Tag: clothes

  • Japanese entrepreneur revisits nation’s golden apparel era with Factelier

    Japanese entrepreneur revisits nation’s golden apparel era with Factelier

    Toshio Yamada, the founder of Factelier, is a young Japanese entrepreneur who wants to preserve the craftsmanship of his country’s apparel industry.

    Yamada has created his own uniquely Japanese brand Factelier which designs and sources clothing and accessories for men, women and babies from experienced, typically family-owned, clothing factories spread all over the nation. They are sold online and shipped to 100 countries, through a small network of boutiques in Japan and Taiwan, and in selected department stores.

    Yamada’s vision is to preserve the rich heritage of apparel manufacturing and let the suppliers he works with emerge from the unavoidable anonymity that comes with supplying global brands.

    Thirty years ago, Japan, one of the world’s largest apparel markets, used to produce 50.1 percent of its domestic sales. Today, thanks to the rise of fast fashion and the outsourcing of manufacturing to countries like China, Bangladesh and Vietnam, that share has slumped to just 3 percent. More than three-quarters of the companies manufacturing clothing in Japan in 1990 are no longer trading today.

    Yamada was born into a family that ran a women’s clothing store for 100 years in Kumamoto, on the island of Kyushu. Living upstairs, he helped out on the shop floor from early childhood, surrounded by quality locally made clothes in an era when ‘made in Japan’ was familiar.

    Later, as a student, Yamada interned with luxury label Gucci in Paris. There the realization dawned on him that labels like Gucci, Hermes, and Louis Vuitton were all born in factories. “So they respect craftsmanship. Now I’m hoping to revive the local craftsmanship in Japan.

    “Our dream is to create world-class brands made in Japan, and build a sustainable and profitable link between these local artisans and consumers around the world, by selling clothes from Japanese factories directly to consumers, cutting out the middleman,” he told Inside Retail Asia.

    Factelier was created via an astonishing commitment to researching the industry. Yamada personally visited some 600 factories the length and breadth of Japan before selecting 55 of them as suppliers, all of them with experience in supplying top international brands.

    “A lot of these companies did not have a homepage, right, and Google did not know about them. So I would take a train and get off at a station and go to a telephone box and use the telephone book to find them.” He would then phone the factories he found listed and ask if he could stop by.

    Somewhat surprised, they invariably welcomed him. “It was a very old style approach,” he recalls.

    Having built the network he not only maintains constant personal contact with his suppliers, but their company names appear beneath Factelier on the clothing labels. The connection between craftsmanship and consumer runs even deeper: Yamada’s company runs regular factory tours for customers so they can see the art and commitment that goes into the clothing they buy.

    “We know the stories behind the factories, how they make the products, and it’s very interesting – when our customers go to the factories and they see the craftwork behind the clothes they become loyal customers.”

    It took Yamada three years to build the base of the business, living off a part-time job as he traveled from factory to factory and developed designs and products. Eight years since his mission began, Factelier has grown to a 50-strong team with four stores and a warehouse in Japan, two stores in Taipei – and even a cafe. Sales are currently doubling twice a year with 80 percent of orders from Japan. The largest overseas markets are the US, Mainland China, Taiwan and Hong Kong.

    “Fashion manufacturing used to be a declining industry in Japan, but I think if we have the passion and the vision, I think we can revive it. And more importantly, [our customers] will spend more for better products.”

    Factelier’s garments are of similar quality (but not design) to those being supplied to the likes of Gucci or Hermes – but sell for about half the price. It helps, of course, that Factelier is not paying for massive international advertising budgets and other overheads associated with luxury brands. Typically the factory gets a higher price for the clothing it produces for Factelier because the two parties jointly decide on the retail price, rather than the label dictating pricing and how much the factory gets for making it.

    “It’s a very, very different business model from traditional brands,” says Yamada.

    That said, the factories could not survive on Factelier alone – the Japanese label typically only accounts for between 5 and 10 percent of a partner factory’s production. But they are getting a better deal and Yamada says many are finding themselves able to employ more graduates to expand their business.

    The closer relationship between brand, manufacturer, and the customer has produced an unexpected spinoff: consumers are starting to influence the range and style of clothing being produced, especially in the field of functional clothing.

    “One day a customer asked us to manufacture clothes that would repel mosquitos. That’s a very, very difficult request.” Diligently working with factories and textile suppliers Yamada’s team succeeded, by incorporating a herb in the fabric that sends the mozzies packing.

