CK

CALVIN KLEIN Sustainable Sourcing Strategy

Table of Contents

Abstract Introduction Company Overview Strategic Priorities Sourcing Guidelines Denim Market Benchmarking Best Practices Hemp Where to Source Hemp Strategy & Initiatives Denim Line Country Report Analysis Top Supplier Identification Placement Plan Logistics Warehousing Fulfillment Future Outlook

Sarah Nickle Fall 2018 M.A. Final Project Savannah College of Art and Design Luxury and Fashion Management

Abstract

Areas of interests expressed in this dissertation are supply chain

management, PVH Group’s Calvin Klein company, sustainable sourcing, and hemp. Many businesses are torn between their dedication to social responsibility and generating profit. Luckily, more and more companies are closing this gap by focusing on social responsibility.

Consumers are demanding that sustainability is a strong focus throughout a company’s supply chain.

Calvin Klein Jeans has been chosen as an area of opportunity to further implement sustainability throughout the companies supply chain strategy. In this proposal, the harmful denim manufacturing process will be addressed. In response to these harmful practices, an alternative is proposed. Hemp is a sustainable resource that can be utilized as a sustainable substitute for cotton in denim fabric. The “triple bottom line” of sustainability and the supply chain is necessary to consider in order to meet the rising number of educated customer demands.

Introduction Denim is considered one of the world oldest fabrics, however, it has been able to withstand time and is still in high demand. Throughout the year’s many different styles and processes of manufacturing have been invented when making a denim product.

Companies are now left with highly unsustainable practices that have been used for decades. As consumers become more aware of the harmful results from the denim manufacturing process, customers are on the lookout for an increasing amount of sustainable alternatives.

When cleaning up the denim supply chain, the focus is mainly on cutting down on water and energy use. However, many chemicals are involved when making a pair of jeans. Throughout every step of the process of making denim, harmful chemicals are used.

Working with these chemicals can become hazardous to surrounding employees. For example, sandblasting is a method that produces Silica. If precautions are not taken, Silicosis can become a life-threatening health issue for employees. If chemicals are not further handled with care, nearby water systems can become polluted.

Cotton farming is the catalyst for denim production. Without the resource, denim would not be what we know it as today. Cotton farming has spun out of control with unsustainable practices. Cotton fiber makes up half of worldwide textiles and clothing. In most countries, agricultural practices make up the highest source of pollution.

The cotton plant that is made into denim has one of the highest uses of pesticides globally.

Alternatives for cotton are becoming a topic of investment, however, one particular crop is often overlooked.

This resource is industrial hemp. The hemp plant can be made into fibers that are

comfortable and sturdy when made into fabric. The overall manufacturing process of hemp has a significantly smaller carbon footprint than the manufacturing process of denim. This super-plant can withstand growth throughout various climates and soil types.

Due to its growth pattern in extremely tight spaces, the plant is able to out-compete most weeds. The hemp plant is naturally resistant to most pests and uses significantly less water than cotton when grown and processed.

However, the United States of America is the

only developed country in the world that still bans the growth of industrial hemp. Due to the law that bans the growth of hemp, the United States has not been able to compete in this up and coming global market. Most buyers of hemp products in the United States have to outsource from Canada, China, and Europe. China is the top exporter in the world of hemp products and textiles.

Some designers are catching on to the benefits of producing garments made from hemp. Brands such as Polo Ralph Lauren, Armani and Nike already have collections made from hemp fabric. However, not all of these collections are denim. Properties of hemp fabric include high absorbency, breathability, strength, and antimicrobial. Fabric made from hemp is more lightweight and durable than denim due to its porous properties and length of the fiber. By taking the American youth culture into consideration, brands have the potential to benefit greatly from sustainably sourcing hemp for denim products.

Calvin Klein is considered a major player in the denim

industry. According to Statista, Calvin Klein ranks third in brand preference in millennial men. Recent Calvin Klein campaigns highlight efforts to even further increase denim sales. Even though Calvin Klein’s wider target audience ranges from the ages of 15 to 50, the Spring 2018 denim campaign is heavily geared towards a younger generation and frequent social media users. The Spring 2018 denim campaign uses celebrities to target the millennial audience.

Calvin Klein has actively spoken about their intent to eliminate their use of harmful chemicals. The company had set targets that claim a future reduction of carbon and water usage throughout their production process. Despite their past claims toward future improvement, active efforts toward sustainability have not been implemented. Their 2017 Corporate Responsibility Report suggests that sustainability is important to the company, however, provides zero specifics on the matter. Consumers are noticing publications, such as the Greenpeace Dirty Laundry Report, and are disappointed by the brand’s empty promises.

Calvin Klein Jeanswear is known for its innovative washes and unique details. These include unexpected washing patterns, such as mixtures of mid washing of black and grey, and original prints and color blocking. Below are images of unique washes and designs from Calvin Klein’s website. With the popularity of jeans and an increased consumer knowledge of denim manufacturing’s unsustainable practices, there is a gap for Calvin Klein to create sustainably sourced and eco-friendly denim. The option of industrial hemp to be used as an alternative fabric for Calvin Klein Jeans will further be explored.

The core deliverable for the overall project will be
a comprehensive sourcing strategy. In order to achieve this, it is necessary to understand Calvin Klein’s business strategy.

The location of existing manufacturers will be evaluated to assist in the decision of where to source hemp for Calvin Klein Jeans. The surrounding risks of the sustainable sourcing strategy must be understood and taken into account.

The strategy will consist of sourcing hemp textiles to be used in the denim manufacturing process. Suppliers, manufacturers, distribution methods and transportation will be analyzed. Initial planning will take place in order to decide capacity and where to source materials from and how they will be produced. Where hemp will be sourced depends on efficiency, sustainability, risk factors and how to best align with Calvin Klein’s current supply chain. Production will lead to the decision of where to store inventory and which method of transportation will be used to transport materials. A complete costing plan will be developed along with a country analysis. The overall goal is to maximize sustainability while minimizing costs throughout the entire sourcing strategy and supply chain. Before getting into the sourcing strategy, it is important to understand all of the ins and outs of the Calvin Klein brand.

Company Overview The Calvin Klein brand is a member of

Phillips-Van Heusen Corporation. Phillips-Van Heusen acquired Calvin Klein in the year of 2003. PHV is one of the world’s largest apparel companies. As of 2017, the corporation has reached nearly $9 billion in revenues. The three main business groups that operate under PVH are Calvin Klein, Tommy Hilfiger, and Heritage Brands.

PVH is a publicly traded company. The history of the corporation dates 135 years. PVH was found in 1881. They have had excellent success in growing brands that have a rich American heritage. Both Calvin Klein and Tommy Hilfiger represent more than 80% of revenues the company makes. Calvin Klein represents 39% out of the 80%, which is equivalent to $3.5 billion in revenues.

“Calvin Klein is a global lifestyle brand that

exemplifies bold, progressive ideals and a seductive, often minimalist aesthetic” (PVH.com). The brand was established in 1968. It was created by Calvin Klein and his business partner Barry Schwartz. The company is currently headquartered in Manhattan, New York. Calvin Klein product is distributed throughout 110 countries.

According to Forbes, PVH and Calvin Klein are ranked the 8th in the top global apparel companies in 2018. It is one of the largest apparel companies in the world with over 11,500 employees globally with more than 60% of sales generated through apparel. Calvin Klein operates on a consumer-centric business model, along with other PVH business groups.

Business Groups

PVH operates three main business groups. They are believed to maintain sustainable and long-term growth. These three groups are Calvin Klein, Tommy Hilfiger, and Heritage Brands. Calvin Klein is one of the most well-known designer names in the world, according to Forbes. The Halo brand of Calvin Klein is called “CALVIN KLEIN 205 W39 NYC”.

This brand offers inspiration to other brands. These brands include “CALVIN KLEIN JEANS EST. 1978, CK CALVIN KLEIN” (CK’S contemporary line), “CALVIN KLEIN” (better sportswear), “CALVIN KLEIN UNDERWEAR”, “CALVIN KLEIN JEANS” and “CALVIN KLEIN PERFORMANCE”.

Calvin Klein operates one Calvin Klein Collection Store that is located in New York, New York. Calvin Klein owns and operates 200 doors. Product can be found in 450 Macy’s around the United States. The product is also distributed through the brand’s digital commerce site (calvinklein.com). The e-commerce platform covers over 35 countries and accounts for 10% of the company’s sales. This includes the United States, all of Europe, Brazil and most of Asia. Calvin Klein has set a goal to increase overall e-commerce sales to grow throughout the next years. A specific growth goal is not mentioned.

Calvin Klein’s business structure is split between Calvin Klein North

America and Calvin Klein International. The brand’s North American operations account for generated almost 49% of revenues in 2017. Products distributed throughout the United States include “men’s sportswear and dress furnishings, men’s and women’s Jeanswear, underwear, outerwear, fragrance, accessories, footwear and performance apparel, women’s sportswear, dresses, intimates, suits and handbags and items for the home” (PVH.com). Calvin Klein believes that the largest growth opportunities in North America are women’s accessories and apparel, and men’s Jeanswear. Customization of products is another area of expansion that the brand is exploring.

Wholesale is extremely important to Calvin Klein because it allows the brand to communicate their message directly to the consumers. Wholesale customers are partnered with to ensure “shop-in-shops, product presentations, customer service levels and in-store and online experiences meet standards, given Calvin Klein’s premium brand positioning” (PVH.com). Wholesale customers include brands such as Macy’s, Dillard’s, Urban Outfitters and Amazon. Apart from wholesale, total retail sales for Calvin Klein consist of 43% of Calvin Klein’s North America sales in the year 2017. Retail operations include 190 stores in the United States.

Calvin Klein International accounts for a total of 51% of the companies 2017 revenues. These revenues are generated throughout the Asia Pacific region, Europe and Latin America. Points of the sale include in-store and online through wholesale channels, the brands own a network of retail locations. These locations include concessions, licensee stores and online. The future outlook for Calvin Klein international is to continue growing casualwear and performance apparel businesses.

The largest opportunity for the brand is to expand the women’s and men’s apparel businesses.

The Asia Pacific operations account for 20% of

Calvin Klein’s revenues in 2017. Regional headquarters are based in Hong Kong with commercial teams based in Shanghai, Taiwan, Singapore, Seoul, and Tokyo.

Major markets are in the countries of China, South Korea, Japan, and Southeast Asia. The future outlook and areas of expansion for Calvin Klein in the Asia Pacific include expanding women’s and men’s apparel and performance wear. This includes underwear, Jeanswear, and accessories. In Asia, Calvin Klein operates 420 retail stores and approximately 370 concessions. Wholesale business is distributed throughout 1,490 stores. Calvin Klein had a strong presence in South Korean and Japanese department stores.

Calvin Klein’s European business produces approximately 28% of Calvin Klein’s revenues in 2017.

Product lines that are sold include Calvin Klein Jeanswear, underwear and accessories, and a limited selection of men’s Calvin Klein Apparel. Retail stores in Europe account for 200 full priced and outlet locations, 730 concessions, and approximately 150 franchise stores. Calvinklein.com ships to 30 countries in Europe. Europe is the brands largest area of future opportunity. The largest area of growth in Europe is the men’s apparel business. Women’s apparel will be introduced in Fall of 2018. The future outlook suggests that there is a large area for expansion in Jeanswear, accessories and performance wear.

