Unlocking Digital Fashion for Commercial Success | Top Form Group | PI Apparel

Thank you for joining the presentation of TopForm, of how we are unlocking digital fashion for commercial success. My name is Paul Oldham, and I'm the sales director for TopForm. I've lived in Hong Kong some 15 years, and I've been at TopForm since 2016. Sorry, um, it's my pleasure also to introduce with you Joyce. Joyce is the Digital Development Manager for Topform, and Joyce will be contributing in the second part of the presentation. So moving to Topform, we are a full-service design and supply chain partner for multiple brands and global retailers. I hope you appreciate the, the dancing graphic just to make it a little bit more interactive than reading out a list of names. Obviously, with the rich history in manufacturing close to body apparel, we've been recognized as a trusted go-to strategic launch partner for more than half a century. From humble beginnings With over 60 years experience, headquartered in Hong Kong, our listing as a public company on the stock exchange was back in 1991. Since then, we've established multiple fully owned facilities across China and Southeast Asia, namely Indonesia and Thailand. These facilities enable us to deliver uncompromising quality with a production capacity in excess of about 40 million garments a year. In addition, through our strategic partnership network, we do have access to additional capacities and values across Bangladesh, Vietnam, Cambodia, and Sri Lanka. We do recognize that global trade and apparel production patterns are evolving, and through our management team and centrally coordinated planning, we do remain agile and responsive to the needs of the customers. In line with our commitment to innovation, strategic verticality is extremely important as part of our value proposition, and we've recently expanded our foam pad subsidiary, Grand Gain, from China strategically into Sri Lanka. In addition to foam pad business, we also operate our own seamless knitting facility which I'll share more details later in the presentation. At Topform, we do believe that people are at the heart of our organization, and with over 6,000 associates, we continue to invest in recruiting the best talents. Over the years, we have successfully woven ourselves into the local communities where we operate, contributing to a bright and sustainable future for all stakeholders. Beyond profitability, we are committed to addressing major global challenges, and we have recently revisited our greenhouse gas emissions targets, setting bolder reductions to be achieved by 2030. Over these past few years, we have observed a growing trend of projects being requested for development using 3D technology. Having digital product creation technology and capabilities does allow us to illustrate our innovations much more effectively and impactful to provide designers and technical teams with a much clearer visual representation of our innovations. I'll illustrate later in the presentation. Equally, for our wholesale partners who require extensive salesman samples, having the ability to develop a single master colour with additional 3D colour images —does provide speed for decision-making, saves cost on materials, and offers a much more sustainable solution. Those are just a couple of examples of how Topform is unlocking digital fashion with commercial success. In addition, through partnerships with upstream material suppliers, we are building extensive fabric and lace libraries capturing both physical properties such as drape and appearance. Combined with our development of digitizing core blocks, we are delivering speed, agility, and sustainability as we embrace a more digitally enabled future. While advancements in technology and availability of such things as a soft body avatar have improved, there is still a need to bridge the gap, which is a knowledge gap and a confidence gap at the moment, between translating that data for fitting relative to a non-body fitting data. I think there's certainly much more different product categories such as hard lines which are much more advanced using the 3D technology as opposed to close to fit where we are at the moment, the 3D technology. At Topform, our overarching goal is to create value through innovative solutions. Here you can see, to maintain a robust, innovative pipeline, we invest in our proprietary technologies, 4 of them. What we refer SRB-Net, which is tailored for you, Gel-Line, more functional for adaptable fit, our 3D laminated pad, and our seamless technology. These 4 pillars do serve as our foundation for ongoing commitment to curating innovative production solutions— product solutions, beg your pardon. I'd like to then just deep dive into each of them. For SRBnet, the acronym stands for stretch, recovery, and breathable. This is a special liquid spandex compound which you can see the open net structure provides a flexible fit and support. When placed between fabrics, outer fabrics, having the construction being that open structure does allow for the permeability and the breathability. So again, for sportswear garments, cooling is a key property, it's very important. Through the placements of it, we strategically engineer the patterns for the placement. We can ensure that we optimize the support in the appropriate areas. We have developed multiple thicknesses and patterns such as hexagons and squares, etc. And it's ideal for shapewear where maybe you're targeting functionality. You might want a slightly thicker density. We've also developed a lighter weight density which we use, for example, in the neckline and underarms. And it's also ideal for providing support for those inclusive brands, those of retailing up to 4X or maybe size 50K. Our next proprietary technology is what we refer to as Gel Line. Gel Line is an all-over film allowing engineered placement and support. You can see from the images on the screen, name it as an underwire replacement, it provides that stretchability and the visual cue. Again, we've developed this in multiple thickness, and it's ideal for activewear garments, and intimate. Our third technology, as I said earlier, is for seamless. Having our own in-house seamless knitting capability is crucial. Seamless knitting, with its versatility and functionality, offers immense possibilities. It transcends activewear, casual wear, through to formal wear. We have some 200 machines across various diameters, and our seamless operation produces in excess of 15 million pieces per year. And finally, our 3D lamination. Our 3D lamination provides the solution for stay-in-place cups and cookies. In addition to the smoothness applied with no stitching, with the elimination of chafing and redness, finally the flexibility is crucial for comfort. I would say with our industry experience, global market presence, commitment to sustainability, and focus on innovative solutions, we believe that we are well prepared, well positioned to meet the evolving needs of our customers and their consumers. Thank you, and I will now hand over to Joyce, who will share more for the technical information using digital technology. Thank you, Paul.

