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Category: Fashion

Retail News Asia is committed to providing both local and global retailers with the latest Fashion news throughout the Asian market. This on a daily base.

  • Nike unveils new store in Singapore at VivoCity

    Nike unveils new store in Singapore at VivoCity

    Sportswear giant Nike has collaborated with GMG to launch a new-generation store at Vivo City in Singapore.  According to Nike, the 5900sqft store is intended to bring customers closer to sports and closer together. It has a wide selection of innovative gear, sporting essentials, and seasonal offerings for men, women, and children. Nike says customers can take advantage of styling expert sessions with store athletes, who can help customers of all ages choose appropriate apparel and footwear for

    According to Nike, the 5900sqft store is intended to bring customers closer to sports and closer together. It has a wide selection of innovative gear, sporting essentials, and seasonal offerings for men, women, and children.

    Nike says customers can take advantage of styling expert sessions with store athletes, who can help customers of all ages choose appropriate apparel and footwear for running, training, playing basketball, or simply living an active lifestyle.

    In addition, the Vivo City store offers a buy-online, pick-up-in-store service, and plans to organise community events.

    “In our commitment to bringing consumers closer to sport, we are reintroducing our VivoCity store that is fitted to offer athletes of all sports and expert levels some of the most innovative Nike products and services today,” said Carl Masterman, GMG senior VP retail, SEA – sports.

    “At VivoCity, fit is our focus – and our store athletes are on hand to ensure shoppers are equipped with the best fit for their sport of choice or lifestyle needs. The personal touch is extended also to our … community events for like-minded athletes that will be unveiled in the coming months.”

  • Burberry closes prominent Hong Kong flagship

    Burberry closes prominent Hong Kong flagship

    British luxury fashion house Burberry is the latest luxury brand to withdraw from Hong Kong’s famous shopping street Canton Road.

    The closure of the three-storey store came after Burberry shut its prominent Russell Street flagship last year, highlighting its struggles in a market still heavily impacted by Covid-19 restrictions.

    Canton Road is known as a hub for luxury brands and is home to the giant Harbour City shopping mall. The street was a common destination for Mainland tourists before the advent of Covid-19 and the closure of the border with the mainland. The Burberry Canton Road flagship opened in 2011 and was reported by WWD to have a monthly rent of US$1.12 million.

    The luxury retailer currently has 10 stores across the territory.

    Prior to Burberry, several luxury brands shut stores along the Canton Road retail strip due to the lack of tourists including Valentino, Tiffany & Co, and Coach. Earlier this year, Hong Kong introduced its strictest Covid-19 measures due to the spread of the Omicron variant, resulting in widespread retail and foodservice closures.

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  • Reliance Retail inks franchise deal with Gap

    Reliance Retail inks franchise deal with Gap

    Reliance Retail Ltd on Wednesday announced its long-term partnership with Gap and plans to bring the iconic American fashion brand to India.

    “Through a long-term franchise agreement, Reliance Retail has become the official retailer for Gap across all channels in India,” said a joint statement.

    Reliance Retail will introduce Gap’s offerings to Indian consumers through a mix of exclusive brand stores, multi-brand store expressions and digital commerce platforms.

    “The partnership is aimed at leveraging Gap’s position as a leading casual lifestyle brand and Reliance Retail’s established competencies in operating robust omni-channel retail networks and scaling local manufacturing and driving sourcing efficiencies,” it said.

    Founded in San Francisco in 1969, Gap is considered as an authority on modern American style. It continues to build on its heritage grounded in denim and connect with customers online and in company-operated and franchise retail locations globally.

    Reliance Retail CEO, Fashion & Lifestyle, Akhilesh Prasad said: “We believe that Reliance and Gap complement each other in their vision to bring industry-leading fashion products and retail experiences to their consumers.”

    Managing Director of International, Global Licensing and Wholesale at Gap Inc Adrienne Gernand said: “Partnering with regional experts, like Reliance Retail in India, allows us to deliver our relevant, purpose-driven brand to customers around the globe, while continuing to diversify our business portfolio through our partner-based model.”

    Reliance Retail is a subsidiary of Reliance Retail Ventures Ltd (RRVL), the holding company of all the retail companies under the Reliance Industries Ltd group.

    RRVL reported a consolidated turnover of Rs 1,99,704 crore ($26.3 billion) for the year ended on March 31, 2022.

    Gap Inc products are available for purchase worldwide through company-operated stores, franchise stores and e-commerce sites. Its net sales for the fiscal year 2021 was at $16.7 billion.

