FW
The Apparel Export Promotion Council (AEPC) has hailed the India-UK free trade agreement as a game-changing development for the ready-made garment (RMG) sector. AEPC Chairman Sudhir Sekhri called the deal a ‘landmark’ move that will enhance India's competitiveness in the UK market by immediately eliminating the existing 9.6 per cent tariff disadvantage.
“This FTA comes at a critical time when global trade is impacted by demand contraction, the Russia-Ukraine conflict, Israel-Hamas war, American tariff actions, and Chinese assertiveness,” Sekhri said. “With this deal, ‘Made in India’ garments will now be more affordable on UK shelves, bringing us at par with major competitors already enjoying duty-free access.”
Sekhri expressed gratitude to Prime Minister Narendra Modi for his leadership and to Union Commerce Minister Piyush Goyal for pushing the deal to fruition.
India is currently the fourth-largest RMG supplier to the UK, holding a 6.1 per cent market share. RMG exports to the UK grew 7.8 per cent during April-March 2024-25 compared to the previous year, reaching $1.4 billion. With the FTA now in effect, AEPC expects exports to double within the next three years.
In 2024, China led UK’s RMG imports with a 25.4 per cent share, followed by Bangladesh (19.9 per cent) and Turkey (7.9 per cent). India’s top RMG exports to the UK include cotton T-shirts, women’s dresses, and baby garments.
Sekhri added that the deal opens up significant opportunities, leveraging the complementary strengths of both economies and offering Indian exporters a strong competitive edge.
Forget the image of mountains of discarded clothing polluting landfills. A new white paper by Bank & Vogue Ltd/Ltée reveals the vast majority of secondhand textiles find new life through a complex global network of reuse, resale, and recycling. The report, ‘Beyond the Landfill Myth: Mapping the True Journey of Secondhand Clothing’, challenges common misconceptions and gives a data-driven analysis of the secondhand clothing trade, highlighting its significant economic and environmental contributions.
Majority of secondhand clothes reused, recycled
The white paper's central finding directly contradicts the prevailing narrative. "The common narrative suggests that much of the world's used clothing ends up in landfills," the report states. However, the report paints a different picture. As per Global Fashion Agenda (2023), approximately 73 per cent of globally collected secondhand clothes are reused or recycled. This figure underscores the substantial role of the secondhand sector in diverting textiles from landfills and leading to a circular economy.
Global journey of your donated t-shirt
So, what actually happens to your donated clothes? The report traces the intricate paths of used textiles across international borders.
• Export hubs: The US, Canada, Germany, and the UK emerge as top exporters of secondhand clothing.
• Import destinations: Pakistan, Ghana, Kenya, Chile, and India are identified as major importers, showing the global demand for affordable secondhand garments.
• Local sorting and reuse: Upon arrival in recipient countries, local businesses play a crucial role in sorting and categorizing the influx of clothing. Sellable items are introduced into local resale markets, providing affordable clothing options for communities. Unsellable items are not discarded but find new purpose through upcycling or repurposing, transformed into products like industrial cloths or mattress stuffing.
Secondhand markets as economic engines
The white paper looks at specific case studies that illustrate the profound impact of the secondhand clothing trade on local economies:
• Kantamanto Market, Accra, Ghana: Described as one of the largest secondhand clothing hubs in West Africa, Kantamanto Market employs over 30,000 people. The market facilitates the repurposing of millions of garments weekly, with initiatives like The OR Foundation supporting local tailors and upcyclers in maximizing textile reuse.
• Iquique Free Trade Zone, Chile: Chile imports significant volumes of used clothing, exceeding 59,000 tons annually. Local resale markets and recycling companies ensure these clothes are sorted and resold across Latin America. Notably, some organizations are pioneering recycling solutions to address textile waste in the Atacama Desert.
• Panipat, India: Panipat has carved a niche for itself in wool recycling. The city receives worn textiles from Western countries, which are then shredded and re-spun into yarn. This recycled yarn is used to produce affordable blankets and garments for both domestic and international markets.
