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KAPPAHL
The global textile industry –
a tapestry with many threads
There are few industries as closely intertwined as the global LEGISLATION AND INFORMED CUSTOMERS
textile and fashion industry. Like others in the fashion industry,
Kappahl is used to fluctuations throughout the value chain. In the EU, legislation is driving transformation of the textile industry
The textile and fashion industry is a dynamic system with many aimed at ensuring the safety, quality and sustainability of textile
interdependent parts. It has been built up over centuries and ensures products, requiring traceability at all stages.
that the cotton in the fields reaches the fashion- and cost-conscious
consumer, in stores or online. “We’ve been preparing for several years,” says Elisabeth Peregi.
“And now, in 2023, we’ve started working intensively on providing
“We’ve learnt to live with and manage major changes, such as higher transparency and traceability through a recently launched traceability
costs for raw materials and transport,” says Elisabeth Peregi, CEO of tool. The tool allows our customers insight into how the garment was
Kappahl. “The geopolitical influence is always present. It means we made."
need to be able to make decisions and act quickly without having all
the information.” Traceability is simplified if textile factories are also in close proximity
to the raw materials. This means fewer, fully integrated suppliers,
Most of Kappahl’s manufacturing takes place in Asia. The reduces on-site transport and strengthens relationships with suppliers.
company takes responsibility for the entire value chain: cultivation,
manufacturing, design and transport to stores. This is why the Customer awareness is also driving development. More and
company is on site near its suppliers in Shanghai, New Delhi and more consumers are demanding transparency to be assured that
Dhaka. The European suppliers are managed from Sweden. All the garments they buy are made in factories with decent working
finished garments are transported by boat, train or lorry to the central conditions. Transparency requirements will eventually result in
warehouse in Mölndal – a chain in which a lot can happen along the way. manufacturing moving from one market to another.
“We’re constantly reviewing our supply chain so we can manage TRANSITION ADDS VALUE
different types of risks and be more transparent,” explains Elisabeth
Peregi. “Our aim is to move production closer to Europe to shorten The global green transition is costly. Many smaller companies will
transport routes and reduce our carbon footprint. Europe has factories find it difficult to adapt, which will mean consolidation in the industry
and expertise, but not to the same extent as Asia. Almost all outerwear over time. Kappahl believes that the transformation is necessary, and
is sewn in China, and Bangladesh specializes in linen and knitwear. A sustainability work is well integrated in its business strategy.
balance between time, cost and quality must be achieved.”
“Our ambition is for consumers to be able to buy sustainable
and affordable garments. We’ve already factored in the cost of
manufacturing clothes in a way that has less of a negative impact on
people and the planet. We’re now focusing on designing and offering
garments that can be used even more times and thus have an even
longer lifespan,” concludes Elisabeth Peregi.
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