Industry Panel Presentation for Fashion Revolution

#luxuryfashionisnotinnocent

FASHION REVOLUTION

FOREWORD

LUXURY FASHION IS NOT INNOCENT

This presentation will look to discuss the luxury fashion industry’s under-performing efforts towards sustainability.

Through in-depth research both in-house and third party this presentation should provide the information needed to raise concerns of the luxury fashion industry’s most pressing issues.

For further guidance or information about the issues raised or to request an interview with spokespeople from Fashion Revolution or myself, please contact me at:, rose@fashionrevolution.org.uk.

In line with our sustainability ethics and values, please refrain from printing this document and instead use digitally.

Rose Coppen-Manns Communications Campaign Manager

FASHION REVOLUTION

Important Note

LUXURY FASHION IS NOT INNOCENT

We raise our issues in a friendly manner as we share a love for fashion so this presentation will not call-out or name and shame brands as this goes against our brand values and morals, which are founded upon a bedrock of professional respect. Rather than making people feel guilty, we aim to help luxury fashion brands recognise that they have the power to make positive changes and lead the industry towards the goal of sustainability.

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

We are Fashion Revolution

We are designers, academics, writers, business leaders, policymakers, brands, retailers, marketers, producers, makers, workers and fashion lovers. We are the industry and we are the public. We are world citizens. We are you.

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

About us

Fashion Revolution is a global movement that runs all year, celebrating fashion as a positive influence, raising awareness of the fashion industry’s most pressing issues, showing that change is possible and celebrating those who are on a journey to create a more ethical and sustainable future for fashion.

Fashion Revolution Week is our #whomademyclothes campaign in April, which falls on the anniversary of the Rana Plaza factory collapse, which killed 1,138 people and injured many more on 24th April 2013. We encourage as many people as possible to join the Fashion Revolution by asking brands and retailers #whomademyclothes. Brands and producers are encouraged to respond with the hashtag #imadeyourclothes and to demonstrate transparency in their supply chain.

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

The concern 01/ Pollution

“The fashion industry is one of the major polluting industries in the world.

The production and distribution of the crops, fibres, and garments used in fashion all contribute to differing forms of environmental pollution, including water, air, and soil pollution.” (Wicker, 2020) The UN Environment Programme in 2019 put the fashion industry’s share of global carbon emissions at 10% - more than all international flights and maritime shipping combined - and said it was the second-biggest consumer of water. (MacArthur, 2017). Additionally, according to 2020 research by McKinsey & Company, “The fashion industry produces 4% of global climate-warming emissions which is equal to the combined annual emissions of France, Germany and Britain” (Amed et al, 2019).

This statement is immensely shocking and heightens the urgency for the fashion industry as a whole to intensify its efforts to align with the Paris Agreement goals to curb climate change.

Therefore, the climate crisis has forced the industry into an environmental reckoning. Fashion Revolution will work to increase the saliency of the issues amongst both the producer and the consumer.

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

The concern 02/ Lack of transparency

Transparency and traceability are of huge importance to the luxury fashion industry. As said in The State of Fashion 2021 report by McKinsey & Company and The Business of Fashion, “Fashion companies must come to terms with the fact that a more distrusting consumer expects full transparency across the value chain. Given the need to regain that trust, fashion players cannot afford not to examine long-standing practices across their businesses.”, (Sherman, 2021). Consumers today value transparency in a products’ design and quality which is why some brands have faced scrutiny for not being open and honest about where they source their materials from and who made their product.

The report also states that, “Millennials are at the vanguard, with 52 percent agreeing that they always research for background information before buying, compared with 45 percent of Gen Z consumers and 41 percent of baby boomers. Reviews and articles are common sources of information.”, (Amed et al, 2019). This highlights the importance of transparency being able to provide trust as without this trust customers will dwindle away.

Openness, communication and accountability are now top attributes for any sustainable company as without it consumer trust is gone.