Beyond waste diversion
The report emphasizes that the benefits of the secondhand clothing trade extend far beyond simply reducing landfill waste.
• Waste reduction: Extending the life of clothing has a significant positive environmental impact. WRAP research indicates that increasing the lifespan of clothes by just nine months can reduce carbon, water, and waste footprints by 20-30 per cent.
• Employment generation: The secondhand economy is a major source of employment worldwide. It sustains livelihoods for tailors, sorters, transporters, and sellers in developing nations, as well as warehouse and logistics workers in exporting countries.
• Circular economy alignment: Organizations like SMART and the European Recycling Industries' Confederation (EuRIC) advocate for the integration of secondhand clothing into circular economy strategies. Research confirms that textile reuse offers the lowest environmental impact compared to both recycling and landfilling.
Charting the path forward
While the white paper highlights the successes of the secondhand clothing trade, it also acknowledges existing challenges. Overconsumption is an issue that contributes to oversupply of used clothing, creating logistical and management pressures. Also, limited infrastructure for local textile recycling in some regions hinders the ability to process unsellable items effectively. Regulatory pressures, such as import bans in certain East African countries, can disrupt the flow of secondhand clothing and limit its economic benefits.
Thus to optimize the secondhand clothing sector and increase its positive impact, the report offers several recommendations.
• Improved sorting: Enhancing donation sorting at the source can significantly reduce the volume of unusable items, streamlining the process and minimizing waste.
• Investment in infrastructure: Investing in local upcycling and recycling infrastructure is crucial for maximizing the reuse potential of textiles within recipient countries.
• Education and awareness: Educating consumers and governments about the true lifecycle of clothing is essential for fostering responsible consumption habits and supporting sustainable policies.
The Bank & Vogue Ltd/Ltée white paper offers a compelling argument for recognizing the secondhand clothing trade as a vital component of the global economy and a key driver of sustainability. By debunking the landfill myth and highlighting the industry's capacity for reuse, resale, and recycling, the report advocates for investing in its optimization rather than discarding or restricting it. This strategic approach can unlock the full potential of secondhand clothing to contribute to a more circular and sustainable future.
The just concluded Free Trade Agreement (FTA) between India and the UK, a culmination of over three years of negotiations, will significantly impact India's fashion and apparel market. While it aims to boost trade and strengthen strategic partnership between the two, its implications for domestic consumption patterns, the entry of UK brands, and the flow of apparel imports into India warrants a closer examination.
FTA overview
The India-UK FTA is a comprehensive trade agreement designed to foster closer economic ties. Key provisions include
• Tariff reductions: The UK will eliminate tariffs on Indian textile and apparel imports. India, in turn, will reduce tariffs on several UK exports.
• Social security and visa provisions: The FTA also includes agreements on social security contributions for Indian workers in the UK and streamlined visa processes for business travel.
• Economic impact: The UK government estimates a substantial boost to its economy. For India, the FTA is expected to enhance trade, attract investment, and create jobs.
Impact on Indian fashion and apparel market
As per UK Department for Business & Trade, 2024 statistics, pre-FTA, UK tariffs on Indian apparel was 4 to 12 per cent; post-FTA it will be 0 per cent on 99 per cent of Indian exports. It will impact Indian garments which will be 8-10 per cent cheaper, boosting demand for cotton merchandise and home textiles. As of 2024 India holds 5.6 per cent share of UK’s apparel imports, which is £3.2 billion and by 2030 the target is to have 12 per cent share or £4.35 billion. The FTA's influence on the Indian fashion and apparel market can be viewed from several angles.
Increased competition and consumer choice: It is likely to encourage more UK fashion brands to enter the Indian market. This could lead to greater choice for Indian consumers, with access to a wider variety of styles, trends, and price points.
Imports of fashion & apparel: Reduced tariffs could make UK apparel imports more competitive in India. This may lead to a rise in import of UK fashion products, potentially affecting domestic apparel manufacturers.
