A
chieving relevance in a post-quota environment may seem impossible to those US textile
manufacturers who believe it’s all about cost. However, there are insiders who take a different
approach. In a world where trade laws have led to lawsuits pitting buyers and sellers within the
apparel supply chain on opposite sides of trade issues, it’s hard to conceive that these
adversaries need to partner to bring fashion and innovation to market. The current power of the US
retailer may be short-lived based on the view that a natural extension of China’s rapid growth is
its attempt to capture the entire apparel supply chain competing directly with retailers at home
(in China) and those in the United States by opening or buying into retail operations. Regardless
of the future challenges to retailers such as the demise of the retail category killer, and the
customer’s boredom with everyday low-prices, the delivery of fashion benefits from a responsive and
innovative supply chain that starts with fiber.

“I Want The Best Golf Shirt Possible.” That request was music to the ears of Jefferson,
Ga.-based Buhler Quality Yarns Corp., manufacturer of fine-count ring-spun combed Supima® cotton
yarns. The request came from New York City-based Polo Ralph Lauren Corp. Polo designs, markets and
internationally distributes lifestyle products under such brand names as Ralph Lauren, Polo Sport
and Club Monaco, among many others. “When Walter Bostic [senior director of technical development
at Polo] asked us to assist him in this challenge of creating the best premium golf shirt, we knew
that we have what it takes to make it happen –  200 years of experience in high-quality yarns
and the desire to continually improve our quality,” said David Sasso, vice president, international
sales, Buhler.

“For us, fashion is about creativity and expressing ourselves through the apparel we wear,”
Sasso added. “The apparel we wear most often makes us feel comfortable, and performs in the style
and colors we like. This performance can be durability, color brightness and color retention,
breathability, drape and hand. These parameters can all be measured and engineered into the fabric
by first starting with the fiber selection. I have not seen many garment specifications that go
into the details that would build in these performance factors. How can you build customer loyalty
when your product is inconsistent?”

Extra-Long-Staple-Cotton

Buhler, a very active marketer and manufacturer of high-end yarns, is no newcomer to the
field. A subsidiary of Switzerland-based Hermann Buhler AG, the company strives to maintain a
leadership position in fine-count, combed yarns made from extra-long-staple cotton fiber, using
American Supima cotton exclusively. Supima accounts for about 3 percent of the annual US cotton
crop. Of that 3 percent, equivalent to about 700,000 bales, Buhler buys the top 25,000 bales in
order to achieve the highest standards in yarns. The company’s philosophy is not about buying on
price, but rather, buying on quality without compromise. Using 32,000 ring spindles and the latest
in manufacturing technology, Buhler’s 120 associates create cotton yarn ranging from Ne 12 to Ne
110 (Nm 20 to Nm 190).

According to Buhler, yarns made of premium, extra-long-staple cotton can be knitted or woven
into softer, finer and more luxurious fabrics. Because of the fineness of Supima, more fibers can
be spun into a yarn of a given count, which enhances the feel and softness, drapeability and color
brilliance of a fabric.

Supima has the highest tensile strength of all cotton fibers worldwide, enabling the
application of finishing methods that no fabric made from other fibers can withstand. The end
effect is a garment with little to no shrinkage, no hairiness and, therefore, no pilling, even
after 20 washings. Costly mercerization of yarns is no longer necessary.

Progressive And Aggressive

“We are progressive, aggressive in our push for new opportunities, and not afraid of speaking
out on what we believe is right and are therefore sometimes at odds with the mainstream textile
industry,” said Werner Bieri, president, Buhler.

Buhler is actively pushing for implementation of the Central American Free Trade Agreement
and hopes for quick development of a free trade agreement with the Andean region. According to
Bieri, this is a vital part of the US textile industry’s strategy for the years to come. The
company also is focusing on manufacturers in other parts of the world. Buhler believes the textile
industry is the first to have become truly global and that manufacturers in other parts of the
world have very specific advantages, which may not always be available, even in Central or South
America.

