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• Textile industry
• Nov 08, 2024
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Data, digitalization and technology: A possible solution for Latin America to fight against Chinese fast fashion

The textile industry in Latin America faces a complex challenge in the global context, competing with the growing production of fast fashion from China and the United States Also, as consumer preferences shift towards more sustainable and ethical fashion choices, Latin American textile companies are presented with both a challenge and an opportunity. The rapid rise of fast fashion has pressured local manufacturers to innovate or risk obsolescence. However, many companies in the sector are demonstrating that the key to remaining competitive and sustainable lies in the adoption of new technologies and the digitalization of production processes. 

One of the main challenges for fast fashion is supply chain efficiency. In advanced international markets, around 70% of textile companies have already integrated technology into their processes, while in Latin America, the percentage is considerably lower. This is where platforms like Maqui, a Colombian-Mexican startup, are making a difference. Maqui provides fashion brands with tools to track their production, optimize inventory management and reduce waste. This allows textile companies in the region to become more efficient and globally competitive, while adopting more sustainable practices.

The use of data and digitalization are key to this transformation. Data analytics enables companies to identify bottlenecks in the supply chain, predict market demands, and adjust production to reduce costs and waste. Moreover, the integration of technology through platforms like Maqui not only enhances operational efficiency but also fosters greater transparency within the supply chain. By utilizing real-time data tracking and analytics, brands can monitor every stage of production, from raw material sourcing to final delivery. This transparency enables companies to identify inefficiencies and make informed decisions that align with sustainable practices. 

This approach not only improves processes, but also responds to the growing demand for high-quality, ethical products. According to recent data, Mexico exported $8 billion worth of garments to the United States in 2020, indicating that consumers increasingly value quality and sustainability in their purchases. The industry must build strategies that empower consumers to make ethical choices by providing insight into the origins and environmental impact of the products they purchase.

To fully harness the potential of digitalization, training and capacity building for the workforce in Latin America are crucial. Many textile workers may lack the technical skills required to engage with new technologies effectively. Investing in educational programs and workshops as well as looking for digital platforms that are available to them can close this gap, ensuring that employees are equipped to leverage digital tools. By fostering a skilled workforce, companies can maximize the benefits of technology while promoting job satisfaction and loyalty.

Maqui, for example, has found an innovative solution by using WhatsApp to digitalize the supply chain in factories that have low levels of technology adoption. By leveraging a widely used platform, everyone involved in production, from seamstresses to quality control agents, can report on their daily activities, providing granular data and improving traceability and, at the same time, feel the importance of their involvement within the transformation process of the industry they work in. 

In short, the Latin American textile industry has the opportunity to transform its operations towards a more efficient and responsible model. Platforms like Maqui, along with ITG Groups commitment to innovation, enable the regions brands to not only compete in a global marketplace, but to do so in a sustainable manner. The integration of advanced technologies and data analytics are essential to drive this transition to a more connected and circular future. Digitalization and sustainability are not just a passing trend, but the path to a stronger, more ethical and efficient textile industry.

How prepared are you and your team to introduce these improvements in your processes and enable endless possibilities to your business?