    During our conversation, Yamada wore a stylish blue wrinkle-free jacket. “If I pack it in a trunk, it does not crease.” Another product uses baseball-uniform techniques to create 3D pattern effects.

    And Factelier sells stain-proof white jeans. Spill soy sauce, wine, coffee or ketchup over the denim and it comes off immediately without leaving a stain. This was another product designed to fulfill a customer’s request.

    Besides his interest in functional clothing, Yamada is committed to sustainability. The company uses natural fibers and biodegradable fabrics and it recently planted an organic cotton farm near Mount Fuji. Japan imports 99 percent of its cotton and he wants to change that reliance on other countries.

    Yamada is optimistic there is a strong future for direct-to-consumer brands. “The size of the B2C market in Japan expanded to US$180 billion in 2018. It grew by $160 million, or 9 percent, in that year.

    “Yes, craftsmanship is very big. I want to spread the idea of craftsmanship all over the world.”

  • VF Corporation to boost Greater China management ranks

    VF Corporation to boost Greater China management ranks

    Apparel, footwear and accessories firm VF Corporation is making a series of organizational changes it says will “strengthen and accelerate” its business strategy in Asia Pacific, with a particular focus on China.

    The company, which owns a portfolio of outdoor and activity-based lifestyle and workwear brands, including Vans, The North Face, Timberland, and Dickies, expects China to account for 80 percent of its global sales by 2024, up from 65 percent now.

    VF is establishing a new position of president, Greater China, expecting to make the appointment later this summer. The person will be responsible for operations in Mainland China, Hong Kong, and Taiwan.

    “When we introduced our new global business strategy in 2017, we declared our commitment to invest in our Apac region and accelerate growth for our brands, all with a particular emphasis on China,” said VF Corporation chairman, president and CEO Steve Rendle.

    “By creating the new position of president, Greater China, we’re leaning even further into the many opportunities we see to elevate our business and brands in this fast-moving, digitally-driven marketplace. We look forward to announcing our appointment later this summer.”

    VF Corporation’s current group president Asia Pacific Kevin Bailey (right) will continue in his role but relocate to Colorado, where he will add the firm’s Emerging Brands portfolio to his responsibilities.

  • Guess Asia sales up, but store closures loom

    Guess Asia sales up, but store closures loom

    Guess Asia sales are recovering post-Covid-19, but the company will be exiting some stores in the region when leases come up for renewal, as part of a worldwide network trim of 100 outlets.

    The store closures represent about 9 percent of the global fleet and will take place over the next 18 months.

    CEO Carlos Alberini said last week that about 75 percent of the fashion retailer’s leases come up for renewal within the next three years, representing an opportunity to cut back unprofitable stores. Guess has 1169 company-operated shops along with 560 operated by partners.

    In the quarter to May 2, Guess sales globally fell by 51.5 percent to US$260.3 million, compared with $536.7 million in the same prior-year quarter. The company recorded an adjusted net loss of $118.9 million, compared to $19.6 million for the first quarter a year ago.

    In Asia, sales fell by 52.6 percent in US dollars and by 50.6 percent in constant currency terms.

    The Guess Asia regional operating margin decreased by 52.6 percent to negative 56.4 percent in the first quarter, due mainly to the negative impact of the Covid-19 pandemic which resulted in significantly higher inventory reserves.

    Since the end of the quarter, all Guess-run stores have now reopened, however, they continue to experience significant reductions in traffic and therefore, sales. The company said its e-commerce sites have experienced lower traffic, but this has been partially offset by a strengthening in conversion.

    Alberini said the Covid-19 crisis had a material impact on the company, including operations and financial results.

    “To minimize our loss and protect our liquidity, we challenged every aspect of our business which was being significantly impacted by extensive store closures and lower customer demand.”

    With all stores open in Asia, more than 400 in Europe and 180 stores in the US and Canada, Alberini says he is encouraged by initial trading results, which have been better than anticipated. “Our sales productivity for re-opened stores for the second quarter to date has reached roughly 75 percent in the US and Canada and 70 percent in Europe as compared to last year’s level.”

    He said the company was continuing to focus on improving its omnichannel platform centered around the consumer, and improving efficiencies in its global operations.