Opportunities for Indian retailers and brands: While increased competition is a factor, the FTA also presents opportunities for Indian retailers and brands. They can leverage the agreement to source high-quality UK fabrics and accessories at more competitive prices; collaborate with UK designers and brands to bring innovative products to the Indian market; expand their own export operations to the UK, taking advantage of the reduced tariffs.
Shift in consumer preferences: Exposure to UK fashion trends and brands could influence consumer preferences in India. This will lead to greater demand for western wear and contemporary styles and high-quality branded apparels. Also, sustainable and ethically produced fashion will increase.
Table: India and UK bilateral trade in textiles, apparel, and fashion
|
Year |
India exports to UK (in $) |
India imports from UK (in in $) |
|
2021 |
1384.35 |
6.74 |
|
2022 |
1420.01 |
3.68 |
|
2023 |
1385.35 |
4.02 |
Note: Data is sourced from the Department for Business and Trade, United Kingdom and Trading Economics.
In the above table, apparel and textile category includes articles of apparel, not knit or crocheted; articles of apparel, knit or crocheted; Other made up textile articles; special woven or tufted fabric, lace, tapestry.
Textiles and apparel imports into India and FTA’s impact
While India is a major exporter of textiles and apparel, there is also a flow of imports, including those from the UK. Historically, India's imports of textiles and apparel from the UK have been relatively small compared to its exports to the UK. This is due to factors, like India's strong domestic textile industry and cost competitiveness in many segments. However, the UK is known for its high-value, premium fashion, and specialized textiles. India's imports from the UK may include high-end fashion apparel from UK luxury brands; specialized textiles, such as fine fabrics, niche materials, or technical textiles used in specific applications; designer wear and exclusive fashion items.
The FTA's tariff reductions are likely to make UK textile and apparel imports more price-competitive in India. This could lead to a gradual increase in imports, particularly in categories where UK brands have a strong reputation or where UK products offer unique value. Increased imports may affect domestic manufacturers, especially those competing in similar product segments. However, it could also stimulate them to improve quality, design, and innovation to stay competitive. Indian consumers will benefit from a wider range of choices and potentially lower prices on UK fashion brands.
Impact on domestic manufacturers
The FTA presents both challenges and opportunities for Indian apparel manufacturers. While increased competition from UK brands, especially in the premium and luxury segments, could put pressure on domestic players. The FTA can help Indian manufacturers access cheaper raw materials from the UK and integrate into global supply chains. Exports to the UK will also get a boost as UK retailers like M&S, ASOS among others are diversifying away from China.
Thus the India-UK FTA is expected to reshape the Indian fashion and apparel industry. While increased competition from UK brands and imports is a likely outcome, the agreement also offers significant opportunities for Indian manufacturers and retailers to increase their reach, upgrade their capabilities, and integrate into the global fashion market. The ultimate impact will depend on how Indian businesses adapt to the changing landscape and leverage the opportunities presented by the FTA.
Sudhir Sekhri, Chairman, AEPC opines, the landmark free trade agreement between India and the UK is expected to boost India’s RMG exports and help it generate new employment. Signed against the backdrop of demand contraction in major economies, Russia-Ukraine conflict, Israel-Hamas war, American reciprocal tariff and Chinese belligerence, the deal proves as a boon making India more competitive in the UK market. The FTA makes ‘Made in India’ RMG cheaper in the UK and brings it on par with some of its major competitors who enjoyed duty-free access in the UK market, he adds.
Thanking Narender Modi, Prime Minister for his visionary leadership and Piyush Goel, Union Commerce Minister for the relentless effort in concluding the deal, Sekhri notes, with a 6.1 per cent share in the UK’s total RMG imports, India is the fourth largest supplier of garments. RMG exports to the UK from India grew by 7.8 per cent between April – March 2024-25 compared to April March 2023-24. The total RMG exports to the UK amounted to $1.4 billion during the same period. With this deal in place, India is all poised to double the RMG exports to the UK in the next three years, he adds.
