CONTENTS BUSINESS IDENTIFICATION
PAGE 1
MARKET DRIVERS
PAGE 2
SUPPLY CHAIN
PAGE 3
CSR
PAGE 4
RECOMMENDATIONS
PAGE 5
BIBLIOGRAPHY AND REFERENCES
PAGE 6
STRATEGY
BUSINESS IDENTIFICATION 1
MISSION / VISION / STRATEGY MODEL
(LVMH ENVIRONMENTAL RESPONSIBILITY REPORT 2020)
MISSION AND VISION: Marc Jacobs belong to the LVMH group, so their strategies and objectives come from the LVMH group’s sustainability report. As a group they have created 4 main goals, a product, supply chain, site and CO2 objective. This way they can monitor these goals more closely throughout each area of a business and properly assess if these goals have been met. As well as this they have signed up to some environmental initiatives such as: the Global Compact and the French National Strategy for Biodiversity. They have also set up an international carbon fund, where they aim to reduce the CO2 used by its brands.
(FIGURE 1)
Fashion causes huge problems for the environment, which is why brands need to become more sustainable, and do their bit to help slow down global warming. “The fashion industry accounts for about 10% of global carbon emissions, and nearly 20% of wastewater. And while the environmental impact of flying is now well known, fashion sucks up more energy than both aviation and shipping combined.” (Christine Ro 2020) Marc Jacobs along with the rest of the LVMH group have been thinking about the environment and issues within fashion since 2002, and this is shown throughout their environmental responsibility report for 2018/2019. The graph above (Figure 1) shows how the group is contributing to the sustainable development goals, and how they are strongly contributing in most areas for goals 12 and 13, and contributing in at least one area for every goal.
GOALS AND OBJECTIVES
(LVMH SOCIAL RESPONSIBILITY REPORT 2020)
(LVMH ENVIRONMENTAL RESPONSIBILITY REPORT 2020)
(ABC News 2020)
Political – the issue Governmental Stance – Strategy and directives EU Parliament Stance - Strategy and directives
Political – the impact • CIRCULAR ECONOMY DIRECTIVE - The circular economy package, adopted in 2018, will for the first time require Member States to ensure that textiles are collected separately. • TEXTILE REGULATION - The EU has harmonised legislation on the names of fibres, fibre content in fabrics and names of textile products, with first efforts beginning in 1970s. The currently binding Textile Regulation of 2011 lays down rules for labelling and marking of all textile products. • EUROPEAN STANDARDS - The EU also lays down European standards relating to textiles and clothing. Some of the standards relate to minimum performance requirements for certain types of textile products, and environmental aspects of textile products. • EU ECO LABEL - A voluntary certification programme, establishes ecological criteria guaranteeing limited use of substances harmful to health and environment, reduction in water and air pollution, as well as criteria for extending the lifetime of clothes. • GREEN PUBLIC PRECURMENT - The EU Green Public Procurement (GPP) criteria for textiles facilitates the inclusion of green requirements in public tender documents. It is a voluntary instrument that Member States and public authorities can implement to the extent to which they themselves wish.
Economic- the issues Impact – Impact cost – Global budgets
Economic – the impact • The cost is not just environmental: the industry, valued at around $2.4 trillion, loses about $500 billion each year due to the lack of recycling and clothes that are thrown away before ever being sold. • Cotton is one of the thirstiest fibres in fashion. According to WRAP, cotton production accounts for 69% of the water footprint of fibre production for textiles. One kilogram of cotton - equivalent to the weight of a shirt and pair of jeans - can take as much as 10,000–20,000 litres to produce. • The fashion industry is projected to use 35% more land for fibre production by 2030—an extra 115 million hectares that could be used to grow crops for an increasing population or preserve forest to store carbon.
Social/ Cultural – the issues
Social /Cultural- the impact • 59% of consumers expect retailers to create clothes ethically and sustainably. • Resale has grown 21 times faster than the retail and apparel market over the past three years, and 40% of consumers now consider the resale value of an item before buying it, that’s nearly a 2x increase in the last 5 years. • 18 – 37 year old's (millennials and gen z) are adopting second hand apparel 2.5 times faster than other age groups. • The average number of items in consumers’ closets is declining; resale and Kondomania spark the end of long term clothing ownership. On average customers owned 164 pieces of clothing in 2017 which reduced to 136 in 2019.