    “I fully expect to be on the other side of this crisis with a more efficient business model, a more focused and consistent global brand strategy, and a more nimble and agile organization.”

  • Ecoalf opens first Japanese flagship

    Ecoalf opens first Japanese flagship

    Spanish fashion brand Ecoalf has opened its first Japanese flagship store, in Tokyo.

    Located in Shibuya district, the Ecoalf store spans two floors and offers a wide selection of products including the label’s latest collection.

    Designed by Japanese architect Yohei Sakamaki, the store features a sustainability concept ‘Sharing Ecology’, using natural materials such as Japanese bamboo, stone and sand. Interior features include a giant rock named “Date-Kanmuri-Ishi” and wooden panels to create a warm yet modern ambiance.

    A black staircase leads customers to the upper floor which is dedicated to #Actnows, a monthly event held by the brand to raise awareness of sustainability issues.

    “Our aim is to raise awareness of the need to protect the planet and we will continue to accelerate this message,” said Javier Goyenechem, president and founder of Ecoalf.

  • Gap the brand flounders on ‘anemic’ range driving parent’s $932 million loss

    Gap the brand flounders on ‘anemic’ range driving parent’s $932 million loss

    Gap – the brand – is floundering internationally, with sales down 50 percent in the first quarter, a rate far worse than other mainstream apparel retailers in the wake of the Covid-19 crisis.

    Gap Inc, its parent, reported a US$932 million net loss for the three months to March on sales down group-wide by 43 percent to $2.11 billion. That decline was worse than its peers Abercrombie & Fitch and Urban Outfitters, and even budget-positioned multi-brand apparel retailer Kohl’s.

    Neil Saunders, MD at GlobalData Retail, said one of the reasons for Gap the brand’s dire performance was a complete failure to transfer lost store sales online.

    “At a time when other retailers were almost doubling their online revenues, Gap’s e-commerce sales dropped by 5 percent,” said Saunders. “We believe that this is indicative of the brand’s lack of traction with customers and its inability to stimulate loyalty. It aptly demonstrates that a fair proportion of sales are driven, not by a burning desire to visit and buy from Gap, but from chance visits to stores and impulse buys often stimulated by excessive discounting. As soon as stores are closed, Gap drops off the radar and consumers have neither the will nor inclination to shop the brand online.”

    Sales at Banana Republic fell by 47 percent globally and by 50 percent in the US, with online sales down modestly. However, Saunders said the dynamics of that are more excusable as Banana Republic is exposed to the smart casualwear sector which is heavily dependent on demand from office workers, who have been stuck at home for many weeks in most western markets.

    In stark contrast, sales by its sportswear brand Athleta, fell by just 8 percent, with store sales down 50 percent and online sales up 49 percent. Old Navy’s global net sales fell 42 percent, with store sales down 60 percent and online sales up 20 percent.

    CEO and president Sonia Synga trumpeted a quick pivot to e-commerce resulting in 40-per-cent growth online in April and 100 percent in May across all of the group’s brands, the first two months of the new quarter. “This online momentum, enabled by new omni-capabilities that have expanded the way customers can shop with us, leaves us well-positioned to fuel our brands going forward,” she said.

    Meanwhile, Saunders said the “heart and soul” of Gap the brand’s problems stem from its “anemic” ranges.

    “These are bland and undifferentiated and do nothing to stimulate consumers. Against a market saturated with alternative apparel destinations, this simply isn’t good enough. Gap has been aware of this problem for eternity but has consistently failed to act, either because it is too inert to do so or because it is unsure of how to correct the problem. In fairness, recent management changes may be the remedy to this, but the crisis has interrupted any progress than might have been made.”

    He said that before the advent of the pandemic, Gap Inc was in a weak position. “It emerges even more withered with quite a lot of holes in its strategy. Solid brands like Athleta provide some hope but are too small to make up for the problems elsewhere. As such, Gap now needs to reinvent and refocus its efforts with an urgency that is unparalleled in its history.”

  • Uniqlo opens new Vietnam store, goes online in the Philippines

    Uniqlo opens new Vietnam store, goes online in the Philippines

    Japanese fast-fashion retailer Uniqlo is to open its third store in Ho Chi Minh City this week and will debut online in the Philippines.

    Less than a month after the opening of the Ho Chi Minh’s second store at SC Vivo City, Uniqlo Vietnam is to launch another store in the country’s tallest building Landmark 81 this Friday (June 5).

