FW
The Swedish retailer's non-profit H&M Foundation has launched the fourth annual edition of its Global Change Award, which will challenge trailblazers to submit ideas for creating a circular fashion industry. For its 2019 edition, the awards will focus particularly on digital innovations, how to recover and reuse waste, or ideas supporting a climate positive fashion industry
The award was launched in 2015, in partnership with Accenture and the KTH Royal Institute of Technology in Stockholm. It offers coaching and €1 million n funding to its winning inventors, and has attracted more than 8,000 entries from 151 different countries. Last year, the prize money was divided among the five finalists via a public vote, with the largest portion of the funds being allocated to "Crop-A-Porter," a concept designed to turn the harvest remains of crops such as hemp and bananas and turn it into useful bio-fiber for making textiles. The application process will remain open through October 17, with the winners announced in April 2019.
Institut français de la mode (IFM, the French Fashion Institute) and the Global Fashion Agenda, organiser of the Copenhagen Fashion Summit, have signed an MoU to strengthen their collaboration to promote sustainable development in fashion. The future joint projects will engage key fashion industry stakeholders, notably senior corporate executives and creative directors, through round-table discussions and the issuing of joint press releases on the challenges of sustainable development, detailing the progress made in the field, the actions taken and the policies adopted.
Global Fashion Agenda (GFA) is an umbrella brand created around the Copenhagen Fashion Summit, the event which has emerged as the main gathering of ethical and sustainable fashion labels. GFA notably set itself the mission of publishing studies and reports on sustainability issues, as well as lobbying with Danish, European and international institutions to promote a more sustainable fashion industry. The MoU is therefore also to broaden the consensus among French labels engaged in social responsibility and environmental issues. It will promote more far-reaching changes within French fashion companies, and launch concrete initiatives to encourage industry leaders to shift towards new business models which will guarantee a secure future to individuals, corporations and the planet.
Canada wants free trade with the Asean bloc. A deal with the Asean bloc that includes Thailand, Malaysia, Singapore, Indonesia, Philippines, Brunei, Vietnam, Laos, Burma and Cambodia, would give Canada access to 650 million consumers. Canada is also eyeing free trade with Argentina, Brazil, Paraguay and Uruguay. A trade deal with China is also in the works, which if successful would make Canada the first western nation to reach a free trade deal with China.
Asean and China are working to upgrade the Asean-China free trade area. China will discuss free trade possibilities with the UK. Britain aims to increase its exports to 35 per cent of GDP after leaving the EU by increasing trade ties with other world trade members. Australia and Indonesia are on the brink of signing a free trade deal.
A full-fledged agreement on a free trade zone between Iran and the EAEU will be concluded by early 2022. BIMSTEC (Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation) is pushing for free trade agreement and regional connectivity. The regional grouping comprises Bangladesh, Bhutan, India, Myanmar, Nepal, Thailand and Sri Lanka. For India, BIMSTEC is a natural choice to fulfill its key foreign policy priorities of neighborhood first and act east policy.
European Union’s of trousers imports in volume jumped 7.82 per cent during the first five months of 2018. The value, however, declined by 1.16 per cent. The fall in value is possibly due to low unit prices offered by all top exporting hubs such as China, Bangladesh, India and Vietnam.
The import value of trousers from China fell 7.64 per cent. The import value of trousers from Bangladesh fell 0.09 per cent. Vietnam is fiercely moving to outpace India’s share in the EU market as far as trousers are concerned. Vietnam is growing significantly while India is losing out. Till May this year, Vietnam’s trouser exports to the EU grew 5.09 per cent however, India’s trouser exports to the EU fell by 5.60 per cent.
The rise of Bangladesh and Vietnam indicates European buyers are more interested in placing orders in these countries, while India is somehow not able to grab the shifting orders from China. India’s inability to take advantage of the rupee depreciation of around six per cent against the euro has hurt its exports. Further, the absence of a free trade agreement with the EU is clearly making products manufactured in India non-competitive as compared to countries like Bangladesh which get trade benefits by the EU.