Technological – the issues
Technological – the impact • The H&M Foundation is one of the bodies trying to help this. They teamed up with research institute HKRITA (The Hong Kong Research Institute of Textiles and Apparel) to explore methods to separate and recycle fibre blends made from the three main types of textile material: synthetics, cellulose and animal fibres. In 2017, the partnership discovered a hydrothermal recycling system that could fully separate and recycle cotton and polyester blends into new fibres and cellulose powder. • In June, US denim manufacturer Wrangler launched the first denim collection using its new Indigood foam-dyeing technology which is said to eliminate almost 100 percent of the water typically used in the indigodyeing process. • British company Ananas Anam turns pineapple leaves into a leather textile called Piñatex. Fibres are extracted from pineapple leaves and after processing, emerge as a non-woven mesh forming the base of the textile.
Legal – the issues Legal obligations – Legislation – Policy/s
Legal – the impact • At the G7 Summit, which wrapped up in Biarritz earlier this week, climate change was a central focus. On the 24th of August, just ahead of the summit, President Macron, along with 32 major fashion brands revealed the Fashion Pact, an industry wide movement aimed at aligning the fashion industry with the UN Sustainable Development Goals. • CIRCULAR ECONOMY - Member States are required to transpose the directives into national law by 5 July 2020. • TEXTILE REGULATION- The legal acts of the Union on textile fibre names and related labelling and marking of fibre composition of textile products are very technical in their content, with detailed provisions that need to be adapted regularly. • EUROPEAN STANDARDS - Standardization of the following aspects of textiles, textile products and textile components of products: 1) test methods; 2) terms and definitions; 3) specifications, and if necessary classifications, in terms of their expected behaviour, in particular where required by other CEN Technical Committees or the CEC or EFTA. Equipment relevant for the testing and use of textiles. • EU ECO LABEL - EU Ecolabel Textiles products meet criteria that guarantee: Limited use of substances harmful to health and environment, reduction in water and air pollution and colour resistance to perspiration, washing, wet and dry rubbing and light exposure. • GREEN PUBLIC PRECURMENT -The EU GPP criteria are developed to facilitate the inclusion of green requirements in public tender documents. While the adopted EU GPP criteria aim to reach a good balance between environmental performance, cost considerations, market availability and ease of verification, procuring authorities may choose, according to their needs and ambition level, to include all or only certain requirements in their tender documents.
Environmental – the issues Environmental impact of linier supply chains- consumption- fast fashion- waste- water- carbon footprint- recycling
Environmental – the impact • The amount of clothes bought in the EU per person has increased by 40 % in just a few decades, driven by a fall in prices and the increased speed with which fashion is delivered to consumers. Clothing accounts for between 2 % and 10 % of the environmental impact of EU consumption. This impact is often felt in third countries, as most production takes place abroad. • The production of raw materials is responsible for a large share of the environmental impact of the textile and clothing industry, not least from growing crops for natural fibres. Cotton, which according to a 2015 report by European Clothing Action Plan (ECAP) accounts for more than 43 % of all fibres used for clothes on the EU market. • More than 1 900 chemicals are used in the production of clothing, of which 165 the EU classifies as hazardous to health or the environment.
MARKET DRIVERS
Consumer and global change is impacting on fashion; causing brands and companies to become environmentally aware and begin to think about sustainability. Increased consumer demand for brand transparency and sustainable options is driving this huge shift in the fashion industry. PESTLE shows the political, economic, social, technological, legal and environmental issues currently effecting fashion. Highlighting the issues here helps decide what can be done to combat these, and seeing the impact they have on fashion brands and the industry as a whole.
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SUPPLY CHAIN 3
MARC JACOBS CURRENTLY HAS 160 STORES ACROSS THE WORLD
RAW MATERIALS COME FROM ALL OVER THE GLOBE, INCLUDING INDIA AND USA.
PRODUCT Marc Jacobs do not currently offer any responsibly sourced products. They use a lot of cotton and leather in the production of their garments and accessories however none of this is ethical or sustainable yet.
MAINLY EU BASED. MOST FACTORIES IN ITALY OR CHINA
PROMOTION Marc Jacobs are not currently promoting any sustainable or ethical solutions. In their ‘Supply chain transparency’ page on the website, they talk about promoting ethical conduct however this isn’t talked about anywhere else on the website or in any of their marketing material.