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  • Sneaker Boutique atmos Reduces Online Cart Abandonment and Increases Revenue with Forter

    Sneaker Boutique atmos Reduces Online Cart Abandonment and Increases Revenue with Forter

    Forter, the Trust Platform for digital commerce, announced Foot Locker atmos Japan G.K., a sneaker boutique, has selected Forter to help combat fraud in its online store. Since deploying Forter, atmos has significantly reduced chargebacks and maintained an approval rate of over 98%.

    Previously, atmos used a rules-based, manual fraud prevention solution. However, fraudsters were able to exploit the system’s weaknesses. The company also deployed 3D Secure to provide an extra layer of authentication at checkout, but this introduced unnecessary friction for good customers and led to a higher cart abandonment rate.

    With Forter, atmos has addressed both challenges by fully automating its fraud prevention program and replacing 3D Secure. The company’s partnership with Forter has maximized genuine customer experience and lifetime value by making precise decisions about customer trustworthiness at critical interactions. This has reduced friction for good customers, reduced the cart abandonment rate and grown revenue.

    Forter’s platform is powered by the largest network of retailers, meaning a fraudster known to one of its customers is known to all. Forter applies machine learning to deliver decisions that are 100% automated, with average response times under 400 milliseconds. Since the platform has no dependency on manual reviewers, it scales seamlessly as merchants grow.

    Mr. Okayama, General Manager of atmos’ EC Business Department, said, “With the previous rules-based system, it was challenging to discern between legitimate and fraudulent transactions, and the need for manual reviews placed a heavy burden on operations. While the introduction of 3D Secure reduced chargebacks, the friction it caused increased cart abandonment rates. Forter’s fully automated solution solves these challenges by removing the need for manual reviews, increasing our accuracy and streamlining the buyer’s journey.”

    Yosuke Noda, Forter’s Country Manager for Japan, said, “We are very pleased to be working with a leading brand like atmos to deliver precise decisions about customer trustworthiness at critical interactions. This decisioning helps atmos improve customer experiences while driving revenue,” said Mr. Noda.

    Foot Locker atmos Japan G.K.

    The name of the store, “atmos,” is derived from the word “atmosphere,” and we want to be a store that is as natural to be there as the atmosphere itself. atmos” opened its head store in Harajuku, Tokyo in 2000. With the theme of sneakers as fashion, a sneaker wall was set up inside the store. The store is dedicated to introducing Tokyo’s sneaker culture to the world through collaborations with national brands, exclusive models, test launches of the latest products, and marketing.

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  • Luk Fook to add 500 stores this year and expand online

    Luk Fook to add 500 stores this year and expand online

    Hong Kong jeweler Luk Fook’s revenue and profit rose by around 30% to 40% for the full fiscal year that ended March 31, the company estimated.

    A low base of comparison with the previous year — which saw pandemic-related restrictions — is responsible for the increase during the period, Luk Fook said last week. In fiscal 2021, business in China was weak, and Hong Kong and Macau were on lockdown.

    The company’s expansion in mainland China, strong sales of gold products, and the easing of restrictions in Hong Kong and Macau also buoyed sales, it explained.

    The retailer saw an “encouraging recovery of retail atmosphere in the first three quarters of the year,” it noted.

    Reports from other Hong Kong-based jewelers indicated that the fourth quarter of fiscal 2022 and the start of the 2023 financial year had been challenging. Tse Sui Luen said sales had plunged sharply during the period amid the fifth wave of the pandemic, while Chow Tai Fook reported a 13% drop in the first two months of the current fiscal year.

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  • Nike forecasts downbeat quarterly revenue on lingering China worries

    Nike forecasts downbeat quarterly revenue on lingering China worries

    Nike forecast first-quarter revenue below estimates as it expects to discount more and wrestles with pandemic-related disruptions in China, its most profitable market.

    The company’s shares fell 3% to $107 after the bell.

    Analysts are mixed about Nike’s prospects in China this year even as strict COVID-19 lockdowns have been lifted in several of the country’s major cities, as people cut down on spending and a penchant for home-grown brands such as Li Ning and Anta remains firm.

    “We are taking a cautious approach to Greater China, given uncertainty around additional COVID disruptions,” Nike Chief Financial Officer Matthew Friend said.

    The company expects first-quarter revenue to be flat to slightly up, below estimates of a 5.1% increase, according to Refinitiv IBES data.