As per a new Global Info Research (GIR) study, global market for Cashmere clothing is expected to grow at a CAGR of roughly 3.8 per cent over the next five years. It is likely to reach $3,230 million in 2023. China accounts for about 70 per cent of cashmere in the world, while Italy was China’s largest export destination, in April 2017; the country imported 98 tons of cashmere from China accounting for 78 per cent of the month’s exports.
China is also the largest consumption market, due to the rapid growth of the national economy as well as people’s gradual improvement of life quality. Many famous brands like Loro Piana and Brunello Cucinelli have targeted this region to launch their products there.
United States also plays an important role in the global cashmere clothing industry. In 2016, the country consumed about 3.5 million units, holding more than 19 per cent share globally. Asia region is the major manufacturing base of Cashmere clothing due to its low labor cost and material cost. Most famous brands have their plants or cooperative manufacturers in the region.
Australia has identified the potential for new dams, which could significantly boost the viability of irrigated cropping industries such as cotton. The Australian cotton industry produces about 9,00,000 metric tons of cotton a year, with almost 100 per cent of this exported. Northern Australian farmers are looking to move into growing higher value irrigated crops like cotton.
The Australian cotton industry has for a long time invested in R&D in northern Australia with the aim of expanding where cotton can be successfully and viably grown. Cotton not only produces high-quality fiber that is in demand globally, but for every ton of fiber there is more than a ton of cotton seed produced, which is a highly valued cattle feed in northern Australia.
Potential growth areas for fiber and food production in Australia’s north have been identified. There are more than 1200 cotton farms in Australia. In an average year, Australia’s cotton growers produce enough cotton to clothe 500 million people. The major buyers of Australian cotton are China, Indonesia, Thailand, South Korea, Bangladesh and Japan.
The cotton industry in Australia employs 15 times as many people as grazing does. Australian irrigated lint yields are now the highest of any major cotton producing country in the world.
American denim brand 7 For All Mankind is planning to foray into the ready-to-wear market. The jeans maker, who introduced denim priced over $200 is collaborating with London-based fashion label Marques’ Almeida. The 19-piece capsule collection will launch mid-November and include T-shirts, flared trousers and denim jackets. With prices ranging from £80 to £1,450 (about $104 to $1,886), it will be sold at selected retailers, including Selfridges in London and Net-a-Porter.
The collaboration comes ahead of Marques’ Almeida’s move to Paris Fashion Week in September. Launched in 2011 by London-based designers Marta Marques and Paulo Almeida, and propelled by the success of its signature frayed denim pieces, the label won the LVMH Young Fashion Designer Prize in 2015.
The partnership follows a trend where denim brands, such as Acne Studios, Rag & Bone and Frame, are increasingly expanding into ready-to-wear market. According to research firm Euromonitor, the global premium denim market is projected to hit $21.4 billion by the end of 2018. Brands are increasingly weary of remaining in a single category as the market becomes more saturated.
"Indian luxury market needs to think in terms of size and growth, at least 10 years ahead of its time. Luxury brand Louis Vuitton opened its first store in China in 1992 but could offer reasonable sizes only 20 years later. The brand opened its first store in India in 2003 and is still few years behind when it could offer the right sizes. Standardising luxury by considering optimum price for experiential and personal luxury goods, BCG classifies handbags above €1,000, shoes above €300, restaurants spend of above €150 and wines and spirits – more than €100 as true luxury. The luxury market in India is approximately $12 billion-$15 billion or 1.5 per cent of the world market. China, on the other hand, makes up 40 per cent of the world luxe market."
Indian luxury market needs to think in terms of size and growth, at least 10 years ahead of its time. Luxury brand Louis Vuitton opened its first store in China in 1992 but could offer reasonable sizes only 20 years later. The brand opened its first store in India in 2003 and is still few years behind when it could offer the right sizes. Standardising luxury by considering optimum price for experiential and personal luxury goods, BCG classifies handbags above €1,000, shoes above €300, restaurants spend of above €150 and wines and spirits – more than €100 as true luxury. The luxury market in India is approximately $12 billion-$15 billion or 1.5 per cent of the world market. China, on the other hand, makes up 40 per cent of the world luxe market.