    Occupying a 2000sqm area, the Uniqlo Landmark 81 store features the brand’s LifeWear products for males, females and kids. The store also features Uniqlo’s latest collections including the Billie Eilish x Takashi Murakami UT. To celebrate the opening, Uniqlo Landmark 81 is running several promotions such as giving away Uniqlo’s mugs and Landmark 81 SkyView tickets.

    Meanwhile, in the Philippines, the fast-fashion brand says it will launch online in the second half of this year.

    “An online store will provide local Uniqlo customers a faster and easier way of purchasing their favorite LifeWear items,” said Masayoshi Nakamura, COO at Uniqlo Philippines.

  • H&M talks online growth, sustainability and recovering after Covid-19

    H&M talks online growth, sustainability and recovering after Covid-19

    Fashion giant H&M is expanding its online presence around the world, as it continues to recover from the coronavirus pandemic and work toward its goal of becoming climate positive by 2040.

    The company said it will expand the digital presence of its brands Cos, Weekday, Monki, & Other Stories and Arket in Europe from May onwards.

    The company said it will also push through with its plans to launch an e-commerce site for its H&M brand in Australia later this year, and open a digital flagship store of its lifestyle brand Arket on Alibaba’s e-commerce platform Tmall in August.

    The world’s second-largest clothing firm said the current situation highlights customer desire for digital solutions and the importance of integrated channels.

    “We are glad that we are able to provide this in most of our markets and in even more markets from May onwards, as Cos, Weekday, Monki, & Other Stories and Arket are set to expand, making their collections available online to nine additional markets across Europe,” the company said.

    H&M said with the world experiencing this health crisis, digital solutions are needed as cars and homes are becoming safe havens for shoppers and mobile devices and computers will be their main point of locating products before going to stores.

    The fast-fashion giant announced in March that the second half of its first-quarter sales were negatively impacted by the outbreak of the COVID-19 pandemic, particularly China.

    Total sales in March dipped 46 percent compared to the previous corresponding period but online sales saw a 17 percent increase.

    H&M’s total sales during the period between March 1 to May 6 this year decreased by 57 percent in local currencies compared with the same period in 2019.

    Online sales, which are open in 46 of the company’s 51 online markets, increased by 32 percent in the same period.

    Helena Helmersson, H&M’s new chief executive, said they think the pandemic will lead to a fast shift towards digital and that they need to be ready for it.

    At the group’s recent annual general meeting, a new board member was elected, Danica Kragic Jensfelt, who is a professor at the Royal Institute of Technology in Stockholm and does research in robotics and artificial intelligence.

    When asked if the new board appointment means AI and robotics are what H&M will be concentrating on in the near future, H&M said they have always made big investments in its tech foundation and AI.

    “We continuously see clear signals that we are on the right track and we will continue to invest in this area in the future, to secure an organization that drives innovation and optimizes business decisions,” the Swedish fashion retailer’s media team said.

    According to H&M, their AI work spans across the entire value chain – from design to customer experience.

    “By analyzing a large amount of data from our operations within the group, we can align supply and demand much better, with the goal of only producing what we are selling.”

    H&M said the pandemic has affected their day-to-day operations as well as their outlook for the future.

    “Due to the exceptional situation caused by the spread of COVID-19, we are reviewing all parts of our business,” the company said.

    “The world continues to adapt to a situation like no other, and H&M Group, like so many companies around the world, continues to navigate the effects of the coronavirus crisis.”

    The group said they have been forced to make difficult decisions and take strong measures across all parts of the business but that in everything they have been doing, the customer is always in focus.

    “We believe that customer-centricity, strong collaboration, subsisted sustainability and expanding digitalization are key factors for our success.”

    Helmersson, who once headed the sustainability department in the company, said sustainability work is an integral part of the whole business and includes every area of the company, hence its growth targets and sustainability goals have equal weighting, live side by side and are entirely interconnected.

    “I know the importance of environmental protection, people empowerment and industry transparency to build a sustainable business,” Helmersson said. “These areas are not only close to my heart but very much part of my business perspective.”

    With the release last week of the 2019 Material Change Insights Report compiled by the global non-profit Textile Exchange, H&M said it seems their efforts on sustainability are showing progress.

