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Profile of Delta Galil: A Global Innovator in Underwear, Socks and Seamless Apparel, 2009 update
Textiles Intelligence, Aug 2009, Pages: 11
Delta Galil, an Israel-based clothing company, is a leading innovator in next-to-skin wear. Since its foundation in 1975, it has transformed itself from a small, local garment producer to a global organisation at the forefront of innovation in underwear, socks and seamless apparel.
The company expanded strongly in the 1990s and early 2000s, resulting in a substantial increase in its product design, development and manufacturing operations. Expansion also improved its access to key apparel markets in North America and Europe.
The Delta Galil name is relatively unknown by consumers outside Israel, but the company has gained a strong reputation among the world’s major retailers—including USA-based Wal-Mart and UK-based Marks & Spencer (M&S)—as well as key international brands such as Calvin Klein and Hugo Boss.
On the downside, the company has become heavily dependent on Wal-Mart and M&S for a large proportion of its revenues, and its sales and earnings have suffered over the past three years as business with these companies has fallen.
Delta is cautious about the future, given the global economic slowdown, sharp volatility in exchange rates and fluctuations in commodity prices—which have a major bearing on transportation costs.
Nonetheless, the company believes that its strategies of innovation and building close relationships with its customers will stand it in good stead in uncertain economic times.
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