FW
Louis Vuitton has relaunched its Core Values campaign with a new chapter featuring tennis champions Roger Federer and Rafael Nadal. Renowned photographer Annie Leibovitz captured the duo atop a mountain in the Dolomites of Italy, embodying the campaign's tagline: ‘There are Journeys that turn into Legends.’
This latest installment in the Core Values series, initially launched 17 years ago by Antoine Arnault and Pietro Beccari, continues to celebrate the timeless principles that define Louis Vuitton.
To be featured in print and on Louis Vuitton’s social channels, the campaign depicts Federer with the classic Monogram Christopher backpack, while Nadal features with the Monogram Eclipse version.
Pietro Beccari, Chairman and CEO, Louis Vuitton, notes. each Core Values chapter celebrates Louis Vuitton’s legacy of travel, of working with exceptional people, and of transmission – both physical and emotional.
Leading fashion brands including Primark and H&M are collaborating in a new initiative to promote circular business models within the fashion industry.
Spearheaded by the Ellen MacArthur Foundation, which advocates for a more circular economy, this project aims to find solutions that decouple revenue from the unsustainable production of new garments.
Fast fashion brands like Primark and H&M have faced criticism for environmentally damaging practices, greenwashing, and labor abuses in their supply chains. The prevalent ‘take-make-waste’ model results in millions of tons of clothing being produced and discarded annually, with truckloads ending up in landfills or being incinerated every second.
The Ellen MacArthur Foundation is promoting practices such as rental, resale, repair, and remaking to extend the lifecycle of products. Recent research by the foundation estimates that such practices could account for 23 per cent of the global fashion market by 2030, representing a $700 billion opportunity to transform the industry's future.
Other early participants in the Fashion ReModel initiative, launched at the Global Fashion Summit in Copenhagen, include Arc’teryx, Arket, Cos, Reformation, and Weekday. The foundation believes that the shared learnings and experiences among these brands will help pave the way toward a more sustainable fashion industry.
This new initiative builds on the foundation’s previous ‘Jeans Redesign’ project, which, between 2019 and 2023, challenged participants to reimagine jeans to fit a circular economy.
Kenya is set to unveil the world’s first sustainable clothing factory valued at Sh69.4 million. Currently under construction in Athi River, the new 5, 000 sq m factory aims to significantly reduce energy use by 40 per cent, water consumption by over 30 per cent, and carbon dioxide emissions by more than 30 per cent, as part of the country's commitment to achieving net-zero emissions by 2030.
The project has garnered investment from several sources, including Sh69.4 million from the United States Agency for International Development (USAID), a joint venture with Modular Real Estate, and a Sh170.3 million loan from Trade Catalyst Africa (TCA). Expected to be completed by December, the factory is being constructed using upcycled containers to minimise its carbon footprint.
Experts predict that the factory will save an estimated 18 tons of CO2 and three million liters of water annually, highlighting the potential for sustainability in industrial design. Duncan Onyango, CEO, TCA emphasised the importance of sustainable industrial methods and expressed strong support for the project. He termed the investment as a great opportunity to build a scalable and sustainable industrial space for garment manufacturing and a symbol of the company’s dedication to environmental stewardship.
Zara-owner Inditex experienced its slowest sales growth in India for FY24, excluding the pandemic year. The world's largest fashion group is facing increased competition in an increasingly crowded clothing market.
Inditex Trent, a joint venture with Tata that operates 23 Zara stores in India, reported an 8 per cent increase in revenue to Rs 2,775 crore for the last fiscal year, a significant drop from the 40 per cent growth achieved the previous year, as per Trent's annual report. Additionally, net profit decreased by 8 per cent to Rs 244 crore.
A highly successful brand since its foray into the Indian market over a decade ago, Zara initially saw sales double every two years. However, its expansion rate has slowed in recent years due to the rising competition in the market. As the market allows multiple players to coexist at the same time, Trent also remains well-placed to navigate this next phase of growth by leveraging its platform and growth engines, says P Venkatesalu, CEO, Trent.
The operator of Westside, Trent has shifted its focus to its lower-priced fast fashion brand Zudio which opened approximately four new stores every week on average last fiscal year, bringing the total store count to 545. Trent also has a separate partnership with Inditex to operate Massimo Dutti stores in India, which saw revenues rise 14 per cent to Rs 102 crore.
Experts indicate that consumer demand has been subdued over the past couple of years, with brands needing to work harder to achieve same-store growth. Much of the top-line growth has come from opening new stores.
While the Indian market is a bright spot amid the economic gloom in other major economies, global pressures are likely to impact brand confidence in expansion, says Devangshu Dutta, Founder, Third Eyesight. While there is no ‘fatigue’ for the Zara brand, the intense competition for consumer attention and the fragmented choices among various brands can impact individual brand performance, he notes.
