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The relentless rise of cheap fast fashion and ultra-fast fashion brands has impacted the global fashion industry in more ways than one. The consequences of this trend are far-reaching, affecting both consumer behavior and also the once-thriving secondhand clothing trade. The allure of trendy, disposable clothes at rock-bottom prices has led to a decline in demand for pre-loved garments, posing a significant challenge to the circular economy and sustainability efforts.
The shrinking secondhand market
As per industry estimates the secondhand clothing market has reduced by as much as 30 per cent in recent years, directly attributed to the proliferation of cheap fast fashion. The ease with which consumers can purchase new garments at a fraction of the cost of secondhand items has reduced the appeal of pre-loved clothing, leading to a surplus of unsold inventory and a decline in the value of secondhand goods.
The impact of this shift is felt most acutely in developing countries, which have traditionally relied on the secondhand clothing trade as a source of affordable clothing and economic opportunity. The influx of cheap fast fashion has disrupted local markets, displacing small businesses and contributing to unemployment. The following table illustrates the impact on key regions:
Table: Impact on key regions
|
Region |
Estimated decline in secondhand trade |
Key impacts |
|
Sub-Saharan Africa |
40% |
Loss of livelihoods, increased textile waste, dependence on imported clothing |
|
South Asia |
30% |
Decline in local textile industries, environmental concerns |
|
Latin America |
25% |
Reduced economic opportunities, increased consumerism |
Role of government policy
Government policies play a crucial role in mitigating the negative impacts of cheap fast fashion and supporting the secondhand clothing trade. Several policy interventions can be considered:
Extended Producer Responsibility (EPR): Holding fast fashion brands accountable for the end-of-life disposal of their products can incentivize them to adopt more sustainable practices and reduce waste.
Taxation and incentives: Imposing higher taxes on fast fashion brands and offering incentives to secondhand businesses can help level the playing field and promote a more circular economy.
Consumer awareness: Educating consumers about the environmental and social costs of fast fashion can encourage more mindful consumption habits and support for secondhand clothing.
The continued dominance of cheap fast fashion has several long-term side effects. The production and disposal of fast fashion garments contribute significantly to pollution, resource depletion, and greenhouse gas emissions.
Moreover, the decline of secondhand trade increases economic disparities between developed and developing countries. What’s more the homogenization of fashion trends erodes cultural diversity and traditional textile practices.
The rise of cheap fast fashion has had a profound impact on the secondhand clothing trade, with far-reaching consequences for the environment, economy, and society. Addressing this issue requires a multi-faceted approach involving government policy, industry action, and consumer awareness. By promoting sustainable consumption habits and supporting the circular economy, we can mitigate the negative impacts of fast fashion and build a more equitable and resilient fashion industry.
Shifting consumer trends, supply chain disruptions, and a growing desire for sustainability and localized production has had its effects on US sportswear segment. As legacy brands like Nike and Adidas grapple with declining sales and a rapidly changing landscape, a new project in Portland, Oregon, aims to revitalize the US sportswear manufacturing scene and rewrite the industry's playbook.
The ambitious $125 million ‘Made in Old Town’ project in Portland seeks to revitalize domestic production, drawing lessons from past successes and failures. Spearheaded by startup Hilos and backed by industry veterans Nike and Adidas among others, the initiative aims to establish a stateside manufacturing hub, potentially creating 6,000 jobs by 2028. The initiative aims at bringing footwear and apparel production back to the US, offering brands faster turnaround times, greater control over quality, and the ability to respond swiftly to market demands.
The shifting landscape
Historically, the sportswear industry in the US has relied heavily on overseas manufacturing, particularly in Asia. This model, while cost-effective, has faced challenges in recent years, including supply chain disruptions, rising labor costs, and concerns about sustainability. The pandemic further exposed the vulnerabilities of this model, prompting a reevaluation of manufacturing strategies. As Elias Stahl, CEO of Portland-based Hilos, told Business Insider "Factory owners and suppliers need to be globally competitive in manufacturing and need to be able to be closer to brands."\
Lessons from Adidas' Speedfactory’ flop
The Made in Old Town project is not the first attempt to bring sportswear manufacturing back to US soil. Adidas' Speedfactory initiative, launched with much fanfare a few years ago, aimed to revolutionize shoe production with automated factories in Atlanta and Germany. However, the project ultimately failed due to its inability to keep up with fast-changing fashion trends and the lack of support from materials suppliers.
