Leonie Barrie

The apparel and textile business blog from Leonie Barrie

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Diesel hijacked by shock tactics

07 Feb 2012 19:03

Efforts to draw attention to the rights of women garment workers have taken a somewhat sinister turn after a hoax website was set up purporting to launch a new campaign by Italian fashion label Diesel.

Slick graphics on Diesel for Women appear to mark the latest instalment in the brand's Successful Living campaign. "Welcome to Misopolis, a brave new world for female factory workers," it says, adding: "To make a free lifestyle possible for young women in emerging markets, [Diesel] will help them conquer a key life challenge: the right to safe abortion."

The bogus site is part of a crusade by non-profit groups Women on Waves and Women on Web, who want women around the world to have access to safe medical abortion. But they also say they are campaigning to expose the violation of workers' rights in the garment industry - and the reluctance of the fashion industry in general and Diesel in particular, in tackling the issue.

Their claims are outlined here and appear to focus on a report that "proved Diesel buys from suppliers that use the 'sumangali scheme,'" where girls are promised a lump sum at the end of a three-year period. This lump sum is actually part of their wage, which is below the legal minimum. The campaigners also note most female workers in the garment industry live in countries where abortion is illegal.

Not surprisingly, Diesel has reacted with fury and is threatening legal action.

Indeed, it's one thing for consumers to drive change, as was the case recently when protestors managed to get Versace and Giorgio Armani to ban sandblasting after bombarding their social networking sites with complaints. But another altogether to hijack a company's image and reputation.

And do shock tactics like this really work - or merely serve to undermine the message? Yes they might be attention-grabbing, but all-in-all they're also a worrying development.

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A mixed bag for retailers in January

06 Feb 2012 18:32

For many retailers January is the quietest month of the year as shoppers tighten their belts after Christmas and stores try to clear unsold inventories. But post-holiday discounts helped many US retailers lift their sales in January, according to monthly figures released last week.

Overall results, however, were mixed as consumers continued to shop cautiously amid the struggling economy. And for apparel retailers there was the added challenge of warm weather curbing sales of winter coats, boots and other winter basics, as well as tougher year-ago comparisons.

Groups representing Cambodian garment workers are this week hoping to get a fair wage commitment from retailers and brands who source from the country. A two-day "people's tribunal" is taking place in Phnom Penh to investigate factory pay and conditions - and follows a spate of mass faintings in the sector, as well as a series of strikes. It hopes to draw attention to the concerns of those employed in the garment sector.

The World Trade Organization, meanwhile, has approved a request from the European Union to temporarily lift duties on 75 products from Pakistan - the majority of which are textiles, apparel, and footwear. The two-year tariff waiver is intended to help the country recover from massive floods in 2010, and measures will be in effect until 31 December 2013.

Domestic market expansion, new materials development and the transfer of production bases are all priorities under the 12th five-year plan for the domestic textile industry, released by mainland China's ministry of industry and information technology. The government predicts the export value of all textile products will reach US$300m by the end of 2015, with an annual growth of 7.5% from 2011.

Slower global economic growth and ample supplies could place downward pressure on cotton prices, after the International Cotton Advisory Board (ICAC) cut its global demand estimates for the fibre. The latest forecast released this week by the inter-governmental group sees world cotton demand for the 2012-13 season down by more than 510,000 tonnes from earlier forecasts.

And for this year's annual management briefing on apparel industry issues to watch in the year ahead, just-style asked leading executives for their feedback on the challenges and opportunities likely to emerge in 2012. Their insight provides a fascinating overview of the state of the sector today. Global economic uncertainty, swings in commodity prices, labour shortages and rising costs, especially in China, all add up to a worrying year. But e-commerce and growing spending power in emerging markets, as well as faster cycle times and stronger relationships across the supply chain, might offer some respite in these volatile times.

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JC Penney revamp a breath of fresh air?

30 Jan 2012 13:30

Given his success at building Apple's stores into the world's most successful retail operation, hopes have been high that Ron Johnson would also work his magic at JC Penney after joining as its new CEO in the autumn. And last week the wait was over, as he set out his new vision for the department store chain.

His strategy for tomorrow's shopping experience is wrapped under the banner 'In Praise of Fresh Air,' and will see nearly four years of gradual transformation of the retailer's entire look, pricing ethos and the way it sells its products. Plans include putting an end to non-stop promotions, which will be replaced by an everyday low pricing model. There will also be in-store boutiques to mimic a more traditional high street, a new designer partnership with Nanette Lepore, and a new logo.

Will it be enough? Repeating Apple's success in the crowded environment of a department store is no easy task. It's a huge challenge - but one that recognises just how badly JC Penney needs to up its game.