    The report showed the H&M Group leads the ranking in the use of organic cotton and down certified by the Responsible Down Standard. This means the company is recognized as the number one company sourcing preferred cotton. This includes organic cotton, recycled cotton and cotton sourced through the Better Cotton Initiative, among others.

    “Being ranked as a leading company in sustainable materials sourcing is a great recognition of all the hard work we do every day to make our business more sustainable,” said Cecilia Brännsten, H&M’s Environmental Sustainability manager.

    “But that doesn’t mean we are done yet, there is still work to do to increase the use of recycled materials and push for innovative materials.”

    After cotton and synthetic materials such as polyester and nylon, the materials the H&M group use the most are man-made cellulosic materials such as viscose.

    Sourcing them in a more sustainable way has been a big part of the company’s goal, H&M said.

    The company has announced its commitment to become climate positive throughout its entire value chain by 2040 at the latest.

    “That means we will reduce more greenhouse gas emissions than our value chain emits  — all the way from cotton farms to the customers’ washing machines and the recycling baskets,” the company said.

    H&M said to become climate positive, they need to change how their products are made and enjoyed.

    “About 70 percent of a garment’s climate impact arises during the manufacturing process itself. Making fibres, processing materials, dyeing and fabricating requires a lot of energy,” the fashion giant said. “We make tough demands on our suppliers, and we also help them to switch from fossil-based to renewable energy sources such as wind and solar.”

    H&M cited as example that the group is currently implementing energy efficiency programs throughout its supply chain in close cooperation with its business partners.

    “We also work on putting pressure on and collaborating with governments and authorities. This is a way to create positive changes beyond our industry.”

    But, the company said, to be completely climate positive, they need to find new solutions.

    “We are exploring new techniques that potentially could absorb greenhouse gases and turn it into new fabrics and products,” H&M said. “We are constantly exploring new ways of making our products, such as making fabrics out of citrus peel and old fishnets.”

    The H&M group said it wants to make sustainable fashion affordable for everyone.

    “It’s the essence of what we do and why we exist,” the company said. “As part of an industry facing significant challenges, we want to ensure that we move away from a linear system to a circular one that ensures long-term sustainability. As a major player in the industry, we are well-positioned to lead this change.”

    Stores reopening

    According to the retailer, the current situation with the coronavirus crisis remains challenging for them but they are happy to be gradually re-opening stores in markets where governments have eased restrictions.

    “Safety measures vary from market to market-based on recommendations and guidance from the relevant authorities,” the company said.

    The company’s media team said some of these recommendations and guidelines include the use of plexiglass, limiting the number of customers in stores, closure of fitting rooms and the use of personal protective equipment to name some.

    “These measures have been well received by customers,” the team said.

    The team said it is in extraordinary situations like this current pandemic that people see how interconnected human health and planetary health are.

    “This is why the H&M Group, together with other leading companies, just joined the Uniting Business and Governments to Recover Better statement, the latest initiative of the UN Global Compact.”

    The Recover Better statement, signed recently by around 150 companies, is a call to action for governments and policymakers to reimagine a better future grounded in bold climate action.

    “It is now more important than ever that companies and governments show leadership standing by their commitments in climate action, and that we take responsibility together,” H&M said.

    The company said it expected to make a loss in the second quarter but pointed to a rebound in demand in China.

    H&M said in those markets that have begun to open up, trade in the stores has initially been muted. At present 3,050 stores, representing 60 percent of the group’s 5,061 stores, are still temporarily closed.

  • Massive Uniqlo Tokyo flagship to open later this month

    Massive Uniqlo Tokyo flagship to open later this month

    Fast Retailing will reopen its Uniqlo Tokyo store this month, a global flagship that will be the first in the world to reflect the brand’s new LifeWear concept.

    The store is located in the same building as the Ginza Marronnier Gate store which opened eight years ago, but has been expanded to cover four floors with its interior completely remodeled.

    Uniqlo Tokyo will open on June 19. The LifeWear concept represents Uniqlo’s commitment to offering “well-designed clothing that meets everyone’s needs for daily wear”. The focus is on high-quality, functional, affordable, and innovative apparel which will be available in a variety of colors and designs for men, women, kids and babies.

    Uniqlo Tokyo was designed by Fast Retailing’s creative director Kashiwa Sato, working with Swiss architectural company Herzog & de Meuron and Japan’s Praemium Imperiale.