One of the biggest constraints for Indian luxury market is talent. An important part of the experience is the in-store staff. There are simply not enough trained people available. Even the pool available is more deferential than an informed seller of luxury.
Change in perspectives
Popular perception that luxury consumers are old, live in metros and predominantly female needs to change.
Although dealerships for luxury car showrooms exists in cities like Jalgaon and Coimbatore, but the consumers in most cities do not find the offer in India compelling and end up purchasing goods either in Singapore or London, where they get a better range, service standards and retail environment.
The role of women as prospective buyers in both luxury and premium categories is changing. With the percentage of women getting education rising higher than boys increasing since 2015, the future consumer-base for luxury and premium goods is likely to be female-centric. In China, this segment of young working women is amongst the most important demography in luxury.
The India advantage
The Chinese luxury market is much bigger than the size of Indian luxury market and is growing at a healthy clip. The spread in China is much broader – 50 per cent of luxury consumers are beyond the Top-15 cities. India also being a big country, has a potential of vast spread beyond Tier I cities.
Most global luxury brands worldwide started as craft brands a century or more, ago. Bulgari, for example, was once a single jewellery store and Burberry an outdoor wear manufacturer; today these are global iconic brands across categories. India also has potential to build few luxury brands in future due to its ideal business climate. High end apparel or jewellery, etc are some categories where true Indian luxury brands may emerge. Some brands in India have already started on that journey and are likely to attain global reach and appeal shortly.
Historically, luxury brands invest a lot in print for brand building. In France, LVMH is the biggest print advertiser. In contrast, a lot of brand building in China happens online. India is likely to adopt the mid-approach by focusing less on TV as it finds less relevance in luxury owing to increased fragmentation and also being a low attention medium.
Guangzhou and Hangzhou will host Kingpins China City Tour on September 5 and 7. But this time the denim trade show will open its doors to both professionals and consumers with Kingpins Shop in Hangzhou on September 7 and 8.
Kingpins Shop is a two-day, consumer-focused denim festival that aims to create a unique shopping event uniting denim lovers with denim insiders with everything from denim fibers and fabrics to jeans and indigo accessories. Kingpins Hangzhou will focus on the supply-chain side of the denim industry.
Kingpins China City Tour focuses on denim and the denim supply chain (not just mills) as well as its specific mix of exhibitors–which range from key and innovative Chinese resources to prestigious international offerings not available at any other trade show in China.
The exhibitor roster and show floor offerings are identical between Guangzhou and Hangzhou. The organizers had included both Zhengzhou and Shishi in previous Kingpins China City Tours but narrowed their focus to Guangzhou and Hangzhou feeling these two cities merited a deeper focus and exploration as they cater to a majority of the exhibitors' target clients.
There are no plans to add any other cities to the tour in 2019. The event will focus on Guangzhou and Hangzhou for the foreseeable future.
PVH Corp, the owner of Calvin Klein and Tommy Hilfiger brands, reported earnings of $2.18 per share on revenue of $2.33 billion compared with $1.69 on revenue of $2.07 billion in the previous year’s first quarter. The New York-based company surpassed Wall Street estimates of $2.10 EPS on revenue of $2.29billion. Revenue for its Calvin Klein brand increased by 18 per cent to $ 925 million while Tommy Hilfiger revenue increased by 15 per cent to US$1billion.
The fashion retailer’s brand portfolio also includes Van Heusen, IZOD, ARROW and Warner’s as well as licensed brands such as Michael Kors, Kenneth Cole New York and DKNY. The IZOD brand of the company will expand to Europe this fall and be made available to customers in Spain, Germany, the Netherlands and Scandinavia.