    “The guidance was somewhat disappointing,” Morningstar analyst David Swartz said.

    Fashion retailers in China are also stuck with piles of unsold stock as the recent re-opening has also seen a flood of goods being shipped from warehouses to store shelves.

    Nike said its gross margins would be under pressure this year due to higher freight and product costs, and as it discounts more to sell seasonal inventories that arrived late due to supply snarls.

    The company’s inventories rose 23% to $8.4 billion at the end of May as more of its products remain in transit due to supply disruptions.

    Nike also forecast fiscal 2023 revenue to increase in the low double digits percentage range on a currency-neutral basis.

    For the fourth quarter, the company reported revenue of $12.23 billion, beating estimates of $12.06 billion, helped by higher sales in Europe, Middle East and Africa.

    Nike recorded a $150 million charge related to its decision to exit Russia and transition of business models in a few South American countries.

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  • H&M closes Shanghai flagship after Covid lockdowns

    H&M closes Shanghai flagship after Covid lockdowns

    H&M has shut its flagship Shanghai store, its latest closure in China where consumer demand has slumped amid COVID-19 lockdowns and the fast-fashion retailer has borne the brunt of a backlash against companies that refuse to use Xinjiang cotton.

    Although it was open earlier this month, the three-storey building in downtown Shanghai was on Friday boarded up with its H&M signage gone.

    The world’s second-biggest fast-fashion retailer entered China in 2007 with the opening of the Shanghai flagship store and rapidly expanded. It had more than 500 stores in mainland China early last year but its website currently only lists 376, including the flagship Shanghai store.

    The company declined to comment, citing a blackout period prior to its first-half earnings report on June 29.

    Although nearly a month has passed since Shanghai lifted a strict two-month lockdown, consumers have yet to return to malls in significant numbers.

    Chinese consumers have also beat a retreat from its products after a letter in which H&M expressed concerns about allegations of forced labour in the Xinjiang region came to light in 2021.

    Other brands that publicly disavowed Xinjiang cotton such as Inditex’s, Zara, Nike and Adidas have also suffered with Chinese netizens calling for boycotts and Chinese celebrities refusing to work with them.

    But the backlash against H&M, the first foreign retailer to express concerns, has been particularly harsh. Unlike other brands, its products remain unavailable on major Chinese e-commerce sites such as Tmall and JD.com.

    UN experts and rights groups estimate over a million people, mainly Uyghurs and other Muslim minorities, have been detained in recent years in a vast system of camps in China’s western Xinjiang region.

    Many former inmates have said they were subject to ideological training and abuse in the camps. China denies all accusations of abuse.

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  • Chow Tai Fook arm in bid for Giordano International

    Chow Tai Fook arm in bid for Giordano International

    Giordano International Ltd. climbed as much as 23% after an investment vehicle owned by Hong Kong’s third-richest person offered to buy the apparel retailer.

    Clear Prosper Global Ltd., a BVI vehicle wholly-owned by Chow Tai Fook Nominee Ltd., offered to buy Giordano for HK$1.88 (24 cents) per share, according to a filing late Thursday. That’s an 18% premium on its most recent closing price, and shares surged to as much as HK$1.95 on Friday.

    The investment vehicle and its related parties already hold a 24.57% stake in Giordano and the maximum cash consideration is HK$2.56 billion, according to the statement.

    Chow Tai Fook Nominee is a private vehicle owned by the Cheng family, whose patriarch, Henry Cheng, is Hong Kong’s third-richest person with a fortune of $22.6 billion, according to the Bloomberg Billionaires Index. The family’s sprawling investment empire includes one of the world’s biggest jewelry chains, as well as real estate, infrastructure and hotels.

    Established in 1981, Giordano has around 2,100 shops in more than 30 countries and regions, according to its website. The acquisition offer will let the group continue its existing principal business, and there are no intended job cuts, according to the statement.