PROCESSES Marc Jacobs are not currently using any green production processes, and there have been no suggestions of this happening in the near future. The Marc Jacobs website says that they audit finished goods and factories to ensure their compliance with the UK modern slavery act.
FINISHING FACTORIES MAINLY IN ITALY
PROJECT Marc Jacobs are part of the California Transparency in Supply chains act, and the UK modern slavery act of 2015. However, when researching to find out about their supply chain I found little to no information about the actual factories where their goods are produced and where they source their raw materials.
PLANNING Marc Jacobs do not mention anything about changing the way they work on their ‘Supply chain transparency’ page. The LVMH sustainability report says that as a group they are trying to move towards more ethical and sustainable options within the supply chain, however the Marc Jacobs website does not mention this.
(Fashion Revolution Transparency Index 2019)
PEOPLE:
Marc Jacobs have been criticised in the past for illegal pay and using factories where the working conditions are sub standard. “Marc Jacobs are coming under fire since as many as 100 laborers in one of their Chinese suppliers’ factories have gone on a major strike … to protest alleged sub-standard and illegal working conditions.” (The Fashion Law 2020) On the social responsibility page of the Marc Jacobs website, they talk about working with over 60 charities, however only give a link to one of these and do not mention any other names. “Marc Jacobs and Robert Duffy are committed to giving back to the communities where they have stores and have been involved with over 60 charities.” (Marc Jacobs social responsibilities 2020) This page also states that they operate alongside the California Transparency in Supply Chain Act of 2010, and the U.K. Modern Slavery Act of 2015. As a company they say “We are committed to conducting business in a lawful, ethical, and responsible manner. We expect our vendors to respect and adhere to the same business philosophy in the operation of their businesses.” (Marc Jacobs Supply Chain Transparency 2020)
PEOPLE PLANET:
As part of the LVMH group, Marc Jacobs is following their initiatives, and their main planet goal is to reduce their CO2 emissions associated with energy consumption by 25%. To achieve this they have created a three step programme, and will be monitoring it over the next 5 years to see if they can meet this goal. “The LVMH Group explores all channels to reduce its CO2 emissions, acting on the energy consumption of its sites, its production, transport, logistics, and even work habits.” (LVMH Environmental Report 2018) Another target of theirs is to improve energy efficiency, and they have achieved “16% less energy consumption in kWh/m2 in stores between 2013 and 2019.” (LVMH Environmental Report 2018) They also want to increase the number of contracts signed with renewable energy suppliers, as well as reducing the carbon impact of their transport for products. Even though LVMH have all of these targets that they want to meet and become more sustainable, they are not part of the global fashion agenda or the G7.
(LVMH Environmental Report 2018)
PLANET
PROFIT
(LVMH Environmental Report 2018)
PROFIT:
Marc Jacobs do not currently sell any sustainable or ethical products, and they are not making it clear whether any are coming. On their website they talk about supporting charities however they only give one name and one link. This implies slight greenwashing, as they are talking about their sustainability goals and how they are going to support the community however they can’t provide evidence of this anywhere on their website. According to the New York Times “Mr. Jacobs has lost his way. With turnover at the top and a designer who himself has suggested he no longer understands what customers want, the label is turning out clothes and accessories that lack a compelling point of view, failing to generate the excitement created by younger peers like Alexander Wang and Joseph Altuzarra.” (2020) This implies that for Jacobs the top priority is profit, and everything else will come after that. This could be a reason why they aren’t being transparent about supporting charities or showing how their money is used to better the business and supply chain.
CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility (CSR) refers to the efforts made by a company to improve society and contribute towards sustainable development. Also known as corporate conscience or corporate citizenship, CSR describes initiatives run by a business to evaluate and take responsibility for their impact on a number of issues ranging from human rights to the environment. (The Giving Machine 2020)
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RECOMMENDATIONS 5
While the fashion industry has been slow to embrace change, over recent years we have seen an explosion of conscious consumerism in other areas. Wellness and self-care has taken off, along with accompanying growth of organic food, clean beauty, and mindfulness practices. These products and practices are sometimes discussed in the context of their altruistic impact, but more often they’re marketed based on personal health benefits. (Vogue 2020) (Fashion Revolution 2020)
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STRENGTHS: Through the LVMH group they are beginning to think about sustainability in the supply chain. Named as one of fashion revolutions most improved brands, with a 17% change since 2018. (Fashion Revolution 2020) Part of the California Transparency in Supply Chains Act of 2010. Part of the UK Modern Slavery Act of 2015.
