Fashion

The state of sustainability, a retail analysis


At Shanghai Fashion Week Kering and global innovation platform Plug and
Play held the first “K Generation Talk & Award Ceremony” last Friday. The
aim is to ignite cross-industry collaborations and empower the next
generation to find and scale innovations for sustainable and ethical
fashion. Poignant were Kering Chairman and CEO François-Henri Pinault’s
remarks that “there is no luxury without China, there is no sustainability
without China.”

As the sustainability conversation evolves the fashion industry is facing
an uphill battle, with high volume production and insatiable consumer
demand for newness no longer proving an environmentally viable model.
According to the Ellen McArthur Foundation, clothing production has
approximately doubled in the last 15 years, while the annual value of
clothing discarded prematurely is more than 350bn euros.

Sustainability on loudspeaker

There is barely a fashion brand that isn’t eager to shout out its green
credentials. This editor alone receives daily press releases from brands
keen to inform the media of their sustainability strategies and
accomplishments. From initiatives like Gucci’s carbon neutral fashion show
last month to H&M’s Conscious Collection, brand marketers are visibly
channeling their efforts, not solely because of altruism, but because
enticing younger consumers who care about how and where their clothes are
made is potentially big business. But as Retailers and brands are quick to
describe their wares as “sustainable,” it doesn’t give consumers sufficient
insight as to why it is better for the environment or indeed if it
genuinely is.

The state of sustainability, a retail analysis

What is the current state of sustainable fashion?

In its Sustainability Edit 2019 report, new research by Edited shows
interest in sustainability continues to grow, with an average of 90,500
Google searches for the term per month in the US.

At retail level stores are evolving their assortments in line with consumer
demand, such as Selfridges committing to selling 50 percent of the products
to be better for people and the planet by 2022 and Net-a-Porter’s recently
launched Net Sustain platform which highlights products in categories such
as reducing waste, locally made and considered materials. Yet according to
Edited, eco-friendly products account for only 3 percent of the items
available online in the US & UK.

Sustainable fashion is costly

There is often a stigma that sustainable products are more expensive.
Ethical fabric alternatives, as well as factors such as sustainable
packaging and adjustments to supply chains, will play a role in pricing
premiums.

Edited asks what is the difference in the final product? And is ethical
fashion becoming more accessible price-wise? It notes it takes some time
for brands to get the pricing right against what consumers are willing to
pay. Analysing the evolution of sustainable pricing in the US mass market
reveals for all product categories, the bracket is becoming broader over
time with more pricing options. In all of these cases, prices are either
the same or more affordable than in 2017.

The state of sustainability, a retail analysis

Is newness in fashion outpacing consumer demand?

According to data from Edited, the number of new products arriving month by
month over the past year from the top 10 online fast fashion brands in the
US shows an average of over 42,000 new options for consumers per month.
Additionally, these retailers are discounting, on average, over 39,000
products for the first time each month. Arguably, those frequent product
drops encourage excess purchasing, which ultimately leads to more apparel
ending up in landfill.

Making strides

But while the fashion industry’s impact on the environment may be shocking,
it is making strides. Retailers are spotlighting sustainable brands and
balancing new initiatives against business needs.

Back in September, companies like VF Corp and H&M were quick to respond to
the forest fires in the Amazon, and said they would no will no longer
source leather from Brazil. There is a great opportunity for brands to
implement social and environmental responsibility, especially if they take
the time to listen to consumer sentiment.

Images courtesy Edited



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