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  • Oriental Watch bullish as sales

    Oriental Watch bullish as sales

    Oriental Watch (398 HK)announced it is proposing to buy back a maximum of 83 million shares at 3 HKD (249M HKD). This represents a premium over 57% vs the average 30-day closing price on HKex. Once the shares are bought back they will be canceled which will reduce total shares outstanding from 570 million to 478 million. A Special General Meeting (SGM) will be needed to approve the transaction, details of which are pending an official Offer Document. The full transaction has been covered by David Blennerhassett Oriental Watch (398 HK): Conditional Partial Offer 

    As long-time Oriental Watch followers let’s step back and assess what this means:

    • The controlling family’s stake will rise over 30% (depending on uptake 30.85-36.10%) but they won’t have to make a mandatory general offer as they have requested an exemption from HKex. Minority investors need to approve the transaction: we would advise minorities to vote IN FAVOR.
    • The founding family upping its stake at a significant premium to the latest stock price is bullish.
    • Even at 3 HKD, the shares trade far below their latest book value of 4.04 HKD.
    • With increased ownership management is now more incentivized to keep on paying large dividends going forward.
    • Mr. Market has been perenially mispricing Oriental Watch at negative enterprise value or barely above net cash over the last 5 years. As discussed at length in various previous insights we think this is wrong and the latest transaction again highlights the underlying value.
    • The company has returned 0.885 HKD/share in dividends over the past four years. When judging Oriental Watch’s share price performance please make sure you look up the total return on your Bloomberg.
    • Mainland China Rolex sales have been seeing YoY SSS increases of 40-80% since April (depending month to month). Once HK opens up SSS comps become very easy after 2019 (riots) and 2020 (Covid-19). Please re-read our insight on Oriental Watch being a way to play Rolex in China Oriental Watch: Bet on Rolex Demand in China/HK and Collect 12% Dividends While Waiting 
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  • Amazon, Cartier sue counterfeiters using social media to sell fakes

    Amazon, Cartier sue counterfeiters using social media to sell fakes

    Amazon is continuing its crackdown on counterfeiters, this time against a social media influencer they claim was selling fake Cartier bracelets, necklaces and earrings.

    The online retail giant said on Wednesday that it filed two joint lawsuits with Cartier against an unnamed social media influencer and eight businesses for allegedly promoting counterfeits on social media and other websites that were then sold on Amazon. The lawsuits were filed in the US District Court for the Western District of Washington, alleging the businesses conspired together to sell counterfeits and falsely advertise them as real, infringing on Cartier’s trademarks, avoiding Amazon’s anti-counterfeiting detection tools and violating Amazon’s policies, according to the companies.

    While items on Amazon were non-branded and listed with generic product descriptions to avoid detection by Amazon’s anti-counterfeit policies, the ads linking to the Amazon product pages used the Cartier brand name to sell the allegedly fake bracelets, necklaces and earrings, according to the companies. For instance, a counterfeit of the Cartier Love bracelet was listed on Amazon as “Women’s Fashion Classic Screw Love Titanium Steel Bracelet”.

    Amazon has put more effort into detecting and removing counterfeit sellers from the site. According to the company’s second Brand Protection Report, published in 2022, Amazon stopped over 2.5 million attempts from bad actors to create new selling counts, down over 6 million compared to the previous year. The company also increased the number of brands on its Brand Registry tool, which detects infringements, leading to a 25 per cent decrease in infringements compared to the previous year.

    Amazon has also begun working directly with luxury brands to remove fake products from its site; last February, Amazon filed two joint lawsuits with Ferragamo against counterfeiters, and in April, the companies said Chinese authorities had conducted an investigation and seized the counterfeit products. In June 2020, Amazon filed its first joint lawsuit with Valentino against New York-based Kaitlyn Pan Group for allegedly counterfeiting the brand’s Rockstud shoes, though the case was settled in January 2021.

    “By using social media to promote counterfeits, bad actors undermine trust and mislead customers,” said Kebharu Smith, associate general counsel and director of the Amazon Counterfeit Crimes Unit, in a statement. “Amazon will keep investing and innovating to stay ahead of counterfeiters and working with brands and law enforcement to hold bad actors accountable. We don’t just want to chase them away from Amazon — we want to stop them for good.”

    Amazon has been making efforts to break into the luxury market: earlier this month, it rolled out its Luxury Stores concept to the UK, Germany, France, Italy and Spain after launching it two years ago with Oscar de la Renta and Roland Mouret, among others. However, experts say that the widespread selling of counterfeits and dupes by third-party sellers on the platform is holding the e-commerce behemoth back from elevating its position.

    By publicising its condemnation of counterfeits, Amazon wants to signal its trustworthiness to the luxury sector. “Amazon is deeply committed to protecting brands’ intellectual property and strictly prohibits counterfeit products in its stores,” the company said in a statement, adding that it invested $900 million and employed 12,000 people to protect against counterfeits in 2021.