Eric Liedtke, former Adidas executive and current ‘Made in Old Town’ board member, emphasizes the importance of learning from past mistakes. He says, they gave Speedfactory their best effort. It just didn't work out. The model was partly flawed because the technology could not account for quickly changing fashion trends. Only one shape of footwear could be created at a time, limiting production efforts.
Made in Old Town aims to address these challenges by focusing on flexibility, adaptability, and fostering collaboration between brands, manufacturers, and suppliers. By creating an ecosystem where all players can work together seamlessly, the project aims to unlock innovation and accelerate the pace of production.
Positive side of localized production
Made in Old Town aims to address the challenges of sourcing from abroad by creating a collaborative ecosystem that fosters innovation and agility. The project envisions a campus where designers, manufacturers, and materials suppliers can work in close proximity, streamlining the product development process. The integration of 3D printing and other advanced technologies is expected to further accelerate production and enable brands to respond swiftly to market trends.
While the Made in Old Town project is still in its early stages, there are already examples of successful localized manufacturing initiatives in the sportswear industry. New Balance, for instance, continues to produce over four million pairs of shoes annually in the US, demonstrating that domestic production can be both viable and profitable. As Stahl explains, factory owners and suppliers need to be globally competitive in manufacturing and need to be able to be closer to brands.
Smaller brands are also embracing localized production to gain a competitive edge. For example, Unless, a plant-based footwear and apparel company, is leveraging 3D printing and sustainable materials to create products on demand, reducing waste and minimizing environmental impact.
It maybe noted that currently, nearly all shoes sold in the US are made abroad. The shift to overseas manufacturing led to a significant decline in domestic footwear jobs, from an estimated 76,000 in 1990 to just over 11,000 today. Legacy sportswear brands have faced challenges in recent years, with Nike, Adidas, and Under Armour reporting soft sales and announcing layoffs. While the US government has offered billions in subsidies to support manufacturing in other sectors, the apparel industry has largely been overlooked.
However, the US government has now shown support for domestic manufacturing, offering billions in subsidies to key industries. At the same time, the apparel sector has largely been overlooked, highlighting the need for private investment and initiatives like Made in Old Town.
Indeed, the Made in Old Town project is still in its early stages, but it represents a significant step towards reshaping the sportswear manufacturing landscape. By learning from past mistakes and embracing innovation, Portland aims to create a model that benefits both brands and consumers. The success of this initiative could inspire similar efforts across the country, potentially leading to a resurgence of domestic manufacturing.
H&M Hennes & Mauritz AB reported net sales of SEK 59,011 million for the third quarter of 2024, compared to SEK 60,897 million in the same period last year, with flat sales in local currencies. Gross profit for the quarter stood at SEK 30,133 million, translating to a gross margin of 51.1 percent, up from 50.9 percent last year. However, operating profit dropped to SEK 3,507 million, down from SEK 4,739 million, impacted by currency effects and winding-down costs.
For the nine-month period ending August 31, 2024, H&M’s net sales were SEK 172,285 million, marginally lower than the SEK 173,385 million recorded in the previous year. Gross profit improved to SEK 91,357 million, resulting in a higher gross margin of 53 percent compared to 50.3 percent last year. Operating profit rose to SEK 12,682 million, with a 7.4 percent margin, driven by better cost management.
Despite a challenging start, the company expects an 11 percent sales increase in September, fueled by a well-received autumn collection and investments in physical and digital store upgrades. Notable initiatives include the opening of the first H&M Beauty flagship store in Sweden, and upcoming launches on Chinese e-commerce platforms Douyin and Pinduoduo.
CEO Daniel Erver highlighted the strategic focus on strengthening the H&M brand through enhanced product offerings and marketing efforts, while addressing external challenges like high consumer costs and global instability. The board has authorized a share buyback program worth SEK 1 billion, set to commence on September 26.
H&M is set to open its first store in Brazil in Sao Paulo by late 2025, aiming for long-term growth and improved profitability.
Ukrainian denim brand Kseniaschnaider, founded by Ksenia and Anton Schnaider, has been honored with PETA Germany’s 2024 Vegan Award. The brand’s Chewbacca jeans, featuring their signature ‘denim fur,’ won in the category of Best Vegan Pants. This unique material is made from reworked vintage denim and frayed offcuts, offering a sustainable and animal-friendly alternative to traditional fur.
PETA Germany praised Kseniaschnaider for its dedication to sustainability and its refusal to discard even the smallest fabric scraps. Harald Ullmann, co-founder of PETA Germany, applauded the brand’s commitment to ethical fashion, stating that the collection exemplifies how vegan fashion can benefit animals, people, and the planet.