Calvin Klein has operations in Brazil that are directly manufactured for the entire Latin America business. Business in Latin America accounts for 3% of Calvin Klein’s overall revenues. Products are distributed through a wholesale channel through stores and online. Throughout Latin America, there is a limited number of retail stores and online areas of delivery. Future outlooks foreshadow an increased growth of apparel and accessories. Distribution has been in further expansion in South America through a third-party licensee.

Calvin Klein has approximately 55 licensing arrangements. These arrangements include joint ventures in Australia, India, and Mexico. These licensing arrangements include worldwide third-party usage of Calvin Klein brands for a wide range of products. Licensing is a large part of Calvin Klein’s business plan. Global retail sales in 2017 generated 54% of licensing revenues for the brand. The top licensing groups were G-III Apparel Group and Coty, Inc. All operations, including licensing, and the overall structure of Calvin Klein is determined by strong and seamless leadership.

Leadership

Both PVH and Calvin Klein believe that by maintain strong leadership, they will reap the benefits of sustainable growth and strong financial returns. Leadership throughout PVH is broken down by regions and brands. The head of all leadership is the Corporate Officers and Executives. These Corporate Officers and Executives consist of 11 members. The most relevant of these members to this project consists of the Chairman and Chief Executive Officer (Manny Chirico), Chief Supply Chain Officer (Bill McRaith), and Executive Vice President, Logistics Services (Kevin Urban).

Senior leaders are further divided into Calvin Klein, Tommy

Hilfiger and PVH Europe, Calvin Klein Americas, Tommy Hilfiger Americas, Heritage Brands, PVH Canada, PVH Asia Pacific, Calvin Klein Asia Pacific, and PVH Europe Country Management. Calvin Klein’s senior leaders consist of the Chief Executive Officer (Steve Shiffman), Chief Financial Officer, Executive Vice President of Operations (Gene Gosselin), President, CALVIN KLEIN 205W39N YC and Calvin Klein by Appointment (Michelle Kessler-Sanders), and the Chief Creative Officer (Raf Simons).

Raf Simons leads all of the creative strategies for the Calvin

Klein brand. Simons handles all aspects of Global Marketing for the designer, bridge, jeans, underwear, contemporary and home categories.

The Chief Creative Officer handles all Visual Creative Services, Store Design, and Communications. Raf Simons was brought into the Calvin Klein team to attract a younger target audience. His most recent work highlights the importance of maintaining the classic American Heritage that the brand wishes to preserve. Raf Simons vision is projected throughout the brand and strongly resonates with a younger audience. Current marketing campaigns align directly with Calvin Klein’s strategic priorities.

Strategic Priorities

PVH has an organization-wide strategy when working towards the overall growth of the corporation. The global strategies include (1) Drive, (2) Expand, (3) Invest, (4) Develop, and (5) Generate. Driving consumer engagement throughout all channels in the organization is the number one strategic priority. PVH continues to invest in their brands, product, and online and in-store channels. According to the corporation’s annual report, the organization’s expansion goals center around expanding Calvin Klein and Tommy Hilfiger’s worldwide reach. Investing is taking place in “evolving operating platforms through systems, consumer data, speed to market, digitalization, supply chain initiatives and centers of excellence” (PVH.com).

The focus of Calvin Klein’s most recent supply chain initiatives center around furthering sustainability, rather than speed to market or tech. Developing the overall organization’s talent and skills will allow for future growth opportunities.

Lastly, development must be in line with the organization’s core values. Generating free cash flow will allow for growth in margins and returns.

Calvin Klein’s specific strategic priorities

for future growth focus on (1) Consumer-centric, (2) Drive, (3) Develop, (4) Gain, and (5) Sharpen. According to the company’s corporate website, by being consumer-centric, Calvin Klein wishes to resonate with “youth-minded” consumers. By enhancing brand awareness with consumer engagement initiatives and marketing campaigns, the brand plans to drive growth. Driving product expansion and improvement in the brand categories of apparel, jeans, women’s intimates, and accessories is the companies third strategic priority. Developing and growing the brand’s presence will be achieved by creating unforgettable digital experiences, and emphasizing specialty stores by opening more travel retail locations. Gaining more control over the brand will be achieved by taking back licensed businesses in order to operate from a direct point of view. The final strategic priority will be to sharpen and enhance all data capabilities throughout the global supply chain.

Core Values

PVH and Calvin Klein’s strategic priorities must align with the

brand’s Core Values. Calvin Klein’s core values are individuality, partnership, passion, integrity, and accountability. The brand believes that diversity drives creativity and adds value to the way Calvin Klein conducts business. Collaboration and partnership is a key component to successful business practices. Passion is what cultivates strong brand identities, sustainable business, and unique products and designs. Integrity and respect are acts that are practiced on a daily basis. Calvin Klein strives to maintain accountability and responsibility for each of their actions through certifications and continual audits. It is important that the brand assumes full responsibility for their “decisions, actions, operations and products in the best interest of our associates, customers, stakeholders, supply chain partners, and the workers who produced our products” (PVH.com).

Calvin Klein’s core values fall directly in line with the United Nations Sustainable Development Goals. The United Nation’s Sustainable Development Goals are no poverty, zero hunger, good health and well-being, quality education, gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure, reduced inequalities, sustainable cities and communities, responsible consumption and production, climate action, life below water, life on land, peace, justice, and strong institutions, and partnerships for the goals.

Both Calvin Klein’s core values and the United Nation’s Sustainable Development Goals’ coordinate with the brand’s overall Corporate Responsibility efforts. The brand corporate responsibility and sourcing guideline efforts are outlined in the company’s commitments.

Commitments

Calvin Klein Corporate Responsibility creates positive impacts on people, the environment and communities from source to store. The conglomerate believes that corporate responsibility will lead to sustainable growth by maximizing efficiencies, driving value and managing risk. Social and environmental issues are a top priority.

Calvin Klein’s corporate responsibility consists of ten major commitments that are derived from the United Nations Sustainable Development Goals. Calvin Klein’s ten commitments focus on empowering people, preserving the environment and supporting communities. The ten commitments are as follows: human rights, safe workplaces, inclusion & diversity, our associates, responsible chemical management, water, sustainable packaging, sustainable materials, greenhouse gasses, and communities.

Calvin Klein takes an approach to responsible business by having a positive impact on the environment. The highest ethical standards are taken responsibility for, and drives everything the brand does. This is illustrated in a cycle of sourcing, making, selling and reusing.

Responsible and ethical sourcing is chosen from the purchasing of materials. The manufacturing, labor and design process empower individuals and support the environment. Selling the product, the transportation, and marketing is done in a sustainable way, all the way down to the packaging. Lastly, consumers are encouraged to maintain, reuse, recycle and care for their product in an ethically responsible manner.

Human Rights

Human Rights commitments promote strong adherence to the code of conducts

and sourcing guidelines with business partners. The goal is to move beyond compliance to further improve the lives of workers within Calvin Klein’s supply chain. Since 1991, all business partners are required to follow a written shared commitment. The shared commitments outline the code of conduct for all business partners. Suppliers, contracto rs, vendors, licensees, and agent’s values must align with Calvin Klein’s. The shared commitments outline standards on employee relationships, nondiscrimination, harassment and abuse, forced labor, child labor, freedom of association, health and safety compensation and benefits, hours of work, and the environment. Twenty-five plus years of shared commitment are still in continuation. PVH and Calvin Klein work with over 1,100 level one suppliers. These commitments are continually assessed and improved throughout business partnerships. Throughout the CR Supply Chain program, the scope and scale are continuously evolving. Due to this, the assessment program is under continuous improvement. New analyzing features include processing worker’s hours more meticulously and tracking supplier’s behavior towards their worker’s human rights. In terms of going beyond compliance, suppliers and licensees are empowered to take ownership of their own labor practices and supply chain performance. It is expected that changes are continuously being made to better the lives of employees. Suppliers are encouraged to be a part of the Better Work Program. On an industry level, Calvin Klein participates in associations that promote better labor conditions, such as the Fair Labor Association. The corporation has been re-accredited for the FLA for the third time in a row.

Safe Workplaces

Maintaining a safe working environment is crucial for workers to thrive throughout the supply chain. Workers are at the most risk in countries where production is taking place. Over 5,700 safety issues have been addressed to improve health and safety standards. PVH and Calvin Klein have found a legally binding commitment called the Accord. It is a commitment to improving building and fire safety in Bangladesh. The Accord was founded in response to a building collapse in Bangladesh in 2013. Under the Accord, stakeholders are partnered in order to ensure fire, electrical and structural safety throughout working conditions. Empowerment and positive change in workers are continuously addressed. Calvin Klein wants their employees to feel comfortable and capable in the workplace. Lessons have been learned from the tragic safety conditions in Bangladesh and have been implemented throughout other countries.

Inclusion & Diversity At PVH and Calvin Klein,

inclusion and diversity mean “supporting associates in reaching their full potential” (PVH.com). It is important to cultivate an environment where every individual feels valued and included. The corporation’s core values mirror how they view inclusion and diversity. A current 1,200 PVH leaders are educated on “unconscious bias.” Female senior leaders make up 47% of overall executives. 33% of the board of directors for PVH and Calvin Klein are female. The United Nation’s women’s empowerment principles drive women’s advancement and equality in the workplace.

Calvin Klein is a huge supporter of the United Nations HeForShe initiative and the Human Rights Campaign. A program called “Confronting Unconscious Bias” has been created to train leaders to address “deeply ingrained biases in their decision-making and integrations” (PVH.com).

HR.com recognized this training as a finalist in the Best Use of Classroom Training. This type of training is continuously evolving and growing throughout the corporation.

Responsible Chemical Management Responsible chemical management is a key factor when ensuring positive

corporate responsibility for the environment. The goal of PVH and Calvin Klein is to have zero discharge of hazardous chemicals. Calvin Klein is committed to practicing responsible management of chemicals and has plans to phase out chemicals from their supply chain by 2020. By eliminating these harmful chemicals, the environment and human health are better protected. A list of eleven chemicals is a top priority in phasing out. These chemicals are AP’s and APEOs (1), Azo Dyes (2), Chlorinated Paraffin’s (3), Chlorophenols (4), Chlorinated Solvents (5), Chlorinated Benzenes (6), Heavy Metals (7), Organotins (8), Per- and Poly-Fluorinated Chemicals (including PFOS and PFOA (9)), Ortho-phthalate (10), and Halogenated Flame Retardants (11). Zero discharge of hazardous chemical programs and water guidelines are followed to ensure the containment of chemicals throughout the supply chain. Continuous audits and tests are run to ensure that compliance is being met within the chemical management program.

The scope of environmental standards is being broadened when vetting new suppliers. Chemical management training is mandatory for design and product development employees throughout the supply chain. It is important to establish one standard across the industry. Calvin Klein follows the United Nation’s CEO Water Mandate and participates in the Sustainable Apparel Coalition.

Water

Water is a resource that is safeguarded and preserved by Calvin Klein.

Maintaining high-quality water for the community and the business is imperative. Water is used in every single step of production of apparel.

Water plays a large role in growing raw materials, tanning, dying, finishing and printing garments. Water is even used when consumers wash the clothing Calvin Klein produces. The United Nations has a goal to achieve safe and sustainably managed water for all by 2030. Having accessible and clean water is a human right. Calvin Klein understands this and strives to provide clean water for the community and its employees. A water risk analysis is conducted by the World Wildlife Fund to ensure that Calvin Klein has met their standard. The brand further works with manufacturers to measure the managing of water and to ensure overall sourcing guidelines are met.