    In a statement, Fast Retailing said the company considers Uniqlo Tokyo will be a key store that will “change the flow of customers in Ginza, conveying to visitors the latest LifeWear, and allowing them to experience the world’s finest products and services”.

    “The opening of a location in this prime area is an important and major part of the Uniqlo store development strategy.”

  • Ted Baker plots new heading after hefty loss

    Ted Baker plots new heading after hefty loss

    British lifestyle brand Ted Baker is seeking to raise £95 million to strengthen its balance sheet in the wake of the Covid-19 pandemic and fund a strategy for expansion dubbed ‘Ted’s Formula for Growth’.

    The plan was revealed along with its results for the year to January 25 during which global sales slipped 1.4 percent to £630.5 million, which the company attributed to discounting to remain competitive against its rivals.

    Wholesale revenue rose by 9.6 percent on the back of expansion into footwear, without which it would have slipped 3.7 percent on a like-for-like basis. Store sales were down by 5.3 percent and licensing revenue down 14.1 percent.

    Recently appointed CEO Rachel Osborne says the new strategy and recapitalization plan will strengthen the company as it rides out the Covid-19 crisis which has had significantly more impact on global retailing since Ted Baker’s financial year closed. Revenue was down 36 percent during the 14 weeks from January 26 to May 2 as stores were shut down in many parts of the world.

    “The Ted Baker brand is much loved, it has a unique personality and character built up over many decades, and that provides us with a remarkably strong foundation from which to continue our international growth,” said Osborne.

    “Over the past six months, our new executive team has pulled together and undertaken a thorough review of the business, identified key opportunities, and acted decisively in a number of areas. I am confident that our transformation plan will enable us to capitalize on our opportunities and deliver value for all of our shareholders.”

    Ted Baker reported a loss of £79.9 million for the year, a significant turnaround from a £30.7 million profit for the year prior. The company said the deficit was due to £84.6 million of non-underlying expenses, mainly an inventory write-down, store asset impairments, and a £7.6 million loss related to the sale of the Asian business.

    The strategy Osborne will now lead, Ted’s Formula for Growth, will focus on making the most of the company’s strong brand, its diversified channel footprint, (retail, wholesale and license channels; multiple product categories and geographic spread), combined with substantial investments during the past five years in IT, CRM, logistics, and infrastructure.

    The company will focus first on stabilizing the foundations of the current business, which has been disrupted in recent months by multiple executive changes, driving growth, and achieving operational excellence.

    The company wants to re-energize the brand, increase engagement, and encourage more people to consider purchasing the brand. It seeks to attract more customers and “gain a higher share of wallet and lifetime value through deeper and broader relationships with new and existing customers” using technology to increase customer acquisition and retention, and increase conversion online.

    The company wants to expand its product range and relevance to make clothing more relevant to all-day occasions, and drive accessories, footwear, and large license partner categories.

    In an outlook note, the company said it plans to cut the number of its suppliers from more than 150 to 100, reduce its stock cycle from three years to two, and reduce staff costs at both head office and in stores.

    By 2023, Ted Baker expects to achieve sales growth of around 5 percent and a pretax earnings margin of between 7 and 10 percent.

    Emily Salter, retail analyst at GlobalData, said that although Ted Baker’s sales are likely to start improving in the next few weeks as stores across Europe start to re-open, recovery will be slow for it as many consumers will be unwilling to return to shopping locations and economic uncertainty will be high, reducing the propensity to spend on premium brands.

    “Prior to the onset of Covid-19, Ted Baker’s sales were suffering as the appeal of the brand was waning as it struggled to resonate with shoppers, with the store and online revenue falling by 5.3 percent and 2.4 percent respectively for the year to February. Although the retailer blamed discounting for this decline, the fact that it was unable to drive growth online points to problems with the relevance of the brand.

    “It now has a permanent CEO and CFO to help address these issues but turning the business around will not be an easy feat as consumer shopping habits are likely to change in the long term due to Covid-19, with shoppers purchasing less frequently and increased spend shifting online,” she said.

  • H&M launches menswear clothing line using intelligent fabrics

    H&M launches menswear clothing line using intelligent fabrics

    Sweden fashion retailer H&M launches an intelligent fabric this week, deploying fashion technology for menswear which keeps the wearer cool in the summer heat.

    Called Coolmax, the intelligent fabric absorbs moisture and allows air to pass through.

