increasing the number of new brands and the doubling by 2030 of the internal market of clothing, footwear and accessories, which is now estimated at €40 billion with a share of domestic production in 25%. One of the objectives is the development of export potential of domestic products.
The program FashionNet develops several areas, but priority two of them. Reformatting traditional fashion market: technologies of production, marketing, logistics and sales to the end customer. As well as the creation of entirely new according to its characteristics, types of clothes, shoes and accessories.
Long-term strategy in the logic of emerging market FashionNet already implementing Bosco, Meucci, “Novard” (“Ekonika”), Gloria Jeans, Department store and other companies, announced a new CEO, Russian venture company, project office NTI Alexander Povalko.
Among startups that are evolving in the new paradigm of robotics, digitization, wearable technology, advanced materials and additive developments, he called the platform of recommendations fashion bloggers and professional stylists, Style Counsel, as well as services for virtual trying on clothes and shoes in 3D Dressformer and Try.Fit.
Recently, a publicly stated interest in new technologies is the manufacturer of cosmetics Faberlic. The company decided to focus on fashion and is now looking for startups with the accelerator GenerationS in the field of innovative materials, robotics tailoring, big data for estimating demand and trends etc.
According to a second co-supervisor of the working group and President of the National chamber of fashion Alexander Shumsky, the main actors FashionNet will be young designers to build their brands. “But the designer, or rather the head of its brand, have yet to grow to the fashion we have ceased to be marginal”, he added.
Therefore the working group FashionNet will develop new competencies and skills. “The transformation of the fashion market will entail the necessity of formation of new professions. The working group is considering new competence profiles together with universities ITMO, Saint-Petersburg Polytechnic University named after Peter the Great, Russian Academy, Russian state social University and the faculty of communications, media and design HSE,” – said the head of the RVC Povalko.
You need education programs and services, to ensure that creative people can easily and efficiently manage their small businesses, says the adviser of Department for project and innovation activity, ITMO University, and Director of venture capital integrator CLMI Ventures in Cannes Constantine Karczmarski.
The reformatting of the market
Scheme of production and consumption in the next 10 years will change beyond recognition, says the co-Director of the group FashionNet Shumsky. These changes will affect owners of factories and not the end consumers, the last item will only get cheaper, he said. “Will be a billion shirts and jeans, but they are differently manufactured, delivered, bought and segmentbase. And the number of brands in this billion will grow,” – said Shumsky.
New market FashionNet, which is expected to grow in place of a traditional industry, will primarily be based on the use of artificial intelligence technologies, big data, new manufacturing methods, including additive. “For example, in the automotive industry industrial robots are involved for thirty years, and in the production of clothing, they just appeared. That is the basis of so far is manual labor,” says Shumsky.
At this time, Adidas recently released the first batch of shoes printed on a 3D printer. Besides, now the brand launches the automated production Revolution in different countries, he continued. “While this is a fraction of a percent in the total mass, but literally 5-7 years factory in Bangladesh and Kenya who sew running shoes today, you risk to remain without work. This will affect the logistics market: transport volumes of consumer goods is greatly reduced”, – cites the example of Shumsky. The increase in the number of new brands is largely due to the localization of production on the consumer markets, he said.
Adviser of the Department for project and innovation activity, ITMO University, in turn, offers not to bury the logistics at all. “Due to the aforementioned changes, changing the whole supply chain – from molecule to consumer – as a whole. It will be intelligent logistics, which is not similar to the supply of tunics trains,” – said the expert.
For innovation global import and export supply chain should work without a single interference, accurately and as quickly as possible, I’m sure Karczmarski. “I know what I’m working on it, but while unpleasant are more questions than affirmative action. Duty, if we want to compete on the market of products with high added value, have only a negative impact. Also very important is the availability of capital, ease of movement, low-interest loans,” he added.
The base is
Russian market has all the elements that make up the industry: fabrics, (though mainly for workwear), foreign distributors of fabrics, manufactures, wholesale clothing distributors, designers, retail trade, and the operators, working with the remains, said the General Director of research company in the fashion industry Y Consulting Daria Nuclear. “However, communication and responsiveness between these elements is very complex and opaque, and it was connected and form the industry,” she notes.
FashionNet initiative will allow for the technology to combine these elements into one and make it more transparent and fast interaction that will immediately make us more competitive, says Nuclear.
Russian fashion industry is now at the peak of its development, said Vice-President for strategy and investments of the SKOLKOVO Foundation Yekaterina Inozemtseva. “From my point of view, the main problem lies in outdated equipment, lack of quality raw materials. And while we note the highest level the creative part: our designers will give odds to any foreign manufacturer,” she says.
Inozemtsev believes that we should not try to catch up with the fashion industry today, we should just create the fashion industry of the future. “And the future of the world of fashion for high technology: IT, new materials, robotics. These are areas where we are traditionally strong scientific and educational base. And now we see a large number of technology startups that in their development one way or another are turning to technologies that can be implemented in the future the fashion industry,” said Vice President for strategy and investment of Fund “SKOLKOVO”.
