how the company’s 3D weaving equipment might be used to make workwear-style pants under a Walmart house brand. “It’s a thrilling innovation that has the potential to solve industry challenges, unlock and create skilled jobs in the US, meet consumer demand for locally made garments and deliver transparency and sustainability in the apparel supply chain – so we’re bringing it to Walmart,” the US discount departmentstore chain said in a statement announcing the partnership. Unspun’s mission is to have 3D weaving machines at microsites across the US, with a target of 350 machines in operation by 2030. How it works Cinderella has a famous scene where the fairy godmother waves her wand and a shimmering blue gown appears around the princess-to-be. The way the fabric materialises and forms a gown tailored particularly for Cinderella is a magical moment. Unspun’s Vega 3D weaving technology works similarly, according toco-founder and chief product officer Beth Esponnette. According to Walmart, while traditional methods of apparel production require the fabric to be cut and stitched, Unspun’s first-of-its-kind 3D weaving technology skips these steps, going straight from yarn to garment, eliminating waste generated by the process: fabric offcuts, discarded unsold inventory and transport emissions. The way clothing has been manufactured has remained relatively unchanged over the years. Yarn is spun into a flat cloth, cut according to a design and sewed together, with the surplus fabric discarded as waste – a multi-step cycle that occurs worldwide. This cut-and-sew methodology also forces businesses to carry excess inventory due to the guessing game of consumer demand and ever-changing trends, resulting ina steady stream of waste. “One big problem with the clothing industry today is that because clothing is made before people want it, excess inventory has to be produced,” said Esponnette. Unspun’s technique has many benefits including waste reduction. At first glance, the 3D-woven chino will appear identical to a traditionally manufactured pair, however, several aspects can be obtained only by 3D weaving. There are no leg seams in the 3D-woven chino, making it stronger and lighter, and labels will be woven into the garment rather than sewed in, providing more comfort. Unspun’s on-demand concept also allows for customisation and puts the manufacturing process much closer to home through localised production. “We believe that if we can think of the next generation of apparel and build a process that’s much more automated and enables on-demand manufacturing, we can allow an industry that has, more or less, left the US [to] come back,” said Kevin Martin, co-founder and chief technology officer at Unspun. “We were connected with Walmart because as we start talking about the ability to produce in the US on demand, there are very few people thinking about that as actively as Walmart.” Changing the future of retail “Walmart seeking out a company like ours and collaborating in such a deep manner validates, one, the immensity of the problem, two, the potential of the technology and the solution and three, how pioneering Walmart is,” added Lam, who is now Unspun’s CEO. Lam, who described Unspun as a “robotic and apparel company” tested a custom-manufacturing technique for denim pants that can be measured and constructed in-store to order, collaborating with Hong Kong’s The Mills to open a world-first retail boutique that showcased the technology. Customers could buy a perfectly styled pair of jeans for around $150 per pair – competitive with branded denim jeans – and if the process could be streamlined and scaled, it might be possible to produce themat an even lower price. Manufacturing on demand eliminates inventory, which in turn reduces the need for bulk shipping, distribution centres and storage. Consumers can simply order the clothes, and have them delivered or picked up in-store. Teaming up with tech business Fit3D, which uses body scanning technology, Unspun can precisely determine a customer’s size, ensuring the perfect fit. Lam says by adopting forward-thinking, the Unspun team has shaped technology that offers an insight into the future of the fashion industry – and retail in general. “Three to five years into the future, how much of the production can happen inside the store?” he posed in an interview with KPMG, pointing out that in-store manufacturing allows fewer stock-keeping units to be held on-site. “Retail will be part of entertainment, or experience, where people look for reasons to come and engage,” he explained. Lam argued that many of the innovations presented over the past several years, such as the magic mirror and beacon technology, failed to take off because they did not solve a basic pain point for customers. “It’s very hard to sustain engagement with consumers without focusing on the core of the actual pain point that consumers want to solve with these technologies,” he said. Walmart aims for a greener apparel market Walmart began to invest in fashion brands in 2022, selling items under its George brand – mostly inexpensive t-shirts, shorts and pants priced at $15 or less. Walmart’s past attempts to enter the fashion industry were unsuccessful. In 2017, it challenged online retailer Amazon.com by acquiring upmarket brands Bonobos, ModCloth, and Moosejaw. The retailer’sMetro 7 fashion brand failed in 2005, and designer labels such as Max Azria and Norma Kamali followed suit. Walmart’s latest endeavour with Unspun is consistent with the company’s overall environmental aims, which include shifting to renewable energy sources and lowering greenhouse gas emissions throughout its supply chain. The company aspires to make the garment sector more sustainable and efficient by using breakthrough technology and forming strategic collaborations. Can Walmart achieve the holy grail of producing clothing that perfectly fits customers – when and where they want it – with no inventory other than rolls of thread? The fashion industry globally will be watching closely. This story first appeared in the May 2024 issue of Inside Retail Asia magazine.