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SAC transformed business models in last one decade
Sustainable Apparel Coalition is 10 years old. The organization marks its anniversary at a critical inflection point for the industry, characterized by a devastating global pandemic, a changing climate and surging social unrest. Launched in 2011 with shared goals of creating eco-friendly products based on a standardized approach for measuring sustainability, the organization has come a long way. Its roster has ballooned past 250 members with a collective annual revenue of $845 billion, including household names such as Amazon, Asos, Gap, H&M, Levi Strauss, Nike, The North Face and VF Corp.
The SAC’s tentpole product, the Higg Index, has expanded into a suite of sustainability assessment tools deployed by more than 21,000 organizations across 190 countries. SAC has helped bolster efforts to improve labor conditions in the garment supply chain. Over the last ten years, it has worked collaboratively across the industry to develop and launch the Higg Index, providing cutting-edge, standardized sustainability tools for the industry. Higg will be central to the SAC’s mission of transforming businesses for exponential impact.
SAC will be transitioning its focus from developing standardized measurement tools to developing standardized communication that increases transparency and offers industry insights, driving collective action at scale.
Hermes Q4 sales up 16 per cent
Hermes sales rose 16 per cent in Q4. The leather goods unit was the main driver behind the sales growth. Hermes, also known for silk scarves, joins LVMH in reporting better-than-expected results as luxury shoppers turn their attention to established premium brands including Louis Vuitton and Dior during the pandemic. Hermes has benefited from a strong customer base in European countries. For most luxury companies, the region has been the worst-performing amid a lack of Chinese tourists, shoppers who have helped drive growth at Gucci in the past decade. Fourth quarter revenue at Hermes rose about 39 per cent in Asia, on an adjusted basis, and shrank 9.7 per cent in Europe.
The luxury company isn’t seeing a change in behavior from Chinese shoppers compared to the last three months of 2020. The company also doesn’t plan major price increases this year, probably around one per cent, similar to last year. The company typically only raises prices to reflect the increase in input costs. Full-year recurring operating income fell 15 per cent. Hermes confirmed its superiority in 2020 with the reduction in tourist flows more than offset by a loyal customer base. Asia is showing promise for the brand.
EU works on textile roadmap
The European Union hopes to shift to a climate-neutral, circular economy where clothing products are designed to be more durable, reusable, repairable and recyclable. The recently released roadmap covers the wider textile and clothing ecosystems, extending to fur, leather and wool. The strategy aims at tackling overproduction and overconsumption. Textiles, the fourth highest-pressure category for using primary raw materials and water, are responsible for plastic pollution and excessive textile waste. Low-quality materials, which are the backbone of fast fashion, are the main hurdle for boosting textile recycling.
The coronavirus has hindered textile reuse and disrupted the second-hand markets for clothing - one of the few efficient ways to deal with unwanted clothing. Trying to help the sector from the effects of covid, the EU is also setting up conditions: working according to the circular economy principles, boosting environment efforts and improving traceability and transparency. With this policymakers hope to make textile and apparel supply chains more resilient and more sustainable.
This shift from the make-take-dispose model that dominates across the fashion sector requires supporting small and medium enterprises, representing a big part of the EU textile sector, to provide better repair and remanufacture services. Synthetic material use has increased nine-fold in the last 50 years.
Diesel to pay homage to brand’s DNA with two pop-ups
Glenn Martens, Creative Director, Diesel plan to pay homage to the brand’s DNA with two pop-ups. The project is the first such activation envisioned by the label’s new creative director. The stores use the company’s red tag aesthetic and hue as a primary design feature.
The pop-ups are located in Amsterdam and Washington, D.C. The two hubs¬–one for Europe, one for the US–are both situated in premium shopping areas at Amsterdam’s PC Hoofstraat and at Tyson’s Corner Center in Washington, D.C. respectively.
Both pop-ups will feature an assortment of seasonal products for women and men from Diesel’s spring/summer 2021 drops, as well as the brand’s pre-fall 2021 collection.
The pop-ups feature an assortment of seasonal products for women and men. At the same time, the denim brand understands the pop-ups as a kick-off for a new retail strategy: “Diesel’s new cultural vision is set to refresh its existing retail model by the end of the year by curating both shopping elements and experiential immersions. This new form of business is the future of physical brand interaction and will be visible by the end of the year in the first Diesel Hub that will open in Shanghai,” the company states.
Mango launches new sustainable denim collection
Mango has launched a new denim collection that uses technologies such as laser or ozone in order to provide sustainable and efficient solutions for the washing and finishing of each garment. Mango reports that these finishing technologies reduce the collection’s water consumption by 30 million liters, compared to traditional methods.