Change of a different kind is underway at The Bonmarché chain, owned by collapsed fashion retail group Peacocks, which has been sold to private equity company Sun European Partners. Some 1,400 jobs will be lost with the closure of about 160 stores, leaving around 230 Bonmarché shops in the UK. Administrators also say there has been "huge interest" from potential buyers for the Peacocks discount fashion chain.

But bad news continues to weigh on the UK retail sector after new figures showed sales fell in January, as shoppers reined in their spending after taking advantage of early discounting last month. The latest monthly CBI Distributive Trades Survey found just 8% of clothing retailers saw growth in the first two weeks in January, while 48% of footwear retailers said they saw a decline.

Even fashion stalwart H&M blamed "one of the toughest years for a long time" after it posted a 15.3% drop in full-year profits after holding its prices in the face of rising costs. Sales were up 1.4%, but comparable sales dropped 1%. Europe's second-largest clothing retailer said the higher cost of making its clothes added up to a "challenging" situation in the countries it sources from. More markdowns in its stores also hurt margins. 

The global clothes sourcing bandwagon is forever looking for the next hotspot, especially as nearly two decades of apparel cost deflation come to an end and worries continue to escalate about raw material and labour costs, capacity issues and the overall competitiveness of China. But is Bangladesh ready to step into the role of sourcing country of choice? A new report says its garment exports could triple within a decade - but only if a number of challenges are overcome.

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Retail sales paint too rosy a picture

23 Jan 2012 14:45

Heavy discounting by clothing and footwear stores in the run-up to Christmas helped UK retail sales edge up in December, according to official figures released last week. Sales volumes rose 0.6% between November and December, the Office for National Statistics (ONS) said, and were 2.6% higher than December last year.

Sales volumes at textile, clothing and footwear stores increased 6.3% from December 2010, when demand was impacted by harsh winter weather. By value, sales in the sector were 8.2% higher.

Analysts, however, warn the figures were skewed by a late rush to the shops at the end of the month - as well easy comparisons with a poor, snow-hit December last year. Shoppers remain reluctant to spend and retailers competing hard on price are seeing their margins suffer as a result.

Indeed, the difficult underlying trading conditions claimed new casualties last week, with value clothing chain Peacocks and the UK arm of children's clothing retailer Pumpkin Patch both calling in the administrators.

Peacocks is the biggest British retailer to enter administration since Woolworths collapsed in December 2008. The business, which operates 611 stores, continues to trade while a buyer is sought, but 249 jobs have been axed at its head office.

Peacocks and Pumpkin Patch join the ranks of La Senza, Barratts Priceless and D2, which have all been placed in administration in the first few weeks of 2012.

While many high street stores are struggling, luxury brands such as Burberry and Mulberry are bucking the trend. Both reported healthy growth over the Christmas period, helped by strong demand at their stores in Asia and from tourists visiting their shops in the West. Likewise, at the other end of the spectrum, discount fashion chain Primark and online fashion retailer Asos also emerged among the winners during the festive season.

In the US, meanwhile, reports suggest the right mix of strong promotions, lean inventories and an emphasis on value helped Christmas retail sales beat forecasts - rising 4.1% on last year to US$471.5bn. Apparel sales performed "extremely well", the National Retail Federation (NRF) said, adding that while the retail industry is set to grow at a faster rate than many other industries in 2012, this growth will be slower than last year.

The Chinese New Year - which begins today (23 January) - is traditionally a time when labour shortages become commonplace as workers head home during the holiday season. To try to prevent this, clothing and textile manufacturers in key provinces say they are raising wages to try to attract and retain workers.

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Clothing sales driven by Christmas promotions

16 Jan 2012 15:20

The UK's biggest clothing retailer, Marks & Spencer, has admitted that heavy discounting in the run-up to Christmas has eaten into profit margins - and that it is now eyeing extra cost savings to try to make up the shortfall.

M&S's like-for-like clothing sales rose 1.1% in the three months to 31 December, with its overall performance lifted 2.4% thanks to a stronger than expected performance in its food business. But the retailer insisted it was not discounting in a "distressed" fashion, and that the move had been a tactical one.

Indeed, earlier and deeper promotions were endemic among UK retailers over the festive period according to new figures released last week - helping to lift like-for-like sales values by 2.2% over the previous year. The British Retail Consortium (BRC) also noted that shop prices grew at their slowest pace for 16 months during December.

The victor in the supermarket price war was Sainsbury's, the UK's number three player, which hailed a "record breaking" Christmas period. Its general merchandise and clothing sales outpaced its food business, lifting sales by 2.1% on a like-for-like basis. But shares in market leader Tesco plunged after it admitted to being outpaced by its rivals and warned that UK profits could fall in the coming year. Its UK like-for-like sales were down 1.3% in the six weeks to 7 January.