China remained the top supplier of RMG to the UK with 25.4 per cent share in 2024. Bangladesh and Turkey have a share of 19.9 per cent and 7.9 per cent, respectively. The top products imported by UK from India includes: (i) T-shirts, singlets and other vests of cotton, knitted or crocheted; (ii) Women's or girls' dresses of cotton; (iii) Babies' garments and clothing accessories of cotton, knitted or crocheted, informs Sekhri.
Huge opportunities offered by this deal coupled with the complementary nature of two economies and synergy across sectors will help in rapid growth and expansion of apparel business by providing competitive edge over our competing countries, notes Sekhri.
Welcoming the treaty, the Indian textile industry terms the India-UK Free Trade Agreement (FTA) as a significant step toward increasing India's presence in the UK market.
The agreement will help unlock new opportunities for exporters, boosting trade, employment, and global competitiveness, opine experts
Santosh Katariya, President, Clothing Manufacturers Association of India (CMAI), notes, UK is a growing and promising market for Indian textile and apparel products.
Recent tariff developments in the US highlight the need to diversify export destinations, making this FTA especially timely, he points out.
There is a strong need to diversify textile exports, and this FTA agreement will help knitted and woven apparel from India boost share in the UK market, adds Katariya.
An emphasis on sustainability, quality, and digital marketing with reduced prices will help Indian brands for UK consumers, he notes.
Experts opine, reduced tariffs under this FTA will drive demand for Indian textiles in the UK, resulting in increased export volumes.
The agreement will help stimulate investment and enhance the ease of doing business for textile stakeholders in both countries, they add.
Thanking Prime Minister Narendra Modi and Union Commerce Minister Piyush Goyal for their instrumental roles in securing this historic trade pact, A. Sakthivel, Vice Chairman, Apparel Export Promotion Council (AEPC), said, this monumental achievement will provide a strong boost to India's textile exports and fuel employment and growth in the sector.
The FTA will pave the way for long-term growth, attract investment, and create a more favorable business environment for textile stakeholders in both countries, he added.
The India-UK FTA marks the beginning of a new era for Indian textiles, with long-term benefits anticipated in market access, innovation, and global branding, industry leaders opine.
The Q1, FY25 profit margins of sportswear giant Puma declined and the brand reported flat sales as it focused on cutting costs and boosting overall performance.
Surpassing analysts’ projections of €2.041 billion, the brand’s sales increased by 0.1 per cent Y-o-Y to €2.076 billion (around $2.35 billion), during the quarter. However, softer demand from retailers in key markets like the US and China resulted in a 3.6 per cent decline in the brand’s revenue from the wholesale segment.
Currently undergoing a leadership change, the brand named Arthur Hoeld, former Sales Executive, Adidas as its new CEO. Hoeld will officially step into the role on July 1. In the meantime, Puma’s board is overseeing operations following Arne Freundt’s resignation on April 11.
Despite the ongoing challenges, Puma maintained its 2025 outlook, projecting ‘low- to mid-single-digit’ sales growth. However, the forecast does not include any potential impact from U.S. tariffs.
A premier shopping complex managed by Tilal Development Company, Muscat Grand Mall has introduced a new concept, ‘Little India’ in partnership with SRED.
Set up as a specific cultural and retail area, the concept showcases Indian fashion, lifestyle, food, and heritage in Oman. It is being presented as a jumping-off point for Indian brands entering the Gulf Cooperation Council (GCC) market,
As announced by the Tilal Development Company, the concept, Little India aims to link businesses with Omani shoppers and visitors looking for genuine and diverse retail options. The project is also designed to serve the large Indian population residing in the vicinity.
Ali Hosni, CEO and General Manager, Muscat Grand Mall says, with Little India, the retailer builds a strong connection between India and the GCC. It provides an opportunity to Indian brands join a regional success story, supported by consistent foot traffic, top-notch facilities, and a growing consumer base here in Oman, he adds.