Mango opted for a Mediterranean setting for the denim collection’s campaign. The range smacks of ’90s influences, especially in the women’s line. Key items include pleated mom jeans and slouchy jean jackets. Vintage washes enhance the throwback vibe in items like denim mini dresses and long jean skirts with a front slit. Powdered tones bring a natural element to women’s puff-sleeved denim shirts and belted jumpsuits.
The men’s line offers three-tone jeans and zip-up denim jackets, as well as a range of ecru staples. For children, Mango centers on sized-down version of trendy men’s and women’s styles, including an indigo chore jacket, white wide-leg jeans and gender-less jean jackets.
Water stewardship is one part of Mango’s sustainability plan. The company is “firm” in its intention to work toward a more responsible business model. By 2025, Mango aims to source 100 percent of the cotton it uses from sustainable sources, and for 50 percent of its polyester to be recycled. The brand is striving for 100 percent of the cellulose fiber it uses to be from a “controlled origin” by 2030.
J Crew to produce future apparels from GSC certified Cashmere
J.Crewplans to produceall its future cashmere sweaters, and non-apparel pieces including those from the newly launched Spring 2021 collection with cashmere certified by the Good Cashmere Standard (GCS)
Developed by the Aid by Trade Foundation (AbTF), The Good Cashmere Standard (GCS) aims to improve the welfare of cashmere goats, the lives of farmers and farming communities, and the environment in which they live. Through its partnership with GCS, J.Crewwill be able to guarantee a sustainable cashmere supply chain but can also provide full traceability for certified cashmere pieces.
J.Crew also plans to extendits partnership with the Sustainable Fibre Alliance (SFA) to empower women herders in Mongolia to improve their economic and social standing. The SFA promotes the sustainable production of cashmere, minimises environmental impact, ensures high animal welfare, and safeguards herder livelihoods. As part of its multi-year program with J.Crew, the SFA will support nearly 1,000 female herders (and their households) in Mongolia.
SFA will also train female herders to better negotiate trades and contracts, handle cash, make decisions and secure higher economic returns for their cooperative. Incentives will be provided to herding cooperatives that include females as their members and have a least one woman in their decision-making structure, and to those that develop social safety nets and offer collective support for vulnerable female-led families. Increased economic return for female cooperative members will be achieved through a fibre sorting program which will create the opportunity for the herders to sell higher quality fiber at a premium price.
Informa Markets Fashion hosts Magic Pop-up Orlando
Informa Markets Fashion hosted its Magic Pop-Up Orlando from February 09–11 at the Orange County Convention Center in Orlando, Fla.
As per Apparel New, To ensure safety, the show mandated a negative COVID-19 test prior to entry alongwith temperature screening, mandatory face masks and physical distancing of six feet, while it provided deep cleaning and sanitization of booths as well as hand-sanitizing stations throughout the show floor, which was organized for safe distancing.
Kim Meek, Vice President-Merchandising, Dry Goods informs this edition included a search for Fall with her trusted vendors. Focused on young contemporary that retails from $30 to $60, Meek found new trending pieces and was grateful for the opportunity to feel product, such as trends in shackets. Visiting from the downtown Los Angeles office of Warrendale, Penn.–based Catherine Morisano,Chief Merchandising Officer, Rue21, congratulated the Informa team on producing a safe show. Morisano maintained the same mission of remaining ahead of trends to support the company’s growth over the past year.
US apparel sales decline by 19% in 2020: NPD Survey
According to a NPD Group survey, apparel sales in the United States declined by 19 per cent in 2020, reports Fashion Network. Sales of comfy cozy categories like sweatpants increased by 17 per cent, those of sleepwear rose by 6 per cent, and those sports bras grew by 10 per cent during last year. Fashion footwear sales declined by 27 per cent during the year.
Sales of tailored clothing, dresses and dress shoes were hit particularly hard in 2020 due to the ‘work from home’ trend. Sales of fashion sneakers declined year on year although at a much softer rate than the overall category.
Regardless of whether consumers adopt more permanent work-from-home routines or go back to the workplace, demand for comfortable fashion is likely to stick around for the long term, says the survey.
Seventy per cent of respondents reported that once they can return to work and other activities, they plan to dress just as or more casually than they did prior to the pandemic.
As per NPD’s ‘Future of Footwear’ report, the fashion category will recuperate in 2021, though it will regain less than half of the volume it lost in 2021.
