He also rails against the on-going textile supplier squeeze in the quest for ever lower prices for clothing at point-of-sale; arguing that given retailers are simply marketers of products, they could do more to help to reverse this trend – and stimulate more innovation in the process.
“We need to convince consumers and brands that serve those consumers to pay a premium for materials that are more sustainable,” he noted, alluding to fashion’s carbon footprint. “This is of paramount importance, because if we don’t manage this as a society it is only about lowest cost, only about short-term economic value, and that is one of the key problems that brought us on the climate side to the position we are in today.”
Doboczky says the industry is now at a point where it needs to “take a step back” and let new technologies and approaches become the new norm. “Then over time, scale efficiency gains and other advantages to lower costs,” he said, citing the example of a basic 200 gsm t-shirt, where the pure fibre costs in such a product amount to just US$0.30 – 0.40 cents per garment, “whatever the consumer pays for it: US$10, US$20 or even US$30 dollars.”
Yet he admits the environmental challenges the industry faces are much more than simply about whether retailers can pay a few extra cents for goods. “A big challenge is around educating consumers – they need to be prepared to ask questions about their own consumption behaviour and the choices that are in front of them,” he notes.
Operating in a tough environment amid record low prices for viscose, he says that Lenzing is prepared to invest in new technologies and upgrades to its platforms that have positive environmental benefits to the tune of “close to US$2 billion in the next 3 – 4 years.” Investors he says, are also backing the company’s ambitious plans. Out on roadshows, he says he can also see a shift in its investor portfolio. “For some investors we are now very attractive.”
For anyone who wants to hear about how leading CEO’s in the textile sector are now tackling the challenges posed by keeping an environmental edge while at the same time looking after the bottom line, tune in and download this podcast today.
