#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. The two discuss the challenges and opportunities that arise for companies when they pursue sustainable business practices. In particular, they discuss the implementation of concrete measures to promote more environmentally friendly production processes and improve working conditions in the supply chain. Stefanie Sumfleth shares her experiences and insights from her work at bonprix and provides valuable insights into current trends and developments in the area of sustainability in the eCommerce fashion sector.

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

bonprix now operates 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 become a role model in the ecological transformation of the economy.

A particularly impressive example of this is the "Cotton Made in Africa" initiative, which was launched by Michael Otto to support small farmers in sub-Saharan Africa to 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 led to a sustainable supply chain in which T-shirts made from African cotton are produced and offered to customers.

"Sustainability is firmly anchored in the Otto Group's DNA. But we do this out of the conviction that sustainability is also a very important factor for the future of 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 both assumes social responsibility and achieves economic success.

Stefanie Sumfleth emphasizes that sustainability at bonprix is not only pursued out of personal conviction, but is also seen as a forward-looking factor in the fashion industry. The Otto Group's annualstudy 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 and companies as having a duty to take measures to protect the climate.

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

Looking back on her experiences 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. The first comprehensive sustainability strategy was adopted in 2017 and an even more ambitious strategy will be pursued from 2021. The company is now working on 70 different sustainability goals and aims to offer only more sustainable products, make the supply chain completely transparent and operate in a climate-neutral manner by 2030.

From not having sustainable products in its range in 2011, the company now has 60% sustainable fibers in its range and is intensively dedicated to the circular economy. In April 2023, the Group launched its first Circular Collection, which is designed to be circular. In terms of climate footprint, the company focuses on influencing aspects that it can directly control, such as the transportation route from factories to warehouses. The Otto Group has now adopted science-based targets and is committed to reducing climate impact in various areas, including the choice of materials and collaboration with suppliers. Overall, the scope of sustainability efforts has expanded enormously over the years.

Sumfleth emphasizes that various departments and employees are becoming increasingly involved 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 of industry initiatives are also important aspects in overcoming common challenges.

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

Challenges in the fashion industry require the achievement of sustainability goals without neglecting the quality of the products. Stefanie Sumfleth relies on the digitalization of product development to promote resilience in the organization. The entire process - from the idea to production release - is digitalized together with product management.

Instead of the traditional approach, where design specifications are passed on to suppliers and patterns are created, innovative 3D technology is used. With the help of digital patterns, avatars and the detailed reproduction of fabrics, products can be developed and visualized digitally in the system from A to Z. 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 already know better at that point which products our customers want from us and are then more accurate. And, of course, we also take far fewer samples and save on transportation. In this respect, this is also a good example of sustainability in our core business."

For the industry, the digitalization 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 conventional process, which was based on samples and took several weeks. This also contributes to the sustainable transformation of the fashion industry.

Less established markets also benefit from digitalization. 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 better met. At the same time, the number of samples and transportation routes are reduced, which leads to a more sustainable approach in the core business.

Such innovations not only have an impact on processes, but also on 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 support their employees in the best possible way.

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

"And at the end of the day, from my point of view, that is the success factor. That the people involved understand and accept the new things and also enjoy the change."

In order 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.

She emphasizes the importance of taking individual realities into account and finding the right time to implement a holistic strategy. Sumfleth recommends carefully examining existing activities and working methods to decide which should be retained and which should be questioned.

Another important aspect is the involvement of relevant stakeholders and their expectations. It is also important to think about working methods and their sustainability. Sumfleth is convinced that the right approach, coupled with passion and heart, leads to success.

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