According to WWF, Calvin Klein has made progress “in developing their global water strategy” (PVH.com). Conserving water is another way to foster more sustainability throughout the supply chain. Calvin Klein engages with local communities on the importance of clean water in countries such as Ethiopia and Bangladesh. The companies 2018 corporate responsibility report discusses their push towards investing in “waterless denim” techniques.

Calvin Klein is working with leading manufacturers in order to make this initiative a top priority.

Sustainable Packaging

Sustainable packaging is being achieved by sending zero

waste to landfills by collaborating with manufacturers to reduce packaging. Current statistics state that 2,600 trees have been saved and 825,000 pounds of Calvin Klein packaging is now recyclable as of 2017. The reduction of packaging is necessary in order to reduce the amount of waste being sent to landfills. Waste is created throughout all areas of the production phases of a product.

Collaborating with other apparel companies and suppliers has led to discoveries of innovative packaging solutions. For example, Calvin Klein has been working with the Sustainable Packing Coalition. As time goes on, Calvin Klein will take more steps towards reducing cardboard cartons, and other packaging materials that have proven to not be necessary. Calvin Klein considers the three “R’s” with their every move. These “R’s” are to reduce packaging, switch to recyclable packaging and to rethink materials that are to be used. The brand has been able to decrease the size of plastic sheets used to protect garments. Denim garments are currently still being shipped with these plastic sheets today. Calvin Klein has also been able to reduce paper-stock use by eliminating a further percentage of unnecessary packaging. By eliminating unnecessary packaging, costs are decreased as well.

Sustainable Materials Sustainably sourcing materials are ex-

tremely important to Calvin Klein. The brand is committed to sourcing raw materials in order to eliminate negative impacts on the environment throughout their supply chain. Calvin Klein’s total raw material use of cotton is 70%. High-quality is not to be compromised when sourcing for sustainable raw materials. When discussing with Calvin Klein employees, they have stressed the importance of the brands push towards using 100% organic cotton. Underwear and t-shirts are the most commonly produced garments in organic cotton. However, the brands denim is currently not a garment offered in an organic cotton fabric.

Sourcing cotton more sustainably is the top priority for Calvin Klein as well. The organization is investing a great deal of time and money into more sustainable cotton markets. Recycled and upcycled fibers are being used to create more sustainable synthetic fibers. Sourcing recycled polyester is another priority of the corporation. As of 2018, recycled polyester will be used to create a line of dress shirts. Animal-based materials are in the process of becoming more sustainably sourced as well. The “five freedoms� of animal welfare are taken into account when sourcing animal-based products.

Calvin Klein follows a company-wide responsible wool standard. Calvin Klein and Tommy Hilfiger specifically incorporate certified sustainable sourced feathers in their down clothing. Tommy Hilfiger is the only specific brand that has spoken out about their goal of working towards a 100% more sustainably sources cotton by 2020.

Greenhouse Gasses

Managing and understand global emissions of greenhouse gasses in important to Calvin Klein. As of 2016, 148,726 metric tons of total gas emissions have been measured by PVH globally. 2,285 tons of CO2 emissions have been cut from PVH offices from the years of 2015 to 2016. The above data is approximated from 1,700 PVH facilities globally. This includes offices, warehouses, and stores throughout 43 countries. The corporation has set a global reduction target of 35% by 2030. This global reduction target started in 2017. In order to reduce these greenhouse gasses, energy consumption must be reduced. Energy efficiency will increase with the overall usage of clean energy across the supply chain. By reducing greenhouse gasses, Calvin Klein is doing their part to help combat climate change. The corporation has outlined three scopes that prove they are working beyond measuring their own energy consumption. Measuring and reducing their own energy consumption is “Scope 1.”

Measuring and reducing purchased electricity emissions is “Scope 2.” Measuring and reducing indirect emissions is “Scope 3.” These indirect emissions include third-party transportation, business travel, and any other impacts from procurement and the overall supply chain. Measuring emissions is facilitated by associates throughout every aspect of the company. These include “facility managers, office administrators, IT teams and travel coordinators” (PVH.com). These environmental savings will result in financial savings as well. Calvin Klein is a member of Retail Industry Leaders Association’s Sustainability Committee. This committee helps to measure the company performance and compares it to other company’s progress.

Calvin Klein Europe had been developing sustainable store guidelines to help boost overall environmental and energy performance throughout retail stores.

Communitites Employees and associates working for Calvin Klein are active members

in supporting communities around the globe. Women and children are at the top of Calvin Klein’s priority. By providing access to education and creating safe environments, women and children’s quality of life can be drastically changed for the better. Giving back is a strong pillar in the corporation’s culture. Positive change is continuously cultivated throughout communities. Calvin Klein is a part of PVH’s non-profit corporation called the PVH Foundation. The foundation “supports global philanthropic campaigns and initiative, as well as contributions to disaster relief efforts” (PVH.com). Over 35,000 associates donate time and resources by continually volunteering at local communities. Calvin Klein has partnered with Save the Children by promoting early education. This partnership had sustained since 2005. Since 2014, PVH has made a donated $5 million to promote education programs and funds. Most of the Save the Children programs take place where PVH and Calvin Klein produce and/or have offices. In Bangladesh, Calvin Klein has supplied over 2,000 uniforms to school children and support 16 early learning centers. Over 5,000 families have been helped in Shanghai to support Save the Children. The next country Calvin Klein will take initiative in is India. Over $1 million dollars has been donated to Save the Children efforts in Sub-Saharan Africa. Efforts are being made in the United States as well, Calvin Klein has recently been involved with Save the Children in West Virginia. Approximately 150 Calvin Klein employees were involved in inviting over 200 children to get involved in local learning and art activities. “During 2016, PVH contributed nearly $25 million to charitable causes, including product contributions, cash contribution, associate pledges, fundraising, and retail consumer contributions” (PVH.com).

United Nations Sustainable Development Goals Calvin Klein maps their

Corporate Responsibility strategy to follow the United Nations Sustainable Development Goals. These goals help to guide global efforts. PVH’s latest CR strategy supports the SDG goals in order to further achieve “positive impacts across out value chain” (PVH.com).

Materiality - Defining Key Material Issues

Throughout the

years, PVH has conducted assessments in order to positively guide Corporate responsibility efforts. As of 2018, the assessments have helped to prioritize CR issues and topics that are the most prudent to stakeholders and the overall business. Calvin Klein leaders and associates played a key role in assessing the order of prioritizing. Leaders were asked to rate which topics they feel were the most important to and in association with the corporation’s core values.

PVH executives had the last say on the prioritization of topics.

This assessment will be run again in 2020. Below are the top ten ranked material issues. This assessment is extremely important. It helps to identify what is the most relevant in terms of the overall organization’s stakeholders.

Sourcing Guidelines

The top 20 material issues are in line with Calvin Klein’s sourcing guidelines. The brands sourcing guidelines outline the companies code of conduct, terms of engagement, factory authorization policies, “other assessments,” and “additional policies.” The terms of engagement focus on transparency, accountability, responsible sourcing, worker retaliation. Factory authorization policies cover new supplier set-up, assessment planning, and preparation, conducting the assessment, post-assessment, and remediation and capacity building. “Other assessments” consist of better work, the accord on fire and building safety in Bangladesh and the Fair Labor Association (FLA). “Additional policies” include unauthorized subcontracting, bribery, denial of access, mistreatment of PVH and Calvin Klein associates or representatives and counterfeiting.

Calvin Klein introduces its code of conduct as “A Shared Commitment.” These commitments were introduced in 1991. According to the corporation’s Supplier Guidelines report, the “code is informed by the United Nation’s Universal Declaration of Human Rights and is based on the Core Conventions of the International Labor Organization (ILO).” The code is continually updated to ensure alignment with current Fair Labor Act’s Workplace Code of Conduct. The Code of conduct consists of the employment relationship, non-discrimination, harassment and abuse, forced labor, child labor, freedom of association, health and safety, compensation and benefits, hours of work, and environment.

After the Code of Conduct is introduced in the supplier guidelines, the terms of engagement are outlined. The first term of engagement is transparency. Calvin Klein views transparency as a “fundamental component” of the brands business relationship.

According to the Supplier Guidelines, suppliers are expected to provide “Assessors complete and accurate business records on site as mandated by law for at least 12 months.”

It is also expected that suppliers present total and complete access to any and all records of documentation that are necessary to be provided. Free access must be provided to all employees as well. The company’s supplier guidelines state that the brand “expects accountability from our business partners, meaning they assume direct or shared responsibility for non-compliance issues, address the issue immediately and implement corrective actions accordingly.” Calvin Klein is committed to upholding responsible sourcing that is associated with the “Fair Labor Association’s Principles of Fair Labor and Responsible Sourcing.” Lastly, any kind of retaliation against workers who provide the required information during a supplier assessment is “strictly prohibited.”

The process of vetting new suppliers in order to ensure

that they successfully meet supplier guidelines is taken very seriously at Calvin Klein. A lifecycle flow chart of an overview of corporate social responsibility of supplier relationships is presented below.

Factories are

divided into levels 1, 2 and 3. The visual below illustrates what each factory level functions are considered.

Factories are further rated once they are vetted. Calvin Klein uses a

color-coded rating system. Different colors indicate different compliance status of factories. The table below summarizes the rating category color and its meaning.

Factories are even further categorized into

definitions that indicate capacity building issues.

According to the Supplier Guidelines, the colors indicate “a special type of handling and oversight that is to be applied to the factory from a CSR perspective.� The table below displays summaries of what each color assignment means.

Stakeholder Engagement

Stakeholders are affected throughout ev-

ery single level of the supply chain. Calvin Klein believes that strong engagement and communication with stakeholders is something that does not go unrecognized. Calvin Klein’s stakeholders include associates, investors, suppliers, workers in the corporation’s supply chain, non-governmental organizations, industry associates and multi-stakeholder initiatives, labor unions, governments, communities, and wholesale accounts and consumers.

Associates are involved in many organizational events, social media, and internal communications. These efforts are taken in order to strongly embed corporate responsibility throughout any and all associates working at Calvin Klein. All associates throughout the supply chain are connected to the supplier and their employees in one way or another. All associates have the opportunity to engage with communities through volunteer work and philanthropic events. These events have the option to be hosted where suppliers and manufacturers are located.

Corporate responsibility efforts are directly communicated to investors of PVH and Calvin Klein. Environmental and social risks are clearly highlighted on PVH’s corporate website, CR reports, and Annual Reports. Investors range from traditional institutional investors to socially responsible investors.

Supplier stakeholders are continuously working with PVH and Calvin Klein to expand capacity and support their countries industrial zones and overall growth.

Each supplier category color from blue to white shows whether the suppliers are available to grow capacity or not. Maintaining a strong relationship between workers and management is crucial in order to assist these suppliers with their gro wth. A partnership approach is taken when working with suppliers. Constant collaboration is necessary when working to resolve environmental and social issues.

Continuous improvement is key.

When investing in workers in the supply chain, Calvin Klein prioritizes the process of commencing in-depth interviews to be held with each worker. This is an ongoing assessment process. A hotline is available to all workers throughout the supply chain. These employees have a 24-hour number that can be contacted in the case of any question or emergency regarding the business or their wellbeing.