As the world's second most populous country, India remains an attractive market for apparel brands, particularly with young people increasingly adopting western-style clothing. Most of Zara's backend operations and merchandise sourcing are managed by Inditex, while Tata's expertise lies in identifying real estate and store locations.
Having suffered from a steep drop in orders over the past two years, textile clusters in Tamil Nadu are now grappling with a new challenge; that of labor shortage.
With orders reviving, factories are gradually ramping up production and consequently require more workers.
K. Selvaraju, Secretary General, Southern India Mills’ Association (SIMA), notes, workers’ wages in Rajasthan have increased by 20 per cent while those in Odisha have increased by 28 per cent. Similar increases have been reported in Maharashtra, leading to many resident workers from these states opting to stay closer to home than work in Tamil Nadu’s textile and garment factories.
J Thulasidharan, President, Indian Cotton Federation, suggests, to tackle labor shortage, textile mills should focus on automation. Mills should also consider investing in spinning machinery available with extensive automated processes, he opines.
According to a garment manufacturer in Tiruppur, the drop in orders has led to numerous micro and small-scale factories going out of business. Workers from these units have either shifted to other jobs or moved away from Tiruppur, creating a significant demand for labor across the garment supply chain.
Textile units in Tamil Nadu should consider offering higher wages and better facilities to attract workers, recommends Selvaraju. Some industries have already begun implementing these measures, he adds.
Over the next few months, rise in domestic demand is likely to create a need for more workers, predict industry sources. If units do not start addressing the labor shortage soon, it could adversely affect operations, they warn.
For the 2024-25 season, the government of Burkina Faso aims to boost cottonseed production by 55 per cent to 598,250 tons from the previous year's yield of 383,144 tons. The breakdown of this target includes 595,000 tons of conventional cottonseed and 3,250 tons of organic cotton.
Burkina Faso, alongside Mali and Benin, plays a pivotal role in West Africa's cotton production landscape. After experiencing a tepid 2023/2024 season, the Burkinabe authorities are optimistic about a resurgence in the cotton sector for the forthcoming season.
Several factors underpin these optimistic projections, one of which is the anticipated expansion in the area of land dedicated to cotton cultivation. Authorities estimate that the cultivated land will grow to 706,500 hectare, a notable rise from the 535,304 hectare recorded the previous year.
Serge Poda, Minister, Industrial Development, Trade, Handicrafts, and Small and Medium Enterprises, highlights a notable improvement in cottonseed yields per hectare during the 2023/2024 season. There is roughly a 25 per cent improvement in conventional cottonseed yields per hectare, reaching 827 kg per hectare, Poda states. This yield enhancement is expected to continue into the next season, further cotton production further.
To support this ambitious production goal, the Burkinabe government plans to allocate CFA11 billion (approximately $18.2 million) to subsidise the purchase of agricultural inputs. This financial support is designed to provide substantial assistance to farmers, ensuring they have the necessary resources to optimise their yields.
Cotton cultivation in Burkina Faso is predominantly concentrated in the Hauts-Bassins and Cascades regions, areas that have historically been the backbone of the country's cotton industry. The government's strategic investments and targeted support are expected to invigorate these regions, driving the overall growth of the cotton sector and enhancing the livelihoods of the farmers involved.
Increasingly evolving beyond their traditional role as clothing retailers, fashion brands are now focusing on technology. For instance, Shein’s innovative approach to clothing accessibility is reshaping industry norms, compelling other brands to adapt.
Many fashion companies are expanding their core propositions by investing in their supply chains. Several brands have become shareholders in recycling technology firms like Renewcell and Infinited Fibre Company, signaling a shift towards sustainability.
Alongwith Vargas Holding, H&M Group has launched Syre, a venture aimed at scaling textile-to-textile recycling of polyester, backed by TPG Rise Climate. This initiative is part of H&M’s strategy to future-proof its operations, with a $600 million offtake agreement to secure recycled polyester, moving away from virgin polyester. This investment could lead H&M to become a supplier of recycled materials to other brands, leveraging vertical supply chain integration for a powerful market position.
Similarly, Lululemon has partnered with Australian startup Samsara Eco to develop infinitely recycled nylon 6,6 and polyester. Given that nylon and polyester comprise about 60 per cent of today’s clothing, this collaboration could significantly impact plastic pollution and carbon emissions. Lululemon’s investment positions it as a leader in sustainability, while generating positive PR.
Spanish fast fashion group, Inditex also emphasises innovation through its partnership with chemicals giant BASF. They’ve created Loopamid, a nylon 6 made entirely from waste nylon, with plans to scale this technology further. Inditex's earlier deal with Infinited Fiber Company to purchase Infinna, a fiber from textile waste, underscores its commitment to strategic collaborations and vertical integration.