The initiative will provide Indian fashion labels and artisan ventures with a purpose-built space inside Muscat Grand Mall, backed by leasing options and targeted marketing support. The so ial system has been created to support the substantial Indian community in Oman and the wider Gulf region, adds Sriram PM Monga, Co-founder, SRED.
The 93rd Textile Institute World Conference (TIWC 2025) is set to be held at the Porto Palácio Hotel and Spa in Porto, Portugal, from October 7-10, 2025.
With its theme titled, ‘Fiber to Future – Transforming Fashion and Textiles through Sustainability,’ the conference will delve into how sustainability and digitalization are reshaping the industry, covering everything from fiber production and manufacturing to consumer use and end-of-life solutions.
Over the four-day program, attendees will dive deep into the rapidly emerging new methods fortackling sustainability issues and the digital technologies that are currently boosting efficiency and transparency. Leading academics, industry experts, and policymakers will share their insights. The conference will emphasize actionable strategies for reducing environmental impact, minimizing waste, and adopting zero-carbon solutions, aligning with global sustainability objectives.
Stephanie Dick, CEO, Textile Instititute, says, encouraging collaboration between the industry and academia, the TIWC aims to build a shared vision for a sustainable and digital future in textiles. This year, the conference is being hosted by Aquitex, a renowned Portuguese company specializing in the development of chemicals and auxiliaries for the textile industry.
Hermès' Singular Vision Pays Off: Overtakes LVMH in market cap through decades of disciplined growth
In a compelling narrative of focused growth versus diversified expansion, luxury powerhouse Hermès has shown the power of brand discipline, culminating in a market capitalization of €247.5 billion, slightly surpassing the €244.4 billion of its multi-brand rival LVMH. This according to an analysis by sportswear, luxury & fashion analyst Marcel Melzig, who highlighted Hermès' extraordinary journey from a €5.7 billion market cap in 2003 to this remarkable achievement without pursuing scale through typical means.
Melzig's analysis underscores Hermès' unwavering commitment to its core principles. Over the past 22 years, the Parisian Maison has achieved 43-fold growth, translating to a 17 per cent compound annual growth rate (CAGR), all while maintaining a singular brand identity and a consistent narrative. "Hermès grew from €5.7B to €247.5B without chasing scale," Melzig's analysis points out. "No pivots. No rebrands. No mega-acquisitions. One brand, one story."
"Hermès' growth story is unique in the luxury landscape," Melzig notes. "They haven't chased fleeting trends undergone radical rebrands, or engaged in mega-acquisitions. Their strategy has been one of unwavering brand discipline." This "brand discipline," as Melzig terms it, involves a deliberate choice to ignore fleeting "hype" and instead focus on enduring values.
Hermès scoring on scarcity by design
A cornerstone of Hermès' success, according to the analysis, is its deliberate cultivation of scarcity by design. By resisting the urge to overextend or chase short-lived hypes, Hermès has fostered a timeless desirability around its iconic products. This approach, avoiding "trend-chasing" and "overextension," ensures "timeless desirability" and stands in stark contrast to the broader market trends often seen in the luxury sector. Analysts say, the enduring desirability of Hermès products transcends fleeting trends, allowing sustained pricing power and strong margins. This focus on exclusivity also contributes to the brand's resilience in economic downturns, as the demand for truly exclusive and timeless items tends to be more stable. What’s more, by focusing on a single brand, Hermès maintains tighter control over its image, reducing the risk of brand dilution.
Craftsmanship at the core
Another crucial element is craftsmanship at the core. With its family roots, strong vertical integration, and unwavering focus on premium control over its production, the brand ensures the exceptional quality that underpins its luxury status. This dedication to quality can also lead to exceptionally high profit margins on its core products.
However, relying on a single brand inherently limits the avenues for rapid growth compared to a conglomerate. There's also a potential long-term vulnerability to significant shifts in consumer tastes, and the brand might miss out on synergies and economies of scale enjoyed by larger groups. Over-dependence on core products is also a potential risk.
