View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
April 9, 2021

Sustainability scrutiny a long term challenge for apparel firms

Mounting scrutiny of sustainability will create long-term financial and reputational risk for many global apparel companies, a credit ratings agency says.

By Beth Wright

Mounting scrutiny of sustainability will create long-term financial and reputational risk for many global apparel companies, a credit ratings agency says.

Free Report
img

How can brands navigate the post-COVID-19 Apparel market?

In 2021, the Global Apparel market remained at 3% below pre-pandemic levels, with Europe and LATAM lagging behind. If they want to see full recovery, brands must look ahead. GlobalData is therefore offering this free report, Future of the Apparel Market Post Pandemic, to assist companies in adapting to the future market. This report explores the following topics:
  • Latest forecasts for the online apparel market out to 2025
  • How different regions and categories will perform, including which regions are lagging behind and which are performing at pre-pandemic levels
  • Which categories within the Apparel market are displaying resilience
  • Which brands are driving online spending
  • Impact of inflation on the Global Apparel market
  • What the biggest trends are that apparel businesses must adopt to succeed
Read our report on the Future of the Apparel Market Post Pandemic to gain valuable insights on how to best position your brand in a post-COVID-19 world.
by GlobalData
Enter your details here to receive your free Report.

Apparel production practices have a significant impact on the environment and put an increasing strain on raw material resources. These will increase input costs in the longer term and erode many brands’ credit quality, according to analysts at Moody’s Investors Service.

They note apparel companies will have to transform their value chains to remain competitive, by adapting to sustainability, investing in decarbonisation and increasing sourcing transparency.

“Changing behaviour among environmentally conscious and socially aware consumers will put more competitive pressure on global fashion brands to adapt to sustainability measures. Longer term, environmental and social factors will put the apparel industry’s profitability at risk,” says Guillaume Leglise, assistant vice president – analyst, at Moody’s Investors Service.

Small brands already suffering from the pandemic will struggle to adapt, while large international brands and luxury companies such as H&M, Nike, Adidas and Ralph Lauren will fare better. Fast fashion and discount brands are the most at risk of competitive pressure as sustainability becomes more important to consumers, Moody’s analysts add.

“Regulatory challenges related to data protection are also increasing for apparel companies. Brands using online and data analytics are vulnerable to data protection risks, cyberattacks and non-compliance fines, all of which can tarnish their reputations,” the firm says in a research note.

Related Companies

Free Report
img

How can brands navigate the post-COVID-19 Apparel market?

In 2021, the Global Apparel market remained at 3% below pre-pandemic levels, with Europe and LATAM lagging behind. If they want to see full recovery, brands must look ahead. GlobalData is therefore offering this free report, Future of the Apparel Market Post Pandemic, to assist companies in adapting to the future market. This report explores the following topics:
  • Latest forecasts for the online apparel market out to 2025
  • How different regions and categories will perform, including which regions are lagging behind and which are performing at pre-pandemic levels
  • Which categories within the Apparel market are displaying resilience
  • Which brands are driving online spending
  • Impact of inflation on the Global Apparel market
  • What the biggest trends are that apparel businesses must adopt to succeed
Read our report on the Future of the Apparel Market Post Pandemic to gain valuable insights on how to best position your brand in a post-COVID-19 world.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Style