- The apparel and textile business blog -
Leonie Barrie's unique web log on the global Apparel and textile industry, key events, people and her own daily experiences. If you would like to offer your comments, opinions, suggest topics or just have a good rant, please feel free to email: Leonie Barrie. |
Page number: 2 of 92 ( 912 records)
Repair, re-use, but don’t replace
28th October 2009 16:01
I have to admit my first thoughts when I heard that Lands’ End had launched a free repair service for its garments were 1: doesn’t anyone know how to sew on buttons any more? and 2: companies will do anything in the name of sustainable fashion these days.
But I stand corrected. Lands’ End, it seems, is in step with the move away from disposable fashion, and the team of seamstresses assembled at its Rutland headquarters has a key role to play in reducing the mountain of clothing sent to landfill each year.
Lands’ End’s clothes come with a lifetime guarantee, and the firm now promises to mend and return items within two weeks, tackling everything from missing buttons to blown seams and broken belt loops.
The new service comes as the UK government is continuing to put pressure on UK high street retailers to tackle the environmental impacts of our fast-fashion culture.
In February the Department for the Environment, Food and Rural Affairs (Defra) launched its Sustainable Clothing Action Plan, aimed at reducing the 2m tonnes of clothing that is sent to landfill each year.
And at a recent RITE Group (Reducing the Impact of Textiles on the Environment) conference in London, sustainable fashion expert Kate Fletcher highlighted the current shift to finding ways of making money but not by selling in the traditional way.
“Instead of selling more units to consumers you...get those units to work harder or help consumers wear those units for longer,” she said. “So you shift maybe from just selling goods to offering a repair or styling service” to help prolong the life of a garment.
This move to disassociate making money and “making more stuff” is one of the biggest and most interesting challenges we’re all facing.
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Luxury in line for growth?
26th October 2009 12:24
Following hot on the heels of a new report released last week that says the luxury sector should return to growth next year, the latest results from French luxury fashion groups LVMH and PPR last week suggest any signs of a turnaround are still some way off.
PPR, which owns the Gucci brand, blamed a “lacklustre macroeconomic environment,” a drop in tourism and department store cut-backs for an 8% drop in third quarter sales. While fashion brands owned by LVMH continued to struggle as the company reported static revenues for the first nine months of 2009.
However, both firms concurred with the report’s findings that strong demand for luxury goods from shoppers in Asia and online make these areas the main focus for future growth. And significantly, they said results are improving as the year progresses.
Handbag and accessory maker Coach Inc, meanwhile, helped lift first quarter revenues through the introduction of new lower-priced lines, which have not only slowed the decline of US sales but also brought younger shoppers into its stores. Strong demand in China has also prompted the firm to open its first mainland store in the spring of next year.
Coach said its first quarter profit slipped 3.4% to $141m, while sales rose 1% to $761m. Direct-to-consumer sales, which include the firm's China business, soared 10%.
At the other end of the market, UK retail clothing giant Arcadia has posted a 13% increase in full-year pre-tax profit, thanks to a solid sales performance across its brands.
The company, which operates retail chains including Bhs, Topshop, Topman and Miss Selfridge, recorded a sales rise of 2.7% to GBP1.898bn (US$3.137bn) in the year to 29 August, while like-for-like sales were static. But owner Sir Philip Green voiced caution about the year to come, pointing to the potential impact of rising unemployment, the VAT increase and the impending General Election.
There are no such concerns for Hong Kong-based sourcing giant Li & Fung Limited, which is to buy US fashion firm Wear Me Apparel, which trades as Kids Headquarters, for US$100m. The move strengthens the firm’s growth platform, and will help it expand into new markets and categories including young men's and junior's.
And German sportswear company Puma AG is making moves to speed time to market and reduce costs with a landmark product development centre in Vietnam that brings together resources that had previously been spread across Asia. The centre in Ho Chi Minh City will be responsible for 85% of Puma's footwear and 15% of its apparel development needs, and will bring together prototype and sample suppliers.
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Pound stores the only high street hit
22nd October 2009 17:37
The typical UK high street has been transformed by the current recession, leaving it unrecognisable from its former self.
Clothing and footwear shops, general merchandise stores and gift boutiques have paved the way for stores selling goods for just a pound and charity shops.
According to an ongoing BBC investigation into the typical UK high street of Shirley, near Southampton, the collapse of Woolworths last year signalled the transition.