The PETA Vegan Award, now in its 11th year, celebrates brands like Kseniaschnaider that create innovative, animal-free fashion. Other 2024 winners include GmbH, Armedangels, and Amina Muaddi for their eco-conscious designs.
Giordano has unveiled its fully revamped ‘Store of the Future’ at Dubai's Mall of the Emirates, showcasing a modern design concept aimed at enhancing customer experience. The 1,500 square foot store emphasizes a sleek, minimalist aesthetic, with features such as wider entrances, LED screens, spacious fitting rooms, seating areas, and improved signage. This transformation is part of Giordano’s commitment to innovation and staying ahead of competitors.
The store’s design focuses on simplicity, blending white wall paneling with warm, wooden fixtures to create a contemporary yet timeless atmosphere. Ishwar Chugani, Managing Director of Giordano Middle East, said the new store design reflects the brand's ‘Customers In Mind’ philosophy, aiming to elevate customer engagement and shopping ease.
For over 30 years, Giordano has been a trusted brand in the region, known for its focus on craftsmanship, quality, and exceptional service. With recent store openings in countries like Algeria, Pakistan, Bangladesh, Kenya, Egypt, and Canada, the brand continues its global expansion. Chugani added that as the retail landscape evolves, Giordano’s customer-centric approach ensures its accessibility across different geographies and cultures.
The revamped stores underscore Giordano's dedication to offering a welcoming, customer-first environment, where timeless design and quality craftsmanship meet modern retail needs.
The Natural Fibre Connect (NFC) conference, held at the Città Studi Conference Centre in Biella from September 19 to 20, 2024, emerged as a vital platform for stakeholders in the natural fiber industry to discuss and collaborate on strategies for sustainable growth and innovation. The event brought together growers, processors, brands, NGOs, and certifying bodies to address pressing challenges and explore opportunities in the alpaca, cashmere, mohair, and wool sectors.
The conference kicked off with three days of immersive mill visits, providing attendees a firsthand look into the intricate processes involved in transforming raw animal fibers into high-quality textiles. Tour stops included prominent companies like the Schneider Group, Lanificio Cerruti, and Zegna Baruffa Lane Borgosesia, offering a valuable glimpse into the latest technological advancements and sustainable practices adopted by industry leaders.
Sustainability at the forefront
The conference emphasized the critical importance of sustainable practices throughout the natural fiber supply chain. The Sustainable Fibre Alliance (SFA) and the Good Cashmere Standard provided updates on their efforts to promote animal welfare, environmental responsibility, and social equity. Panel discussions highlighted the need for greater transparency and traceability to ensure that natural fibers are produced and processed in a responsible manner. It maybe noted that as per SPF Annual Report, their membership has grown by 20 per cent in the past year, reflecting the increasing commitment of brands and retailers to sustainable sourcing.
Focus on innovation and collaboration
Stakeholders showcased innovative technologies and approaches to enhance the quality, performance, and sustainability of natural fibers. The need for innovation and technological advancements to enhance efficiency and reduce environmental impact was a recurring theme. The conference fostered collaboration between growers, processors, and brands to develop new products and expand market opportunities. The mill visits provided valuable insights into the latest manufacturing processes and techniques.
Empowering growers
A dedicated panel session provided a platform for growers from Australia, South Africa, and other producing countries to voice their concerns and aspirations. Discussions centered on the importance of fair pricing, access to markets, and the need for collaborative efforts to address the challenges faced by growers at the grassroots level.
Highlighting trends and challenges
The Textile Exchange reports the global market for preferred fibers, which include alpaca, cashmere, mohair, and wool, grew by 10 per cent in 2023. The conference thus addressed the challenges posed by volatile market conditions, shifting consumer preferences, and competition from synthetic fibers. Speakers emphasized the importance of building consumer awareness and appreciation for the unique qualities and benefits of natural fibers. The event also highlighted the need for greater collaboration across the industry to promote the value and sustainability of natural fibers.
Thus NFC 2024 served as a powerful reminder of the interconnectedness of the natural fiber industry and the urgent need for collective action to ensure its sustainable future. The conference fostered a spirit of collaboration and innovation, setting the stage for a more responsible and ethical approach to the production and consumption of alpaca, cashmere, mohair, and wool.
Archroma, a leader in specialty chemicals for sustainable solutions, has launched ‘Planet Conscious+,’ a comprehensive roadmap aimed at helping brands and mills advance their sustainability initiatives.