    “We see fabric innovation as pushing menswear forwards in new ways,” said Ross Lydon, head of menswear design at H&M. “Coolmax is our first collection that optimizes everyday clothing with high-performance materials. It is a segment of the market that we will continue to explore and focus on in the future.”

    Coolmax fabric will be used in clothing such as polo shirts and crewneck T-shirts or jeans. The hero of the new Coolmax collection is a two-button tailored slim-lapel jacket, pictured at the top of the screen, which retails for €69.99. T-shirts are priced at €9.99 and polo shirts at €14.99.

  • Cashed-up Chinese consumers are buying more local brand names

    Cashed-up Chinese consumers are buying more local brand names

    Wealthy Chinese consumers are spending up large on domestic brands sold online, according to new data from local e-commerce giant JD.

    The data shows that 490 out of 572 high-performing brands which surpassed RMB100 million (US$14 million) in transaction volume from January to April this year were domestic. Out of 230 brands surpassing a transaction volume of RMB 300 million ($42.2 million) during the period, 79 were domestic brands – and 125 out of 151 brands surpassing RMB500 million ($70.3 million) were also domestic.

    Key insights from JD’s data suggested that domestic brands are gradually becoming the top choice of Chinese consumers as quality improves, with the proportion of domestic brand consumption increasing year-by-year in 1st-tier cities as more well-educated and well-paid consumers buy more. Female consumers aged below 25 pay more for domestic brands and pay more attention to them, and in general, domestic brands are attracting more high-income consumers.

    Furthermore, almost all consumers of domestic brands throughout last year were shown to be sensitive to product reviews, indicating an emphasis on product quality and the general pursuit of high-quality consumption.

    Last year, growth rates of domestic brands in terms of the quantities of products, brands, and orders were all more than 20 percent higher than those of international brands year on year. That growth gap further expanded to 30 percent in the first quarter this year following the coronavirus outbreak.

    In terms of transaction volume for domestic versus international brands for the whole of last year, the proportion of domestic brands in categories including maternal and baby, sports and personal care increased rapidly. In particular, facial cleansing products, female care products and other categories exceeded more than 150 percent on average. Imported products grew the most in categories such as toys and musical instruments, cleaning, and paper products.

    E-commerce channels helped domestic brands reach lower-tier markets throughout last year, with 5th and 6th tier cities remaining the primary driving force of consumption of domestic brands. Even so, the situation is evolving in 1st tier cities, which are slowly turning to embrace more domestic brands.

  • Japanese clothing firm Renown collapses

    Japanese clothing firm Renown collapses

    Heritage Japanese clothing firm Renown has filed for bankruptcy. The company is best known for its D’Urban and Arnold Palmer brands, although business has been in decline since its heyday in the 1990s due to increasing competition and the rise of e-commerce. It was once one of the largest apparel manufacturers on the globe.

    According to a report in Nikkei, the 118-year-old firm – now under the majority ownership of Chinese textiles and clothing firm Shandong Ruyi – has become Japan’s first such victim of the Covid-19 pandemic, cauterized from its revenue stream by the closures of department stores and regular retailers.

    The bankruptcy was approved on Friday, the same day it was filed with the Tokyo District Court, listing ¥13.9 billion (US$130 million) in liabilities. Renown had previously posted a net loss of ¥6.7 billion ($62.55 million) in the last financial year. Shares in the firm are now likely to be delisted from the first section of Tokyo’s stock exchange.

    Analysts expect the clothing firm Renown to take about a month before the company identifies a turnaround partner to enable it to resume business.

  • Cafe de Coral warns of 90-per-cent profit plunge

    Cafe de Coral warns of 90-per-cent profit plunge

    Cafe de Coral group expects its full-year profit to plunge by up to 90 percent for the March year as the Covid-19 crisis and last year’s protests dented customer traffic.

    In a profit warning to shareholders, chairman Sunny Lo said that during the fourth quarter, the group entered into the deficit when the outbreak of Covid-19 occurred.

    “Business operations and consumer spending in the group’s key operating territories have been severely impacted by the outbreak of Covid-19 since January,” he said in a stock-exchange filing. “The group’s business performance, which had already been impacted by poor market conditions and weak consumer sentiment during the first half of the year, was even more significantly impacted during the fourth quarter when our business and operations were further affected by Covid-19.”