Non-governmental organization stakeholders are a close partner to Calvin Klein. The corporation is often sent inquiries regarding policies and practices of corporate responsibility. Many partnerships have been formed which have resulted in projects working with NGO’s. These projects address pressing environmental and social issues.

Industry associations and multi-stakeholder initiatives are close stakeholders to PVH and Calvin Klein. Working with industries and suppliers is important in order to combat and respond efficiently to industry-wide issues in order to work towards long-term solutions. Strengthening and promoting compliance is directly related to relationships with multi-stakeholder working groups. “Broadening corporate responsibility focus areas across the industry” (PVH.com) is important to Calvin Klein.

Direct engagement is taken when working with labor unions. Initiatives that may affect workers in the supply chain are closely monitored. This is done through multi-stakeholder forums and “bi-partite” relationships.

Working with government stakeholders takes place by engaging through industry associations and directly with governments. Specific issues are outlined regarding fair compensation, freedom of association, and fire and structural safety. In order to align sustainable development goals, it is important to keep close relationships with local governments in order to ensure compliance.

Denim Market Overview “Jeans is the leading product in the global market, that

generated more than $100 billion in 2016� (P&S Market Research). According to Prescient & Strategic Intelligence, North America is the largest current denim market. The continent has accounted for more than 30% of 2016 global revenues. North America is expected to remain the largest denim market until 2030. In the United States, the average woman owns at least 7 pairs of jeans, and men own at least 6. Companies that occupy space in the denim market are working towards further maximizing overall profits by streamlining supply chain networks.

The graph below depicts the denim jeans retail sales worldwide from 2012 to 2021 in billions of US dollars. During the year 2021, it is estimated that denim jeans will reach global retail sales of $129.8 billion.

Fashion United has provided extensive information and facts about the denim industry. It is known that there are 513 denim mills worldwide. The four leading countries in denim manufacturing are Bangladesh, China, Mexico, and Italy. The top three denim sales markets are located in the United States, Western Europe, and Japan & Korea. A current market trend that is popular with denim mill manufacturers is using polyester in the denim textile. Prescient & Strategic Intelligence state that manufacturers are finding it easier to use polyester in the denim manufacturing process. By adding polyester to the fabric blend, 100% cotton denim jean sales have decreased globally. Other materials, such as nylon, aramid, and other spun thermoplastics are increasingly finding their way into denim fabric.

All American Life states that the top five denim trends to expect in 2018 are to stretch with strength, improving washing and dying techniques, lighter weights with higher sleys, increased quality, and more recycling and eco-friendly practices. Denim was originally designed for durability, but now consumers are wanting more comfort. In order to achieve this, more complex fabric blends will be manufactured in order to maintain a balance of strength and stretchiness. Blends will include cotton, polyesters, and spandex.

Manufacturers are looking at working mostly with denim that is lighter weight with higher sleys. All American Clothing states that denim is typically categorized into three weights. These weights are lightweight, mid-weight, and heavyweight. Lightweight denim is under 12 ounces and is in very high demand. This type of denim is supposedly more breathable and easier to break in. Manufacturers take into account higher sleys. This means that the thread count runs lengthwise which helps to improve the overall quality of the denim.

Customers are continuously desiring unique looks as new denim trends

emerge. Manufacturers are constantly experimenting with denim washes and dying techniques. Current design manufacturers are hoping that newer techniques will cut the overall cost of production. More sulfur drying techniques are said to be expected. This type of finishing is affordable and eco-friendly.

E

co-friendlier and recycling practices are something that companies are always looking to invest and do research in. Businesses that work in and out of the denim industry are on the hunt to find solutions that lower environmental impacts, yet are still affordable. By the end of 2018, new processes and technologies are predicted to have emerged through research and development. An important step in the denim manufacturing process is to lower the level of water usage when washing denim. More organic cotton is hoped to be used more frequently in the future. Researching and developing methods for recycling denim and the waste produced by the manufacturing process are other top priorities for businesses.

Market Drivers

With the increase is casualization and westernization of denim trends, an increase in taking control of the supply chain has become a result. “The strategies that denim vendors are adopting to increase the level of coordination among westernization and increasing consumer demand, is based on well-connected and pressured supply chain channels” (Prescient & Strategic Intelligence). Fast fashion has become the result of this. Companies such as Zara are taking full advantage of the supply chain in order to supply the latest denim fashion trends with quick turnaround. The graph below illustrates the mean number of pairs of jeans that are owned by an individual in each chosen country, relative to the mean days’/weeks individuals put on jeans or denim shorts.

In a Euromonitor interview with Levi’s, the company’s CEO, Chip Bergh, is known for reiterating that “millennial customers care about value and values.” Bergh further explains how customers are more and more conscious about how and with what clothes are made out of/ from. The number of millennials who value sustainability will grow within the next five years to a purchasing power of over $600 billion annually in the United States. Bergh believes that the underlying factors of why millennials care about sustainability are due to climate change and a more connected global economy. Younger consumers are looking more for companies that show a strong social purpose. Millennials are more likely to buy from companies that support social and environmental causes.

Ecosphere plus discusses how the millennial consumer is a driving force for

corporate sustainability. The article states that in the United States, there are now 92 million millennials and by 2025, millennials will make up 75% of the workforce. According to Ecosphere, Millennials have grown up in a progressive world and thus seek meaning though important causes. The generation is increasingly on the hunt for authenticity. “87% of millennials are more loyal to a brand or company that allows them to take part in social and environmental issues” (Ecosphere).

Millennials are more likely to pay more for a product if it is environmentally friendly. Ecosphere states that “more than 9-in-10 millennials would switch brands to one associated with a cause.” Millennial consumers are actively driving brands to practice sustainability. Nielson Global has conducted a survey on millennials and how they view corporate responsibility. Questions were asked to help determine the top sustainable purchasing drivers. The top three categories that millennials care about the most are if products are made by a brand/company that they trust, if the product is known for its health and wellness benefits, and if the products are made from sustainable products and/ or organic ingredients. Respondents average that they are willing to pay more for these products. Consumers are the main driver for sustainable change within the denim manufacturing industry. Customers want to have sustainably sourced and manufactured garments easily accessible. The denim market is being pushed towards high transparency, consumers want to understand where their products are coming from, what they are made of, and how every step is affecting the environment.

Denim Textile & Garment Manufacturing Process It is undeniable that sustainable denim is the

direction that the market is driving the denim industry.

It is important to understand the manufacturing process of the denim textile and garment manufacturing process.

By understanding this process, one can visualize and fully comprehend the areas where sustainable efforts are being made within denim production.

When making a pair of denim jeans, the making of

the textile is the first step. The yarn goes through various steps before it is made into a fabric that is then made into a pair of jeans. The most basic process that the denim goes through is the spinning, bale warping, rope dyeing, long chain beaming, sizing, weaving, finishing, inspection & folding, packing and dispatching. As discussed previously, the steps in the manufacturing process that contribute to the most waste and harm to the environment are the immense amount of water used to grow and process cotton, the harsh chemicals used to dye the fabric, and processes throughout various finishing operations. Sarah Jane Maki’s infographic below illustrates the overall supply chain that the denim pant goes through. Each step illustrated in the supply chain displays specific unsustainable factors.

Textile Learner explains the operations that surround making a denim

garment. The beginnings of the denim manufacturing process start with bales of cotton. The cotton is spun into yarn that is then sent to weaving. Weaving yarn ensures the strength of the fiber that will become the garment. The yarn is then sent to be warped and sized to improve the strength of the yarn. Each fiber is coated with chemicals to increase its overall strength properties. Infrastructure is then set up for the weaving process. This is called “beam gaiting or knotting on the loom.”

Two types of threads are then set up to complete the weaving process. These two threads are called warp and weft. Once the fabric has been woven, the finishing process begins.

According to Textile Learner, the finished woven fabric is called “Grey

Fabric.” Grey Fabric is the cloth that has not been through an indigo dyeing process. The cloth is wound on a roll and taken off of the weaving machines. During this process, the fabric is checked for faults in the weaving. Corrective steps are taken throughout the denim manufacturing process to ensure overall quality control.

Denim fabrics are finished

woven fabrics that have been through the dying process. Denim fabrics that are made of 100% cotton are extremely strong and durable. Depending on the fabrics and techniques used, the denim fabric will have a different dye.

Technologies dictate the effect of dying that a garment will have by the end of the manufacturing process.

During the sizing stage is when denim fabric dyeing occurs. The two most popular methods of dying are rope dyeing and sheet dyeing, according to Textile Learner.

Heddles discuss how rope

dyeing is believed to be the “best possible indigo dyeing method for yarn.” During the sizing stage, the threads are twisted into a rope and are repetitively dipped into a vat of indigo dye. The shade of indigo is controlled by how often and how long the yarn is dipped into the vats. This type of yarn is considered “ring-dyed” according to Heddles. This method creates a yarn that fades better than a completely dyed yarn. Sustainability with the rope dyeing technique is evaluated by how much water is used, how much energy is used, and what type of chemicals are used in the dye. Each manufacturer handles these factors differently.

Slasher, or sheet dyeing,

combines both the sizing and dying into a single process. The sheets of yarn are washed with chemicals before it is dyed. Once the yarn is dyed, it is washed with fresh water multiple times. The yarn then goes through a tedious drying process. This dyeing process is considered to have a lower quality outcome, according to Heddles. It is more difficult for the dye to penetrate the yarn with this method.

The color also tends to be more uneven.

The “making-up” process is

when defects are checked for. These defects can consist of weaving defects, uneven dyeing, bleaching and dyeing defects, oil stains, and patches.

Once quality inspections have been performed, the finished denim fabric is sent to manufacturers. This step is called dispatching.

Once the textile has been prepared, patterns are then cut. Made How walks the reader through the process of cutting the pieces to be sewn. The sewing process is done by hand by dozens of workers. Each sewer has a specific task. For example, one person could be responsible for sewing the back left pocket; whereas another individual would be responsible for sewing in the zipper.

Belt loops, buttons, hems, etc. are then put into place. The label of the maker is sewn on last.

Once the pair of jeans is successfully assembled, they go through a

“finishing” process to achieve the desired effect. “Some jeans are prewashed and/or stone-washed to alter the appearance of texture of the finished jeans” (Made How). According to Denim Help, the most popular ways to finish and wash a pair of jeans are to use an enzyme wash, fraying, garment dyeing, hand sanding, rinsing, sandblasting, stone-washing, tinting, torn jeans, and whiskering. These methods are the top trends for washing and finishing jeans at most manufacturers.

Enzyme washing is what creates the vintage color that is currently

trending. This wash breaks down the indigo dye, which leaves an “antiquated look.” This type of wash does not damage the fibers the same way a stonewash does. However, this method does require the use of special smoothing agents and softeners which are in the form of a chemical makeup. Fraying is the “directed destruction” of denim fibers.

This is often found near the top of the waistband, pockets, and hem of the jeans. If the goal is to create an even more intense saturation of the indigo color, the garment is dyed. Hand sanding is another method that is used to achieve particular patterns on a pair of denim jeans. Common patterns that are produced by hand sanding are whiskers, chevrons, and other damage marks. These “damage marks” are often seen in localized areas. In order for the garment to achieve a softer feel to the fabric, a rinse is often applied. The garment is washed with a softener that can either have a white or black tint to it. This tint acts as s subtle dye.

Sandblasting and stone-washing are the two methods that are known for being

the least sustainable. With the sandblasting method, jeans are literally sprayed with sand in order to create a worn and vintage look. When a pair of jeans have a soft and powdery feel, it is because the garment has been sandblasted and bleached.

