High-end fashion house Chanel is expanding into waste management and recycling with the launch of a new venture called ‘Nevold.’
Launched with an aim to develop end-of-life solutions for textile offcuts, unused fabrics, and unsold old products, this move comes amidst increasing concerns about the sheer volume of waste generated by the fashion industry. While often attributed to fast fashion, the luxury sector, which mass-produces millions of units, also contributes significantly.
In Europe, regulators are introducing new rules to make brands more accountable for the waste they generate. These regulations will help crack down on the luxury industry's historical practice of simply destroying unsold goods.
Chanel has been preparing for Nevold's launch for several years, The luxury giant has already built a manufacturing division with over 50 specialized factories and ateliers through a decades-long effort to future-proof its supply chain. These investments include companies like embroiderer Lesage, feather-and-flower specialist Lemarié, and hat maker Maison Michel. These entities produce goods for Chanel but also offer services to other fashion businesses.
In the long term, Chanel's aims to make Nevold a part of a ‘profound transformation process that is rethinking the entire product lifecycle, developing new savoir-faire and professions… and contributing to a more circular economy.
At Nevold's core are three companies Chanel has either established or acquired in recent years: L’Atelier des Matières, a recycling agent that connects brands with optimized solutions for their textile waste, unused fabric, and unsold inventory; Filatures du Parc, a 50-year-old spinning mill specializing in yarns made from recycled materials; and Authentic Material, a leather recycling specialist.
The idea is that these companies will collect waste generated by Chanel and other clients and transform them into "new materials for tomorrow" that can be used by Chanel itself, but also sold to other brands and industries.
Nevold is considering acquisitions to accelerate its current capabilities and exploring partnerships with other sectors, such as sports and hospitality, to ensure a second life for materials that no longer meet luxury market standards, Pavlovsky added. For example, the company has found that recycling leather back into a material suitable for a high-end handbag is currently not feasible, but the resulting product could replace common plastics in items like high heels and reinforcements for footwear and handbags.
Last year, Chanel spent an estimated $225,000 to support the development of closed-loop recycling systems capable of transforming old materials and unused stock back into new fabrics and yarns for its fashion and leather goods houses. It expects to increase its investment to $300,000 this year. Meanwhile, Gucci-owner Kering has invested in French recycling business Revalorem and resale site Vestiaire Collective.