Retail Solution Beyond Price

“Development with the retailer is imperative because we want to better understand their
business,” Sasso said. “We know that there are price points that our yarns cannot meet. Therefore,
understanding which brands and retailers are sourcing for better goods is critical. Under certain
price points, we find that if the product can be made in a country benefiting from the exclusion of
duties entering the United States, that [landed duty paid] product is very competitive to Asian
goods. What we have to do is help our customers upgrade their quality; and improve the know-how in
dyeing and finishing, and the mentality in this hemisphere when dealing with higher-valued goods.”

Stay Open To New Ideas

The mode of operation for most textile yarn manufacturing companies is to offer a specific
group of yarns for sale. “Companies are seldom receptive to suggestions when those suggestions
involve purely experimental processes to prove or disprove a theory in an effort to find the
correct ingredients for a unique yarn or a yarn that has attributes outside the norm,” said Polos
Bostic. “I approached Buhler Quality Yarns with untried ideas and, I must say, somewhat radical
ideas for spinning yarns that I hoped would result in a yarn that would allow me to produce a
superior fabric for our designers. Buhler has the machinery and personnel to implement the ideas.
The important part of the Buhler equation is they made the equipment, laboratory and technical
personnel available to me for the experiments and trial spinning projects with absolutely no
guarantee of our work resulting in yarn sales.”

“This is an example of the attitude suppliers and customers must have if we as an industry
are to succeed in developing superior products for the consumer,” Bostic added.

A Way To Compete

“In the case of Polo, the challenge started with trust in our relationship and our ability to
leverage Buhler’s quality and delivery,” Sasso said. “It’s this type of project and relationship
that separates cost-based sourcing and premium-quality product development. Speed, quality and cost
are all major concerns, but there are areas where US companies can and will compete.”

February 2005

B
randing a product to distinguish it from all others is something cattle ranchers have
done for years, with a single mark creating immediate awareness. Branding has become a watchword in
recent years, with marketing and communications specialists offering varying, often complicated
definitions that confuse business owners as to the meaning and importance of a brand.

Many people purchase products or services simply because they are familiar with the name,
knowing little about features, benefits or price. While brand name awareness does not automatically
ensure sales, you have a tremendous advantage over companies in your product category if you work
toward building your company as a brand.

Consistent Message

A company brands itself by developing a consistent, constant marketing message. Repetition may
come from frequent advertising, repeated articles or news briefs in the media, constant exposure to
your company logo, or preferably, a combination of all of these. Your corporate identity can be
your most valuable asset and can make a major contribution to your brand success, but it must be
managed effectively.

The most favorable corporate identity is established with every form of internal and external
corporate communications presented in the same manner. By developing and presenting a consistent
company message, you will reduce the need and costs of building individual brands with new or
improved product introductions.

Company Logo

Your company logo should appear on all forms of corporate communications — letterhead and
envelopes, brochures, business cards, invoices, ads, company vehicles, apparel worn by delivery or
service personnel, and your website, among other items. Never miss an opportunity to promote your
identity. Your company name and logo identify your products and services and differentiate you and
your products from those of competitors. This is the beginning of building your brand.

Remember, a brand is a perception in the mind of the buyer. Your logo, when seen frequently
and in a consistent manner, becomes a symbol of your company’s credibility in the marketplace. When
executed effectively, your company name will become synonymous with your marketing message and
point of differentiation.

Differentiate Or Die

Marketing guru Jack Trout chose this as the title of his 2000 book subtitled “Survival in Our
Era of Killer Competition.” The dramatic increase of choices in just about every product category
in recent decades has forever changed the way companies do business. This proliferation coupled
with a dramatic increase in communication media — which now include the Internet, hundreds of new
cable and satellite television stations, and even movie theatres — leaves many buyers and sellers
scratching their heads.

The average American is exposed to about 3,000 advertising messages per day as corporations
globally spend more than $620 billion annually to build their brands, according to the Newspaper
Association of America.