LVMH relying on diversification and scale
Meanwhile, LVMH, a conglomerate of 75 distinct ‘maisons’ – from Dior to Dom Pérignon – operates on a different strategic plane. While some of its individual brands, such as Loro Piana, likely hitting double-digit growth, the group's strength lies in its diversification and vast scale. "LVMH plays a different game," Melzig observes, highlighting its structure as a "powerhouse of diversification and scale." "LVMH's strength lies in its ability to capture growth across multiple luxury segments, providing resilience against market-specific headwinds," explains a hypothetical Financial Analyst specializing in Luxury Conglomerates. The conglomerate structure allows LVMH to leverage synergies in sourcing, distribution, and marketing, and its acquisition-driven growth strategy provides significant avenues for expansion. With brands catering to different price points, LVMH also achieves a broader market reach.
Table: Illustrative financial and brand metrics
|
Metric |
Hermès (2024 - estimate) |
LVMH (2024 actual) |
Notes |
|
Market Capitalization |
€240-250 Billion |
€240-250 Billion |
As of late 2024/early 2025 estimates leading up to the news. |
|
Revenue Growth (YoY) |
~15-20% |
~9-12% |
Hermès typically shows strong organic growth. LVMH's is a blended rate. |
|
Operating Profit Margin |
~35-40% |
~25-30% |
Hermès often boasts higher individual brand margins. |
|
Number of Brands |
1 |
75+ |
Key differentiator in business model. |
|
Brand Value (Estimate) |
High (Concentrated) |
Very High (Diversified) |
Both have strong brand value, distributed differently. |
|
Organic Growth Focus |
Very High |
Moderate |
Hermès primarily relies on organic growth. |
|
Acquisition Activity |
Very Low |
High |
LVMH actively uses acquisitions for growth. |
Melzig points out a key difference in transparency, stating, "LVMH doesn’t report single-brand results, making a direct comparison of individual brand performance challenging. Focus is hard. Managing 75 brands? Even harder." This complexity of managing a vast portfolio and the potential for brand dilution within the group are potential challenges. Integrating newly acquired brands can also be a complex process.
In essence, the analysis posits that "Hermès bet on one horse" – its iconic brand – and nurtured it with meticulous care. In contrast, "LVMH runs the whole stable," capitalizing on synergies and managing a diverse array of luxury assets.
Ultimately, Melzig concludes that both Hermès and LVMH represent "two winning strategies" and "two ways to play the luxury game." Hermès' remarkable ascent highlights the power of unwavering focus and brand discipline, while LVMH's continued dominance showcases the strength of diversification and scale in the competitive luxury market. The current market capitalization figures suggest that, at least for now, Hermès' singular vision has resonated powerfully with investors.
Julia Vol’s LinkedIn post, echoing the Financial Times headline ‘ESG fund outflow hit record as sustainable investing backlash grows’, strikes a raw nerve in the discourse surrounding sustainable investing. Her assertion in the article that ESG, in its current form, has faltered in delivering financial promises, along with the image of Donald Trump – a figure often associated with anti-‘woke’ sentiment – suggests a complex interplay of economic realities and political ideologies impacting the sustainability agenda. For the textile, apparel, and fashion industries, long under scrutiny for their environmental and social impact, this shift creates both challenges and opportunities for a more pragmatic and effective approach to long-term sustainability.
Vol's argument, supported by the observation of capital flight from both European and Asian ESG funds, challenges the notion that sustainability is an unwavering priority for investors when it clashes with financial returns. The initial outperformance of ESG funds, she says, stemmed from easily achievable gains and marketing ploys, which have since plateaued. This resonates within the fashion industry, where early sustainable initiatives often focused on material swaps or small-scale ethical collections that, while commendable, did not fundamentally alter the industry's linear, resource-intensive model.