Mark Garrett, CEO of Archroma, emphasized the importance of adapting to growing global challenges such as climate change, economic shifts, and geopolitical pressures. He explained that the ‘Planet Conscious +’ initiative represents the company's commitment to realigning its vision to address these issues and drive meaningful change in the industry.
The initiative includes six pillars, four of which were previously introduced: Super Systems+, Safe Edge+, One Way+, and Color Management+. These focus on end-to-end solutions, cleaner chemistry, resource savings, and enhanced color management.
The newly introduced pillars, Innovation+ and Communication+, emphasize the company’s commitment to developing innovative solutions and promoting transparency across the value chain. Archroma’s global research teams are driving innovation to improve environmental impact, while the company ensures stakeholders can communicate their sustainability efforts confidently.
Paul Cowell, VP of Innovation at Archroma, emphasized the critical role of accountability in driving innovation. He noted that the company provides tools enabling brands to measure their environmental impact and confidently share their sustainability achievements, supported by verifiable data.
Archroma’s ‘Planet Conscious +’ solidifies its dedication to transforming the apparel and textile industry through sustainable innovation.
A new collaboration between Monforts, BW Converting, and Archroma aims to revolutionize textile finishing through sustainable solutions. The partnership integrates Monforts’ dyeing and finishing technology, BW Converting’s Baldwin TexCoat G4 digital spray technology, and Archroma’s advanced chemical formulations to reduce resource consumption while enhancing productivity.
The collaboration will support textile dyeing and finishing manufacturers by improving product quality and performance while optimizing the finishing process. In the latter half of 2024, Monforts will install Baldwin's TexCoat G4 digital spray unit on a stenter frame at its Advanced Technology Center (ATC) in Monchengladbach, Germany. This addition complements the ATC's existing capabilities, including full Montex stenter finishing lines and a Thermex range for continuous dyeing of woven fabrics, allowing customers to test and refine textiles in real-world conditions.
The Baldwin TexCoat G4 system modernizes traditional pad-dry-cure finishing by precisely applying chemistry only where needed, significantly cutting water, energy, and chemical use by up to 50 per cent. This precision technology, coupled with Archroma’s specialty chemicals, improves efficiency and fabric quality.
According to Monforts Junior Technologist Saskia Kuhlen, the TexCoat G4 installation will play a crucial role in advancing textile innovation at the ATC. Michael Schuhmann of Archroma added that this partnership will help manufacturers achieve energy and water savings while boosting production standards.
Rick Stanford of Baldwin emphasized the significance of this collaboration, noting that combining the expertise of the three companies will bring transformative change to the textile finishing sector, reducing environmental impact while enhancing operational output. Expansion into continuous spray dye applications is also on the horizon for the partnership.
China's Commerce Ministry has launched an investigation into PVH Corp, the parent company of brands like Tommy Hilfiger and Calvin Klein, for alleged trade rule violations related to a boycott of products from Xinjiang. The ministry's announcement follows accusations that the Chinese government detains mostly Muslim ethnic groups in the region, a claim Beijing denies.
The investigation centers on accusations that PVH has unreasonably avoided Xinjiang cotton, potentially harming Chinese businesses and infringing on national interests. China has faced criticism from Western consumers and governments regarding human rights violations in Xinjiang, while simultaneously retaliating against companies expressing concern over forced labor in the area.
In response, PVH stated that it adheres to laws and regulations in all markets, including US government policies regarding the Xinjiang region. The ministry's inquiry falls under China's ‘Unreliable Entities List,’ a mechanism aimed at countering foreign sanctions. PVH is expected to provide details within 30 days about any discriminatory practices regarding Xinjiang-related products over the past three years.
British Wool reports a stronger market for wool, with prices reaching their highest in four years. Auction prices have risen by 20 per cent since the start of the season, increasing by 17p per kilo, or approximately 40p per fleece.
CEO Andrew Hogley expressed optimism about the price improvement across all core wool grades. He credits better yields from fleeces, with less dirt and grease due to consistent rain, for supporting price hikes.
British Wool's efforts to boost demand include collaborating with over 160 brand partners through its licensee scheme and investing in Nexgen Tree Shelters to bring biodegradable wool-based tree shelters to market, reducing plastic use and promoting mountain wool.
To further stimulate demand, a ‘Shaun the Sheep’ marketing campaign targets wool carpet sales in the UK, covering more than 2,000 retailers.
Additionally, 873 shearers and wool handlers were trained this year, with nearly 700 earning prestigious Blue, Bronze, Silver, or Gold Seals.
Hogley is confident that the recent price increases are sustainable, with further gains anticipated. British Wool's depots and drop-off points remain operational, ready to receive wool from producers.