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

COVID-19 Impacts 01/

Fast fashion brands have previously been the primary target of conscious fashion activists due to a lack of transparency and poor ethical and environmental practises. Luxury fashion is now facing its own critics and disapproval as a result of the coronavirus pandemic. This in turn has brought into question the more complex issues of sustainability and environmental concerns around luxury fashion.

As these social and sustainable issues are set to continue, it is paramount therefore that luxury brands address the issues raised, re-thinking product life cycles, supply chains and the management and disposal of unsold inventory. This is because a consumer trend emerging as a result of COVID-19 is a heightened environmental and social consciousness as there is now a greater awareness around the subject of sustainability.

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

COVID-19 Impacts 02/

As a result of COVID-19 we are seeing a continued change in relationships with clothing in particular there has been a significant change on buyer attitudes. This is because the psychology towards fashion changed immediately as a result of COVID-19 as people now have a reduced need and desire to buy new clothes. This can support the theory that as a result of COVID-19 we are beginning to see consumers adapting to new environments that they are faced with and shaping trends as they do so that are emerging in response to the crisis.

As luxury fashion brands have the potential to be at the forefront of driving change within the industry then we must question why have so few taken this step?

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

Weaknesses

As you will know, luxury fashion brands use high-quality, expensive and often unique materials sourced from across the world. Most materials used to create luxury garments are plant-based fibres and animal hair, whilst oil-based materials which also originate from nature form a smaller percentage of its material sourcing. The four most used materials in luxury fashion are leather, cotton, gold and cashmere.

With sustainability now at the forefront of design, the use of fur and cashmere are now deemed unethical. This is seriously compromising many luxury fashion brands ability to source their products as most luxury goods require an agricultural cycle processing materials throughout the value chain, and that’s all getting tougher due to climate change.

According to Verde Nieto for Luxury Society, “These are not just ethereal brand risks about labour or image, but actual business continuity risks.

Climate change is changing water availability and crop production around the world. That affects cotton-based products like cashmere and angora as they require a great deal of water to process as-well as gold and gems”, (Nieto, 2016).

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LUXURY FASHION IS NOT INNOCENT

Threats 01/

A major threat to the luxury fashion sector has always been a change in customer lifestyle, as continuously changing imagery and fashion trends has fuelled the need for new quick fire products, with potentially insufficient thought to the source of raw materials which in turn adds to the questions around sustainability. This is because today “More than three in five consumers said environmental impact is an important factor in making purchasing decisions.”, (Sherman, 2021).

Further support shows that “the expectations of companies are changing generationally — Millennials have different views on how companies should act.”, (Winston, 2016). The report ‘Predictions for the Luxury Industry: Sustainability and Innovation’, cites research showing that “88% of UK and US Millennials and Generation Xers believe brands need to do more good, not just ‘less bad.’”, (Winston, 2016). This is because today Gen Z are driving a ‘clean label ‘trend, where companies feel pressure to explain what’s in everything and where it came from.

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

Threats 02/

According to ‘The State of Fashion 2021’, “The luxury sector is poised for consolidation led by the biggest players, but the pandemic has shown that there is still room for smart young independent brands.”, (Sherman, 2021). This suggests that if new young independent brands take the lead for sustainability in their business then they have the potential to outgrow larger historical luxury brands who are less sustainable at present. The report highlights the fact that the investment community is waking up to the value to consumer brands managing environmental and social issues well which puts pressure on luxury companies to act.

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

The opportunity

We believe that COVID-19 has given the luxury fashion industry an opportunity for change and a chance to become a leader for sustainable fashion. COVID-19 has made many luxury brands focus on sustainability issues and as support continually grows for slow fashion, the beginning of a shift in shopping behaviours has begun too, particularly with mobile millennials who are demanding environmental justice. This is why luxury fashion will now be able to pave the way as a leader of sustainable fashion as COVID-19 has given them the perfect opportunity to do so and reflect on what’s really important.

