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On May 7, Andrea Guerra, CEO and Marketing Director and Lorenzo Bertelli, Head-CSR, Prada Group, marked a significant milestone in the Group’s industrial growth and sustainability efforts as it unveiled the expanded Torgiano knitwear hub.
The expanded Torgiano facility doubles the brand’s production capacity and employs over 200 locals, predominantly women, reinforcing its commitment to ‘Made in Italy’ craftsmanship and nurturing the next generation of artisans.
Defying the volatility in the luxury market, Prada Group reported an 18 per cent Y-o-Y growth in retail sales during Q1, FY24, its 13th consecutive quarter of growth. The brand’s strategy for creating sustainable value and its dedication to cultural conservation and change provide a competitive edge in a turbulent market while other luxury brands continue to struggle with sales slumps.
The European Union's ambitious Ecodesign for Sustainable Products Regulation (ESPR), provisionally agreed upon in December 2023, is set to transform the fashion, apparel, and textile sector. This regulation, with a focus on circularity and sustainability, promises to impact everything from supply chains to retail experiences.
Supply chain shakeup, from sourcing to sustainability
The ESPR mandates stricter environmental and ethical considerations throughout the supply chain. Manufacturers will need to prioritize durability, repairability, and recyclability."This means brands will need to work closely with suppliers to ensure they use sustainable materials, minimize waste, and uphold fair labor practices," explains Anna LeClaire, a sustainability expert at the Copenhagen Fashion Institute. This could lead to a shift in sourcing patterns, with brands potentially favoring suppliers closer to home or those with proven sustainability practices.
Spotlight on sourcing majors China and Bangladesh
Countries like China and Bangladesh, major garment producers, will feel the pressure to adapt. "For China, known for its fast and cheap production, the ESPR might incentivize them to invest in cleaner technologies and eco-friendly materials," says trade analyst Michael Lee. Large, export-oriented textile producers like China may face pressure to modernize and adopt cleaner technologies. However, this could also present an opportunity for them to become leaders in sustainable production.
Bangladesh, another major player, might face challenges in meeting stricter regulations, potentially impacting their competitiveness unless they invest in sustainable upgrades. Trade expert Liam Banerjee points out "Countries like Bangladesh, heavily reliant on garment manufacturing, may face initial challenges," Upskilling the workforce and adopting new technologies could be expensive. However, the ESPR could also incentivize these countries to develop a more sustainable industry, attracting environmentally conscious brands.
Fast fashion's future uncertain
The ESPR's ban on destroying unsold textiles directly challenges the fast-fashion model, notorious for generating massive waste. "The era of cheap, disposable clothing is ending," predicts fashion commentator Marie Dupont. While it may not eradicate fast fashion entirely, it will certainly make it less profitable.Trade experts remain cautious. "Curtailing fast fashion completely might be a stretch," says Banerjee. "But the ESPR will certainly make it less profitable. We might see brands focusing on higher-quality, longer-lasting pieces alongside smaller, seasonal collections." Experts believe the regulation, coupled with growing consumer awareness, could nudge consumers towards more sustainable and ethical fashion choices.
A move towards eco-friendly fibers
The ESPR emphasizes the use of recycled fibers and promotes phasing out harmful substances. This could lead to increased demand for materials like organic cotton, recycled polyester, and innovative bio-fabrics. There could be an increase in R&D of eco-friendly textiles that meet the new regulations. Expect a rise in recycled materials like polyester and cotton alongside natural, biodegradable options like hemp and organic cotton. Yarn production will need to become more efficient and minimize waste. Fabrics will be designed for durability and easier repair.
Retail revolution
Retailers in the EU will need to adapt to the new regulations. Transparency will be key. ‘Digital Product Passports’ will provide consumers with detailed information about a garment's environmental impact. This could lead to a shift towards brands that prioritize sustainability. "Retailers might also embrace repair and resale programs," suggests Agatha Fell a sustainability consultant for fashion brands. "The ESPR creates an opportunity for a more conscious and responsible fashion ecosystem." The ESPR's implementation is still in its early stages. However, its impact on the fashion industry is undeniable. It's a revolution that promises to make fashion more sustainable, ethical, and, ultimately, more responsible.
The ESPR is a significant step towards a more sustainable fashion industry. While challenges remain, the potential for positive change is undeniable. As the regulation unfolds, its impact on the global fashion landscape will be fascinating to watch.
