#43 How to bring sustainability and product innovation together

#43 How to bring sustainability and product innovation together

In our podcast interview, we welcome Stefanie Sumfleth, Vice President of Corporate Responsibility and Technical Product at bonprix. Together, she and Christian Underwood talk about the importance of corporate responsibility in the fashion industry. In the process, the two discuss the challenges and opportunities that arise for companies when they pursue sustainable business practices. In particular, they talk about implementing concrete measures to promote greener production processes and improve working conditions in the supply chain. In doing so, Stefanie Sumfleth shares her experiences and insights from her work at bonprix and provides valuable insights into current trends and developments in sustainability in the eCommerce fashion sector.

From tailoring to sustainability and digital expert in the fashion sector

Stefanie Sumfleth began her career with an apprenticeship as a tailor. She then studied apparel and industrial engineering and worked for Hugo Boss and BRAX Leineweber, among others. For the past three years, Sumfleth has been Vice President at bonprix, responsible for Corporate Responsibility & Technical Product.

bonprix today reaches in more than 25 countries and sells almost exclusively its own fashion collections. As part of the Otto Group, the company benefits from the sustainable vision of Prof. Dr. Michael Otto, Chairman of the Supervisory Board. He has been committed to social and ecological standards in the supply chain of his companies since the 1980s and wants Germany to take on a role model function in the ecological transformation of the economy.

How bonprix combines sustainability and economic success

A particularly impressive example of this is the "Cotton Made in Africa" initiative launched by Michael Otto to help small farmers in sub-Saharan Africa make a living from cotton cultivation while taking ecological aspects into account. Sumfleth had the opportunity to visit this initiative in Uganda and meet the people who benefit from it. This commitment has resulted in a sustainable supply chain where T-shirts made from African cotton are produced and offered to customers.

"Sustainability is very importantly anchored in the DNA of the Otto Group. But we do this out of the conviction that sustainability is also a very important future factor for the fashion industry."

Half of the approximately 80 million items sold by bonprix each year are made of cotton. The cooperation with initiatives such as "Cotton Made in Africa" shows how the company assumes social responsibility as well as achieving economic success.

In this context, Stefanie Sumfleth emphasizes that sustainability at bonprix is not merely pursued out of personal conviction, but is also considered a forward-looking factor in the fashion industry. The Otto Group's annual study on ethical consumption has shown that customer awareness of the impact of their consumption on the environment and climate is constantly growing. Customers increasingly see themselves as well as companies as having a duty to take climate-protecting measures.

Resilience and sustainability ambitions: The future vision of bonprix

Stefanie Sumfleth emphasizes the need to integrate sustainability into the orientation of fashion companies and points to increasing regulations in this area, such as the Supply Chain Sourcing Obligations Act (LkSG). Future customers, she is convinced, will expect companies to make a comprehensive effort to address sustainability and enable them to make conscious purchasing decisions. Her company is meeting these demands with a broad range of more sustainable fashion and a holistic sustainability strategy. One thing becomes very clear in the interview: sustainability forms a central pillar of the corporate strategy.

Looking back on her experience in the area of sustainability since joining bonprix in 2011, Sumfleth recalls the audit programs for factories that were in place at the time and the first smaller sustainability goals. Over the years, bonprix has steadily increased its commitment to sustainability. In 2017, the first comprehensive sustainability strategy was adopted, and from 2021, an even more ambitious strategy will be pursued. The company is now working on 70 different sustainability targets and aims to offer only more sustainable products, make its supply chain fully transparent and operate in a climate-neutral manner by 2030.

From the absence of sustainable products in the 2011 range, the company now has 60% sustainable fibers in its offer and is intensively dedicated to the circular economy. In April 2023, the Group launched its first Circular Collection, designed for circularity. In terms of climate footprint, the company focuses on influencing aspects it can directly control, such as the transport route from factories to warehouses. The Otto Group has now adopted "Science-based Targets" and is committed to reducing climate impacts in a number of areas, including the choice of materials and collaboration with suppliers. Overall, the scope of sustainability efforts has expanded enormously over the years.

Sustainability as a shared task: How bonprix anchors sustainability goals throughout the organization

Sumfleth emphasizes that there is an increasing involvement of various departments and employees who take who are active in the area of sustainability on their own initiative. When selecting suppliers, sustainability criteria are taken into account alongside price, speed and quality. Cooperation with other companies and membership in industry initiatives are also important aspects in overcoming common challenges.

For Sumfleth, all of the company's 2,900 international employees of the company should actively participate in sustainability issues. To achieve this goal, various initiatives are launched and there is even a special position to promote employee engagement in the area of sustainability.

Challenges in the fashion industry require achieving sustainability goals without neglecting product quality. To promote resilience in the organization, Stefanie Sumfleth relies on the digitalization of product development. This involves digitizing the entire process - from the idea to production release - together with product management.

Sustainable product development through 3D technology

Instead of the traditional approach of passing on design specifications to suppliers and creating samples, innovative 3D technology is used. With the help of digital patterns, avatars and detailed fabric mapping, products can be digitally developed and visualized in the system from start to finish. The fit and appearance of the garments can be assessed at the design stage, so that suppliers can start production as soon as the digital data has been approved.

"We may also know better by that time which products our customers want from us, and are then more accurate. And, of course, we also take far fewer samples and save on transport routes. In this respect, this is also a nice example of sustainability in our core business."

For the industry, the digitization of product development offers numerous advantages, such as a significant acceleration of the work and development process. With the help of 3D technology, it is possible to visualize a product in just one day - compared to the traditional process, which is based on samples and took several weeks. At the same time, this contributes to the sustainable transformation of the fashion industry.

Focus on employees: the importance of support and guidance during change in the fashion industry

Less established markets also benefit from digitization. For example, suppliers in countries with a less developed fashion industry, such as Uganda, can be given greater support: Companies do most of the development work themselves and can move directly into production. The increased speed allows products to be brought to market more quickly and customer requirements to be met more effectively. At the same time, the number of samples and transport routes are reduced, leading to a more sustainable approach to core business.

Such innovations not only affect processes, but also employees, who have to adapt to new working methods. In order to maintain motivation and enjoyment at work, it is crucial that companies introduce these changes gradually and provide their employees with the best possible support.

Sensitive implementation of such changes is crucial for the success of a company and requires clarity as well as perspective for the employees. A consistent approach that extends from corporate strategy to implementation in the individual departments is essential.

"And at the end of the day, from my perspective, that's the success factor. Namely, that the people who are involved understand and embrace the new things and also feel joy for that change."

To place a high-quality product with the customer, the employees involved must understand both the big issues and the smallest details. Collaboration, passion for change and energy are crucial factors in successfully managing such changes and making the industry fit for the future.

What would Stefanie Sumfleth advise listeners who want to start such a strategy process?

She emphasizes the importance of taking individual realities into account and timing the implementation of a holistic strategy. In doing so, Sumfleth recommends carefully reviewing existing activities and ways of working to decide which should be retained and which should be challenged.

Another important aspect is the involvement of relevant stakeholders and their expectations. Furthermore, one should think about ways of working and their future viability. Sumfleth is convinced that the right approach, coupled with passion and heart, leads to success.

Interested listeners can also catch Stefanie Sumfleth at StrategySummit 23 on May 17 in Düsseldorf, where she will be taking part in a panel on sustainability strategy. The event offers an excellent opportunity to learn more about anchoring sustainability in corporate strategy.