Sustainability, Traceability Leading Trends in Textiles

The Mexican textile industry continues to operate under a 40-year old model where price rather than innovation dictates the operational dynamic, says Jorge Plata, Director General of Argentum Textil. “In Mexico, clients are focused heavily on the price model. Regardless of how innovative the product is, the main question is whether the client will be willing to pay more for that innovation.”

Unlike other textile companies in the country, Argentum Textil, a Mexican company that focuses on the creation of differentiated and functional textiles for manufacturing activities, has chosen to follow a different business model. “We want our profit margin to depend on innovation, rather than on massive production,” says Plata.

As part of the innovation championed by Argentum Textil, Plata says the company has taken the expertise it has developed in the manufacture of differentiated textiles for different industrial areas, such as Prevention and Protection Textiles, and translated that into a growing market niche: activewear. “The knowledge and expertise we gathered mixing different types of fibers, and considering that our core business is the creation of fibers that provide protection, we decided to venture into the performance niche.”

In addition to providing key elements needed in the activewear arena, such as drastic temperature changes and UV protection, Plata says that Argentum Textil leads the way in areas such as sustainability and product traceability. “We are betting heavily on supply chain traceability, from the thread production to when the textile is discarded and incorporated into a new cycle.” Plata says that to be sustainable it has become increasingly important for textile companies to implement better practices. “We focus on using fibers that are free of toxic content and that comply with sustainability certifications. We strive to have a low carbon footprint and we limit our use of water.” 

The company’s innovation and commitment to sustainable practices show in its innovations. “PETA (People for the Ethical Treatment of Animals) reached out to us and asked us to develop a special line of vegan thread that resembles wool. The thread has a series of organic components, such as active carbon and other technical fibers like thermolite.” The final product, Plata says, complies with three key elements: it does not use water or artificial dyes, and it has the insulation and odorless capabilities of wool. Despite the effort that innovation in these types of products entails, Plata says that Argentum’s goal is to position the company as the leader in a market that is constantly worried about the origin of products. “In this context, transparency and traceability take on increased relevance.”

Despite the emergence of innovations and added value products in which Argentum Textil works, Plata says the model that is followed by the local industry is a 40-year old version driven by the retail industry. “The supply chain remains in the hands of retailers and wholesalers. When the retailer is your only final customer and the negotiation is driven by a low price, innovation becomes extremely difficult. As an industry we have yet to find other sales formulas.”

In this sense, Plata says the company has chosen to commercialize its products in markets where innovation, sustainability and traceability are highly valued. “The US is an important market, as is the Mercosur market.” The company’s first step to Mercosur is Colombia and afterward it will extend to Brazil. “Textile and fashion have an important participation in Colombia’s GDP, and we are seeing a boom in the quality of textiles.”

Though participating in a new market might be a difficult task, Plata says that Argentum will focus on generating alliances with local participants. “When you enter a new market and do not generate strategic alliances it becomes harder. However, when you enter hand in hand with local partners, you can generate employment and you can more easily comply with rules of origin.” The company has already developed alliances with local Colombian players that are helping it to get a foothold in the local market.