Companies compete in this era of killer competition by differentiating. Differentiation
defines a company and distinguishes it from all others. Identifying your company’s competitive
advantage is first and foremost in the branding effort. If you try to be all things to all buyers,
you quickly undermine what makes you different. You must determine and concentrate on your
distinctive attribute, and establish that as your marketing message.

You can differentiate yourself from your competition in several ways — place, price,
promotion, people, product, service, selection, quality, convenience and speed. Are you less
expensive, more durable, faster, and/or more flexible? You can differentiate anything, but remember
that in today’s business environment, everyone promises the best quality and service. Your products
and services are made greater by giving the customers more than they expect. For example, Otis
Elevator Co. uses remote diagnostics as its point of differentiation. In high-traffic buildings
where servicing elevators is an inconvenience, Otis uses remote diagnostics capabilities to predict
possible service interruptions, sending employees to perform preventive maintenance in the evenings
when traffic is light.

Lasting Brand Name Awareness

Once you’ve developed a marketing message and a point of differentiation, it’s time to put these
tools to frequent use. Brand name awareness of the highest quality is a lasting awareness. A
potential customer can read one of your marketing messages and remember your name for a week or so,
but if the would-be buyer is not exposed to your message repeatedly, he or she forgets it and moves
on.

Peden Companies Build Their Brand On Service

In today’s crowded marketplace, many companies use the service attribute as a way to
differentiate themselves from the competition. For Peden Textile Equipment Co. and John W. Peden
Co. Inc., that point of differentiation has helped the small, family-owned businesses establish
their niche in a volatile industry.

“Whether you drive a Chevrolet or a Mercedes, if that car is always in the shop, pretty soon
you’re going to change brands and dealerships,” said Warren Peden, president of the
Greenville-based companies that sell and service warp-tying machinery. “When a machine is down on
the weave room floor, customers don’t want to hear that you don’t have the parts in stock [nor] the
technical ability to fix it.”

An inventory of spare parts, the technical expertise to make repairs, and immediate response
to service demands have made Peden Textile Equipment the go-to company as textile plants have
downsized in recent years. While the company sells only Japanese-made Todo equipment, it is called
upon to service many other different brands.

“As mills have leaned down in order to compete, a lot of them have lost their technical
talent,” Peden explained. “They’ve come to depend on us more and more because their institutional
knowledge often is lost in management turnover and downsizing.”

It’s that institutional knowledge that Peden believes sets his companies apart. “We sell
ourselves on the weave room floor.” he said. “I think in today’s environment, a lot of companies
spend more time building spreadsheets than in the weave room figuring out what’s wrong and how to
fix it. We learned the ways that Grandpa did it, and we’ve built our reputation on it.”

For Peden, institutional learning began in 1988 when his father bought a textile equipment
company. “The former manager was to stay on for five years, and he left after two months,” Peden
said. “I was 23 years old trying to sell equipment to men who had been in the business for years,
and I quickly realized I’d better know what I was talking about.”

So the younger Peden went into the mill to learn the business from the bottom up — the
mechanics of the machinery, the labor aspect and the personality of the industry. That thirst for
knowledge and commitment to service has served Peden well over the years. The small company of nine
employees today serves customers all over the world and goes head to head with some of the largest
machinery makers in the business.

Peden also concentrates on doing business primarily with smaller, family-owned mills and has
made a commitment to remain debt-free. But he is quick to credit Milliken & Company,
Spartanburg, for helping his company develop its immediate response capabilities.

“Milliken was one of the first companies to put their faith in us. We developed a lot of our
immediate response expertise around what Milliken required,” Peden said.

In an industry marked by bankruptcies and huge job losses in recent years, the Peden
companies have downsized less than 30 percent over the last five years. 

“A friend once told me that it’s better to be underestimated and over-deliver than
overestimated and under-deliver,” Peden said. “Your product and service are much better when you
give the customer more than they expect.”

February 2005