IAF calls for industry mindset shift from lowest unit cost to end-to-end productivity, smart flexibility and shared value creation

                                                                                                                                                                                                                                              Zeist, Netherlands – 15 June 2026

The International Apparel Federation (IAF) has launched its Manifesto for Smart, Productive and Sustainable Apparel Manufacturing, developed through the work of the IAF Business Innovation Committee (BIC).

The Manifesto argues that the apparel industry’s greatest losses occur not primarily in manufacturing cost, but in systemic inefficiency — including overproduction, excess inventory, markdown cycles, lost capital and operational friction across supply chains.

As the industry faces growing pressure from market volatility, digital transformation, sustainability requirements and evolving business models, the Manifesto calls for a fundamental shift from traditional lowest-unit-cost sourcing toward end-to-end productivity, capital efficiency, resilience and smarter supply chain collaboration.

“At a time when the industry is under pressure from multiple directions, incremental improvements are no longer enough,” said Cem Altan Immediate Past President of IAF.

“The future competitiveness of apparel manufacturing will depend on the ability to align production more closely with demand, reduce inventory risk and create value through smarter, more collaborative systems.” said Matthijs Crietee ,Secretary General of IAF

A central concept of the Manifesto is smart flexibility — the capability to align production, planning, information and incentives more closely with real demand. The document highlights the growing importance of postponement strategies, upstream technology applications, integrated textile-apparel collaboration and new commercial models that better align incentives across the value chain.

The Manifesto also emphasises the strategic role of manufacturers as orchestrators of flexibility and value creation, rather than as interchangeable suppliers operating under purely transactional relationships.

To support implementation, the Manifesto introduces a practical framework based on three phases:

  • Define – establish shared direction and principles
  • Enable – advance pilots, demonstrations, experimentation and implementation
  • Standardize – build common language, metrics and scalable industry practices

The initiative builds on the IAF–ITC study Under the Banyan Tree: Buyers and Suppliers in Fashion and adopts the 5C Framework — Contracts, Capital, Capacity Building, Commons and Creator Market — as a lens for collective action.

IAF invites manufacturers, brands, textile producers, technology providers, investors, policymakers and industry associations to engage with the Manifesto and contribute to the transition toward smart, productive and sustainable apparel manufacturing.

Download the manifesto.

About IAF

The International Apparel Federation (IAF) is the global federation of apparel manufacturers, brands and their associations, representing the apparel industry across more than 40 countries. Through industry dialogue, partnerships and collaborative initiatives, IAF works to strengthen the competitiveness, sustainability and resilience of the global apparel sector.