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OPPORTUNITIES: Using vegan leather. Using sustainable cotton. Starting to do resale through the marc jacobs website. Start a recycling programme for customers. Rented fashion. Start to use recycled fibres to create some of their products. Become part of Fashion Revolution. Become part of the G7. Become part of the Global Fashion Agenda.
WEAKNESSES: Supply chain - using a linear supply chain model and illegally paying staff in factories. Not being transparent within the supply chain - they do not say where their raw materials come from and where their factories are. Social responsibilities - Not being transparent with the charities that they are supporting. Not part of Fashion Revolution. Not part of the G7. Not part of the Global Fashion Agenda.
THREATS: • Being effected by consumer attitude shifts, and ‘left behind’ as consumers decide to buy from ethical and sustainable brands only. • Consumers want to buy less that will last longer, and a lot of marc jacob’s products are trend led or fashionable pieces. This may affect their profit and cause consumers to go elsewhere to buy ethical products in more classic styles.
Marc Jacobs has a lot of room for improvement with their ethics and sustainability as a brand. I have identified some opportunities that they could explore to help with their sustainability problem, and to ensure that their customer retention figures stay high. To start, they could trial using vegan leather to create a collection of their iconic snapshot bags. New technology means that this can be created using fruit fibres such as pineapple, and can often be a cheaper alternative to real leather. Promoting this new collection would help to boost the brand and show that they are serious about wanting to become more sustainable, and might even attract new customers who will only buy sustainable products. As well as using vegan leather, they could think about trying to use some recycled materials to create their tote bags or clothing items. Using recycled fibres to create clothing begins to move their supply chain into circularity which is what the main sustainability initiatives want all brands to be working towards. Another opportunity that Marc Jacobs could explore is resale. Companies like Farfetch are already beginning branch out into the resale market with vintage designer items, as well as second hand items that are limited edition or rare. This could be huge for Marc Jacobs, as their products are usually under such high demand, and this way they could control the authenticity of these products too. Similar to resale, Marc Jacobs could open a rental section on their website. This would allow customers to rent handbags or shoes for a fraction of the original cost and then return the item they have rented and borrow another. This will dramatically increase the use of these expensive designer items and also allow customers who may not be able to afford the full price to try out their items. Considering these points, Marc Jacobs would be able to start their journey towards becoming a more sustainable and ethical brand.
BIBLIOGRAPHY AND REFERENCES
BLANCHARD, T, 2019. Is 2019 The Year Fashion Finally Takes Sustainability Seriously? [Viewed on 11th April 2020] Available from: https://www.vogue.co.uk/article/has-fashion-finally-got-sustainable-2019 BRITISH FASHION COUNCIL, 2019. Fashion and Environment White Paper. [Viewed on 13th April 2020] Available from: https://www.britishfashioncouncil.co.uk/uploads/files/1/NEW%20 Fashion%20and%20Environment%20White%20Paper.pdf CADIGAN, E., 2014. Sourcing and selecting textiles for fashion. London: Fairchild Books CB INSIGHTS, 2019. Fashion Forward: How tech is targeting wash and Pollution in the $2.4T Fashion Industry. [Viewed on 15th April 2020] Available from: https://www.cbinsights.com/ research/fashion-sustainable-technology/ COTLER, A, 2019. Why Sustainable Fashion Matters. [Viewed on 11th April 2020] Available from: https://www.forbes.com/sites/ellevate/2019/10/07/why-sustainable-fashion-matters/#4fa8e11871b8 ECOPRENEUR, 2020. Ecop Circular Fashion Advocacy Report. [Viewed on 12th April 2020] Available from: https://ecopreneur.eu/wp-content/uploads/2019/03/EcoP-Circular-Fashion-Advocacy-Report-28-3-19.pdf EUROPEAN COMMISSION, 2020. 