    Besides its namesake brand, Cafe de Coral Holdings operates chains including The Spaghetti House, Oliver’s Super Sandwiches, Super Super Congee & Noodles, Shanghai Lao Lao and Mixian Sense.

    During the six months to September 30, Cafe de Coral group recorded a decline in profit of 34.5 percent. Full-year results are expected to be released in mid-June.

    Lo said the group has been closely monitoring market conditions and has adjusted its business strategies and operations to minimize losses. In an attempt to increase sales, the Cafe de Coral group has introduced simplified menus featuring low price meals and extensive promotions.

    “Adapting to social-distancing trends, marketing focus on takeaway and home delivery have increased,” said Lo.

    “The group has also implemented proactive cost control measures on rent, labor and food – and is stringently managing working capital to ensure healthy cash flow and a strong cash position to weather the currently difficult operating environment.”

  • H&M tops fashion transparency

    H&M tops fashion transparency

    Fashion Revolution has crowned H&M the most transparent fashion business in the world in 2019, scoring 73 percent of a possible 250 points in its annual Fashion Transparency Index.

    The index ranks the world’s largest fashion brands according to how much they disclose about their social and environmental policies, practices and impacts across a number of topics, including animal welfare, forced labor, gender equality, living wages, waste and recycling, and more.

    Following H&M was C&A at 70 percent, and Adidas and Reebok at 69 percent each. The average overall score across the 198 brands reviewed landed at 25 percent, 3 percentage points higher than 2019.

    However, an ongoing issue remains that brands tend to disclose more about the policies in a vacuum, and not touch on how these policies are put into action and detailing outcomes, results, and progress.

    And the types of information that is used on brand websites and documents are generally repeated and slightly altered for each document or page, generally with no substantive difference in what is said.

    “Some brands use a large number of filler words and fluffy explanations and details that obscure what information or data is actually relevant and useful for external stakeholders. We’ve even found instances of conflicting facts and statistics,” Fashion Revolution wrote.

    “It can be counterproductive to transparency and accountability. Not everyone has the hours and days it can sometimes take to decipher what brands are actually disclosing and how to use this information in an effective way.”

    After ranking 220 of the biggest fashion brands in the world, Fashion Revolution laid out actions to be taken in the industry over the next 12 months to improve transparency further.

    Firstly, brands should publicly disclose their suppliers beginning with the first tier, but should continue all the way down to the raw material level.

    Secondly, honoring contracts and paying suppliers through the COVID-19 crisis will help keep supply chain workers employed and supported.

    There should also be more information published about brands’ environmental impacts, including the number of carbon emissions, water consumption, pollution and waste created, as well as what is being done to address these concerns.

    And, finally, Fashion Revolution urges brands to answer customer questions on social media or email with practical information, not just with policy information and brand principles. This way, customers can join brands on their sustainability journeys and help to hold them accountable.

    “Transparency is the first step towards a different culture, one where brands become open and accountable, and customers are ready to become vigilant and ask, ‘who made my clothes?’,” said Fashion Revolution co-founder Orsola de Castro.

  • Cath Kidston to close UK stores and stronger focus on Asia

    Cath Kidston to close UK stores and stronger focus on Asia

    British home-furnishings and apparel retailer Cath Kidston will permanently close all 60 of its stores in the UK, realigning itself as a wholesaler and online brand.

    The locations, currently shuttered due to the coronavirus lockdown, will not reopen once the crisis is over following its parent company Baring Private Equity Asia securing a pre-pack administration deal under which it bought back the brand and online operations.

    The firm’s stores in Asia, including Malaysia, will continue to trade as normal after lockdowns are lifted.

    The closure of physical stores in Britain has put 908 staff out of work, with only 32 positions spared.

    Measures to revive the flailing business were apparently working before the emergence of the coronavirus outbreak.

    “While we are pleased that the future of Cath Kidston has been secured, this is obviously an extremely difficult day as we say goodbye to many colleagues,” said Cath Kidston CEO Melinda Paraie. “Despite our very best efforts, against the backdrop of Covid-19, we were unable to secure a solvent sale of the business which would have allowed us to avoid administration and carry on trading in our current form.

    The brand will live on in the territory as a digital business.

    “Going forward we will continue to help the company grow through its e-commerce platform and international wholesale and franchise businesses,” said a spokesperson for Baring Private Equity Asia, adding that the firm’s management had established “a viable future for the business in the UK.”