Mills Update: European Manufacturers Weigh in on Price Consciousness and Product Innovation
Over the past few years, the denim industry has had ups and downs as consumer and market demand ebbs and flows.
With the first half of the year in the rearview, Carved in Blue is checking in with denim mills to get their take on how 2024 is shaping up. Are sales rising or falling? What is driving demand? Which trends are taking off? And how are they addressing market needs? Read on to hear insights from Candiani Denim, Grupo Royo and Textil Santanderina.
CANDIANI DENIM
Alberto Candiani, president
Carved in Blue: Has the first half of 2024 been up, down or flat for your company?
Alberto: It has slightly been up compared to 2023, mainly because demand picked up after 2023, filled with inventories from post-Covid excesses.
Carved in Blue: How would you describe the current demand, and has it changed in recent months?
Alberto: Poor. The international geopolitical situation is a global mess, causing struggling economies, particularly in Europe. Unfortunately, there’s a decreasing interest in sustainable and innovative materials in favor of “cheaper” options.
Carved in Blue: What has surprised you the most about 2024 so far?
Alberto: Fast-fashion retailers are returning and posing a severe challenge to the premium industry by offering better products at a fraction of the price.
Carved in Blue: Which trends or styles do you see gaining traction, and how are you building fabrics to suit these looks?
Alberto: There’s a focus on touch, hand feel and lighter weights that can maintain an authentic denim look.
Carved in Blue: Could you describe your latest collection launches?
Alberto: We always work on two to three major innovations for each collection, and each one gets its own launch and presentation. The last collection received a lot of interest, especially in our workwear research.
Carved in Blue: What are your predictions for the second half?
Alberto: We expect to maintain this slight growth but do not anticipate fireworks.
GRUPO ROYO
Jose R. Royo, president
Carved in Blue: Has the first half of 2024 been up, down or flat for your company?
Jose: It has been a bit better than last year. The German market is waking up, and we feel it.
Carved in Blue: How would you describe the current demand, and has it changed in recent months?
Jose: Our biggest demand is garment dyed. Denim is still kind of flat.
Piece dyed is also growing, especially for the European market.
Big growth in the USA for sportswear.
Carved in Blue: What has surprised you the most about 2024 so far?
Jose: Prices. It looks like the only driver in today’s industry is the price, and I can see and feel a drop in quality at the shops.
For the first time in my career, I see a preoccupation all over the place, it is not only Europe.
Carved in Blue: Which trends or styles do you see gaining traction, and how are you building fabrics to suit these looks?
Jose: Non-water-use fabrics are making a difference. It is the only place where we find customers are not as demanding in price. It does make a difference. The dry technologies—indigo, black and color—are really growing.
Carved in Blue: Could you describe your latest collection launches?
Jose: Dry technology. Royo is focusing on changing the whole collection into these technologies and by 2025 to reach more than 70 percent of all of our collection in dry technology (in denim it is already 100 percent).
Carved in Blue: What are your predictions for the second half?
Jose: I am positive, but I don’t see a change in the world situation, so maintaining should be a reasonable target.
Logistics is still a huge issue, and it will make a difference in tomorrow’s buying conditions. It will help the European mills.
TEXTIL SANTANDERINA
Ramon Rios Quintana, fashion general manager
Carved in Blue: Has the first half of 2024 been up, down or flat for your company?
Ramon: Our first six months has been equal to first six months of 2023, as we have got bigger demands from European retailers as volatility in Asia has helped to bring some more business to the short terms into the Mediterranean Area. As well as less impact on energy cost, compared to the periods before, made Santanderina very competitive for the demands on the actual economy.
Carved in Blue: How would you describe the current demand, and has it changed in recent months?
Ramon: Demand is weak, and the apparel business is suffering—this is a global and true fact, and only via product innovation we can still be on the run.
Carved in Blue: What has surprised you the most about 2024 so far?
Ramon: The bigger impact than expected on the apparel buying online from Chinese companies, making a new scenario of business towards the near future. Speed on this change will affect us more than expected, but on the other hand also the European reputation and sustainability of the company is having a bigger positive impact than expected, helping us to keep on investing on those new materials and fabrics to cover this higher demand every time.
Carved in Blue: Which trends or styles do you see gaining traction, and how are you building fabrics to suit these looks?
Ramon: TENCEL™ is in the base of our DNA always, and even more now. However, if not 100 percent TENCEL™, [we are making] fluid fabrics, combined with linen and other natural fibers, as this is a main topic as we all know on today fashion. So rustic families, floppy and even super heavy, with linen and special yarns construction is becoming a new base of product at Santanderina.
Carved in Blue: Could you describe your latest collection launches?
Ramon: Linen mixtures with TENCEL™ as well as linen, cotton, Lycra and corduroys in winter, seersuckers, modal fabrics, TENCEL™ micro cords, and lately new polyamide fabrics with stretch.
Carved in Blue: What are your predictions for the second half?
Ramon: I expect a same flat line, between the positive and the negative, considering all of what I said earlier. However, I think the market will be very calm till the end of September, as seasons are becoming shorter and shorter as we all know.