Many companies talk about setting high quality standards however, the Crystal Group is meeting those standards, and the standards they’ve set are high.
“We have a 98.5 percent pass rate (on first inspection) for all of our factories worldwide,” said Catherine Y. W. Chiu, Head of Corporate Quality & Sustainability. “Our goal is ‘Right First Time’ quality.”
The 40 year-old apparel manufacturer is not only one of the oldest in the region, but also one of the largest. The Crystal Group has 13 wholly-owned factories in China, Vietnam, Bangladesh and Sri Lanka, employing 35,000 people. The group is divided into five companies manufacturing lingerie, denim garments, cut and sewn knits and sweaters.
In 2010, the scope of the group’s denim business had earned it the rank of China’s second largest exporter of bottoms. Crystal claims a massive four percent of the total U.S. denim jeans market, manufacturing for top brands including Levi’s, Gap, Target and JC Penney.
The company also manufactures cut and sewn knits (T-shirts and polar fleece) for retailers like Abercrombie & Fitch, H&M, Mango, Ann Taylor, JC Penney, producing 9.6 million pieces a month.
Tapping into Technology
In a competitive market a supplier needs to be faster, as well as better. The Crystal Group has tackled this challenge through the implementation of state-of-the-art technology. The company uses RFID labeling in all of its factories, as well as an ERP system powered by SAP to control their entire supply chain. Its achievements have been recognized by the Chinese government, which has designated Crystal as a provincial level Innovation Center, specifically for R&D, IT and automation developments for improving efficiency, using RFID for tracking, improving logistics and sustainable solutions.
Sustainability Survival Strategy
Moved by the documentary “An Inconvenient Truth” in 2007 the Crystal Group began focusing on how they could make their operations more sustainable. The company implemented an environmental policy, developed a five-year plan and set up a sustainability steering committee.
The group’s eco-conscious approach to apparel manufacturing has led to several key innovations including greener logistics, which enables one of Crystal’s factories to save up to $500 thousand in a year and reduce their carbon footprint by 67 percent. The company has also adopted new laser technology which consumes less water for jeans production.
The Crystal Group takes sustainability very seriously, but also realizes that they must maintain profitability as well. “All sustainability activities must affect the bottom-line. They need to save on costs, as well as reduce our carbon footprint,” explained Ms. Chiu. “We try out a new solution in one factory. If it is successful, then we will roll it out to the others.”
Staying Ahead of the Industry
Competitiveness requires good information and industry insights. Crystal Group looks to Inside Fashion for critical market information and new product developments.
“I like the fact that I can quickly get an overview of the situation in key markets. Inside Fashion gives us market intelligence on costs, competitiveness and financial insights,” said Ms. Chiu. “I also value the roundups of new product developments and technology from around the world.”
Future Forward
As a partner in a Marks & Spencer’s eco jeans project, Crystal is further enhancing and developing their sustainable innovations. The company has built a model eco factory in China for manufacturing jeans. A sustainable jeans initiative, which includes a washing recipe that can reduce CO2 by 30 percent, as well as save up to 30 percent in wash water, is developed. In addition, Crystal continues to search for more sustainable materials, such as recycled cotton, and better ways to reduce their impact on the environment.