In other news, purchases by the Chinese government are absorbing a large portion of the 2011/12 global cotton crop, with efforts to rebuild the national reserve likely to lead to a recovery in world stocks. The inter-governmental group the International Cotton Advisory Committee (ICAC), and the US Department of Agriculture (USDA) both believe global cotton stocks could rebound after two seasons of relatively tight reserves.

And sportswear giant Nike said it "commends" one of its Indonesian suppliers after it agreed to reimburse workers more than US$1m in unpaid overtime. The PT Nikomas Gemilang IY plant shoe factory will pay back wages to around 4,500 workers, as well as offer training programmes for the local management team and set up a task force to address grievances.

The settlement comes seven months after manufacturers and brands including Adidas, Nike and Puma signed a pact with textile, clothing and footwear unions that strengthens rights for workers in Indonesian sportswear factories.

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New Year, same old issues

09 Jan 2012 18:47

Welcome to a new year here at just-style...and one that has resumed with the same old questions over the state of the US apparel retail market. The all-important December sales results released last week shed some light on Christmas trading, with upscale and value-focused retailers the bright spots in a sector that saw weak-to-modest growth overall.

According to one index, same-store sales growth levelled out at 3.6% in December, up modestly from the 3.2% gain the year before, helped by good weather in most parts of the country, and a last-minute rush by bargain hunters. But the holiday results are seen as indicative of trends likely to continue into the New Year.

One of the year's first casualties of poor holiday sales is US department store retailer Sears, which intends to close up to 120 shops after booking a 5.2% decline in comparable quarter-to-date sales - including lower apparel sales at its Kmart stores. It also said it intends to focus on its better performing stores going forward.

And Liz Claiborne Inc has stepped into 2012 with a new name following the sale of its Liz Claiborne brands late last year. The company is rebranding as Fifth & Pacific Companies as it focuses on growing its three global lifestyle brands: Juicy Couture, Kate Spade and Lucky Brand. The change is due to come into effect in May, and reflects the company's reach from New York to global markets.

There has also been the traditional New Year business shuffle on the other side of the Atlantic, with the collapse of UK denim retailer D2 Jeans, and a move by troubled lingerie retailer La Senza to close more than half of its UK stores. And more than 1,600 people have lost their jobs after administrators failed to find a buyer for the Barratts Priceless footwear concessions business.

The UK's largest outdoor clothing and equipment retailer, Blacks Leisure Group, also said it will go into administration as part of plans to sell the business. The so-called pre-pack arrangement allows potential buyers to cherry-pick the company's best assets, but leave its costly distribution warehouse and head office, as well as shed unwanted shops from its 300-store estate.

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Happy Holidays from all at just-style.com

23 Dec 2011 17:25

The team here at just-style.com is now taking a well-earned break as the office shuts down for the annual Christmas and New Year celebrations.

We'll be back at our desks on Tuesday 3rd January, recharged and ready to keep you in touch with all the breaking developments in the style industry in 2012.

Until then, we'd like to wish all our readers a very happy Christmas and New Year, and thank you for your continued support.

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UK retail sector under pressure

12 Dec 2011 18:26

In the same week that figures showed UK retailers achieved their weakest sales performance for six months in November, news also broke that thousands of jobs are at risk after several clothing and footwear chains were put up for sale.

Nearly 4,000 jobs are threatened after the owner of the Barratts and Priceless Shoes stores collapsed into administration after a downturn in trading. And Blacks Leisure, the UK's largest outdoor clothing and equipment retailer, has appealed for a buyer for the firm or one of its brands. Irisa plans to close a number of stores as part of its restructuring efforts, and rumours are circulating that discount fashion chain Peacocks may close some 200 stores.

While a mild autumn has hurt sales of cold-weather items, the sector is also being buffeted by the ongoing eurozone crisis, high inflation and stagnant wages - all of which will continue to put pressure on consumers.

Supermarket giant Tesco has also admitted that clothing sales were "difficult" during its third quarter as it struggled to move winter lines due to warmer weather. The comments came as the retailer recorded another quarter of falling revenues in the UK and a "sharp" slowdown in its operations in Asia.

And struggling US women's wear chain Talbots has received an unsolicited takeover bid from one of its leading shareholders, which is concerned by the company's "rapidly deteriorating performance." The offer from private equity firm Sycamore Partners came after Talbots said it was seeking a successor for president and CEO Trudy Sullivan. Less than week before it had revealed plans to cut 9% of its corporate headcount and close stores after third quarter loss widened to $22m on a 6.6% drop in sales.