Furthermore, many of the shuttered store fronts are yet to be replaced, with vacancy rates soaring and residents forced to travel to larger shopping centres for specialist items.
The BBC finds that there are now 1,423 discount stores in the UK - up 60% since the recession took hold.
Specialist fashion outlets in the UK will hope that the green shoots of recovery will blossom into their recovery next year, because 99p clothes are not an option.
By Joe Ayling.
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Coach eyes the ‘new normal’
21st October 2009 19:30
A new report published earlier this week on the luxury market made the point that sales of bags and footwear this year are holding firm since they offer a more affordable way for shoppers to stay loyal to their favourite luxury brands.
Looking ahead over the next decade, the study by Bain & Company also noted that younger consumers and competitive products will have a key role to play in keeping the sector afloat.
All of which will come as good news to handbag and accessory maker Coach Inc, where one word seemed to be on the lips of executives yesterday as they revealed the firm’s first quarter results: “Poppy.”
Launched in July, this lower priced line certainly seems to have hit the spot, for not only has it helped slow the decline of same-store sales in North America, but has also brought younger shoppers into Coach’s stores.
While the line is by no means cheap, with an average handbag costing around $240, it hits what Coach chairman and CEO Lew Frankfort calls the pricing “sweet spot” of between $200 and $300.
Such has been its success that the company has increased the proportion of handbags priced below $300 from about 30% of its assortment last year to 50% this year.
“This rebalancing gives the consumer more choices at prices she is willing to pay or is able to afford,” Mike Tucci, president North American Retail, told analysts yesterday.
Or, as Frankfort succinctly put it: “We have adapted our pricing and product strategies to be successful in what will become the 'new normal’.”
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A Gap for international growth
19th October 2009 12:52
US clothing giant Gap Inc last week revealed a number of new ideas to try to stem slumping sales at its namesake brand and regain market share, including opening its first store in China next year.
The San Francisco based firm is also planning a return to television advertising in November following a two-year absence, as well as expanding its outlet stores, and launching online businesses in Canada and the United Kingdom in 2010. It also said it intends to reduce square footage by 10% over the next five years.
The moves, which were unveiled ahead of a presentation to investors, have been spurred by the success of its Old Navy brand this year, where same-store sales rose 13% in September.
The UK’s Marks & Spencer has also been hosting its own investor day – where expanding its international operations was also hailed as a “fantastic” opportunity for growth, with plans to build its business in China, India and Eastern Europe in the next few years.
Director Kate Bostock also stuck by the company's clothing strategy and hailed the recent launch of its Indigo brand. She also said the company was looking to maintain its lion's share of the men's wear and women's wear markets in the UK, whilst trying to bring children's wear up to speed as well.
Retailers can take some comfort from forecasts that suggest apparel is set to be a bright spot in this year's holiday shopping, even though sales will be largely driven by value. But there are also worries that moves by US retail chains to cut back savagely on inventory amid falling consumer spending and the economic downturn could, in fact, be setting them up for trouble in the run-up to the holiday season.
More worries for the industry come in the form of the European Commission's reported plans to extend anti-dumping duties against footwear imports from China and Vietnam. The Foreign Trade Association (FTA) has called upon EU member states to reject the proposed 15-month extension to the measures when they meet to make the final decision on the plan later this year.
Retailers are also coming under renewed pressure to pay a living wage to the workers making their garments. While many firms say they agree in principle with the idea, one of the biggest problems has been trying to put an actual figure on the amount that should be paid. But all this could be about to change with a new Asia Floor Wage campaign that wants to see the equivalent of a $475 a month minimum wage throughout Asia.
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Living wage debate continues...
16th October 2009 18:40
For many retailers, the lack of real evidence as to what a living wage constitutes means they continue to refer to a minimum wage in their code of conducts, with only a cursory glance towards the alternative.
UK supermarket retailer Tesco, for example, told the recent Let’s Clean Up Fashion report: “There has long been contention about what this attempt to define a ‘living wage’ means in practice...The lack of a commonly-understood definition means we don’t find it practicable to use the term in day-to-day work.”
Until now, that is. The Asia Floor Wage (AFW) campaign has, for the first time put a figure on what it believes garment workers need to earn if they and their families are to meet basic needs for nutritious food, water, shelter, clothing, education, healthcare and transport as well as providing for a discretionary income.
It doesn’t seem a lot to ask does it?
