#43 How to bring sustainability and product innovation together

In this podcast interview, we welcome Stefanie Sumfleth, Vice President of Corporate Responsibility and Technical Product at bonprix. She and Christian Underwood talk about what corporate responsibility means in the fashion industry. The two discuss the challenges and opportunities that arise for companies pursuing sustainable business practices, in particular the concrete steps needed to promote more environmentally friendly production processes and improve working conditions across the supply chain. Stefanie Sumfleth shares her experience and insights from her work at bonprix and offers valuable perspectives on current trends and developments in sustainability in the fashion eCommerce sector.

Stefanie Sumfleth started her career with an apprenticeship as a tailor. She then studied clothing and industrial engineering and went on to work for companies including Hugo Boss and BRAX Leineweber. For the past three years, Sumfleth has been Vice President of Corporate Responsibility & Technical Product at bonprix.

Today, bonprix reaches customers 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 Chairman of the Supervisory Board Prof. Dr. Michael Otto. Since the 1980s, he has championed social and environmental standards in his companies' supply chains and wants Germany to lead by example in the ecological transformation of the economy.

One especially impressive example is the "Cotton Made in Africa" initiative, launched by Michael Otto to help smallholder farmers in sub-Saharan Africa make a living from growing cotton while taking environmental factors into account. Sumfleth had the opportunity to visit this initiative in Uganda and meet the people who benefit from it. The commitment has created a sustainable supply chain in which T-shirts are made from African cotton and offered to customers.

"Sustainability is firmly anchored in the DNA of the Otto Group. But we do it out of the conviction that sustainability is also a critical future factor for the fashion industry."

Half of the roughly 80 million items bonprix sells each year are made of cotton. Working with initiatives like "Cotton Made in Africa" shows how the company takes on social responsibility and succeeds commercially at the same time.

Stefanie Sumfleth stresses that sustainability at bonprix is not just a matter of personal conviction, it is also seen as a forward-looking factor in the fashion industry. The Otto Group's annual study on ethical consumption shows that customer awareness of the impact of their consumption on the environment and the climate keeps growing. Customers increasingly see both themselves and companies as obliged to take action to protect the climate.

Stefanie Sumfleth emphasizes the need to build sustainability into the direction fashion companies take, and points to growing regulation in this area, such as the German Supply Chain Due Diligence Act (LkSG). She is convinced that future customers will expect companies to make a comprehensive effort on sustainability and enable them to make conscious purchasing decisions. Her company meets these expectations with a broad range of more sustainable fashion and a holistic sustainability strategy. One thing becomes very clear in the conversation: sustainability is a central pillar of the company's strategy.

Looking back on her sustainability experience since joining bonprix in 2011, Sumfleth recalls the factory audit programs that existed at the time and the first smaller sustainability targets. Over the years, bonprix has steadily stepped up its commitment to sustainability. The first comprehensive sustainability strategy was adopted in 2017, and since 2021 the company has pursued an even more ambitious one. Today it works toward 70 different sustainability targets and aims to offer only more sustainable products by 2030, to make its supply chain fully transparent and to operate climate-neutrally.

From having no sustainable products in its assortment in 2011, the company now offers 60% sustainable fibers and is working intensively on the circular economy. In April 2023, the group launched its first Circular Collection, designed for circularity. When it comes to its climate footprint, the company focuses on the aspects it can control directly, such as transport routes from factories to warehouses. The Otto Group has adopted science-based targets and is committed to reducing climate impact in various areas, including material choices and cooperation with suppliers. Overall, the scope of its sustainability efforts has expanded enormously over the years.

Sumfleth points out that more and more departments and employees are getting involved and taking their own initiative on sustainability. When suppliers are selected, sustainability criteria are considered alongside price, speed and quality. Collaborating with other companies and belonging to industry initiatives are also important ways to tackle shared challenges.

For Sumfleth, all 2,900 international employees should play an active part in sustainability topics. To get there, the company launches various initiatives and has even created a dedicated role to drive employee engagement in sustainability.

Challenges in the fashion industry require meeting sustainability targets without compromising product quality. To build resilience in the organization, Stefanie Sumfleth is betting on digitalizing product development. The entire process, from the initial idea to production release, is being digitalized together with product management.

Instead of the traditional approach, in which design specifications are passed on to suppliers and samples are produced, innovative 3D technology comes into play. With digital patterns, avatars and true-to-detail fabric renderings, products can be developed and visualized digitally in the system from A to Z. Fit and appearance of the garments can be assessed at the design stage, so suppliers can start production immediately once the digital data is released.

"At that point we may also already have a better idea of which products our customers want from us, which makes us more accurate. And of course we use far fewer samples and save transport routes. In that sense, it's another good example of sustainability in our core business."

For the industry, digitalizing product development offers plenty of benefits, including a significant acceleration of the work and development process. With 3D technology, a product can be visualized in a single day, compared with the conventional sample-based approach that took several weeks. At the same time, it contributes to the sustainable transformation of the fashion industry.

Less established markets benefit from digitalization as well. Suppliers in countries with a less developed fashion industry, such as Uganda, can be supported more effectively: companies handle most of the development work themselves and suppliers can go straight into production. The added speed allows products to reach the market faster and customer needs to be met more precisely. At the same time, the number of samples and transport routes goes down, leading to a more sustainable approach in the core business.

Innovations like these affect not only processes but also employees, who have to adapt to new ways of working. To keep motivation and enjoyment of the work intact, it is essential that companies introduce these changes step by step and support their employees as well as they can.

A company's success depends on implementing such changes with sensitivity, which requires clarity and perspective for employees. A consistent approach that reaches from corporate strategy all the way to execution in each department is essential.

"And at the end of the day, the way I see it, that's the success factor: that the people involved understand the new things, accept them, and even feel some joy about the change."

To deliver a high-quality product to the customer, the employees involved have to understand both the big themes and the smallest details. Collaboration, a passion for change, and energy are decisive factors in managing this kind of change successfully and making the industry fit for the future.

She stresses how important it is to account for individual realities and to pick the right moment to implement a holistic strategy. Sumfleth recommends taking a careful look at existing activities and ways of working to decide which ones to keep and which ones to question.

Another key aspect is involving the relevant stakeholders and their expectations. Beyond that, it's worth thinking about ways of working and whether they hold up for the future. Sumfleth is convinced that the right approach, paired with passion and heart, leads to success.

Listeners can also experience Stefanie Sumfleth live at StrategySummit 23 on May 17 in Düsseldorf, where she will join a panel on sustainability strategy. The event is an excellent opportunity to learn more about anchoring sustainability in corporate strategy.