Beyond recycling, brands are investing in other non-core areas like carbon removal and renewable energy. H&M’s multi-year carbon removal agreement with Climeworks supports CO2 capture and helps meet emission reduction targets. In 2023, Bestseller and H&M Group invested in Bangladesh’s first utility-scale offshore wind project, aiming to boost renewable energy availability in a key manufacturing hub.
Largely feasible for large multinationals, these investments serve to future-proof operations against supply chain volatility and climate-related regulatory scrutiny. Smaller and medium-sized fashion brands may struggle to afford such investments, potentially leaving them vulnerable in an industry where size and scale are increasingly crucial.
Mostafiz Uddin, Managing Director, Denim Expert and Founder CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE), highlights these trends, noting the importance of strategic investment in ensuring long-term sustainability and competitiveness in the fashion industry.
In response to the brand’s Q4 FY24 financial results, US-based sportswear brand Under Armors has approved a restructuring plan to enhance the company's financial and operational efficiency. This plan is expected to incur total estimated pre-tax restructuring and related charges of approximately $70 - $90 million, including up to $50 million in cash-related charges.
The plan also anticipates up to $40 million in non-cash charges, comprising approximately $7 million in employee severance and benefits costs, and $33 million in facility, software, and other asset-related charges and impairments.
The revenues of US-based sportswear brand Under Armor declined by 5 per cent in Q4 FY24, resulting in sales worth $1.3 billion. For the full year 2024, the brand’s revenue decreased by 3 per cent to $5.7 billion. Revenues in North America fell by 8 per cent to $3.5 billion, while international revenues increased by 8 per cent to $2.2 billion. Within the international segment, revenues in the EMEA region grew by 9 per cent, in Asia-Pacific by 6 per cent and in Latin America by 8 per cent.
The company's net income for the year increased by 8 per cent to $232 million compared to the previous year. Excluding a $50 million earn-out benefit from the sale of the MyFitnessPal platform, adjusted operating income was $310 million.
Kevin Plank, CEO and President, Under Armor, explains, while these actions will pressure the company's top and bottom lines in the near term, there is a significant opportunity to strengthen Under Armor's brand over the next 18 months by focusing on core fundamentals such as product improvement, simplified operations, and enhanced consumer experience.
Plank also highlights the importance of cost management and strategic implementation to grow the brand and improve shareholder value, without specifying details about potential job cuts.
Looking ahead to fiscal 2025, Under Armor expects revenues to decline at a low-double-digit percentage rate, including a projected 15 per cent to 17 per cent decline in North America as the company resets its business following years of high promotional activities, especially in its direct-to-consumer segment. The international business is expected to see a low-single-digit percentage decline to protect the brand’s strength. The gross margin is expected to improve by 75 to 100 basis points compared to the previous year.
The Better Cotton Initiative will hold its annual conference in Istanbul, Turkiye on June 26-27. The event, themed "Accelerating Impact," will bring together industry leaders to discuss critical issues in sustainable cotton production.
Over 200 stakeholders from across the supply chain will participate in-person and online. The conference focuses on four key areas:
Putting People First: This theme explores social aspects like fair wages for farmers and the role of producer organizations in supporting sustainable livelihoods.
Driving Change at Field Level: Discussions will delve into women's empowerment, financing for farmers, regenerative agriculture, and collaboration across sectors. A session on carbon markets will debate their effectiveness for smallholder cotton farmers.
Understanding Policy & Industry Trends: This theme focuses on navigating the evolving legal landscape impacting fashion and textiles. Panels will discuss preparing for new regulations and how performance claims can support sustainability goals.
Reporting on Data & Traceability: This final theme highlights the importance of data in driving progress. Better Cotton will share insights from its 2023 India Impact Report and updates on traceability.
Representatives from Better Cotton Farmers and organizations like Marks & Spencer, WWF, and World Agroforestry will participate, offering their expertise.
The Istanbul conference aims to accelerate progress towards a more sustainable cotton future.
Kraig Biocraft Labs announced positive results from their spring spider silk production trials. By analyzing these trials, the company identified key factors that led to exceptional results.
Kraig Labs believes these advancements will allow them to achieve their goal of metric ton-level spider silk production in 2024.
The improvements span five areas: silkworm genetics, feeding cycles, feedstock selection, facility layout, and staffing procedures. These resulted in the company's strongest and most productive silkworms to date.
While details remain proprietary, the advancements broadly involve silkworm nutrition, climate control, genetics, staffing techniques, and rearing environments.
Kraig Biocraft Labs CEO Kim Thompson hailed the spring trials as a game-changer, positioning the company for a rapid production scale-up to meet surging spider silk demand.
These advancements will expedite the launch of larger-scale operations and the next generation of spider silk hybrids, the BAM-1, nearly a month ahead of schedule. Kraig Labs will keep shareholders informed as production expands.