Consumer behavior as highlighted by Vol – the preference for cheaper, often less sustainable options from retailers like Temu and Shein – underscores a critical hurdle for the industry. Despite growing consumer awareness of environmental and social issues, price often remains the dominant factor in purchasing decisions. This creates a tension for brands attempting to implement more sustainable practices, which often translate to higher production costs and, consequently, potentially higher retail prices.
The price of principle
Several examples within the textile and apparel sector illustrate this challenge. Organic cotton, often touted as a more sustainable alternative to conventional cotton, typically carries a higher price tag due to lower yields and different farming practices. A study by the Textile Exchange found that while organic cotton production has increased, its market share remains relatively small compared to conventional cotton. This suggests that while some consumers are willing to pay a premium for organic options, the majority still opt for more affordable alternatives.
Similarly, brands committed to fair labor practices often face higher manufacturing costs compared to those utilizing factories with lower wages and less stringent working conditions. The Rana Plaza factory collapse in Bangladesh in 2013 highlighted the human cost of the industry's relentless pursuit of low prices. While this tragedy spurred some brands to improve their supply chain transparency and implement stricter social audits, the pressure to offer competitive prices remains intense.
Navigating the shifting landscape
Industry experts acknowledge the complexities highlighted by Vol. As Orsola de Castro, Co-founder, Fashion Revolution said in an interview, "The disconnect between consumer values and purchasing behavior is a significant obstacle. While people express concern about the environment and labor rights, translating that into consistent purchasing decisions is a challenge, especially when faced with cheaper alternatives."
Also, the focus on ESG ratings, as criticized by Vol, has led to instances of "greenwashing" within the fashion industry. Brands may highlight minor sustainable initiatives in their marketing without making fundamental changes to their core business model. This can erode consumer trust and fuel skepticism towards ESG claims. A report by the Changing Markets Foundation found that many fast fashion brands continue to heavily rely on virgin fossil fuels for their materials, despite marketing campaigns emphasizing sustainability.
A shift towards tangible impact in fashion
However, the narrative is not entirely bleak. As Vol suggests, the focus may be shifting towards ‘impact investing’ that is targeted, tangible, and outcome-driven initiatives. In the fashion industry, this could translate to greater investment in innovative materials like recycled textiles, bio-based fibers, and circular business models such as rental and resale platforms.
Companies like Patagonia, for instance, have long integrated sustainability into their core business strategy, focusing on product durability, repair services, and material innovation. Their commitment goes beyond mere reporting and translates into tangible actions aimed at reducing their environmental footprint and promoting a more circular economy. Their consistent brand loyalty and financial success demonstrate that a genuine commitment to sustainability can be a driver of long-term value.
Similarly, the growth of the pre-owned fashion market, lead by platforms like ThredUp and Vestiaire Collective, indicates a growing consumer appetite for more sustainable consumption models. This shift is driven by both environmental concerns and the desire for unique and affordable items.
Setting the stage for accountability
Vol rightly points out it is the role of regulators to "prop up businesses for 'doing the right thing.'" In the fashion industry, stricter regulations regarding environmental impact, waste management, and labor practices are crucial to level the playing field and incentivize genuine sustainability efforts. The European Union's Strategy for Sustainable and Circular Textiles, for example, aims to establish stricter requirements for textile products, promote eco-design, and boost textile reuse and recycling.
The backlash against traditional ESG investing, as highlighted by Julia Vol serves as a critical inflection point for the textile, apparel, and fashion industries. While the allure of easy financial gains from superficial sustainability efforts may be waning, the fundamental need for a more responsible and resilient industry remains.
The future of sustainability in fashion lies not in chasing fleeting ESG ratings but in embracing tangible impact through innovation, circular business models, and transparent supply chains. While consumer price sensitivity remains a challenge, stricter regulations and a growing demand for truly sustainable alternatives can help weave a new fabric for the industry – one that prioritizes long-term value creation over short-term financial optics. The unraveling of the current ESG narrative may ultimately pave the way for a more authentic and impactful approach to sustainability, where environmental and social responsibility are not just checkboxes but integral threads in the industry's very design.