Good morning, everyone. Maybe you don't know me. I'm Joyce Wong. I work in Topform, specializing in 3D digital development. It's an honor for me to stay here today because we gather here to explore the exciting world of fashion and digital innovation. With my experience over 20 years in fashion and design industry, I have lots of experience which I gained from the previous leading transformation company. In my current position at TopForm— sorry. In my current position at TopForm, responsible for driving the adoption of 3D products and driving the integration of 3D technology in Topform product cycle and also enhance the design development. Having immersed myself in digital development in the past 7 years, I firmly believe that 3D is not just a luxury but a necessity of today's fashion industry. Why would I say that? First, staying relevant. In today's fast-paced and highly competitive fashion industry, staying relevant is very important for us to maintain our market position. By embracing 3D technology and 3D 3D technology, we can restructure our development and design process. 3D technology enables us to create 3D products. The designer can visualize the 3D design easily, more efficiently. So it is not only speed up the design process, but also can faster the decision-making and also minimize the risk of producing unwanted or unnecessary outdated design. By adopting the 3D technology, we can also stay ahead of trends so that we can quickly respond to customer demand. Secondly, time is money. As you know, in traditional fashion industry, the development time is very long, very significant, multiple rounds of physical samples, and sample reviews and also a lot of adjustment, which will lead to a substantial delay. By leveraging 3D technology, this efficiency can be significantly reduced. With the 3D product, 3D simulation, we can streamline our development process by eliminating the need of physical samples. This is not only save time, but also save cost. By optimizing the design through 3D technology, we can also achieve a faster time to market so that it can create more opportunity for us. 3, sustainability and the environment. As you all know, sustainability is a growing concern in the fashion industry. 3D technology actually offers tremendous potential for us to eliminating the industrial environmental footprint. By reducing the reliance on the physical sample, it can significantly cut the material cost and also the material waste. Moreover, 3D technology also enable us for virtual fitting and also digital showroom, so it can also reduce the need of physical traveling and also the logistic which contribute to the carbon emissions. By adopting 3D technology, actually, we can align our sustainability goal and also enhance our brand reputation. So that's why I, I would say 3D is necessary for the fashion industry. But how digital fashion can enhance customer engagement, increase the brand visibility, and also drive sales? Let me take, let us take a look for the steps to digital product creation. First, we go from the 2D design concept and then we create a pattern. After that, we also digitize the materials and finally we create the 3D design. It looks like very straightforward, very simple, but before we go into the steps, Actually, we need to build a very strong foundation because we need to ensure our 3D digital product meet the highest quality standard and also consistent and accurate. What is the component for the foundation? There are several components. So you can see the first one, 3D software is the core for the DPC. There are lots of 3D software in the market. So you need to pick one that's suitable for your company and also equip the license and also to equip the skilled people. Second, the virtual quality standard. Quality is very important. As I mentioned, we need to ensure our 3D digital product with the highest quality standard and consistent with accuracy. Number 3, the digital material library. Actually, this is a wide range of digital material platform so that the designer can, using the filter or search function, can easily to experience and explore the digital material library in their 3D products. Number 4, digital blocks. It is the foundation for creating the design, the silhouette. It is also allow the designer to use it to to modify the design and then bring the new unique design to life. Number 5, digital avatar. It is an essential component for the digital product creation. Now, let's take a closer look how 3D technology or how digital fashion can bring to customer engagement. In the traditional fashion industry, we normally present our new design concept in 2D sketch like this one, with the sketches and then mention all the hero technology on the sketch. However, it can bring a challenge for the customer to visualize how the garment are put on the body. For the 3D technology, it enables us to solve this problem. With the 3D digital product, we can let our customer to truly visualize how the garments look on the body and then make an informed decision. To enhance the visualization, but not only increase the customer engagement, but also allow us to build more communication with the customer. Moreover, 3D technology enables, provides a powerful function for us. For example, it led us to create multiple colorways and variation in a very short time period. Traditionally, if we need to make different colorways and different versions of physical sample, it takes time and cost. But by using 3D technology, we can visually create and showcase an extensive range of color options and patterns designed in a matter of minutes. This has usually opened up a new business for us. But do you think this is what we can use our 3D digital product to enhance our customer engagement and drive the sales? I don't think this is what we can— this is the limit. I will let Paul to show you how we can unlock it.