Additionally, as said in the ‘The State of Fashion 2021’ report, “Circularity is likely to be one of the key business trends of the next decade as consumers become more engaged with sustainability issues, circularity will be the key that unlocks the door to a more sustainable future.”, (Sherman, 2021).

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

The right move

We believe the right move for the luxury fashion industry is to take account of this new reality. We are here to help and make a hard job achievable for all concerned.

These challenges faced in the current climate won’t last forever so as the industry is at the forefront of driving positive change it has time to take stock to shape fashion for the future.

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Get Involved Guide: Brands For further information on understanding the concerns currently highlighted throughout this presentation please feel free to download our information pack which has been specifically created for you.

The digital guide is a synopsis of the presentation and the key research findings that were mentioned during our conversation.

LUXURY FASHION IS NOT INNOCENT

Instead of more unverified claims or vague commitments to sustainability in the fashion industry, what is urgently needed now is real action. Additionally to engage with their modern audiences, luxury fashion brands will need to refocus on what’s truly important for the here and now to become future-fit.

- SARAH KENT THE BUSINESS OF FASHION

Thank you for listening.

Are there any questions?

- ROSE COPPEN-MANNS Communications Campaign Manager

FASHION REVOLUTION

LUXURY FASHION IS NOT INNOCENT

Credits in alphabetical order

AMED, I., BALCHANDANI, A., BELTRAMI, M., ROLKENS, F., BERG, A. and HEDRICH, S. (2019). What radical transparency could mean for the fashion industry. [online] McKinsey & Company. Available at: https://www.mckinsey.com/industries/retail/our-insights/ what-radical-transparency-could-mean-for-the-fashion-industry [Accessed 22 Mar. 2021].

DAVIS, N. (2020). Fast fashion speeding toward environmental disaster, report warns. The Guardian. [online] Available at: https://www.theguardian.com/fashion/2020/apr/07/fast-fashion-speeding-toward-environmental-disaster-report-warns.

[Accessed 22 Mar. 2021].

MACARTHUR, 2017. A new textiles economy: Redesigning fashion’s future. The Ellen MacArthur Foundation. [online] Available at: http://www.ellenmacarthurfoundation.org/publications). [Accessed 22 Mar. 2021].

KENT, S. (2021). The Sustainability Index: 2021. [online] The Business of Fashion, The Business of Fashion: The Business of Fashion, pp.1–25. Available at: https://cdn.businessoffashion.com/reports/The_Sustainability_Index_2021.pdf [Accessed 23 Mar. 2021].

THE BUSINESS OF FASHION. 2017. 5 Sustainability Threats Facing Fashion. [online] Available at: https://www.businessoffashion. com/articles/sustainability/5-sustainability-threats-facing-fashion [Accessed 2 Mar. 2021].

SHERMAN, 2021. THE STATE OF FASHION, 2021. McKinsey and The Business of Fashion (2021). [online] McKinsey.com. London: McKinsey, pp. 10-15. Available at: https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/State%20 of%20fashion/2021/The-State-of-Fashion-2021-vF.pdf [Accessed 2 Mar. 2021].

VERDE, N. 2016. 2016 Predictions For Luxury Sustainability & Innovation. [online] Luxurysociety.com. Available at: <https://www. luxurysociety.com/en/articles/2016/01/2016-predictions-for-luxury-sustainability-innovation/> [Accessed 2 March 2021].

WICKER, A. (2021). PLEASE Stop Saying Fashion is the 2nd Most Polluting Industry After Oil - Ecocult. [online] Ecocult. Available at: https://ecocult.com/now-know-fashion-5th-polluting-industry-equal-livestock/ [Accessed 27 May 2021].

WINSTON, A. (2016). Luxury Brands Can No Longer Ignore Sustainability. [online] hbr.org. Available at: https://hbr.org/2016/02/ luxury-brands-can-no-longer-ignore-sustainability [Accessed 2 Mar. 2021].

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