Stone-washing is when the garment has been washed with pumice stones. The purpose of the pumice stone is to break fibers. When the fibers are broken, indigo-dye is released. This gives the jeans a lighter and softer feel. Different sized stones provide different effects. Bleach can be added to the wash as well. These two techniques produce the most amount of waste, according to Heddles. The sand and pumice produce powdery residue that ends up in worker’s lungs and the environment.

The last three most common finishing styles are tinting, tearing and whiskering.

Tinting is a more specific way to change the garments hue, cast, and color. Denim Help describes how tinting a garment can achieve different shades. Diesel Jeans was the first to make this method popular. Torn Jeans are “manufactured� and meant to have a natural appearance. Whiskering is another method that attempts at creating a more natural appearance. By whiskering a garment, pigmentation is removed from areas where natural wear would occur over time.

As more sustainability practices become something that more and more

consumers are demanding, an increasing amount of research is being conducted to create more sustainable denim manufacturing methods. Many leaders in the denim industry are taking matters into their own hands. Brands are partnering with research firms to come up with competitive and sustainable solutions. Both research organizations and denim brands are working with manufacturers to implement new sustainable methods in the denim manufacturing process. These new processes are explored in the competitor analysis.

Benchmarking Best Practices According to Prescient & Strategic Intelligence,

the standard denim market is evolving on the daily. The is mainly due to new technologies that are centered around recycling denim fabric. More and more denim products are made by recycling previous materials. New technologies have allowed for this to be done without degrading the quality of the fabric. Brands are focusing their development on incorporating more recycled products throughout their product line. Sulfur and waterless dying techniques are among many new technologies that are being used and tested. Major players in the denim industry are Levi Strauss & Co., VF Corporation, Gap Inc., and PVH Corporation.

Competitors efforts towards more sustainable denim practices are discussed below.

Levi Strauss & Co.

Euromonitor discusses sustainability with Levi Strauss

& Co.’s Vice President of Sustainability, Michael Kobori. Levi Strauss believes that sustainability is a core belief in their company. It is not something that is added to their business model. It is what drives their every move. The brand has invested and focused efforts on collecting data that drives their environmental decisions. In the years of 2007 and 2015, Levi’s conducted an environmental lifecycle experiment on a pair of classic Levi jeans. The company discovered that the area that had the biggest impact on the environmental aspect of the clothing’s lifecycle is water.

The largest amount of water that is consumed is during the cotton growing and the consumer care phase. Levi Strauss joined the Better Cotton Initiative (BCI) in order to help reduce overall water usage. BCI helps to educate farmers on how to better handle and reduce the usage of pesticides and water when growing and farming cotton. The Vice President of sustainability at Levi’s hopes to increase the brand’s current consumption of BCI cotton to 95% by 2020.

Levi Strauss has an initiative called “Care Tag for the Planet.” This initiative encourages consumers to wash on cold, wash less, line dry their jeans and to donate when they are done. Within the companies own operations, Levi’s is setting out to innovate finishing techniques that have the potential to reduce up to (96%) of water usage.

Euromonitor discusses how Levi Strauss is currently faced

with the challenges of recycling denim into their production operations. The main challenges stem from taking old garments and converting them into new garments that do not lose their durability and quality. When cotton is traditionally recycled it is shredded.

This reduces the stability and strength of the fiber. Alternative materials in denim today are used frequently in today’s manufacturing processes. This makes it extremely difficult when separating and recycling different fabrics. In order to solve these problems, Levi Strauss is working with other companies in order to form a solution. One partnership has been formed with a business called Evrnu. This company is able to melt and dissolve recycled cotton down to the “cellulosic” level. When rebuilding the fiber, the strength is renewed.

Levi Strauss’s goal is to create a circular economy. In order for everything to fall full circle, it is necessary to change consumer behavior. In order to recycle old jeans, they need to be produced by customers. To achieve this, Levi’s has partnered with companies such as I:CO and Goodwill. I:CO puts recycling boxes outside of Levi’s stores, collects, and upcycles the clothing items. Levi’s works with Goodwill to provide consumers who shop online at Levi’s or Docker’s with a free shipping label to send old clothes from any brand to be donated to any Goodwill store.

Sustainable brands journal discusses how Levi Strauss & Co. is continuing technological investments to clean up denim’s supply chain. This new initiative is called Project F.L.X. (future-led execution). “This model replaces manual techniques by automating the jeans finishing process” (Sustainable Journal). By digitizing the finishing process with the use of lasers, denim’s supply chain will skyrocket in its sustainably responsive abilities. Not only will Project F.L.X. reduce the use of chemicals, but it will reduce the waste of materials.

This project uses laser technology to finish a denim wash within three simple steps. Handmade washing is executed in eight to twelve minutes. With this new technology, washing can be complete in about 90 seconds. According to Fibre 2 Fashion, the laser technologies have increased output in the workplace by 500%.

However, the lasers have reduced the overall strength of the fabric by 50%.

Denim laser equipment is sold from $4,000 to $40,000. Over time, the investment pays off due to the decrease in energy and water and increase in output. Fibre 2 Fashion states that one year’s worth of creating 6 billion jeans with the laser finishing process would save, on average, “two years of human consumption of water in Paris, two years’ electricity consumption in Nepal and 720,000 tons of chemical products would be saved every year.”

VF Corporation VF Corporation’s Wrangler and Lee are leading the way in sustainability

efforts in the denim industry. The two brands have partnered with Walmart Manufacturing Innovation Fund to invest in new foam dying processes. This process is called IndigoZERO. According to VF, the development of this new technology is taking place at the Fiber and Biopolymer Research Institute of Texas Tech University. Sudhakar Puvvada, who is the President of VF’s Global Jeanswear Innovation Center hopes that IndigoZERO will benefit the industry as a whole. Puvvada states that this new type of foam dying has the potential to be “truly disruptive.” This type of technology could completely change how denim is dyed. IndigoZERO is an eco-friendly way to achieve the same or better dying quality without using harmful chemicals or using millions of gallons of water.

Water and energy use can potentially be decreased by 90%. Both Lee and Wrangler have provided the research with funds and technological investments to make the process a reality. The VF cooperate website states that Wrangler and Lee wish to “eliminate unwanted chemicals from the supply chain by 2019, reduce water usage by 5 billion liters by 2020, and adopting 100% sustainable cotton by 2025.”

Wrangler is currently focusing

specifically on bringing back natural Indigo dye.

The brand is partnering with a company called Stony Creek Colors in order to harvest a supplier/buyer relationship. The natural dye company is able to create a “bio-based� indigo that is integrated seamlessly into the current milling fiber process. Since natural Indigo has the same chemistry as synthetic indigo, manufacturers do not need to purchase new operating equipment. Natural dyes have been used in Wranglers 27406 collection since Fall of 2017. According to Wrangler’s corporate website, the collaboration plans to continue.

Gap Inc. Gap, amongst others, has taken initiative to source sustainable cotton by

participating in the Better Cotton Initiative and reduce water usage when manufacturing denim. The infographic below illustrates the importance and benefits of using organic cotton. The Gap corporate website informs readers about their sustainability effort called WashWell. This effort to reduce water usage when washing denim eliminates water expenditure by 20%. Since the initiative was launched in 2016, over 100 million liters of water have been saved. Specifics on the steps of Gap’s WashWell practices are not open to the public, however, the process does not change the quality of the overall denim finish. Every pair of jeans is a part of Gap’s Water Quality program. This program is said to be designed to ensure that water used to make denim does not pollute local waterways. Over 200,000 WashWell jeans are produced each year. The infographic below illustrates the difference and benefits of organic cotton versus conventional cotton.

http://dev04.rodales.com/about/organic-clothing/cotton-infographic

Research & Development Firms

Aside from what competitors are investing (or not investing) their time and money to make denim more sustainable, other organizations and research facilities are taking the time to invest and research to clean up the denim manufacturing process. Enzyme treatments, silk denim, nanotechnology, and fabrics regenerated from cellulose are examples of further efforts that are being made to find a more sustainable way to manufacture denim. Crimson Publishers further discusses each new method.

Research has been done to replace normal denim finishing practices with enzyme treatments. Crimson Publishers states that the wet processing of denim can be replaced by eco-friendly, nontoxic, and fully biodegradable enzymes. Main benefits of using enzymes include “accelerating chemical reactions, being operational under mild conditions, easiness of control and a wide range of industrial applications” (Crimson Publishers).

Crimson Publishers sheds light on the fact that jeans were originally made from silk, wool, cotton, and linen. Recent attempts have been made to develop different combinations of silk denim fabrics. This increases denim’s stance in the “fashion wear” category. This newer and more sustainable blend has the opportunity to open up a new world of fabric to a younger generation.

Nanotechnology is another method that is

introduced to inject functionality into denim fabrics.

This new technology allows for innovative finishes and new application technologies. These particles carry properties such as “stain-resistant, hydrophilic, antistatic and wrinkle resistant and shrink proof abilities” (Crimson). When coating fabrics with nanoparticles, the breathability of the fabric is not compromised. The potential of working with nanoparticles works well chemically with the use of enzymes.

Comfort is at the top of the list of manufacturing requests from consumers. Main properties that affect clothing comfort are clothing conditions, finishing treatments, fiber type, fabric structure, and yarn properties. Along with innovations of new styles and colors, Crimson Publishers states that innovations are being made in comfort as well. The main innovation is “regenerated cellulose-based denim.” This regenerated denim would be an alternative to cotton which would increase sustainability tenfold.

Manufacturer Research Last month a panel took place

in Amsterdam to discuss how to make manufacturing denim more sustainable.

Many industry professionals attended this meeting in order to discuss the future of denim. An article written by Le Souk discusses how the goal of this meeting was to map out a plan for making manufacturing processes of denim more sustainable by 2029. It was recognized at the meeting that it is necessary to come up with more environmentally friendly ways to make dyes, fibers, weaving fabrics, finishing and “everything in-between.” One of the main topics of discussion during the meetings in Amsterdam is to reduce the amount of water used in production throughout fibers, fabrics, and finishes.

The leading mills, retailers, and manufacturers led the discussions.

These leaders consisted of Archroma, Dystar, Crailar, Jeanologia, Bayer, E3, Invista, Lenzing, Saitex, Candiani Denim, and ITV Denim.

Archroma is a global leader in

manufacturing specialty chemicals and color. An article on the company’s website discusses how Archroma has created a new dye that “provides a non-toxic way to produce the traditional, iconic, indigo blue that consumers associate with denim and jeans” (Archroma). This breakthrough took place in May of 2018. This specific dye is “aniline-free.” Past denim dying techniques were not successful without aniline dye. Archroma has now changed this for the better. It was found that this chemical is toxic to humans and has been linked to cancer. This eco-friendly dye can now be applied to most fabrics. The company has also developed a dying process that eliminated up to 90% of water used. Dystar is another chemical industry company that is developing eco-friendly dyes. During the meeting at Amsterdam, the brand presented their liquid indigo dye. Their new formula reduces sodium hydrosulfate by 60% to 70%. This is a common chemical that is known for polluting the waterways of the environment.

Crailar Technologies is a clean technology textile mill company that focuses on sustainable solutions for the processing of industrial hemp. Crailar Technologies is continuously investing in perfecting their process of growing hemp, to processing the plant into fibers. Their website states that “our environmentally friendly process produces fibers with properties similar or superior to cotton while helping to protect our planet from a cycle of environmental harm.” Crailar fiber is a process, a fiber and a brand. The Crailar process transforms hemp’s rough, natural state to a fiber that is as soft as and appears to be cotton.