Okay, basically what they hopefully is going to illustrate with the use— we started pioneering now with the use of the 3D technology. As I shared earlier, having just a 2D CAD trying to illustrate all those hero features, it can be difficult sometimes for the designers and the brands to see where those hero features are. So, by having the software now, we can now deconstruct the technology, which is hopefully what we're hopefully going to show you shortly, making it more easier for the buyers, as I say, once they can see exactly the placement and some of the intricacies of the placement, and make it more relevant for— not relevant, sorry, it makes them easier to understand. And when they're explaining them for their internal presentations, as well as just having the 2D or the 3D gamut in the hand, having the deconstructed technology is much more impactful. What we recently did at the end of 2022 also, we collaborated with our core partner Pioneer Elastics for the ISPO exhibition in Munich. And through the collaboration, we took some of their key hero products they were looking to market. In this case, it was namely some logo elastics. Topform, equally, we collaborated to capture our hero features that I shared with you earlier, some of the technologies. And obviously, during— it was presented on the stand, and it's a much more impactful having the presence than just having a fixed or a static garment or a ring binder with, with the text in it. And the feedback, hopefully we are going to re-engage with them also this year, but it's much more impactful. And again, if it's trying to engage with customers and potential buyers and brands, then that's just giving out a regular deck for them. Oh, here we go. Thank you. Stay there, Joyce, don't move. Okay, so in this example you've got the 2D gamut, we've got the, the gel line, as we say, providing the support of of the wire, but inside that, around the neckline and the underarms, we do have the other technology, what we call the SRB net, the, the dot glue for one of a better term, and the removable pads. Now what we can do, and this is just an illustration in its basic form, we can now take that apart in front of the buyers and the designers, clearly illustrating what we call the SRB net, which is around the underarm and necklines, the gel line in terms of the placement It's just doing a right-hand version, sorry. And again, hopefully we're going to be using this as a tool to make it much more impactful when we're presenting to customers with this deconstructed arrangement of technologies. This one was in terms of upskilling people, so again ensuring we have a flow of talent coming into the industry who are aware of the 3D talents. We recently engaged with some of the local universities to give them a project for how they can incorporate a design and incorporate the 3D. In this particular example, it was for an engagement we had with some of our Indonesian communities for some cycling event. And you can see this was the approved design that they chose, and it gave a way of, again, in the 3D format, of illustrating the design before they committed to using it. But again, it's a much more impactful way of the design, and it's a way of nurturing the talent to come through from the local education into the industry.

Yeah, so far up to now, you'll hear a lot of benefits by adopting 3D technology, but we also hear from some brands and suppliers saying, oh, there are lots of challenges in adopting it. For example, they are talking about the learning curve is so long, and then it's difficult to upscale the people, and also worried and concerned about accuracy and true to life. And lastly, also mentioned all the technology integration is so complex, it's difficult to master it. So yeah, I partially agree about it because if you're implementing 3D technology, it requires certain levels of technical knowledge and also the skill skills in order to master it. And for the skill, upskill the people, yes. Especially for those people work in the company, very comfortable, and it is not easy for them to learn new technology because they are already packed in their daily life, lots of projects and deadlines, so they may feel afraid of it. And also for the technology integration, yes, there are tons of 3D software and technology in the market. Some software for the texturing, some for lighting, rendering, rigging. So in order to master it, it takes time to manage everything. So it is, I can say it is not easy. And about the true-to-life accuracy, yes, currently the digital avatar in the market is mainly in rigid form. So especially for a close-to-body category, intimate or active wear, actually the virtual fitting is not accurate. But seems like lots of challenge, but I also see a lot of opportunities. As Paul mentioned, the learning curve, actually we can arrange a lot of different workshops and collaboration with suppliers and brands so that we can speed up the learning curve with each other to learn from each other also. This is one of the collaboration project with Pioneer Elastic. They promote their project in Munich performance day. Yeah, so I won't, um, further. For the second one, upskilling, yeah, as Paul also mentioned, we are partnered with academic PolyU University to train up a lot of youngers so that we can build our talent in the fashion industry. For the technology integration, yes, as I mentioned, it's complex. Many, many different software. But nowadays, 3D software providers and technology companies, actually, they also aware about it, and they have a lot of improvement in that and enhancing on the technology. There are lots of plug-in in the software system, like browser, something right here. So it let us— let the designer to use the software much more easier and efficiently. They can make the 3D garment and also the virtual showroom within the same platform. And also for the AR and application of AI, actually, as you know, There are many, many different user-friendly AR apps in the market. You can just complete your 3D garment and then just upload to the AR apps, and then you can manage it much more easier. For the application of AI, as you know, for the AI technology, we can create a digital fabric easily without any scanning or texturing or testing. And then those AI technology can make the digital fabric and then plug into the 3D software easily without any problem. So everything seems like put it in together, so it is much more faster and efficient than before. So we don't need to worry too much about those challenges on the 3D software or integration. And then lastly, talking about the accuracy and true-to-life, Yes, the 3D software provider and also the research lab also aware about the limitation of the virtual fitting at the moment. So that's why lots of the 3D software and the research lab also develop their own soft body avatar. It can enhance the virtual fitting, I would say, but there are also at the very first beginning because human skin, human texture, human body is very complex. It depends on different age, different skin tone, or the tissue. So it takes time to enhance the soft body avatar. But I can see that the rapid development, digital development, I can see that the digital soft body avatar will grow very soon and getting much more mature on the virtual fitting. So that's why I would say no need to worry about those challenges because there are lots of different opportunities or solutions that can help for the industry how to implement the 3D technology into their product lifecycle. So this is what we want to present today. Now will be the Q&A section. So any questions?