New laws can help protect human rights in fashion supply chain
Recent deals like online fashion brand Boohoo purchasing UK retailer Debenhams for £55 million and Asos buying Arcadia brands for £295 million are keeping the survival hopes alive for brands and retailers. However, their move to online operations is leading to store closures across the globe, causing great concern to apparel suppliers in Bangladesh. Hitting major Bangladeshi RMG suppliers, many apparel stores in the West recently went bankrupt. Their bankruptcy has panicked RMG makers in Bangladeshi who are usually the last ones to receive owned money whenever a store goes bankrupt, says a Textile Today report
Recent spate of Western retail bankruptcies has left many suppliers with undue payments worth millions of dollars. These suppliers are usually paid for their orders after shipment delivery. Though many of may get some percentage of payments, the amount will be much lesser and fail to cover even the cost of order fulfillment
New laws to regulate suppliers’ payments
A reason for payment discrepancy is the lack of a proper regulatory system in the West. Western retailers are often allowed to purchase bankrupt
businesses without thinking of their liabilities, and debts are written off. Administrators are also paid their salaries and rents while suppliers’ payments are ignored.
As a solution, some experts propose introducing new laws to regulate supplier payments and betters ways of doing business. They also propose to set up a fund where brands would pay for their business with Asian garment factories. As per the report, this fund could be used to pay wages to suppliers in case of a brand’s insolvency. Also, suppliers need to be involved in the purchase of a bankrupt business. This ensures when new owners take on a business, they also take their debt.
Balancing scales between buyers, suppliers
Any business needs to be built on mutual respect, shared goals and cooperation. Currently, the scales are tipped in favor of Western buyers, often affecting manufacturers. However, even buyers are not spared often leaving suppliers out of pocket creates disruption and uncertainty in the supply chains.
It’s high time the industry tackles these issues once again highlighted by the COVID-19 pandemic. Brands cannot be trusted to protect the workers in their supply chains through voluntary codes of conduct. Though many of them are known to care for each member of their supply chain, there are also others who do not care, as is evident from some of the glaring examples during the COVID-19 pandemic. Therefore, the industry needs new laws to regulate their supply chains and hold brands accountable for respecting human rights in their supply chain.
India’s luxury resale segment poised for big growth as new sellers join the fray
Luxe brand hunters in India have never had it so good with brands like Jimmy Choos available at price of a Zara handbag, and Rs 25,000 worth sunglasses from Tiffany & Co can be had for Rs 8,000 from Instagram thrift stores. The luxury resale market is proving to be a boon for shoppers with limited budgets. The market has witnessed exponential growth globally and is expected to be worth $64 billion by 2024. In India, search for thrift stores on Instagram records 6.25 lakh posts and over 60 handles deal with thrifting.
Thrift stores selling authentic luxury brands
Amongst the thrift stores that have come up in India over the past two years are, stores specializing in authentic products from high-end brands. They usually source products directly from sellers or physical thrift stores. The products are authenticated, cleaned and photographed before being sold again.
Prominent amongst these stores is the pop-up by Chennai-based graphic designer Sruti Ashok called ‘The Relove closet, so far, the store has gained over
5,000 followers. Ashok sells high-end luxury brands such as Versace, Swarovski, Chanel, Roberto Cavalli, Tiffany, Chloe, YSL, etc priced between Rs 3,000 and Rs 5,000 on her instagram page and caters to women in mid-20s and 30s.
Higher prices for exclusive products
Ashok says, the price of thrift products often depends on their use, wear and tear and visible defects. Style is also important as a limited edition product often commands higher price.
Kohima-based Jungshi Imti has been involved in thrift business for over two years. His instagram handle @Chichi n Co sells luxury bags, shoes, T-shirts, and dresses from brands like Louis Vuitton, Marc Jacobs, MCM Worldwide, Kenzo, Givenchy, Guess and Balenciaga. He authenticates the products with a certificate. In case, it is not available, he advises buyers to look the product code in the insides of the bags or shoes. This code can help trace the products’ manufacturing date and country of origin from the brands’ website. Brands like Louis Vuttion also provide buyers a date code which helps in authenticating the product.
A fast changing trend
Knowledge also helps thrift sellers determine the authenticity of their products. For example, Riva Rokade, a student of styling and mass communication, scouts through heaps of clothes before making her final selection. The Mumbai-based stylist launched The Vintage Laundry in Feb 2020 but had to shut it for two months due to the lockdown. She visits her suppliers to curate the clothes. However, this was not possible during the lockdown. Even after easing of restrictions, she could sell only five clothes every week. Now, she sells around 30 pieces every week. Most of Rokade’s clothes are sold within two or three days. She mostly sells jumpsuits, flowing pants, sweatpants and baggy shirts. Hoping for fashion trends to change soon, Rokade is geared up to face the challenge.