Well detractors have gone straight to the numbers, arguing that paying the equivalent of a $475 a month minimum wage throughout Asia will decimate the garment industries in countries like Bangladesh, which is one – if not the – world’s cheapest producers.
The figure of $475 is not a literal currency exchange; it is based on the World Bank's Purchasing Power Parity, which was used to work out the wage needed to allow workers to purchase the same set of goods and services that a US consumer can get for $475.
But in local currency terms it still works out at a big increase on the current minimum wages in the six countries taking part in the campaign – Bangladesh, China, India, Indonesia, Sri Lanka and Thailand. In Bangladesh it comes in at more than six times the value of the current minimum wage, and is 2.4 and 1.6 times higher than current minimum wage levels in China and India respectively.
Supporters of the AFW, however, are well aware that that setting out clear criteria for how a minimum wage should be calculated simply gets them over one more obstacle in their campaign for better take-home pay, and is nowhere near the end of the debate. It will also be interesting to see if any retailers heed their pleas to foot the bill from their own profits rather than back-loading the cost onto suppliers.
But setting a living wage level has been the holy grail of what campaigners have been looking for, and while taking discussions to the next level may be all it achieves, that that at least will be a good thing.
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Internet retailers crown customer king
13th October 2009 14:32
Internet retail experts are comparing notes on how online customers behave at a conference in London today (13 October).
The Internet Retailing Conference provides an opportunity for retailers and web experts to share ideas about how to boost online sales.
Researchers say retailers can improve site visitation and conversion rates by tracking customer behaviour. Site navigation and performance are also building blocks of customer experience, just-style has heard.
High-profile speakers from Zappos, John Lewis and Reebok International are also keen to stress they are adapting a multi-channel approach between store, website, and even mobile phone.
However, all issue caution about getting carried away by the online tools and social networking gadgets available to retailers, like Twitter.
"We have to careful not to get caught up with all the shiny stuff," added Foresee retail strategist Kevin Ertell.
It seems that leading internet retailers are striving to engage consumers, but without neglecting the basics.
There will no doubt be plenty more information, ideas and projections from a sector that, although not exactly in its infancy, has plenty of space to grow.
By Joe Ayling, news editor.
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Spending likely to remain restrained
12th October 2009 11:58
On the first anniversary since the sector went into freefall following the collapse of the world’s financial markets in September 2008, it’s perhaps not surprising that US apparel retailers last week posted monthly same-store sales results that in many cases marked their first gains in a year.
Helped by aggressive promotional activity, stronger autumn fashions and cooler weather in many areas and of course strong comparisons with a year ago, retailers could be forgiven for thinking shoppers are finally getting back their appetites to spend.
But amid lots of talk about a recovery, the evidence shows consumers are still watching their wallets, with value retailers the most favoured. And industry experts have cautioned against reading too much into the results, with spending likely to remain restrained for the month ahead, as well as for Halloween and the December holidays.
The changing fortunes of US department stores have also prompted Liz Claiborne Inc to launch a bold new merchandising model to sell its namesake clothing brand and Claiborne-branded merchandise exclusively at JC Penney stores. It also plans to move the Liz Claiborne New York brand out of department stores altogether and onto the QVC home shopping network instead. The women’s wear specialist hopes the measures will boost its wholesale business and take earnings “to the next level.”
Leading British brands and high street retailers, meanwhile, have been criticised for failing to pay a living wage to the workers making their garments – with a new report saying most have no plans in place to raise wages to acceptable levels in the near future. Some have made no more than “vague paper commitments,” according to the latest 'Let's Clean Up Fashion' report from rights group Labour Behind the Label, which names and shames some of the worst offenders.
While they may not fare so well in the sustainability stakes, UK supermarket giants Tesco and Sainsbury’s are motoring ahead on the sales front. Tesco last week said its clothing sales grew 6% during the first half of the year, helping to lift total group non-food sales by 8% to GBP6.2bn. Underlying pre-tax profits rose 8.6% to GBP1.57bn for the six months to 29 August. Likewise, J Sainsbury posted a 3.2% increase in second quarter sales, boosted by revenue growth for its non-food ranges.
Japan's Fast Retailing Co is forecasting a 24.5% hike in profit for the year ahead, after surging sales at its Uniqlo casual clothing chain helped lift operating income to an eight-year high in the 12 months to August. The company said it is also planning ambitious expansion in China, Hong Kong, South Korea and Singapore.
