Problem of stocking snags might seem insignificant, but it contributes significantly to environmental pollution. An estimated trillions of stockings and tights wind up in landfills annually, causing substantial harm to the planet.
This Individual Develops Tights Utilizing Bulletproof Vest Fabrics. Future Venture: Eco-Friendly Swimsuits.
In 2017, Katherine Homuth, a determined Canadian entrepreneur, embarked on a mission to find a robust material for long-lasting sheer tights, capable of withstanding rips, snags, and runs. She conducted numerous experiments with various fibers, continuously tugging and separating them until they broke, until she discovered an almost indestructible material: ultra-high molecular weight polyethylene, commonly used in bulletproof vests due to its sturdy structure.
Coordinating with suppliers was an arduous task. Homuth, then 34, placed countless calls, imploring them to deliver the material, to no avail. Only after making numerous attempts did she acquire a single spool, at an exorbitant cost of $2,000. When she sent it over to a Chinese factory, however, they expressed their frustration as the tough fiber clogged their machinery.
Despite these initial setbacks, Homuth proved to be resilient, eventually building a lucrative business by offering long-lasting non-rip sheer tights, claimed to endure up to ten times longer than traditional pairs that frequently wind up in landfills. Homuth, a distinguished alumna of the Our Website 30 Under 30 list, projected $30 million in revenue for 2024. Sheertex's classic sheer tights had clinched the top spot in 2023 US sales by revenue, according to Homuth. However, expanding a consumer-oriented venture is challenging, and revenue plummeted from $45 million in 2023 as Homuth focused on collaborating with retailers such as H&M, Costco, and QVC. She anticipates a rebound to $70 million in 2025.
Now, SRTX, the company behind the Sheertex brand, aims to venture beyond tights, exploring innovative materials like a water-repellant textile devoid of hazardous "forever chemicals," liable for environmental damage for years in various applications, such as rain jackets and hiking boots. Homuth hopes this shift will redefine SRTX from a consumer products company to an eco-friendly materials manufacturer. Homuth stated, "We aspire to be the DuPont of the sustainability industry – creating novel materials yet to be produced."
To realize this aim, SRTX has successfully raised a total of $143 million from investors, including H&M, ArcTern Ventures, and Lululemon founder Chip Wilson, at a valuation of $350 million at its last round in 2021. Recognizing the demand, they recently constructed a new, 300,000-square-foot factory in Montreal.
Homuth, who also spearheaded ShopLocket, an organization aiding hardware merchants to market their products, first developed the notion of eco-friendly hosiery back in 2017. Homuth mused, "I'd grown a bit cynical. There seemed to be an excessive focus on tech for tech's sake. When I tried to develop tights, I hoped I'd find someone who had succeeded before and move on. However, I discovered there had been little innovation in materials since nylon's introduction in the 1930s and spandex in the 1950s."
Battling with Chinese manufacturers and their machinery proved challenging, leading Homuth to establish a small research lab north of Toronto. Adjusting three knitting machines to work effectively with the ultra-high molecular weight polyethylene, Homuth and her team meticulously perfected the process. Although the tights are non-biodegradable like their traditional counterparts, which are usually manufactured from petroleum-based nylon and elastene, the appeal lies in their durability. Homuth explained, "The product's durability is essential; if it doesn't stand the test of time, it will never be a sustainable product."
By winter 2018, SRTX had endured Y Combinator's accelerator program and constructured its own factory in Montreal. At their inception, the tights cost $50 a pair to craft, making them a luxury item at best. Reducing production costs was crucial, so SRTX created its proprietary fibers, yarns, and conducted on-site knitting. A dedicated laboratory was established to develop, test, and improve materials. Increased volume production helped lower costs and secure raw materials at reduced prices. "Last year, we were able to produce a pair for $12. In two years, it will cost us $2.50," Homuth announced. Prices for a basic pair of black sheer tights are $19.99 at H&M, while newly developed micro fishnets from Sheertex themselves go for $99.
H&M, having invested in SRTX back in 2020, started stocking small quantities of Sheertex's signature tight garments in certain COS outlets in 2022, and later expanded distribution to its flagship H&M stores in 2023. This move forms part of Homuth's strategy to switch from a direct-to-consumer model to a retail one, a shift she deems necessary for the company's sustainable growth. Direct-to-consumer ventures often require partnering with retailers for continued expansion, but this transition can be challenging due to significantly lower wholesale prices. Therefore, Homuth's capacity to reduce Sheertex's production costs and encourage retailers to sell substantial quantities of tights is crucial. "We viewed this as an initial experiment to assess potential," mentioned Peter Ekeberg, H&M's head of finance and investments, new growth, and ventures, via email. He subsequently added that they significantly boosted volumes in 2024, although he refrained from disclosing specific figures.
SRTX's ambition is to upscale production to 30 million pairs by 2027, a significant increase from its 2024 figures. "Scaling up manufacturing to that extent is highly challenging," pointed out Alexandre Aubrey, managing partner at Export Development Canada, which has invested in the business and provided financing for its new manufacturing plant. "She is meticulously focused on achieving this goal."
Homuth recently introduced fishnet garments, which necessitate a more intricate production process, as well as a new direct-to-consumer label named Sheertex Studio. This venture produces styles not available in stores, such as those with mini dots or back seams. Homuth has also ventured into private labeling and collaborated with shoe brand Steve Madden for "Steve Madden X Sheertex" black tights in its Canadian stores this year. "The selling point is they can be worn throughout a season without replacement," remarked Jennifer Walewski, president of Steve Madden Canada. "It's genuinely astonishing how much they'll save from landfills," she added.
Next on SRTX's agenda: their pursuit of utilizing alternative sustainable materials beyond sheer tights, commencing with a non-toxic water-repellent material referred to as Watertex. Their initial target is swimsuits, with third-party tests indicating Watertex dries twice as fast as three competitors' swimsuits. A second technology under development is a non-toxic water-repellent membrane to replace PFAS-based coatings.
This market could potentially be enormous, especially considering Europe's crackdown on certain PFAS and regulators in states like California taking stricter measures against them. As per Grand View Research, the market for waterproof, breathable textiles currently stands at $2 billion, growing at a rate of 5.9% annually. Homuth is also investigating other potential new materials, such as a recyclable replacement for spandex they call Elasta.
"We're fundamentally altering the business," Homuth acknowledged. "It's essentially about the technology."
- Katherine Homuth's company, SRTX, is exploring the use of innovative materials like water-repellant textiles devoid of hazardous PFAS, aiming to redefine their business as an eco-friendly materials manufacturer.
- Homuth and her team at SRTX faced challenges with Chinese manufacturers whose machinery couldn't handle the ultra-high molecular weight polyethylene used in Sheertex's tights.
- In an effort to reduce production costs and secure raw materials at lower prices, SRTX established a dedicated laboratory to develop, test, and improve its proprietary fibers and yarns.
- SRTX, inspired by the success of Sheertex's long-lasting tights, aims to produce 30 million pairs by 2027, targeting various markets, including swimsuits and waterproof, breathable textiles.
- Homuth's mission for SRTX extends beyond Sheertex, seeking to replace hazardous materials like PFAS with sustainable alternatives, such as the non-toxic water-repellent technology named Watertex.
