Tavex has clubbed with Santistatextil in 2006. How has this merger added to Tavex’s leadership in textile world?
With this merger, Tavex became the largest provider (worldwide leader) of value added denim (premium denim / differentiated denim) in the world.
We have one of the strongest shareholder structure in the textile sector. We had a capital increase of EUR 40 MM in may/08 which was oversubscribed. Therefore we are in very good shape to face the market downturn.
We are now unifying our corporate image under the name of Tavex Corporation, and Santista Têxtil now is called Tavex as well. Our mission is to help our clients succeed in their business, to enable them to differentiate themselves. There is one short sentence that summarizes that: leading together, which means that our leadership derives from the leadership of our customers, from our employees, from our stakeholders.
The main synergies are in product development, operating processes, management style and procurement. We chose to be organized by regions so that we can focus on our customers and their needs.
As a leading player in European market for more than a century, what movements have you marked in apparel/textile market here, in recent years?
In the last years we saw the consolidation of the premium brands, which demand innovative products and designs. We also saw the consolidation of the fast fashion business, in which fast response and quick service are critical.
Tavex is prepared to be the leader in innovation and fast service.
Out of your 150 years accrued experience in denim, what is your remark on this industry?
•Denim is a key element of western fashion and culture
•Despite fashion cycles, denim is always able to reinvent itself
•Innovation and market knowledge are critical to generate fresh designs that entice consumers to keep buying jeans
What future prospects do you envision in the workwear/sportswear and retail segments?
We are leaders in Workwear in South America. The future is in work fashion and technical (protection) products, and our R&D is working in this direction.
Denim uses about half of the total global cotton output production. In this context, how do you see current scenario in cotton market (scarce production and price rise) affecting your industry? What trends in procurement of feedstock can be marked in the global market now?
Rising cotton prices will put significant pressure on less capitalized companies, threatening their survival. On the other hand, the recent movements in the financial and commodities markets and in cotton in particular, show that there is plenty of volatility in these markets. Our ability to anticipate and manage these movements is one of our core competences.
Your line of operation is crowded with myriad competitors from low cost countries. What helps Tavex to stand different and grab a lion’s share?
•Product development in close contact / relationship with Europe’s leading brands
•Quick service and flexibility is key, that is why our strategy is to have production close to our customers (Spain and Morocco for Europe, Mexico for North America, Brazil/Argentina/Chile for South America)
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Published on: 17/11/2008
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.