From $4.4 trillion last year, the global online shopping market is expected to rise to $6.8 trillion by 2028, predicts a new study by Forrester.
Jitender Miglani, Principal Forecast Analyst, Forrester explains, the pandemic accelerated e-commerce growth as store closed and social distancing prevailed. However, in recent years with most stores reopening, there has been a reversal to physical shopping.
To regain momentum, e-commerce operators plan to launch new initiatives like shopping offers and generative AI projects. A survey by Nvidia in January indicates, around 98 per cent of retailers plan to invest in these technologies over the next 18 months.
Besides, other factors like maturation of online marketplaces, social commerce, livestream selling, direct-to-consumer commerce, expanding internet access and innovative payment solutions, are also likely to boost e-commerce growth, emphasises Miglani. The US e-commerce market alone is projected to rise from $1 trillion in 2023 to $1.6 trillion by 2028, accounting for 28 per cent of all retail sales in the market
The analysis by Forrester further suggests, overall global retail sales will reach $28.7 trillion by 2028. The study notes, physical shopping is proving resilient despite challenges faced by brick-and-mortar retailers including store closures by retail chains like Express, Rue21, and Macy’s.
Hence, physical shopping will continue to dominate in the near term with 76 per cent of the $28.7 trillion global retail sales occurring offline, projects the study
A report of Coresight Research points out, store openings in the US have outpaced store closures since the end of COVID-19 pandemic. Store chains in the country have been on a net opening front since the end of the pandemic, adds Bryan Gildenberg, Analyst.
KM.ON, a leading innovator in warp knitting technology, is set to launch its new Digital Production Management (DPM) software at ITM 2024 in Istanbul. This advanced solution aims to support production and shift managers by providing enhanced transparency, control, and optimization of the entire production process.
Yevgeniya Nedilko, Cluster Lead Operational Excellence at KM.ON, reflected on the positive reception of the DPM's pilot version presented at ITMA 2023 in Milan. She highlighted that the feedback was overwhelmingly positive, emphasizing that their close cooperation with pilot customers had paid off, resulting in significant interest and inquiries from potential customers.
Based on extensive customer feedback, KM.ON has made substantial improvements to the DPM. Enhancements in data collection and processing have focused on ensuring high data quality. New features include detailed reporting tools such as the Machine Speed Report, Output & Efficiency Report, and Activity Report. Additionally, an input device has been introduced to allow operators to log comprehensive machine-related activities, aiming for full shopfloor transparency.
Nedilko explained that the initial focus has been on major textile markets like Turkey and China, addressing their demand for robust reporting and shopfloor transparency. Advanced features like production planning have been deferred for future updates, which will also include yarn management and ERP integration.
Interested customers can contact KM.ON’s sales team for consultations and tailored recommendations. A trial version of the DPM is available for customers who wish to experience its benefits firsthand. This launch marks a significant step towards revolutionizing production management in the warp knitting industry.
Kraig Biocraft Laboratories has announced the acceleration of its 2024 production schedule, with the successful launch of its BAM-1 recombinant spider silk hybrids. Originally slated for July, the company's production trials surpassed expectations, allowing for an early rollout.
This production phase marks a significant step towards commercializing sustainable and cost-effective spider silk production. It represents a tenfold increase over previous trials and marks the largest single batch of spider silk production in the company's history.
The BAM-1 hybrids, a result of integrating the company's Dragon Silk technology into two robust commercial silkworm strains, exhibited excellent hatching yield and uniform growth. They yield larger cocoons and stronger silkworms, enhancing silk production efficiency while maintaining fiber performance.
Kim Thompson, Founder and CEO of Kraig Labs, expressed pride in the team's efforts, noting over a year of focused development behind the success. With this milestone, the company is on track to achieve its target of producing a metric ton of spider silk.
Further updates on production progress and market developments are expected in the coming weeks.
The European Union has taken a significant step towards a more sustainable future with the adoption of the ambitious Ecodesign for Sustainable Products Regulation (ESPR) on May 27th, 2024. This landmark legislation marks a major overhaul of the existing Ecodesign Directive, significantly expanding its reach beyond just energy-related products.
This ambitious regulation applies to nearly all products sold within the EU single market, with textiles – particularly clothing and footwear – identified as a high-impact category that will be subject to stringent ecodesign requirements. The ESPR empowers the European Commission to establish specific regulations for different product groups, giving manufacturers 18 months to comply with the new standard.