Thank you, Joyce. Yeah. So apologies for the IT blip in the middle there. But in conclusion, Topcon, we do see the benefits of maximizing the potential unlocking the values using the digital fashion, certainly adding us at the sales side at the front end. As we said, it's not yet mature at the back end in terms of what we can do with it from a fitting perspective, but it's a, it's a journey on close to body. And as we illustrated hopefully through the presentation, there's enough angles and enough opportunities with the emerging software that we have that can certainly make it relevant, hopefully, to your organizations and your decision-making also. Apologies, we overrun a little bit. Okay, must be getting near lunchtime. Oh, here we go. Oh, there you go.

Thank you for your question. The first one, once the soft body avatar is available, do you foresee we can use 3D for for fit in intimate apparel? I was— for my opinion, I would say it can help for virtual fitting in intimate, but I cannot say replacing the live model fitting because for close-to-body category, it is not only about pressure or something like this, but also talking about the feeling of the body. It is the feeling from the live model they can provide for you. But for the 3D soft body avatar, actually they can only show you where is the pressure on, or how squeezed, or how loose it is. So I would say it can help. But cannot replace at the moment. Yeah. Paul, do you have any comment about it?

Uh, no, I said there's still a lot of reticence. And I guess once we are proposing with one of our clients to do a parallel, um, for a couple of seasons whereby we'll take the on-body measurements and in parallel we will run a 3D. So again, once it's, uh, based on the data, we can look at the variance. And hopefully the goal will be that they convince the, the technical managers, etc., that the fit parameters or the bandwidth of variation is such that it's within a tolerance to kind of wean them off their, you know, these 20 years' experience or so of fitting garments with on-body measurements. So hopefully that will come in time, but yes, it will be a journey of building up data science, I imagine, to help convince, and it'll be going in parallel.

Yeah, for the second question, how do you use the software? Is it your own development? For Topform, we don't have our own department, but we partner with some academic university to develop the soft avatar, starting the POC so that we can gain more experience about the soft avatar so that we can also build the industry about this technology because for the intimate product or close to body category, it's very unique, so that's why we do a lot of sharing with the research company and universities so that we can build the software in a much more mature way.

Yeah, why don't I tell the next one? How do we respond to challenges of developing raw materials like gel for the software? At the moment, we are primarily digitizing full-width fabrics and laces. At the moment, we are not digitizing trims and foam pads. So yes, we do respond to the separate challenge in the market, as I said earlier, for the, the requirements of the different gels and the different thicknesses depending on the functionality, whether it's for sculpting, shaping, etc. So at the moment, we develop and continue to develop our innovative innovations for the gel separate to the benefits that we would use for loading into the 3D software.

Yeah, because as of today, there is still a lot of limitation of using 3D for virtual fitting or for the soft tissue avatar, because especially for the foam pad and also for the wire, it's not real life in— it's not true to life in the 3D software. So we also bring this concern and challenges to lots of soft software provider so that they can spend more development time on this so that it can help the internet industry. Yeah.

Please give a round of applause to Joyce and Paul. Thank you.

Thank you.