The German textile finishing industry is currently facing a multitude of complex challenges. Rising costs, shrinking margins, shifting consumer behavior, and digital transformation require strategic responses. In this article, we examine the key issues affecting the industry and present innovative solutions—with a special focus on digital tools such as product configurators, automation, and eCommerce integration.
- High Production Costs in Textile Finishing
Germany’s textile finishing industry is struggling with rising production costs. Price increases for raw materials such as yarns, chemicals, and energy are putting significant pressure on businesses. While the East German textile industry recorded a 7.1% increase in revenue during the first months of the year compared to the same period last year, production costs rose by 11% during the same timeframe. This has led to a substantial decline in profit margins and poses a long-term threat to the competitiveness of companies.
| Metric | Value | Period | Remarks |
| Revenue growth (East German textile industry) | +7,1 % | First months of the year | Compared to the same period last year |
| Increase in production costs | +11 % | Same period | Mainly due to higher raw material, chemical, and energy prices |
| Change in profit margins (estimated) | –3,9 % | First months of the year | Due to the discrepancy between revenue and cost development |
| Share of energy costs in total costs | ca. 25–30 % | Currently (estimated) | Especially high in drying and fixation-intensive operations |
| Rise in raw material prices (e.g., cotton) | +15–20 % | Since previous year | Varies depending on material and supplier |
- Margin Pressure Due to Limited Price Adjustments
Despite rising costs, many companies are unable to fully pass them on to customers. Consumers are highly price-sensitive, which further erodes profitability. The pressure on margins forces textile finishers to adopt creative strategies to remain economically viable—such as developing high-quality premium products or improving efficiency through automation.
- Declining Consumer Demand and Sales Challenges
Another critical issue is the weakening demand in retail. The insolvency of some retail chains and changing consumer behavior are directly impacting the distribution capabilities of textile finishing companies. Fewer garments are being bought in brick-and-mortar stores, making it harder for manufacturers to reach the market and increasing the need for digital sales channels.
- Innovation Bottlenecks Due to Investment Hesitancy
High ongoing costs are causing many companies to postpone investments in research, development, and new technologies. This can have serious long-term consequences: Without ongoing innovation and modernization, companies risk falling behind in global competition. Those who fail to invest in digital textile finishing and modern printing technologies today risk losing market share tomorrow.
- Pressure to Adapt to Digitalization and eCommerce
The boom in online retail presents both challenges and major opportunities for the industry. Over 80% of the German population now shops online regularly. Textile finishing companies must digitize their processes, develop webshops, and integrate digital configurators to successfully position themselves in the eCommerce landscape.
Strategic Approaches to Strengthen the German Textile Finishing Industry
To address these challenges, companies must invest strategically and develop new business models. The following approaches show how textile finishers can optimize processes, reduce costs, and tap into new revenue opportunities.
- Reducing Production Costs through Automation and Outsourcing
Digital Process Automation:
The use of modern product configurators such as ArtiGesToo significantly reduces manual steps during order processing. Integration with ERP and CRM systems further increases efficiency. AI can optimize printing processes—for example, by automatically selecting the best finishing method based on design, textile, and material.
Cost Reduction through Nearshoring:
Parts of the production can be outsourced to more cost-effective regions like Poland or the Czech Republic—while maintaining quality control. Materials can also be sourced directly from manufacturers, bypassing intermediaries to reduce procurement costs.
- Increasing Margins Despite Pricing Pressure
Premium Products and Personalization:
Companies can improve margins by offering limited-edition, personalized collections—such as high-end embroidery, name engravings, or exclusive designs. Sustainable materials like organic cotton or recycled polyester can also justify higher retail prices.
Print-on-Demand Model:
Instead of maintaining expensive inventories, production only starts after an order is placed. When combined with eCommerce platforms or marketplaces like Amazon or Etsy, the entire order fulfillment process—including payment and shipping—can be automated.
- Boosting Sales through New B2B and B2C Channels
B2B Expansion:
Customized workwear, promotional products, and branded merchandise are in high demand. Textile finishers can partner with businesses to deliver tailored solutions in corporate design.
B2C Innovation with Digital Experiences:
Online shops with augmented reality functions—where customers can virtually try on designs—create a modern shopping experience. Subscription services for company apparel with regular delivery are also gaining popularity.
- Investing in Digital Printing Technologies and AI
Modern Printing Methods and AI Tools:
Technologies such as DTG (Direct-to-Garment), DTF (Direct-to-Film), or UV printing offer more affordable, faster, and environmentally friendly finishing options. AI-driven design generation reduces the workload for graphic teams while offering customers a wide creative range.
Integration with eCommerce Systems:
Connections to platforms like Shopware, Shopify, or WooCommerce enable automated sales processes. White-label solutions for partner companies also offer lucrative additional business.
Sustainability as a Competitive Advantage:
With certifications such as GOTS or OEKO-TEX, textile finishers can position themselves in the premium segment. Using eco-friendly inks and fabrics caters to the growing environmental awareness of consumers.
- Digitization and Market Expansion in eCommerce
Expansion of digital sales channels:
Proprietary marketplaces for personalized apparel, collaborations with online retailers such as Zalando or eBay, as well as live shopping on social media – especially on TikTok or Instagram – open up new target audiences and revenue opportunities.
SaaS solutions for business clients:
With Software-as-a-Service offerings like ArtiGesToo, textile finishers can provide digital configurators as a service. This enables clients to seamlessly integrate configurators into their own websites – without the need to employ developers.
The future of textile finishing in Germany lies in the intelligent combination of digitization, automation, product personalization, and sustainable business practices.
- Automation reduces costs.
- Customized products increase profit margins.
- New sales channels like eCommerce and B2B expand market reach.
- Technological innovations and artificial intelligence enhance efficiency and speed.
- Sustainability and digital presence strengthen brand image and market position.
Those who act now will secure a decisive competitive edge.
