Report Reveals How Power Imbalances Stifle Innovation

Core Insights - The report from the Transformers Foundation highlights the struggle of innovation in the apparel and textile industry to keep pace with the fast-moving fashion industry [1][2] Group 1: Barriers to Innovation - The report identifies barriers to progress in the apparel supply chain based on over 30 interviews with global stakeholders [2] - Uneven distribution of risk is limiting the industry's ability to build scalable, equitable, and effective partnerships [4] - Misaligned expectations affect nearly every aspect of supplier and brand relationships, impacting priorities and knowledge among stakeholders [5] Group 2: Supplier Challenges - Suppliers are often required to fund new technologies and research without guaranteed returns, leading to an uneven power dynamic [4][7] - Suppliers are undervalued by both brands and innovation startups, lacking an equal seat at the decision-making table [7] - Suppliers take on a disproportionate amount of risk and invest significant time and resources into R&D, often without financial support from startups [8] Group 3: Technology and Market Dynamics - Technology startups are not familiar with the fashion industry's needs and timelines, leading to delays in commercialization that do not align with fashion's short lead times [6] - Brands have unrealistic expectations regarding price neutrality for innovation, further complicating supplier relationships [6]