Jeanologia is a disruptive company that is revolutionizing the textile industry. This sustainable denim finishing company is constantly working towards creating more sustainable processes for finishing denim.

According to Fashion United, their most recent discovery is their “One glass, One garment process.” The company based in Valencia, Spain has made it possible for one pair of denim to be produced by only using one glass of water. Fashion Unites states that “20 percent of the global industry’s production uses Jeanologia technology.”

This company is behind the laser finishing technology that Levi & Strauss is investing in.

Bayer is primarily a pharmaceutical company that has a research department that focuses on crop science. The company has developed a sustainable cotton crop called e3. E3 cotton is held to an extremely high and ethical environmental standard. This new program supports farmers in the United States and ensures that the highest quality of cotton is being met.

E3 cotton seeds are certified by Bayer Crop Science. When farmers participate in this program, they are committing to providing “enormous quantities of sustainably produced cotton” (e3 cotton). The company’s website states that auditors “certify a farmer’s commitment to growing e3 cotton in an environmentally responsible, economically viable, and socially equitable manner.”

Invista is at the top of their industry for providing the world’s largest integrated resin, fiber, and intermediates company. Invista is continuously investing in and researching new sustainable methods and innovations of specialty materials for their mill. The company is known for partnering with manufacturers such as the CORDURA Brand and Cone Denim. Invista is continuously looking to make the most of their resources.

According to their website, the company uses their byproducts in every way imaginable to eliminate waste. This practice is particularly present in the denim industry.

Lenzing is another leading mill that produces their own sustainable specialty fibers. Their three brands are Tencel, Veocel, and Lenzing. An article

by Fashion Network discusses Cone Denim debuting sustainable denim with Lenzing Group. This partnership pushes Cone Denim to the top of the list of being the only North American supplier offering sustainable denim made in the US. This innovative fabric is made from “wood pulp-derived Tencel cotton and wood scrap fiber-derived Refibra lyocell. Lenzing Group states that this fiber combination is a new environmentally friendly creation that is biodegradable. A leading manufacturer that Lenzing partners with are called Saitex. This manufacturing plant based out of Vietnam practice sustainability values that are in line with Lenzing.

Candiani Denim is a leading denim mill based out of Milan, Italy. The company has been running for 75 years and has mastered the art of sustainable denim. Candiani denim is known for developing chemical and water reducing methods, their sustainable Indigo Juice, and methods for energy saving. In a recent interview, The Sourcing Journal asks the company’s global manager, Alberto Candiani, what is up next for the company. Candiani denim is currently in the process of creating biodegradable denim. The goal is to “create a fabric with biodegradable and even compostable features without compromising aesthetics and performance” (Alberto Candiani).

ITV Denim’s website explains how the company is “engineered for excellence.” The company is located in Italy and has a strong mission to reduce their overall environmental footprint.

This is done by introducing new techniques and technologies for weaving, dyeing, finishing, and spinning techniques. ITV Denim is often known for collaborating with high-end designers.

Fiber to Fashion explains how the company has most recently won the Global Denim Award for incorporating yarn into their couture denim line with a designer named Anbasja Blanken.

Manufacturers are working with leading companies that are innovating and working with finishing, textile development, dye for denim, etc.

Sustainability will continue to drive change throughout denim companies and manufacturers. Le Souk states that consumers “need to know what they are wearing is special and cannot cost as much as a Big Mac.” A Boston Consulting research company came to the conclusion that customers are willing to pay between 7% and 9% more for a garment that is sustainable. This is something that many brands are not aware of. The introduction of cotton alternatives is yet another sustainable alternative that companies should be aware of. Hemp is one of the discussed fabrics that are predicted to replace cotton in the up and coming decades.

Hemp

Industrial hemp is a material that is overlooked when searching for cotton alternatives. This crop has various beneficial properties that could disrupt the textile industry in the United States.

Industrial hemp is often found in the Northern Hemisphere. Hemp is grown specifically for the industrial use of its derived products according to R&D Magazine. The crop is one of the fastest growing plants on the planet. It can be made into various products such as clothing, textiles, paper, biodegradable plastics, paint, biofuel, food, insulation and animal feed. Hemp was one of the first plants that were spun into a fiber over 10,000 years ago.

Hemp is not legal to grow just anywhere in the world. In Canada, the country has legalized the growth of industrial hemp, but many restrictions still apply. Made How discusses these challenges and restrictions and how they are navigated. Canadian hemp farmers are not able to grow the plant with a higher than 0.3% amount of THC. Farmers must be screened for criminal charges in order to harvest.

People who farm industrial hemp believe that it is a “great rotation crop” that can be substituted for almost any harvest. Farmers make a larger profit when growing hemp. The crop only takes 90 days to grow, whereas cotton takes about 180 days to be ready for harvest. According to Made How, China is the world’s largest producer of hemp fabrics and India produces the most hemp overall. Each country had specific laws that dictate under which conditions the crop can be grown. A graph from the Ministry of Hemp illustrates below which countries are producing hemp commercially and which countries are piloting or researching hemp.

The Ministry of Hemp states that most brands who source hemp apparel get it from farmers and factories in China. Recent studies have done their best to approximate the current hemp industry in China.

China’s current industrial hemp industry is estimated to be close to $200 million, which is roughly 125,000,000 yards of fabric. The countries hempseed market is growing as well, however, it is not as well-regulated as Canada’s hemp seed industry.

Made How states that Hemp was originally grown domestically in 8000 B.C. for the purpose of fiber and food. Hemp was not always illegal to grow in the United States. Thomas Jefferson grew industrial hemp and drafted the Declaration of Independence on hemp paper. Currently the United States is testing hemp cultivation, however, it is still illegal to grow commercially and manufacture the plant into usable materials.

Hemp Manufacturing Process

“Hemp is an annual plant that is grown from seed in a range of soils�

(Made How). The plant can technically be grown in any climate and temperature as long as the soil is not completely saturated with water or weather conditions freeze the plant. The crop prefers a mild climate with at least 25-30 inches of rainfall per year. A humid atmosphere is beneficial as well.

Hemp that is going to be made into a fiber is ready to harvest in 70-90 days after the seed has been plated. However, according to Made How, specialized cutting equipment is necessary when harvesting hemp for fibers. Equipment that works best when harvesting hemp for fiber are a discbine, a disc mower, or a straight sickle mower. This cutting equipment is readily available and has comparative costs range to cottons cutting equipment. Hemp cutting equipment can reach speeds up to 9 miles per hour. Cotton cutting equipment speed reaches about 5 miles per hour on average. Hemp can be harvested up to three times a year, whereas cotton is harvested once a year. According to the Wisconsin Industrial Hemp Production research, one acre will harvest 1,074 pounds of hemp per acre and one acre of cotton will yield 960 pounds of cotton.

Once the hemp combines harvest the crops; it is necessary for the plant to lay exposed to the natural environment for four to six weeks. This allows for the leaves to rot with the stalks remaining. Once the stalks are ready, they are baled and stored accordingly.

Before processing the stalks into a fiber, the “bast fiber” must be separated from the woody core. The image below illustrates the fiber separation from the core. Hammers help to break down the fiber and the desired fineness is achieved.

Cleaning and matting are then done to further move the fiber process along. In order to process hemp into a fabric, very few chemicals are used. Once the fiber is created it can be easily blended with other fibers. A common technique used is called “steam explosion.” This method removes the plants “natural binders to produce a weave-able fiber” (Makers Row). The hemp fibers are then compressed into bales similar to polyester, wool, and cotton.

The future of the hemp industry is growing at an exponential rate. Where the crop is legal to grow, it has been growing at an annual rate of 20%, according to Made How. Hemp seeds and hemp meal are amongst two of the most popular products of farming the crop. Hemp seeds contain a high nutritional value and are similar to sunflower seeds and pine nuts. The future outlook of industrial hemp growth in the United States is still uncertain. Once industrial hemp is legalized in the United States, it could become a billion-dollar crop. However, upgraded processing technology is necessary in order to allow for higher value-added products.

Benefits of Hemp Fiber

The Ministry of Hemp does an excellent job of outlining important specifics on the benefits of using hemp clothing over cotton. The three main benefits are that the fabric is porous and breathable, it is more durable (4 times more than cotton), and eco-friendly. When hemp is processed into fabric, the fibers are more porous, which allows the wearer’s skin to have more breathability. The fibers are mildew resistant and soften with age. Industrial hemp textiles have antimicrobial properties that eliminate germs up to 99.9%. Due to the plants antimicrobial properties, the need to wash hemp clothing is reduced. Cotton hosts the growth of bacteria. Cotton fiber is not as strong as hemp fiber. This boils down to the simple fact that a cotton fiber is a half inch to two inches long and a hemp fiber is sixteen to eighteen inches long. Because the hemp fiber is naturally longer, when woven into fabric, the tear and tensile strength will greatly surpass cotton’s. Hemp fiber is known to make the world’s strongest rope, according to the Ministry of Hemp. Even though hemp could be a more beneficial resource for the environment and everyday use, almost all textiles are made from cotton across the globe due to the booming cotton industry.

Cotton is a crop that requires ample water consumption in order to thrive. Industrial hemp uses 1/3 less water than cotton during the growing period. Cotton uses 25% of the world’s pesticides. Industrial hemp outcompetes most weeds and does not require the use of pesticides. The effects that pesticides have on the environment are not contained within the proximity of where cotton is farmed.

These fertilizers and pesticides run off and contaminate underground aquifers, wetlands, rivers, and lakes. Pesticides have an effect on animals who live in surrounding areas.

Hemp is processed with 50% less water usage than cotton.

In order to make a single cotton shirt, 2,700 liters of water are needed to produce cotton resources. It takes 3781 liters of water to produce one pair of cotton denim pants.

“In the past 70 years, cotton production has depleted

and degraded soil in many areas” (Ministry of Hemp). Studies have proven that hemp has been able to stabilize and improve soil conditions. This super-crop is able to grow in climates where the soil is not ideal. For example, hemp will still thrive in “drought-damaged” soil and can be grown on the same land for over 20 years. Due to the nature of the crop growing in extremely close proximity, it produced 250% more yield than cotton. Hemp is able to grow on half of the amount of land it takes to grow the same amount of cotton.

More and more textile manufacturers and consumers are becoming aware of the benefits of hemp. “Many pioneers of the clothing industry have already predicted hemp becoming a viable alternative to cotton� (Ministry of Hemp). These brands include Stella McCarthy, Giorgio Armani, Nike, Adidas, Polo Ralph Lauren, and Calvin Klein. Francisco Costa of Calvin Klein used hemp fabric in a collection dating back to 2010. A pantsuit made from the textile graced the runway. Calvin Klein himself released the quote:

after the material had debuted down the runway. However, in order to make hemp the fiber of choice in future fashion industries, farming and import laws must loosen in order to allow for growth throughout the global industry.

These laws are further discussed in the subsequent section.

Hemp Farming & Import Laws

Industrial hemp was a major player in the United States agriculture production from the colonial period, up until the mid-1800’s. The most common materials produced were twine, coarse fabrics, and paper. During the 1890’s, the United States was at the forefront of the industry with their labor-saving machinery. During the year 1943, the United States hemp industry reached a peak of over 150 million pounds of production. Over 146,200 acres were in process of being harvested. After production peaking during World War II, industrial hemp cultivation declines drastically. After the 1950’s production stopped in the United States completely.