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  • Zalando takes control of Highsnobiety

    Zalando takes control of Highsnobiety

    Zalando says the two companies will join forces to lead the way in engaging and inspiring customers, leveraging each other’s complementary strengths by bringing together Highsnobiety’s cultural relevance and insight, fashion authority and storytelling expertise with Zalando’s fashion network, e-commerce know-how and operational capabilities.

    While continuing independent operations, Highsnobiety will act as a strategic and creative consultant helping Zalando develop new inspiration-focused spaces and formats on its platform. In turn, joining the Zalando Group allows Highsnobiety to leverage Zalando’s expertise and resources to fuel its own e-commerce capabilities.

    Highsnobiety was founded in Berlin in 2005 by David Fischer as a blog that heralded the convergence of streetwear and high-end luxury fashion. Today, Highsnobiety comprises a publishing arm, creative consultancy, and a curated commerce platform. Teaming up with Highsnobiety will accelerate Zalando’s ambition to be a top destination for streetwear, new luxury, and fashion inspiration, especially for the younger, fashion-forward consumers.

    “Both of our companies share a passion for building strong brand partnerships and enabling brands to inspire audiences with their products and stories. Partnering with Highsnobiety will allow us to execute much faster on our ambition to offer the most relevant and engaging – as well as convenient – shopping experience to our customers,” says David Schneider, Zalando’s founder and co-CEO.

    As part of the deal, Highsnobiety will retain its editorial and curational autonomy, with the publishing and agency work remaining fully independent. Highsnobiety will continue to be led by its two managing directors, Fischer and Jürgen Hopfgartner, and Fischer will retain a minority stake in the business.

    Last month, co-CEO of Zalando Robert Gentz said the company remains confident it will achieve its ambition to reach more than EUR30bn (US$31.8bn) Gross Merchandise Volume (GMV) by 2025, despite the impact of macroeconomic factors in the first quarter.

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  • Shopee culls staff across SE Asia, Europe

    Shopee culls staff across SE Asia, Europe

    Sea Group’s e-commerce arm Shopee is laying off staff across multiple markets as it seeks to rationalize its e-commerce business, DealStreetAsia has learned.

    The layoffs have affected employees across several of the company’s Southeast Asian markets including Indonesia, Thailand and Vietnam, sources told DealStreetAsia. The company is said to have emailed employees affected by the layoffs, the sources added.

    Shopee’s payments arm ShopeePay and food delivery business ShopeeFood are also said to be facing cuts. A general meeting was also reportedly held on Monday to address the job cuts with Shopee employees.

    The extent of the job cuts and the number of employees affected could not be confirmed at the time of publishing. DealStreetAsia has reached out to Shopee for comment.

    Two sources aware of the matter said nearly half of Shopee Thailand’s payment and food delivery teams have been affected by the downsizing. One of the sources noted that the email was said to have been managed in an off-handed manner, with the company asking staff members to return home and await further notice of termination.

    A separate source told DealStreetAsia that Shopee has stopped hiring, with several job offers for regional roles rescinded.

    While Sea Group’s business continues to show signs of improvement in overall profitability, most of its revenue continues to come from its gaming arm Garena.

    Sea Group’s first-quarter 2022 financials reflected a 64.4% year-on-year increase in Generally Accepted Accounting Principles revenue at $2.9 billion, with gross profits soaring 81.3% to $1.2 billion over the same period.

    Shopee’s business, while still losing money, has also reflected improvements, with a 71.3% year-on-year increase in orders to $1.9 billion in the first quarter of 2022 while gross merchandise value rose 38.7% to $17.4 billion. Importantly, Shopee’s gross profit margin for e-commerce increased year on year, with faster growth in transaction-based fees and advertising income generating higher margins versus other value-added services.

    Shopee, however, continues to face several macro headwinds, including rising inflation and interest rates, that may dampen retail and consumption sectors.

    The company also appears to be facing setbacks on some of its ambitious internationalization plans, including its forays into Europe and Latin America. Shopee, which has operations in Poland and Spain, decided to pull out of France after only five months as it was not meeting expectations.

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  • New Nike concept store opens in Hong Kong

    New Nike concept store opens in Hong Kong

    The new store has been launched by GMG as part of the company’s plans to ramp up its investment in the Asia market.

    The new Nike store spans over 2171sq ft and is situated in the East Point City shopping mall in Hang Tau district. It is home to sportswear for both men and women, in various categories including running, basketball and training.

    GMG has partnered with Nike in other markets since 1982, and entered the Asia market in 2020 after buying Royal Sporting House, a leading multi-sports retailer and recently purchasing Nike retail stores from SUTL Corporation, expanding its presence in Singapore and Malaysia.