And currency fluctuations and falling sales continue to hit Levi Strauss & Co, but the US jeans giant says it will continue to invest in its brands despite posting a 41% slump in third quarter profit. One bright spot in a quarter characterised by a slowdown in spending by both consumers and its retail customers was higher global sales of the Levi's brand, particularly in the US.
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September sales eke out gain
9th October 2009 16:04
On the first anniversary since the sector went into freefall following the collapse of the world’s financial markets in September 2008, it’s perhaps not surprising that US apparel retailers yesterday (8 October) posted monthly same-store sales results that in many cases marked their first gains in a year.
Helped by aggressive promotional activity, stronger autumn fashions and cooler weather in many areas, a later Labor Day weekend which pushed some back-to-school sales from August to September, and of course strong comparisons with a year ago, retailers could be forgiven for thinking shoppers are finally getting back their appetites to spend.
Figures from consultancy and research firm Retail Forward said retail same-store sales results excluding Walmart rose 0.8% in September – beating the decline of 2.5% last month and 0.5% in September 2008.
But amid lots of talk about a recovery, the evidence shows consumers are still watching their wallets, favouring value retailers such as Kohl's Corp, Target Corp, TJX and Ross Stores. Likewise, the value message at Gap Inc’s Old Navy chain also seems to have hit home, with same-store sales up 13%.
Other apparel and accessory stores, including Limited Brands, owner of lingerie chain Victoria’s Secret, and teen clothing retailer Aeropostale also did better than expected.
But things aren’t looking so bright, though, at upmarket department stores like Saks and Neiman Marcus, where same-store sales took yet another tumble.
And industry experts have cautioned against reading too much into the results, with spending likely to remain restrained for the month ahead, as well as for Halloween and the December holidays.
“September’s numbers are a good sign that retail sales are on a path to recovery,” said Frank Badillo, senior economist at Retail Forward.
“But it will be a slow, bumpy road as shoppers are cautious about easing the grip on their spending plans.”
US: Retailers' September 2009 sales roundup
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Get ready for PLM Bootcamp
5th October 2009 17:44
A recent report from Aberdeen Group showed that many executives still do not understand or believe in the value that Product Lifecycle Management (PLM) systems can provide to their businesses.
Well now there’s no excuse not to be fully up-to-date because Chad Jackson, vice president, product innovation and engineering at Aberdeen Group is one of the keynote speakers at the first PLM Bootcamp taking place later this week.
And best of all? You don’t even need to leave your desk to attend. The wonders of technology mean delegates can access all the presentations without having to travel out of town or traipse around exhibition halls.
PLM Bootcamp 09 is aimed at fashion and footwear firms, and consists of a series of webinars on Thursday and Friday (8 and 9 October).
Each day will start with a keynote speaker and be followed by a series of six 50-minute sessions. The day will end with a virtual networking event which follows a panel session with the day’s presenters. Virtual exhibitor booths offering whitepapers, demo videos and chat are available to attendees.
Sessions will be moderated and include individual PLM thought leaders as well as panels.
Included in the topics are a guide to a better PLM implementation; developing a PLM strategy; a technical assessment guide to selecting and purchasing a PLM solution; return on investment secrets; the art of PLM leadership; step by step dos and don’ts; managing your risk; and the tools available to connect systems, data, people and processes.
As well as Aberdeen Group’s Jackson, the keynote speakers include Denise Seegal, a global leader who has held CEO level positions with leading retail brands including Ralph Lauren, DKNY, Calvin Klein, Liz Claiborne, VF Corporation, Nautica and Sweetface Fashion Co’s JLO Brand.
The program is sponsored by analyst firm Technology Evaluation, PLM software company Zweave Inc, solutions consultancy TBC unlimited, and Vconference Online.
To register your interest in the event email: info@plmbootcamp.com
And for delegates that cannot make the event dates, the boot camp is also available on-demand, with access to all 14 sessions and keynote speeches at anytime, anywhere until 20 December 2009. The on-demand event can be accessed via www.plmbootcamp.com
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Your Comments
'Everyday low prices'; if this a slogan of Wal-Mart, just for an example, how can it be possible to pay living wage? Also, paying a living wage to garments workers only is NOT a positive approach without considering other workers engaged in other industries. And of course, living wage (AFW) should NOT be the same for all countries in a practical sense.
Md. Shiblee Azam, Bangladesh