The Marihuana Tax Act

“increased public anti-drug sentiment” in the United States. This resulted in fewer and fewer acres of industrial hemp being cultivated throughout the 1950’s. In 1958, production eventually came to a complete halt. The Tax Act was finally reformed in the year 2014.

The Congressional Research Service Report states that after the appropriations of the farm bill, some states across the United States “quickly responded by expanding their efforts to grow industrial hemp.” Many of these initiatives were slowed down by the actions of the DEA. The DEA blocked the importing of industrial hemp seeds.

In the United States, there is no current and large-scale production of industrial hemp. This is why the United States market depends on imports of the product. The Congressional Research Service report states that a farm bill in 2014 “provided that certain research institutions and state departments of agriculture may grow hemp under an agriculture pilot program.” The United States Department of Agriculture has prohibited the sale, processing, transportation and use of industrial hemp in the United States to this day. Industrial hemp is still considered a “controlled substance.” Current legislation is underway in order to amend the farm act to further distinguish the difference between marijuana and industrial hemp.

In the United States, we are still seeing an association with industrial hemp and marijuana. Both plants are botanically from the same plant species, according to the Congressional Research Service report. However, the two plants are distinguished differently due to their overall chemical makeup. This distinguishing characteristic is slowly creating change throughout the potential industrial hemp market in the United States. Under the law in the U.S., “the global market for hemp consists of 25,000 products in nine submarkets” (CRS).

Throughout the years of 1999 to 2004, the Drug Enforcement Administration

had dealt with many battles over hemp-based products being imported into the United States. After many lawsuits and much debate over what products derived from industrial hemp were allowed into the United States, a conclusion was made in May of 2018. The DEA stated that “materials made from the cannabis plant, such as sterilized seeds incapable of germinations, oil or cake made from the seeds, mature stalks, and fiber from mature stalks, may be sold and otherwise distributed throughout the United States without restriction.”

The graph below from Statista illustrates the United States total value of imported hemp products from the years of 1996 to 2017. As you can see there was a spike in imports during the year 2015. In 2017, the number of hemp imports reached a total of $67.33 million. These imports include hemp seed and hemp seed byproducts, hemp oil, raw and processed hemp, hemp yard and hemp woven fabrics. Customs and border protection classify any industrial hemp product as a “controlled substance.” Due to this, a permit is required when importing any of these products. The permit is titled” Permit to Import Controlled Substances/Domestic and/or Scientific Purposes” form.

Without this form, hemp products will not be allowed to enter the United States borders.

The United States Hemp Market Future Outlook Aside from uncertainty of

the future outlook of Industrial Hemp legislation, the potential for a profitable industrial hemp market is acknowledged by researchers. The Congressional Research Service lists the challenges that the future industry is facing. These challenges are as follows: “the need to re-establish the agricultural supply chain, breed varieties with modern attributes, upgrade harvesting equipment, modernize processing and manufacturing, and identify new market opportunities.�

Due to the enactment of

the farm bill in 2014, the cultivation of hemp became legalized under certain circumstances. Official estimates of hemp production in the United States is loosely conducted.

This results in official estimates not being readily available. Estimates state that in 2017, more than 25,000 acres of hemp were in production in the United States. These acres consist of monitored growth by only state departments of agriculture and research institutions. The graph below shows the scarcity of industrial hemp that is reported around the United States from the years of 2016-2017.

CRS states that various agencies have conducted research in Canada and the United States. This research shows that the overall outlook for growing hemp in the USA is positive. Agricultural producers would greatly benefit from laws against industrial hemp being removed in the United States. Further studies have highlighted the environmental benefits of harvesting hemp in Canada. It has been proved that the crop is significantly less degrading for soil. Production advantages have been found as well. These include a relatively low input and requirements of crop management. However, opposing studies have been made.

A study in 2000 conducted by the USDA believes that “hemp markets are and will likely remain small, due to the uncertainty about long-run demand for hemp.� The demand for hemp in the United States has peaked in 2015 at $78 million dollars. In the past few years, it has decreased by about ten million in the years 2016 and 2017.

If the United States were to enter the hemp production industry, they would be in competition with over 30 established countries in Asian, Europe, South, and North America. Leading overall global hemp producers include Europe, South Korea, China, and Russia. Some countries that have been growing the industrial crop never outlawed the production, whereas some countries had banned production for certain periods of time, but then lifted restrictions later on. Based off of the Food and Agricultural Organization of the United Nations data, China is the biggest producer of hemp textiles. China is the largest supplier to the United States of hemp textiles and apparel. Companies such as Patagonia, Prana and Tom’s Shoes are the top importers of hemp textiles from China.

Internal factors are not the only issue if the growth of industrial hemp is to be legalized in the United States. Potential U.S. growers might be affected by global competition. Global competitors are extremely advanced in industrial hemp cultivation and processing. Studies by CRS state that even the transportation of hemp could become an issue in the United States market. A large concern is that the crops would get hijacked. However, due to the absence of industrial hemp in the United States since the 1950’s; it is not possible to accurately predict the potential market and future outlook of United States hemp production. Congressional Research Services have “continued to introduce legislation to further advance industrial hemp and address continued perceived obstacles to hemp production in the United States; specifically, an expanded version of the Industrial Hemp Farming Act.” All analyses discussed above have been conducted by researchers at land-grant universities, state agencies, and the USDA.

Where To Source Hemp

Aside from where the United States is at with Industrial Hemp production, many countries are thriving in the industry. The top five countries that are producing Hemp Fibers are China, the Netherlands, Czech Republic, Italy, and Austria. Other countries that are top producers of cultivating industrial hemp are France, Chile, Ukraine, and Russia. Other countries that are legal to grow the crop are Denmark, Finland, Great Britain, Hungary, Japan, Poland, Romania, Spain, Switzerland, Egypt, Korea, Portugal, Thailand, and Canada.

The European Union has stated that “It is legal to cultivate and supply cannabis plants for hemp fiber if they have low levels of THC.� Each state in the European Union has their own specific laws regarding the production of industrial hemp. France is the overall leading country in the amount of hemp that is cultivated. However, this does not mean that France is the leader of the hemp fiber industry. The central organization of hemp in Europe is the European Industrial Hemp Association. The goal of this association is to encourage the development of the European hemp industry. The graph displays the leading European hemp growers by the nation. It is provided by the European Industrial Hemp Association.

The top hemp textile supplier in Europe

is Ecological Textiles. This supplier is a certified Global Organic Textile Standard (GOTS) company of organic hemp that is based out of Roermond, Netherlands. The GOTS certification guarantees that the resources are produced in a sustainable way and meet environmentally safe and social standards.

They specialize in sustainable fabrics for fashion and interiors. The supplier has been in business since 2005. Hemp fibers, knits, non-wovens, ribbons, weave, and yarns are provided. The graph below illustrates the Leading European hemp growers by the nation.

Ecological Textiles partners with a business named StexFibers. StexFibers is a leader in the Hemp Industry.

According to their website, they have developed a technique that is able to soften hemp fibers enough to be used in high-end textiles. Their goal is to see a future where hemp replaces cotton. Research has been conducted within StexFibers to create industry equipment that operates at an optimal level of efficiency. StexFibers partners with Ecological Textiles to continue growth in the hemp textile fiber industry by operating with environmentally clean and innovative production.

Apart from European countries that are leaders in the hemp textile manufacturing industry, China is the next runner-up. Farmers in China are known for producing multiple natural fibers to be processed in the textile industry. According to the Food and Agricultural Organization of the United Nations, Hemp is one of the few fibers that China does not have to import. The country of China believes that further cultivation of the hemp crop will result in improving Chinese farmers lives, improving the countries overall food security, helping textile industries produce more functional and green products, and help to address the consumers demand on sustainability.

The Food and Agricultural Organization of the United Nations presents the fact that hemp’s birthplace was in China. Proof of the Chinese people using hemp as textiles dates back to over 4,000 years ago. The growing of hemp in China is under strict control by the Narcotics Control Bureau of the Ministry of Public Security.

The country has developed a hemp plant with extremely low THC levels. The future outlook of the Chinese hemp industry is to slowly integrate hemp fibers into the mass infrastructure of the cotton textile system. Research and development are continuously conducted throughout the country in order to gain more insight on how to grow the hemp industry to meet a large capacity.

One of the leading hemp textile mill manufacturers is located in China. Hemp Fortex Industries is the largest hemp producer in the world. The Chinese company “controls the complete production chain from spinning, weaving and knitting to finishing� (Ecological Textiles). Hemp Fortex is GOTS certified. The company was found in 1999. The entire manufacturing process is vertically integrated and sources the highest quality materials and operate on eco-friendly terms. All chemicals and dyes that are used are approved by the European Union.

Another leading manufacturer of eco-friendly textiles in China is Liahren Textiles. Liahren has been in the eco-friendly textiles business since 1982. The manufacturer has extremely advanced machines and production lines with a professional quality control team that guarantees high product quality. The company is one of the leading eco-friendly factories in China that produces fibers from bamboo, hemp, organic cotton, milk protein fiber, and pearl fiber. Liahren specializes in research and development for eco-friendly fibers and fabrics. New technologies are continuously being researched in order to further develop new textiles and yarns. Now that the leading industrial hemp and textile industries have been identified, Calvin Klein’s current manufacturers will be discussed in order to locate where potential production will occur for the proposed sustainable denim line.

Calvin Klein Current Manufacturers

After looking at top hemp industries and manufacturers, it is important to analyze who Calvin Klein is currently contracting denim production with. The brands top three manufacturers for global denim production are Hirdaramani Group in Sri Lanka, Manifattura Italiana Cucirini Spa (MIC) in Tunisia, and Shahi Exports Private Limited in India.

Hirdaramani manufactures around 6 to 7 million units of denim jeans, MIC manufactures about 3 million units, and Shahi produces around 1 million units.

The Hirdaramani Group was created in the early 1900’s and is known as a “one-stop” global manufacturing hub today. The global conglomerate has locations in 11 destinations around the world.

Manufacturers are located in Vietnam, Bangladesh, Sri Lanka, and Ethiopia. Their apparel abilities consist of women’s and men’s denim, casual/loungewear, activewear, intimates/sleepwear, and kid’s denim, casual/loungewear and uniforms. Every single month 5,000,000 units are produced. They take quality control and sustainability very seriously. Their quality control certifications consist of OEKO-TEX, GOTS, and multiple ISO certifications.

Hirdaramani is known for being a global leader in sustainable

and eco-friendly manufacturing processes. According to their corporate website, sustainability is viewed as a “way of life” throughout the industry. It is important the conglomerate protects and empowers its employees while respecting the planet. The group’s sustainability strategy is in line with the United Nations Sustainable Development Goals. The brand is guided by the “triple bottom line” approach. The group widely invests in their employee’s wellness, protecting the environment, ensuring learning and development throughout their businesses, all while doing their part in the community by hosting community projects. Calvin Klein’s sourcing guidelines perfectly align with the Hirdaramani Group’s guidelines. The manufacturing conglomerate exceeds all of Calvin Klein’s expectations and works with the brand to foster sustainable manufacturing processes.