    Mohammad A Baker, Deputy Chairman and CEO, GMG, said: “Asia is propelling the retail industry forward, generating a substantial portion of global growth in the sector and offering immense potential and expansion opportunities for GMG. The opening of our new Nike store in a key market such as Hong Kong, the first in two years, further signifies the recovery of a post-pandemic economy while allowing us to strengthen our physical retail presence in Asia.”

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  • Cult skincare brand MooGoo launches into New Zealand

    Cult skincare brand MooGoo launches into New Zealand

    As of this month New Zealanders are now able to walk into pharmacies across the country and buy one of Australia’s most popular skincare lines, MooGoo, as the number of Kiwis with skin disorders is on the rise.

    New Zealand has one of the highest incidence of eczema in the world, with the skin condition now affecting one in three Kiwis, and around 15% of children.

    MooGoo CEO Melody Livingstone says the brand’s expansion into New Zealand was driven by strong interest from local customers.

    “Given the climate in New Zealand, with so many people suffering from skin conditions, we fast-tracked our entry,” says Ms Livingstone.

    “The climate is very similar to Ireland, which per capita is our biggest market outside of Australia,” she added.

    MooGoo has more than 45 natural products that help a range of skin problems, including eczema and psoriasis. All of them are now available online in New Zealand, and more than half the range will be stocked on shelves.

    In Australia demand for the products has skyrocketed, with the company seeing some 30% growth and it’s now stocked in just about every pharmacy across the country.

    “Consumers are becoming a lot more knowledgeable about product ingredients and are increasingly seeking natural and eco-friendly treatments and remedie,” explains Ms Livingstone.

    “There’s also been a lot of anxiety surrounding the pandemic, which seems to have caused an increase in eczema, psoriasis and other skin flare-ups.

    “We’re also hearing a lot of people talking about acne and perioral dermatitis, caused by heat, moisture, friction, trapped dirt and bacteria from wearing a mask for long periods of time and also suffering with painful cracked hands from continuous hand sanitising and washing.

    “The crazy weather conditions haven’t been helping either.”

    In Australia, MooGoo products are also used in neonatal, paediatric and oncology wards and in the UK the business is supported by the British equivalent of the Medicare – the NHS.

    “At MooGoo, our ingredient philosophy is simple – to make effective products with healthy ingredients for you, your loved ones and the environment,” adds Ms Livingstone.

    “We understand all consumption has an impact, and our goal has always been to minimise our impact on the environment.”

    MooGoo products can now be purchased at 58 New Zealand pharmacies and health stores, it is also available online at www.moogoo.com.au

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  • H&M, Lululemon back $250 million Fashion Climate Fund

    H&M, Lululemon back $250 million Fashion Climate Fund

    Lululemon Athletica and H&M Group are among backers of a $250 million fund aiming to speed up efforts to cut carbon emissions in the fashion industry’s supply chain, non-profit group Apparel Impact Institute said on Wednesday.

    Bringing together clothing brands, philanthropic donors and other industry stakeholders, the institute’s Fashion Climate Fund also hopes to unlock a further $2 billion in funding once effective solutions have been found and scaled up.

    Other early backers include the H&M Foundation and the Schmidt Family Foundation. More are expected to be announced in the coming months, with the fund hoping to raise $10 million from each.

    “The urgency to address the climate issues has never been more acute. Early-stage innovations and new solutions play a critical role, but the impact does not happen before they can be scaled, and the industry starts adopting and implementing them,” said the H&M Foundation’s Christiane Dolva.

    “The Fashion Climate Fund will support new programmes and solutions with a structured pipeline for getting from pilot to scale. We believe it provides a powerful mechanism to overcome the challenges of getting new solutions implemented by the industry, and thereby accelerate the progress on climate action.”

    While many of the world’s leading companies have committed to reaching net-zero emissions across their businesses by mid-century and to halving emissions by 2030, the Apparel Impact Institute said many large barriers remain.

    A recent study it conducted with the World Resources Institute found 96% of the fashion industry’s emissions come from third-party farms and factories used by multiple firms.

    The fund will help finance a range of initiatives including expanding the use of renewable energy, developing next-generation materials, ditching the use of coal in manufacturing and improving energy efficiency.

    It hopes that the use of philanthropic capital to help fund early stage projects and the forging of partnerships with retailers to scale up successful initiatives will encourage other industry participants to help meet future funding needs.

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