New ESPR a holistic approach
Previously, the Ecodesign Directive, established in 2009, focused solely on regulating the energy efficiency of products. The ESPR expands this focus dramatically, encompassing the entire life cycle of a product and mandating its design for sustainability. This translates to a wide range of requirements, including:
Durability and repairability: Products will need to be built to last longer and be easier to repair, reducing waste and encouraging responsible consumption.
Recyclability: Manufacturers will be responsible for designing products with recyclability in mind, using materials and construction methods that facilitate easier material recovery at the end of a product's life.
Resource efficiency: The ESPR aims to minimize the environmental impact of resource extraction and production throughout the product's life cycle.
Circularity: The regulation promotes a more circular economy by incentivizing the design of products that can be easily remanufactured or repurposed.
A key aspect of the ESPR is the empowerment it grants the European Commission. The Commission will be responsible for setting specific ecodesign criteria for different product categories, prioritizing high-impact sectors like textiles, a major contributor to waste and pollution. Manufacturers will be given 18 months to comply with these new regulations, ensuring a smooth transition but with a clear deadline for implementation.
The adoption of the ESPR is expected to have a significant positive impact on the environment. By promoting longer-lasting, more repairable, and recyclable products, the regulation aims to reduce waste generation, resource consumption, and pollution. Additionally, the ESPR is expected to stimulate innovation in sustainable product design, creating a more competitive and environmentally conscious manufacturing landscape within the EU.
While all but one EU member state approved the regulation, Italy abstained. The regulation will be formally published in the coming days and will come into full force after a 24-month transition period. This timeframe allows manufacturers time to adapt their production processes and product designs to comply with the new sustainability standards.
The EU's bold move with the ESPR sets a strong precedent for other countries looking to adopt sustainable practices. As the regulation is implemented, its impact on product design, consumption patterns, and the environment will be closely monitored.
From June 24 to 28, a delegation of Italian textile machinery manufacturers, spearheaded by ACIMIT and the Italian Trade Agency, will embark on a crucial institutional mission to Turkmenistan. With a series of slated meetings in Ashgabat, the delegation aims to leverage the burgeoning opportunities within Turkmenistan's textile industry.
Turkmenistan, with cotton as its third-largest export, is poised for a robust textile sector expansion. Local authorities are keen on transforming the abundant raw material into finished products, signaling substantial investment prospects in modern machinery and technologies. The demand for textile machinery is on a swift rise to facilitate this developmental surge.
ACIMIT's data underscores Turkmenistan's increasing reliance on textile machinery imports, with a notable 7.3 per cent annual growth rate observed between 2009 and 2023. Projections extend this trend, foreseeing a 5.5 per cent annual uptick from 2024 to 2027.
Marco Salvade, President of ACIMIT, stresses the imperative for technological advancement to compete globally in the textile arena. The institutional mission aims to foster collaborative avenues between Italian expertise and Turkmenistan's textile aspirations.
Significantly, Italian exports to Turkmenistan surged from 600,000 euros in 2022 to approximately 13 million euros in 2023, highlighting the growing demand for Italian textile machinery.
Salvade emphasizes the mission's dual focus on showcasing technological prowess and forging partnerships with influential local institutions, pivotal in shaping supply chain strategies.
The Q4, FY24 revenues of Capri Holdings declined by 8.4 per cent to $1.223 billion as the company reported a mid-single digits decline in sales during the quarter.
Owner of brands like Michael Kors, Versace and Jimmy Choo, the sales of Capri Holdings remained impacted by the global softening of demand for luxury fashion goods. The company also registered a decline in wholesale revenues as demand in the Americas and EMEA softened.
By brand, revenues of Versace declined by 3.6 per cent to $264 million, with the brand’s revenues in the Americas and EMEA regions declining by 1 per cent and 11 per cent respectively, while revenues in Asia rose by 6 per cent Revenues of the brand Jimmy Choo dropped by 9.3 per cent to $137 million across all market. The brand’s revenues in the Americas declined by 9 per cent, while those in EMEA decreased by 6 per cent and in Asia declined by 14 per cent.
Sales of the brand Michael Kors brand fell by 9.7 per cent to $822 million across markets during the quarter. The brand’s revenues in the Americas decreased by 9 per cent while those in EMEA declined by 7 per cent, and Asia revenues dwindled by 16 per cent.
The company’s net losses widened to $472 million during the quarter compared to net loss of $34 million in the prior year.
