Upstream Focus is Sourcing Journal’s series of conversations with suppliers, associations and sourcing professionals to get their insights on the state of sourcing, innovations in manufacturing and how to improve operations. In this Q&A, Daniel Hawker, CEO of activewear and swimwear manufacturer Active Apparel Group, discusses how the company is supporting worker welfare at its owned factories and what it looks for in both suppliers and customers.
Name: Daniel Hawker
Title: CEO
Company: Active Apparel Group
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What’s the number one question you get from your clients now that was never really a consideration before?
Our customers are seeking innovation and science-backed fabric solutions. We have to be on the forefront of fabric and construction technology, enabling us to bring new ideas and solutions to our customers. We own our factories and are constantly investing in ourselves, with new technology and techniques to enable us to stay ahead of the curve.
How do you evaluate potential brand and retail partners? What do you look for in a customer now, compared to a few years ago?
We look for passionate founders and management teams with a clear vision for growth that tend to have a differentiated product set that marries well with our high quality standards and technical expertise. Additionally, brands that see the value in leveraging our broad services, enabling them to grow efficiently, often rely on us to fill the voids within their teams and giving them a fresh perspective.
What is the main thing brands and retailers could do (or stop doing) right now that would immediately improve product development?
Continue to hone their merchandise planning, supported by sales-backed data, to make accurate product decisions earlier on to reduce sampling and changes along the development journey.
How are you adapting your operations to support quick-turn, small run orders?
We have developed an extensive sample room and pattern making facility for quick-turn sampling and instituted incentives for sewers to support small order runs to enable our customers to trial new innovations and categories.
In this challenging retail environment, how are you working with clients to balance sustainability needs with cost efficiency?
We have developed a broad, well-vet, network of fabric and trim suppliers for recycled and sustainable fabrics to support our and our customers’ journey towards making a sustainable choice. We select suppliers based on several factors including—but not limited to—innovation, aesthetics, solving a business need and then the vetting process kicks in. Our fabric compliance team steps in to ensure the supplier is not a “trading company,” meaning they own their machinery. We conduct an onsite visit and carefully monitor early shipments from a new supplier. We apply a supplier rating evaluation form, which rates our suppliers on a tiered system. It is an ongoing monthly rating from a performance, quality, timely delivery and ease of working together standpoint. Certifications are also taken into consideration.
When it comes to quality and compliance, what are the biggest challenges?
Because we have a global business, our challenge is to be at the forefront of compliance in each market. We do this in conjunction with our customers to understand their internal and geographical requirements to ensure we deliver on our quality and compliance promise. Foundationally, we maintain certifications with SQP, Sedex, WRAP, Oeko-Tex and have conducted a Living Wage assessment within our factory complex with a third party to ensure we provide an overall framework from a compliance standpoint. We are proud to share that our factory received a 100 percent Living Wage score.
Which technology or digital solution has made the most difference in your operations this past year?
3D has enabled us to realistically visualize design outcomes, save on sampling rounds, time, resources and overall environmental impact.
What keeps you up at night?
The triangulation of keeping our people, planet and product at the forefront of everything we do, which is something both our customers and our employees will benefit from.
What makes you most optimistic?
The emergence of inspiring, differentiated brands in the market that value quality and are deeply investing in their customer. We are excited to partner with brands with a strong vision. Our customers continue to value their partnership with us and once in our stable, [they] see the benefit of the offering beyond standard manufacturing. We are also optimistic about the future as we see more customers asking for sustainable solutions.
What’s in store for Active Apparel Group for 2024?
We continue to be optimistic about growth in the U.S. and European markets. We are expanding our U.S. and European customer base in both men’s and women’s active, athleisure and performance RTW categories, with golf and court sports being fast-growing categories.
