Brands Adopt XLA Elastic Fiber in Rapid Succession
Interview with Juan Carlos Cuadrado
Global Business Director
Dow Fiber Solutions
The results reported by Dow Fiber Solutions in the first half of 2006 were positive. The company, a subsidiary of the Dow Chemical Company, is manufacturing and marketing a new stretch fiber, XLA(TM). In addition to achieving growth in revenue, Dow Fiber Solutions also expanded into new sales territories, and increased its presence or entered into new market segments including swimwear, active wear, work wear and intimates. The fact that a number of famous brands in Europe and the U.S. have given the product such a positive reception suggests that XLA meets a long-standing need for a quality, durable stretch fiber. What is the company's present situation and its future outlook? For answers, we interviewed Juan Carlos Cuadrado, Global Business Director of Dow Fiber Solutions.
ATB: Your business performance in the first half of 2006 was very satisfactory. Would you describe the results and topics of interest in detail?
Cuadrado: Dow Fiber Solutions is a subsidiary of the Dow Chemical Company, and we are involved in the manufacturing and marketing of XLA(TM), a revolutionary and premium new stretch fiber that is produced at our manufacturing facility in Tarragona, Spain. Technical and sales staff members throughout the Americas, Europe and Asia support our efforts.
There are a number of reasons for our favorable performance. First, the product itself is fulfilling a clear need for a versatile stretch fiber that can withstand high heat and harsh chemicals - not only in work wear and swimwear, where the benefits to consumers of XLA are clear, but in every major apparel segment and throughout the textile value chain.
For quite some time, textile manufacturers and retail brands have wanted to apply non-iron treatments to stretch fibers, for example, but less sophisticated materials cannot withstand them. XLA can. XLA also removes key steps like heat setting from the manufacturing process, which can dramatically compress the supply chain.
Second, with the Dow Chemical Company, we have a parent company that is committed to investing in and supporting Dow Fiber Solutions for the long-term, both financially and with its expertise in research and business development. We are primed to be a formidable force in the apparel segment, and I think the Dow Chemical Company is a key reason for that.
At Dow Fiber Solutions we've taken that support and created a successful, market-facing business unit. You can see the results in a number of areas.
To begin, in the woven fabric segment, we partnered with Calvin Klein and Brooks Brothers in 2004, while Ann Taylor, Nautica, Talbots and Eddie Bauer embraced XLA in the ready-to-wear segment in 2006.
XLA was also integrated into swimwear products early in 2006. The fiber's ability to withstand chlorine, UV light and even sunscreen were appealing to Nike and Adidas. They were among the first to adopt in Europe. XLA can actually withstand exposure to chlorine for more than 1,000 hours, which is longer than the host fiber. The application of XLA into suits by Brooks Brothers only goes to underscore the versatility of the fiber. XLA is ideal for suit fabrics because it can be blended with host fibers such as wool and cotton without sacrificing their essential appeal, and it is easy to color-match without impairing hand or drape. And a suit featuring XLA will have the durability to keep it looking and feeling good long after purchase.
It is important to understand the value XLA can add for apparel brands and manufacturers. An olefin-based monofilament elastic fiber, it offers excellent resistance to high heat and harsh chemicals while maintaining the stretch characteristics required for new applications and innovations. XLA has freed designers from constraints that have limited them in the past; it allows yarn spinners to improve the efficiency of the manufacturing process and it compresses the supply chain through the removal of the heat setting process.
Today, more than ever, consumers want comfort and ease of care in their clothing. This demand will continuously stimulate growth in the market for apparel that features stretch fibers. Fabrics containing XLA have made it possible to provide ease of care, dimensional stability, durability and comfort, all at the same time. Until now, this combination has been difficult or impossible to achieve.
Intimates featuring XLA can also be washed frequently without losing a gentle stretch, recovery and soft texture.
The introduction of XLA also helps our partners protect their brand image. With its durability, XLA allows clothing to last longer and to maintain its shape, even after repeated washings.
In every segment, XLA offers clear and differentiated value and helps our partners elevate the quality of the apparel they offer consumers.
ATB: How do you view the Japanese and Asian markets?
Cuadrado: From the very beginning, our company has adopted a global approach to marketing, and Japan and Asia are essential to our success. Japan is an innovative and creative center of production that never fails to surprise with the quality and uniqueness of the products it generates. It is a source of constant inspiration.
Throughout 2006, our company has expanded its resources in Asia. We have resident representatives in Tokyo, Shanghai, Taipei, Singapore and Mumbai. We are in the process of expanding our activities in both sales and technological guidance.
The structure of the supply chain is of paramount importance to us. We have sales and technical personnel in Asia who have allowed us to become much closer as an organization to customers from the yarn stage.
Furthermore, in addition to sales and technology, we have placed special emphasis on building our marketing organization in Asia.
Currently, we employ people from as many as 15 countries, all focused on creating unique innovations that benefit our customers.
ATB: What about new products?
Cuadrado: Since our debut at Premiere Vision in September 2002, we have provided marketing support to a handful of carefully selected brands. In the past four years, we have been able to copromote several innovative brand adoptions such as non-iron stretch shirts for men and women with Brooks Brothers and Flexible Fit underwear with Calvin Klein.
With our extensive research and technology capabilities, backed by the Dow Chemical Company, we are working constantly to develop new products and will continue to innovate while responding to our customers needs. In the next six months there should be several exciting new product announcements based on XLA's patented technology.
ATB: What is happening to your marketing within China?
Cuadrado: Our presence in China continues to grow at a rapid pace. Historically, China has been a commoditized market, but it has become far more sophisticated in the past few years: we hear a lot about the demand for high-grade items. We are highly optimistic about our prospects in the country.
To emphasize how important China is to our business, we are even planning to build a new research and development center in Shanghai that will employ 600 engineers.
ATB: What about the situation in the Southeast Asian market?
Cuadrado: In addition to China, India is another market on which we are placing a great deal of focus. We already have - and are looking to grow - an R&D center in India. Also, Dow Fiber Solutions has worked extensively with leading mills to develop innovative applications and treatments for XLA.
Innovations will of course continue to originate from Japan. In addition to Japan, China and India, we have employees in Malaysia, Thailand, Korea and Indonesia.
ATB: Would you describe the priority task for the future?
Cuadrado: We are going to work extremely hard to drive demand with promotions and marketing. We also plan to fully and enthusiastically support the marketing efforts of our partner brands and retailers.
There are a number of ways we can do this. First, we will aggressively participate in exhibitions including Premiere Vision, Lyon Mode for intimates and swimwear, and the Outdoor Retailer Show in the U.S., in addition to developing customized programs with specific retail and brand partners.
Second, we opened a showroom in the heart of Manhattan's garment district in New York City on October 11. This is a space in which our partners from around the world can immerse themselves in the XLA brand; it is very conducive to creative thought, the formation of new innovations and the building of collaborative relationships. The showroom will also be the host venue for continuously updated trend information, which will also be shared with our customers and partners across geographies.
Lastly, we have recently developed an entirely new brand identity and positioning that is resonating well with our partners and consumers. Our new brand positioning frees us to market more effectively in diverse geographies and segments. It is also worth noting that we unveiled our new identity in Shanghai, which demonstrates just how important Asia is to us.
With a striking new identity, aggressive marketing and global public relations campaign and, of course, a great product, we are certainly excited about the prospects for Dow Fiber Solutions in 2007 and beyond.
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