Responsible innovation is agenda today, focus tomorrow
Varvaressos SA European Spinning Mills is a Greece-based company engaged in the production and trade of cotton and special yarns. The company's product portfolio includes cotton yarns, cellulose fibres, blended yarns, multi-ply yarns and yarns on dyeing tubes, as well as packaging products, such as carton boxes and cardboard layers. CEO Argirios Sarridis talks to Hiral Oza about the company's GMO-free smart cotton and why responsible supply chain is the need of the hour.
Tell us in brief about the Supreme Green Cotton (SGC) collection. Where is the cotton grown?
Supreme Green Cotton (SGC) by Varvaressos is the new premium cotton yarn collection which is water-saving, GMO-free and 100 per cent traceable. This was unveiled during Première Vision Paris and Filo fair in Milan. It is a new generation of smart cotton, born from an innovative and socially responsible system granting sustainability from the cotton seed to the garment while supporting farmers and businesses. It is a unique collection that matches the highest European and international standards, without compromising on quality. The collection meets the requirements for high-end garments, thanks to excellent uniformity, superior strength, contamination-free and long-staple eco-fibres.
What are the challenges facing the European spinning industry? How can the government help?
The EU region remains a leading producer of both textiles and apparel (T&A). The value of EU's T&A production was €142.9 billion in 2017 (Statistical Classification of Economic Activities or NACE, sectors C13, and C14), which was divided almost equally between textile manufacturing (€77.4 billion) and apparel manufacturing (€65.4 billion). Regarding textile production, Southern and Western EU-where most developed EU members are located such as Germany, France, and Italy-accounted for nearly 80 per cent of EU's textile manufacturing in 2017. Today, more than ever, European producers must focus on quality that now accounts for sustainability as well. It's fundamental to invest in terms of communication as we do have fantastic stories of quality, know-how, traceability and transparency that could represent a real business advantage if properly communicated.
What are the challenges that this niche faces on the global front?
Unfair competition is driven by a lower price ration. This is why it's fundamental to focus on what I said in the previous answer and target the right market segment.
What is the market size for cotton and blended yarns in Europe?
According to a Euratex report, the total yarn production in the European Union was €8.6 billion in 2018. That year, the amount of land that grew cotton was 273.000 hectare and the total production was 215.000 MT that represents 0.8 per cent share of global cotton production. Greece's most important areas for cotton production are Larissa and Karditsa.
Which industries make the use of cotton and blended yarns? What are the latest applications?
Cotton is an extremely versatile fibre. Varvaressos's product portfolio includes primarily cotton yarns and cellulosic fibres blended yarns. Since the beginning, the strategy of the company was to go for a traceable, innovative and responsible supply chain while reaching the highest levels of quality, thus meeting the requests of an increasingly demanding conscious consumer.
What is your USP in comparison to the other big players?
Varvaressos combines advanced technology, experience and human skills. In addition to this we have a transparent and traceable production in Europe, offering innovative and sustainable solutions. Another important feature is the flexibility to today's ever-changing environment.
What kind of innovations in machinery do yarn makers like you look for?
We always look for smart solutions that are able to give a strong result in terms of energy savings, digitisation and flexibility.
To which markets do you supply this yarn?
The launch of our SGC collection is recent; we are getting a good response from the market, but it requires more time to gather the kind of data required.
What amount of cotton yarn is made from organic cotton at Varvaressos?
Varvaressos strategically decided to focus on the unique SGC, Supima extra long staple cotton and Pima extra long staple cotton.
Is cotton grown and spun in EU gaining importance in Europe?
It is becoming increasingly important as it offers the supply chain the possibility for products to be 100 per cent made in Europe, and 100 per cent traceable and transparent.
What kind of impact has the US-China trade war and Brexit had on the spinning industry in EU?
The US-China trade war, Brexit and political and economic uncertainties in other regions of the world increase the volatility in the market. As the global economic activity slows, this affects consumption and also our business as a consequence. Besides, decisions for investments are postponed as well.
What kind of R&D are you doing now? Will you be moving into other yarns?
Today we are strongly investing in our SGC collection in order to offer the highest quality and finer yarn counts (important to highlight: SGC already offers excellent yarn uniformity, superior strength, contamination free and long staple) and full traceability. Responsible innovation is the agenda today and will be the focus for future.
Which types of yarns are in great demand in Europe? Which are the countries you export to?
As producers, we are experiencing a growing demand for responsible solutions. We recently launched our SGC at Première Vision Paris, being selected to exhibit within the Smart Creation area-an informative, educational, visionary and multimedia space where exhibitors, designers, buyers and fashion brands can experience and truly visualise the progress the industry is making in terms of responsibility. We were amazed in experiencing a huge demand from both world-known and emerging brands. Responsibility is a hot topic today.
What are the factors affecting your company's performance?
Some of the factors that affect our performance are the economic environment that influences commercial and consumer behaviour, the volatility of raw material prices, the exchange rate of EUR to USD, and demand and supply.
What are the other plans at Varvaressos?
To work more on sustainable solutions staying true to Varvaressos DNA-that means always keeping in mind the quality of the products.
What are the latest innovations taking place in this industry?
The industry is trying to rapidly adapt to the needs of the market-and of the consumers-who are more conscious and willing to spend on sustainable products. Varvaressos developed a water saving yarn range thanks to a pioneering satellite-powered drip irrigation system using Israeli technologies and expertise in water management. We think that reducing water consumption is a crucial aspect.
Published on: 18/12/2019
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