The Ministry of industry and trade’s initiative to establish a market FashionNet has called timely and interesting. According to the representative of the press service of the Ministry, if still recently it seemed that textile design is a field that will not change with the development of technology, now a new generation of high-tech designers start the “add intelligence” in everything from carpets to clothing.
Agree with him and co-head of the working group FashionNet Shumsky, who believes that in the future 10 years we have completely changed the idea of the tissues. For example, road workers can appear in the standard work form of a fabric, which is able to accumulate light and then glow in the dark. The first samples with such properties from South Korea has already appeared on the international market.
Or students can wear uniforms made of fabric that changes color depending on the mood of the person. “The teacher looked at the class and everyone knew who didn’t sleep, who is in what mood. We now laugh about it, but for children and teachers this will facilitate communication and understanding,” – said the head of the research group FashionNet Andrei Deineko.
It is also possible symbiosis of wearable technology and apparel, where are the components of the inverse of biomedical communications. It is an activity which develops FashionNet, for people with disabilities. Now there are special sewn into the clothes of sensors that will allow people who have paralyzed the lower part of the body, to prevent hypothermia,” explained associate Professor at the Academy and head of the Alliance of Russian art engineers Sergei Karnaukhov. Such clothing was first presented in Moscow at Mercedes-Benz Fashion Week Russia, said Shumsky.
In the Ministry reminded that Russia has a competitive competency in the application of smart textiles. These developments are successfully applied in related industries – automotive, aviation, construction, medicine, agriculture, sports clothing, but also in terms of ensuring the country’s defence needs. “In 2016, the largest growth occurred in the manufacture of workwear by 40% and in the manufacture of technical textiles including nonwovens – 26.6%. And this year this trend continues”, – quoted the press service.
From importozameschenie to “importoperation”
The Ministry also added that the Ministry was satisfied with the results of import substitution and moves onto the stage of “importoperation”, which involves the creation of development followed by mass production of consumer goods: clothes, shoes, accessories. “This is the most difficult stage, which is most interesting for young designers and managers”, – reported in the Ministry of industry.
From small designer brands who currently do not play a significant role in the market, there are great opportunities. Over the past three years, according to the National chamber of fashion, the number of new brands has doubled. “About 90% of the graduates of fashion schools worldwide create their own brands, such before was not. And if a few years ago successful online stores was proud to be represented 200-300 brands, today the norm is 3 thousand brands,” says Shumsky.
The number of new brands in the global market will only grow initiators FashionNet. This is primarily due to technological transformation, changing consumer behaviour and a decline in the price of entrance on the fashion market.
World market trade clothing, according to the International Federation of garment (International Apparel Federation), is estimated at $1.8 trillion. By 2025, the IAF expects its doubling. If to this figure to add shoes and accessories, the figure for the market volume is over $2.5 trillion. The Russian segment is just over 1.5%, of which three quarters is imported, said Shumsky.
Retail goes online
In addition to changes in production and logistics, most likely will happen with time, a rapid conversion of retail online.
“Now a classic American brand Ralph Lauren has closed its flagship Polo store on Fifth Avenue, for which he paid rent of $68 thousand a day. Store stopped working even as a showcase of the business and there is no question”, – said the Executive President of the National chamber of fashion. Audience that are ready to buy now Ralph Lauren buys online, he explained.
This trend is widespread: retailers, burdened with the load of large areas and staff at the fall sales it is not able to compete with the site. Not to mention the large Internet players, who are also interested in this market. Amazon, for example, expressed the desire to become the largest fashion seller in the next five years.
However, in the online have their limitations. One of the main problems of online trading of clothes now – it returns: people return clothes and shoes that did not fit them by size. Technologies that reduce the return of clothes already exist, says Shumsky. 3D scanning is one of them. In future work it may be so: a person scans their 3D model uploads and gets the thing chosen or stitched exactly according to his size.
“In 2000 there was one company that wanted to do body measurements, so that people can order Armani by itself. They collected about $200 million and squandered them for 3-4 months, flying between new York and London with champagne and doing the show. Then industry and technology were not ready. Now all of this has matured technologically,” – says the managing partner of venture Fund Almaz Capital Alexander Galitsky.
However, for mass introduction of technology it is not sufficient for 3D-scan-startup (startups are there in Moscow), and the desire of the store. To adjust, should the manufacturers. For full operation of the system, they should begin to share with the e patterns or 3D models of things, and this is the subject of intellectual property protection, draws attention Shumsky. Another major barrier – protection of personal data.
Experts and officials believe that the state effectively supports the existing light industry. For the industry, provided grants, low debt burden, payment rates, says Shumsky.
For small businesses there are a wide variety types and forms of state support, including financial, add in the Ministry of industry.