Periodic Reporting for period 1 - ClosedToe (Sock toe closing system for circular knitting machines)
Okres sprawozdawczy: 2020-01-01 do 2020-06-30
Socks (hosiery) are still made, using two different machines in two steps requiring manual intervention. A circular knitting machine is used to produce the sock while a different sock toe-closing machine (linking machine) is used to sew the end of the socks. This is time consuming, labour intensive, requires costly infrastructure and takes up additional space in the factory. We developed a solution that eliminates the need for the second machine and manual interaction.
We have dozens of years’ experience working with precision mechanics for several industries. We have a number of own developments and products including patents for knitting machines. Based on our experience with knitting machines we have developed (and patented) the ClosedToe technology and have installed it on 50 circular knitting. Our ClosedToe solution allows the retrofitting of circular knitting machines with a device which folds the toe part of the sock together so it can be sewn together with the same machine. As a result, existing machines can be converted easily to become an all-in-one machine eliminating the need for a linking machine and manual labour.
At present we have developed the ClosedToe solution for one brand (FDS) to be used in two of their machines, but to reach commercial success we need to adapt it to the most common brands and types of circular knitting machines used by the industry. The aim of the ClosedToe Phase 1 project is to carry out an extensive market research and identify the most commonly used knitting machines by the industry and conclude a market entry and commercialisation strategy. During the Phase 2 project we will develop the ClosedToe solution for the identified machine types and enter the market according to the predefined strategy.
Based on our business modelling and industry feedback our novel technology has great potential; hence we have been investing a lot of our resources to reach the current results. However, to maximise benefits of ClosedToe we have to reach the commercial phase as fast as possible. According to our business projections, in case of relatively fast market entry, the ClosedToe products will be able to generate more than €5 M profit during the first 3 years of the market entry. This projected success rests on the following pillars:
1. Industrial level technology (innovative, patented, and robust products supported by our stabile and proved value chain).
2. Industrial level company (clear and proved production, sales, and innovation processes, experienced and skilled workforce, perfect assets, and wide range of networks).
3. Perfect timing for market entry (exponential growing demand for automation and production process rationalization).
These pillars complemented by the validated need of our sectorial flagship partners create the perfect constellation to commercialise ClosedToe.
The aim of the Phase 1 project was to review the market, adjust our business strategy, and prepare for product development. This document presents the summary of the work carried out during the Phase 1 project highlighting the main findings to support the Phase 2 development.
We have dozens of years’ experience working with precision mechanics for several industries. We have a number of own developments and products including patents for knitting machines. Based on our experience with knitting machines we have developed (and patented) the ClosedToe technology and have installed it on 50 circular knitting. Our ClosedToe solution allows the retrofitting of circular knitting machines with a device which folds the toe part of the sock together so it can be sewn together with the same machine. As a result, existing machines can be converted easily to become an all-in-one machine eliminating the need for a linking machine and manual labour.
At present we have developed the ClosedToe solution for one brand (FDS) to be used in two of their machines, but to reach commercial success we need to adapt it to the most common brands and types of circular knitting machines used by the industry. The aim of the ClosedToe Phase 1 project is to carry out an extensive market research and identify the most commonly used knitting machines by the industry and conclude a market entry and commercialisation strategy. During the Phase 2 project we will develop the ClosedToe solution for the identified machine types and enter the market according to the predefined strategy.
Based on our business modelling and industry feedback our novel technology has great potential; hence we have been investing a lot of our resources to reach the current results. However, to maximise benefits of ClosedToe we have to reach the commercial phase as fast as possible. According to our business projections, in case of relatively fast market entry, the ClosedToe products will be able to generate more than €5 M profit during the first 3 years of the market entry. This projected success rests on the following pillars:
1. Industrial level technology (innovative, patented, and robust products supported by our stabile and proved value chain).
2. Industrial level company (clear and proved production, sales, and innovation processes, experienced and skilled workforce, perfect assets, and wide range of networks).
3. Perfect timing for market entry (exponential growing demand for automation and production process rationalization).
These pillars complemented by the validated need of our sectorial flagship partners create the perfect constellation to commercialise ClosedToe.
The aim of the Phase 1 project was to review the market, adjust our business strategy, and prepare for product development. This document presents the summary of the work carried out during the Phase 1 project highlighting the main findings to support the Phase 2 development.
The aim of the feasibility study was to identify the market entry point for the ClosedToe technology. As our market entry will be through retrofitting existing circular knitting machines with our technology, it was important to identify the most common machine types and also find partners who can pilot our technology. In summary we have achieved the following during the feasibility study:
• We have updated our market knowledge with the latest figures taking into consideration the effects of COVID-19 on the industry.
• We have reviewed the most commonly used knitting machines in the EU focusing on our market entry regions.
• We have identified 10 machines that we will develop the ClosedToe technology for.
• We have redefined our business model based the latest market data, the current situation and discussion with partners.
• We have validated our business model using key stakeholders.
• We have identified piloting partners locally and beyond and have made agreements with them to pilot our system in their machines.
• We have completed a risk assessment which might influence our development and derived the necessary contingency plans
• We have updated our IPR strategy based on the present situation.
• We have updated our business plan based on the findings.
• We have updated our market knowledge with the latest figures taking into consideration the effects of COVID-19 on the industry.
• We have reviewed the most commonly used knitting machines in the EU focusing on our market entry regions.
• We have identified 10 machines that we will develop the ClosedToe technology for.
• We have redefined our business model based the latest market data, the current situation and discussion with partners.
• We have validated our business model using key stakeholders.
• We have identified piloting partners locally and beyond and have made agreements with them to pilot our system in their machines.
• We have completed a risk assessment which might influence our development and derived the necessary contingency plans
• We have updated our IPR strategy based on the present situation.
• We have updated our business plan based on the findings.
The outcome of the feasibility study has underlined the novelty of our ClosedToe technology. The sock manufacturing process involves many steps, and the coordination between these steps makes the whole process time-consuming. After the knitting process the sock is effectively a tube with the toe part still open. The most labour-intensive and time-consuming step is placing these knitted socks onto the linking machine to close off the toe part. Our ClosedToe solution is a special device that can be installed on existing knitting machines (retrofitting) at low cost. This means a sock producer can upgrade their existing machine park, eliminate the need for linking machines and high labour costs. The return on investment in ClosedToe for a sock producer is less than one year.