While another victim of the tough retail environment, Pacific Sunwear of California, is to close up to 200 under-performing stores after securing new credit agreements designed to help turn around the ailing business. The announcement came as the US company posted wider third quarter losses and falling sales.

And India has backtracked on its decision to allow more foreign investment in the country's multi-brand retail sector. However, it is thought the government still plans to relax single-brand foreign direct ownership rules, which would allow brands like Marks & Spencer, Ikea, Gap and Armani to own their operations in the country.

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Dance into 2012 with Tangerine Tango

09 Dec 2011 17:36

Now that another rollercoaster of a year is nearly over, you might want to know that 'Honeysuckle' helped us to face everyday troubles with verve and vigour. And next year, 'Tangerine Tango,' a spirited reddish orange, will help us on our way by continuing to provide the energy boost we need to recharge and move forward.

At least, that's according to colour specialist Pantone, which has decided that Pantone 17-1463 Tangerine Tango, "a vivacious, enticing hue," is the colour of the year for 2012.

"Sophisticated but at the same time dramatic and seductive, Tangerine Tango is an orange with a lot of depth to it," says Leatrice Eiseman, executive director of the Pantone Color Institute. "Reminiscent of the radiant shadings of a sunset, Tangerine Tango marries the vivaciousness and adrenaline rush of red with the friendliness and warmth of yellow, to form a high-visibility, magnetic hue that emanates heat and energy."

A provocative attention-getter, the colour is especially appealing in men's and women's fashion - and has already been picked up by designers Tommy Hilfiger, Nanette Lepore, Cynthia Steffe by Shaun Kearney, Elie Tahari and Adrienne Vittadini in their spring collections. A fun, lively take on a traditional autumnal hue, Pantone is also betting that Tangerine Tango will carry through to autumn lines as well.

In case earlier forecasts passed you by, here's a quick reminder of the colourful highlights of the last decade or so:

  • Pantone 18-2120 Honeysuckle (2011)
  • Pantone 15-5519 Turquoise (2010)
  • Pantone 14-0848 Mimosa (2009)
  • Pantone 18-3943 Blue Iris (2008)
  • Pantone 19-1557 Chili Pepper (2007)
  • Pantone 13-1106 Sand Dollar (2006)
  • Pantone 15-5217 Blue Turquoise (2005)
  • Pantone 17-1456 Tigerlily (2004)
  • Pantone 14-4811 Aqua Sky (2003)
  • Pantone 19-1664 True Red (2002)
  • Pantone 17-2031 Fuchsia Rose (2001)
  • Pantone 15-4020 Cerulean (2000)

Comments on this blog post

That should be an interesting sight on the fake tan faithfuls!

 

JoanneYoul said at 3:57 pm, December 12, 2011

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Black Friday boosted by bargains

05 Dec 2011 13:24

US retailers posted a mixed bag of results in November, with earlier opening hours and Black Friday bargains helping to drive consumer traffic over the Thanksgiving weekend for some, but tougher comparisons with the year-ago period and weaker sales during the rest of the month weighing on others.

Black Friday is the biggest shopping day of the year and the traditional start to the holiday shopping season, so November retail sales are watched closely for first signs of how the holiday season is likely to pan out. During the month, same-store sales growth slowed to 3.3% - but traffic and spending over the Thanksgiving weekend reached historic highs of $52.4bn according to a survey by the National Retail Federation.

After years of speculation and fierce debate, India looks set to ease restrictions on foreign investment in its booming retail sector. Business organisations and multinationals have welcomed the decision, but politicians remain divided on the issue.

Meanwhile, US retailer Marks & Spencer has provided an update on the progress of its Plan A ethical and sustainability programme - including its "Ethical Excellence" award for a denim factory in Bangladesh and a woven fabrics unit in Indonesia. Separately, the firm said it will begin selling a cashmere coat made from recycled fibres, which it claims is the UK's first closed loop clothing product from a major retailer.

Work has also begun on one of the Caribbean's largest industrial parks, which is being built in Haiti as part of an international project designed to help the country recover from the devastating earthquake that hit nearly two years ago. The initiative will generate thousands of jobs for apparel workers after South Korean garment maker Sae-A Trading promised to invest $70m in new facilities there.

But the US government has also admitted that a scheme introduced to help stimulate apparel exports from Haiti has been used by just one company this year.

And what started out as a challenge back in July by environmental pressure group Greenpeace to try to persuade global fashion brands and retailers to eliminate the discharge of hazardous chemicals from their supply chains and products has been gaining momentum ever since. So much so that Adidas, C&A, H&M, Li Ning, Nike and Puma now describe their efforts as a "game-changing collaboration."

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