Mill Update: Mexico Manufacturers on Denim Demand and Developments
Due to their position in the supply chain, denim mills have a finger on the pulse of the category’s demand, trajectory and developments. In this series, Carved in Blue is catching up with mills around the globe to get their insights on sales performance, impactful innovations and projections for this year.
Here, Mexico-based mills Cone Denim, Global Denim and Twin Dragon provide their denim update.
CONE DENIM
Steve Maggard, president
Carved in Blue: How did your company close out 2023? What were the highs and lows of last year? How has 2024 been so far for your company?
Steve: 2023 was a difficult year for Cone—volume was down across all platforms as customers were still working through some significant inventory positions. Low of 2023 was just not being able to run a full schedule and uncertainty as to when things will improve. A significant high of last year was the continue positive responses we have received from customers on our sustainability and traceability efforts. Our zero liquid discharge facility at Parras Mexico and our certified recycled cotton fabrics have been bright points.
2024 has started off slowly as expected, but we are seeing demand increase slightly versus last year. I believe Cone Denim is very well position to respond; when demand returns we are ready.
Carved in Blue: What are the new opportunities of the current period in the denim industry, and where do you see TENCEL™ fitting these?
Steve: We see a need to expand our product assortment using a TENCEL™ fiber blend more than ever. With silhouettes shifting regardless of the season, fabrics developed with a TENCEL™- cotton blend fill the need for fabrics that are perfect for looser silhouettes and those that fall outside your basic five-pocket jean. In our upcoming FW25 collection, we will be releasing a new capsule of TENCEL™-cotton blended product to our Mexico platforms as well as China, ensuring that all regions have access to these types of fabrics that are hitting an immediate market need.
Carved in Blue: What’s the most interesting or exciting recent development you have seen in the industry from other companies or institutes? And what are you most excited about internally?
Steve: The push for recycled fibers is very interesting and gaining traction. This is one of the major reasons we invested in a blend line in our Mexico facility and why we spent the time and money to get our facilities RCS certified.
Carved in Blue: Could you share three predictions for the denim industry in 2024
Steve: Traceability and transparency will continue to gain importance and will become table stakes to do business. Those companies who can provide proof of raw material origin through testing (such as Oritain) and document claims through third-party certifications (OCS, RCS, etc.) will remain the vendors of choice.
Verifiable sustainability is not going away. Recycled cotton, water savings, third-party certification, etc. Claims that cannot be verified are going to be worthless going foward.
Short lead times will more than ever be a key for success. Customers are wanting to delay their sizing, wash, silhouette, etc. decisions to as close to the market as possible, so lead time will be a significant factor to consider in who gets the order.
GLOBAL DENIM
Anatt Finkler, creative director
Carved in Blue: How did your company close out 2023? What were the highs and lows of last year? How has 2024 been so far for your company?
Anatt: 2023 was a good year overall. It started slow and low, but it continued getting on track and from July on, it recovered towards a good spot. So far, 2024 has been good. Although the rise of cotton prices has been impacting the market, we are waiting to see how this will affect in the following months.
Carved in Blue: What are the new opportunities of the current period in the denim industry, and where do you see TENCEL™ fitting these?
Anatt: I think less is more, and making garments focusing on longevity using the best ingredients is and will always be a great opportunity to follow. Making lasting seasonless garments that thrive on quality will be brands’ best assets as they focus on reducing inventory, returns and aligning to trends that speak highly of quality. Within this sector, softness plays such an important role as much as resistance, where TENCEL™ fits perfectly. Introducing new constructions with TENCEL™ not only fills this void but adds up to the sustainable element so many brands are looking forward to introducing in their collections and also follows under the new guidelines and regulations coming our way.
Carved in Blue: What’s the most interesting or exciting recent development you have seen in the industry from other companies or institutes? And what are you most excited about internally?
Anatt: Two spark my interest: First, the 3D weaving recently unveiled by Vega, which I find will revolutionize the production of garments, enabling brands to achieve a zero-inventory, onshore, circular and automated supply chain, and the Cooltrans printing technology by NTX, a revolutionary waterless printing solution that can change the denim game by providing infinite possibilities and allowing to eliminate completely the wet and dry processes.
Internally, we are super excited about our sustainability journey and all of our recent investments in new machinery and processes with which we are reducing chemicals, water and energy, enabling us to provide our consumers the best product with so much less resources.
Carved in Blue: Could you share three predictions for the denim industry in 2024?
Anatt: Pricing is going to be the most important. It is what is going to ultimately drive the decision-making process.
We will see so many trends emerge, and everything will be in and nothing out, as costumers explore their personal style and bring back old trends while maintaining the new.
Sustainability is a given and has to always be present, but it will be disrupted by the new legislations and regulations. We will see some companies that rather keep quiet to avoid legal issues and move away and some others that will use it as marketing driver and will thrive from it.
TWIN DRAGON
Stephanie Poon, director of marketing and merchandising
Carved in Blue: How did your company close out 2023? What were the highs and lows of last year? How has 2024 been so far for your company?
Stephanie: By the conclusion of 2023, our overall business experienced a 30 percent decline compared to the previous year, though certain sectors saw a more modest drop of 10-20 percent. On the bright side, there was heightened customer interest in exploring new and innovative products. However, we encountered challenges in managing the clearance of accumulated inventory from customers. As we enter 2024, there’s already a noticeable upward direction in business, indicating a resurgence in demand and significant market activity.
Carved in Blue: What are the new opportunities of the current period in the denim industry, and where do you see TENCEL™ fitting these?
Stephanie: There are several new opportunities that have emerged in the denim industry, driven by shifting consumer preferences, sustainability concerns and technological advancements. TENCEL™ fits in as a key player in all the above by offering eco-friendly solutions, enhanced comfort and wicking performance attributes.
Carved in Blue: What’s the most interesting or exciting recent development you have seen in the industry from other companies or institutes? And what are you most excited about internally?
Stephanie: Our primary focus lies in sustainable new fibers characterized by innovative structures boasting performance attributes such as temperature regulation, opacity control, UV protection and moisture-wicking capabilities, all while delivering an exceptionally soft and plush feel. We are particularly enthusiastic about forging partnerships with these pioneering fiber companies, as they pave the way for enhanced comfort and performance in the industry.
Carved in Blue: Could you share three predictions for the denim industry in 2024?
Stephanie: The denim industry will continue to witness a significant upward trajectory towards more sustainable practices. Brands and manufacturers will increasingly invest in innovative technologies and processes to reduce water usage, chemical usage and carbon emissions throughout the denim production life cycle. The conversation for transparent sourcing and fiber tracing will continue gaining momentum as a growing number of customers recognize its importance.
The denim industry is also experiencing significant growth in digitalization, particularly at the mill level and within laundries. Denim digitalization encompasses the incorporation of digital technologies and processes in denim mills and laundries, with the goal of optimizing various aspects of denim production, management and finishing.
In addition to manufacturing, digitization is transforming denim laundry processes. Laundries are embracing digital technologies to modernize traditional denim washing techniques, including stone washing, sandblasting and enzyme treatments. Moreover, digital libraries containing various wash recipes are being created, allowing for easy application of saved formulas and techniques, thereby enhancing efficiency and consistency in the finishing process.