2020 Targets. [Viewed on 13th April 2020] Available from: https://ec.europa.eu/info/energy-climate-change-environment/overall-targets/2020-targets_en EUROPEAN PARLIAMENT, 2020. Environmental impact of the textile and clothing industry. [Viewed on 13th April 2020] Available from: https://www.europarl.europa.eu/RegData/ etudes/BRIE/2019/633143/EPRS_BRI(2019)633143_EN.pdf FASHION REVOLUTION, 2019. Fashion Revolution Impact Report 2019. [Viewed on 11th April 2020] Available from: https://issuu.com/fashionrevolution/docs/fashionrevolution_impactreport_2019_highres FASHION REVOLUTION, 2019. Fashion Transparency Index. [Viewed on 13th April 2020] Available from: https://issuu.com/fashionrevolution/docs/fashion_transparency_index _2019?e=25766662/69342298 FASHION REVOLUTION, 2019. The G7 Fashion Pact: What it is and what it’s missing. [Viewed on 14th April 2020] Available from: https://edition.cnn.com/2019/09/27/business/technology-fashion-sustainability/index.html FASHION SUMMIT, 2020. Sustainable fashion, A survey on Globla Perspectives. [Viewed on 12th April 2020] Available from: https://assets.kpmg/content/dam/kpmg/cn/pdf/en/2019/01/sustainable-fashion.pdf FLETCHER, K. and M. THAM, 2015. Routledge handbook of sustainability and fashion. Abingdon ;: Routledge GOOD ON YOU, 2020. Good on you directory. [Viewed on 20th April 2020] Available from: https://directory.goodonyou.eco/ HENNINGER, C. et al., 2018. Sustainability in fashion : a cradle to upcycle approach. Basingstoke, Hampshire: Palgrave Macmillan HETHORN, J. and C. ULASEWICZ, 2015. Sustainable fashion : what’s next? : a conversation about issues, practices and possibilities. 2nd ed. London: Fairchild Books HINES, T., 2013. Supply chain strategies : customer-driven and customer-focused. 2nd ed. London: Routledge HUGHES, H, 2019. Future of fashion: Production - Sustainable, high tech and on demand. [Viewed on 14th April 2020] Available from: https://fashionunited.uk/case/future-of-fashionproduction-sustainable-high-tech-and-on-demand LEWIS, N. BURNELL, M, 2019. How tech could save the Fashion industry. [Viewed on 13th April 2020] Available from: https://edition.cnn.com/2019/09/27/business/technology-fashion-sustainability/index.html LVMH, 2019. Social Responsibility Report. [Viewed on 9th April 2020] Available from: https://r.lvmh-static.com/uploads/2019/05/2018-social-responsibility-report.pdf LVMH, 2019. Environmental report. [Viewed on 10th April 2020] Available from: https://r.lvmh-static.com/uploads/2019/09/lvmh__ra_environnement_2018_gb-1.pdf MARC JACOBS, 2020. Social Responsibilities. [Viewed on 8th April 2020] Available from: https://www.marcjacobs.com/socialresponsibilities MARC JACOBS, 2020. Supply Chain Transparency. [Viewed on 8th April 2020] Available from: https://www.marcjacobs.com/legal-copy/ca-sb-657.html POSITIVE LUXURY, 2019. LVMH sets results driven sustainability goals. [Viewed on 9th April 2020] Available from: https://www.positiveluxury.com/blog/2019/09/26/lvmh-sustainability-iniatives/ RO, C, 2020. Can Fashion Ever Be Sustainable? [Viewed on 12th April 2020] Available from: https://www.bbc.com/future/article/20200310-sustainable-fashion-how-to-buy-clothes-goodfor-the-climate ROBINSON, E, 2018. Marc Jacobs modernises its supply chain with Microsoft and Medius. [Viewed on 15th April 2020] Available from: https://www.technologyrecord.com/Article/ marc-jacobs-modernises-its-supply-chain-with-microsoft-and-medius-68986 TFL, 2018. Marc Jacobs, Coach and Michael Kors tied to Chinese labour strike. [Viewed on 16th April 2020] Available from: https://www.thefashionlaw.com/marc-jacobs-coach-and-michael-kors-tied-to-chinese-labor-strike/ THRED UP, 2019. 2019 Resale Report. [Viewed on 12th April 2020] Available from: https://www.thredup.com/resale?tswc_redir=true TSEËLON, E., 2014. Fashion and ethics. Bristol: Intellect VOGUE RUNWAY, 2020. Marc Jacobs. [Viewed on 10th April 2020] Available from: https://www.vogue.com/fashion-shows/designer/marc-jacobs
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