The 14 per cent growth in buyers for the brands Versace, Jimmy Choo and Michael Kors reflects the strong and enduring value of these three iconic brands. Looking forward, the company continues to execute strategic initiatives to deliver long-term sustainable growth across each of its luxury houses.
Coats Digital is thrilled to announce a pioneering enhancement to its award-winning GSDCost solution, aimed at fostering more effective and sustainable collaboration between brands and vendor partners in the fashion supply chain.
The new GSDCost functionality leverages scientifically-backed international standard time benchmarks, using accurate Standard Minute Values (SMVs), to create credible Bill of Labour (BOL) garment style requests. This allows brands to issue these requests to multiple vendors simultaneously and efficiently compare Cost-to-Make (CM) responses on a single platform.
GSDCost is recognized as the international standard in the garment industry, promoting a transparent, collaborative, and sustainable supply chain. By using a scientific common language, it supports accurate cost prediction, fact-based negotiation, and optimized manufacturing processes, aligning with CSR commitments. Additionally, the enhanced Fair Wage Tool, with data from the Fair Wage Network, facilitates the quick agreement on fair living wages globally.
Stuart McCready-Stocks, Brands Commercial Director at Coats Digital, highlighted that the new features address brand challenges in securing accurate CM quotes and fostering effective supplier collaboration. The Create, Collaborate, and Compare elements provide robust data insights into productivity, machinery capabilities, ethical compliance, and fair wage practices, helping brands identify and collaborate with compliant and sustainable vendors.
Amid climate crises, economic uncertainties, and new regulatory demands, this tool, supported by the Fair Wage Network and the ILO, is timely, enhancing transparency and collaboration in meeting industry compliance and sustainability goals.
The retail industry is undergoing a significant change, driven by factors like rise of e-commerce, evolving consumer preferences, and a lingering pandemic. Understanding trends are crucial for businesses to navigate this dynamic landscape ad thrive in the future.
Consumer trends reshaping retail
Omnichannel experience reigns supreme: Today's consumer seamlessly blends online and offline shopping. They research products online, compare prices, and might even buy in-store or vice versa. A 2023 study by McKinsey & Company found 73 per cent consumers use multiple channels throughout their shopping journey. While brick-and-mortar stores hold their ground, e-commerce continues to flourish. Insider Intelligence projects US e-commerce sales will reach $1.4 trillion by 2024, accounting for 14.4 per cent of total retail sales. And retailers are adopting omni-channel strategies to thrive. For example, Walmart, a retail giant, has embraced omnichannel retail. They've invested in online grocery pickup and delivery services, while integrating their physical stores with their e-commerce platform. This allows customers to research products online, check in-store availability, and even pick up online orders at their convenience.
Rise of value-conscious consumers: Inflation and economic uncertainty are causing a shift towards value-driven purchases. As per National Retail Federation (NRF) report, discount stores are projected to see the highest growth in 2023 at 5.7 per cent, compared to 3.9 per cent for department stores.
Focus on sustainability: Consumers are increasingly environmentally conscious and seek out sustainable brands and products. A IBM study revealed that 60 per cent consumers are willing to pay a premium for sustainable products. The Body Shop is a leading example of a brand committed to sustainability. They use ethically sourced ingredients, offer refillable packaging options, and actively campaign for environmental causes. This resonates with their customer base who value environmental responsibility.
Experience counts more: Consumers are increasingly seeking experiences over mere possessions. And retailers are responding by creating engaging in-store environments, offering personalized services, and hosting events. This focus on experience fosters brand loyalty and encourages repeat visits. As Paco Underhill, author of ‘Why We Buy’ opines, “Retail is no longer just about transactions; it's about creating connections with customers.”
The power of social media: Social media platforms are not just for connecting with friends anymore. They've become powerful tools for brands to reach new audiences, showcase products, and influence purchase decisions. Influencer marketing and user-generated content are major drivers of sales in the social media age. Platforms like Instagram and TikTok are increasingly influencing buying decisions. Studies by eMarketer show an increase in social commerce, where consumers discover and purchase products directly through social media. Gary Vaynerchuk, social media strategist explains, “Social media is a conversation, not a monologue. Brands need to listen to their customers and engage with them authentically.”
The bottomline is, future of retail is all about personalization, convenience, and experience. Retailers who can adapt to these evolving consumer trends and leverage data effectively will be the ones to thrive in the ever-changing retail landscape.