Another top manufacturer that Calvin Klein works closely with is Manifattura Italiana Cucirini Spa (MIC) location in Tunisia. The company’s origins date back to the year 1911. It was given its current name in the 1970’s. MIC specializes in producing threads to be used for sewing shoes, clothing, leather goods, furnishings, and needlework. According to the European Business website, over 90% of threads are produced to be used for clothing.

Innovation drives the manufacturers every move. When working with the company’s brand located in Tunisia, MIC is extremely careful when managing quality control and strives to maintain 100% traceability and transparency throughout the production facilities.

Manifattura Italiana Cucirini prides themselves on their ethical sourcing and eco-friendly standards. The company uses 100% biologically pure organic and natural cotton. They are Global Organic Textile Standard (GOTS) certified and do not tolerate the use of any chemicals within and throughout their production processes. The company meets and exceed Calvin Klein’s sourcing guidelines and corporate responsibility. The two brands have been working together to ensure that the cotton comes from organically grown and processed farms.

Shahi Exports Private Limited is the third manufacturer that Calvin Klein produced the most of their denim products with. Shahi Exports was started in 1974. Production is able to manufacture 3,000,000 units per month. The company has the ability to create anything that is included within the apparel industry. Their corporate website suggests that their core strength is “Product Development and Design Inputs that are supported by in-house studios.” The company has been awarded awards that consist of the “Best Exporters Award from AEPC,” “Best Vendor of the year rated by Walmart, JC Penny and Target,” and the “Best Manufacturing facilities rated by NIFT.”

The manufacturer’s corporate responsibility and sustainability efforts add value to their production facilities and operations. These efforts focus on women empowerment, vocational skills development, health and nutrition, and environmental sustainability. The operations take great focus in research and development as well. Their focuses for research and development are driven by push and pull analysis of the market. These factors include corporate social responsibility, fabrics and accessories, manufacturing and IT process automation, green initiative, washing technology and washing chemicals, energy, and energy recovery from waste, water recycle and reuse and design and development. Calvin Klein continues to work with Shahi in order to maintain strong relationships and partnership in growth with the company.

Transportation

It has been established that Calvin Klein works with the top tier of denim manufacturers. It is no surprise that they also contract with a world-class transportation and logistics company. The company that handles the logistics of Calvin Klein apparel is Maersk Line. As stated on the Maersk website, the business consists of “Maersk Line, APM Terminals, Damco, Svitzer, and Maersk Container Industry. The mission of these businesses is to enable and facilitate global supply chains and provide opportunities for our customers to trade globally.” Maersk Line is the largest shipping company in the world. They are known for their flexibility, reliability and eco-friendly services. The company’s fleet of ships accounts to 639. They sail “every major trade lane on the globe.”

The transportation and logistics company is the number one carrier of choice for the world’s leading apparel brands.

Maersk understands fashions cyclical habit of a short life-span.

This results in crucial speed to market capabilities. The shipping company is equipped with the highest quality materials to ensure the garments arrive in “perfect shape.” Calvin Klein is a major business partner with Maersk Line. A Maersk business manager works directly with Calvin Klein to fully understand the apparel company’s manufacturing process and peak seasons. Last-minute cargo changes are adjusted when necessary and advice is always available to optimize the supply chain.

Maersk states that they understand that sustainability is a key issue for many “fashion-conscious consumers.” The shipping line works directly with Calvin Klein to ensure that the brand and its consumers will have a route planned that is the most environmentally friendly and responsible. Maersk Line can confidently state that they offer the lowest CO2 shipping in the industry. Their logistical actions are ensured to have a minimal impact on the environment.

Calvin Klein is able to work with Maersk Line’s in-house experts to discuss specific areas of focus of sustainability within Calvin Klein’s supply chain.

During 2017 alone, the shipping line has reached large milestones in sustainability efforts. According to publications linked from Maersk’s website, the shipping company has reduced CO2 emissions by 43% since 2007. The transportation industry is responsible for over 23% of global “energy-related” emissions. Due to this, Maersk makes a continuous effort to minimize these emissions. “Low carbon offerings” are continually being developed for customers, such as Calvin Klein, who’s sustainability values align. The shipping companies overall goal is to eliminate more than 60% of container vessel CO2 emissions by 2020.

Maersk is working towards effectively recycling ships through their Ship Recycling Transparency Initiative.

Ship-owners and other stakeholders are investing in this initiative to further implement change throughout the ship discarding business.

As of 2017, two ships have successfully been recycled. They were sent to a shipyard in Alang, India. Maersk Georgia and Maersk Wyoming are amongst the first ships to be fully and successfully recycled and repurposed. The shipping company is working with stakeholders in Alang, India to further move the ship recycling practices along.

Accidental spills and excess air emissions are factors that Maersk monitors twenty-four-seven. The shipping company understands the impact on the environment that spills and unwanted emissions have. Maersk states that “management systems are in place in all businesses to secure compliance with regulations and targets for all areas.� In 2017, zero uncontained spills were reported for the overall global Maersk Line operations. Calvin Klein is doing their part in operating with the most world-renowned shipping company.

Sustainability efforts will continue with collaboration between the two industries.

Strategy and Initiatives

Introduction

Calvin Klein is a brand that has been under much scrutiny in the past for their unsustainable practices and negative press. Within the past decade, the brand has been connected to toxic chemical releases into the Chinese waterways, inadequate policies for disposing and managing resources, lacking eco-friendly materials, and falling short on promises to reduce carbon emissions. According to the 2017 Ethical Fashion Report, Calvin Klein’s labor rating is considered “not good enough.” Like most companies, Calvin Klein has their work cut out to move towards more sustainable practices.

However, the brand has been showing a strong push towards sustainability within the past few years. During an interview with a Calvin Klein’s Executive Vice President of Supply, I was informed that sustainability is now seen as something that is 100% necessary in order for the company to continue growing. Their 2017 corporate responsibility report covered all the basics in environmental and employee welfare.

These include advocating for human rights, as well as better managing water usage and hazardous chemicals.

Aside from the 2017 corporate responsibility report, the 2018 report was released on September 24th. The most recent report finally outlines specific efforts that are being made towards the brand’s sustainability efforts. Calvin Klein is on a mission for circularity. Circularity at Calvin Klein aims “to keep resources in use for as long as possible, extract the maximum value from them while in use, then recover and regenerate materials at the end of each service life” (Just Means). They are working with manufacturers to solve the current problem of making cotton denim manufacturing more sustainable. Efforts include using a waterless denim process, lasers to finish the garments and organic cotton.

These efforts to create more sustainability throughout the current manufacturing process are a huge step for the brand. However, this paper suggests that the brand should take a creative approach towards finding an alternative resource in place of denim made from cotton. Denim made from industrial hemp will be a competitive differentiation for the Calvin Klein brand. My research proves that hemp is a plant that has continuously proven to be increasingly more sustainable to harvest and manufacture than cotton. The industry is still small, compared to the cotton industry. However, a promising future for the crop awaits. The name of my strategy is P.I.C.A. P.I.C.A. stands for Partnership, Integrity, Collaboration and Accountability.

The strategy that I am proposing aligns with Calvin Klein’s goals and strategic priorities. If Calvin Klein were to adopt this proposed sourcing strategy of using hemp, the brand will have the opportunity to be synonymous with the future of sustainability.

Stakeholders Affected

By introducing and implementing a sourcing strategy for industrial hemp, multiple stakeholders will be affected. The sourcing strategy begins with identifying the mills that will supply the hemp fabric, which manufacturers will produce denim garments, how items will be transported and distributed. Throughout this process, Calvin Klein will need to take the investors, suppliers, workers in the corporation’s supply chain, non-governmental organizations, industry associates and multi-stakeholder initiatives, labor unions, governments, communities, and wholesale accounts and consumers into consideration.

Investors will need to be made aware of the new sustainable movements that Calvin Klein will be pushing. In order to successfully source hemp from top suppliers around the world, Calvin Klein will need to maintain close relationships and ensure positive corporate responsibility within suppliers. The importance of the safety and health of workers are extremely important to the brand. Their safety and health will improve with more sustainable practices through dying, and finishing processes.

Partnerships will continue to grow with non-governmental organizations. Many partnerships have been formed which have resulted in projects working with NGO’s.

These projects address pressing environmental and social issues and will continue to grow.

Industry associations and multi-stakeholder initiatives are close stakeholders to Calvin Klein.

Strengthening and promoting compliance within the supply chain is directly related to relationships with multi-stakeholder working groups.

Direct engagement is taken when working with labor unions as well.

Initiatives that may affect workers in the supply chain will need to be are closely monitored throughout the hemp textile industry. Working with government stakeholders takes place by engaging through industry associations and directly with governments. Specific issues are outlined regarding fair compensation, freedom of association, and fire and structural safety. This intricacies of the proposed crop will need to be taken further into account when working with all of the above and the hemp textile industry.

Denim Line

Along with creating a sourcing strategy, a long-term plan of action will be proposed for a 2020 Fall/Winter line of denim made from hemp. The new sustainable denim line will be introduced to Men in the United States.

North America is Calvin Klein’s largest market for their denim clothing. In response to research about the brand’s denim market, the new sustainable jeans will be introduced to millennial males. Calvin Klein has identified the men’s market as a large area of growth, and men are statistically known for making more sustainable apparel purchases.

The most common and popular washes of denim on the market are the light, medium and dark wash. Due to the popularity, these will be the three washes that will be introduced into Calvin Klein’s Fall/Winter 2020 line.

The four styles introduced will be skinny, slim, straight and tapered. The sizes available will be 32x32, 33x32, 34x32, and 36x32. Each pair of denim will have Calvin Klein’s typical “six pocket styling” with a zip fly and button closure. Each garment will have five belt loops and four rivets visible on the front pockets. The back waist will have an “est. 1978” logo patch attached. The fabric blend will consist of 55% hemp, and 45% organic cotton. The jeans will be sold through the Calvin Klein e-commerce channels and introduced into a selection of Macy’s department stores. The new product will be marketed towards men who live in the Washington, Oregon and California and Colorado. Each pair of jeans will be mid-priced at exactly $200.

Target Consumer

Below are two customer profiles that represent the target market and market drivers for the sustainable, millennial denim consumer. I will be targeting environmentally conscious millennial males.

According to my research, men are more likely to make a sustainable purchase. Calvin Klein is currently focusing on growing the men’s denim opportunity of sales in the United States. The United States is currently the largest growing market for hemp-based products.

These millennial males will be individuals who value sustainability and the environment. Consumers are fashion-forward and intelligent men who enjoy making a statement with their choice of clothing. Millennials are the top drivers of sustainability in the United States apparel market today. The culture within the states of California, Washington, Oregon, and Colorado will be especially accepting of Calvin Klein’s new hemp blend denim. Due to the “cannabis culture” within these states, introducing a line of denim made from hemp will absolutely peak consumers interest.

Keith Gender: Male Age: 29 Marital Status: Married Children: None Occupation: Operations Manager at Amazon Fashion Annual Income: $250,000 Location: Seattle, Washington Hobbies: Hiking, visiting farmer’s markets and local flea markets, volunteering to teach children about sustainability, sharing views on social media, vegan

Aaron Gender: Male Age: 31 Marital Status: Single Children: None Occupation: Entrepreneur at a Tech Company Annual Income: $500,000 Location: San Francisco, California Hobbies: Mountain Biking, Surfing, attending ocean clean-ups, bar-hopping, gardening, traveling

Ezra Gender: Male Age: 26 Marital Status: Single Children: None Occupation: Sculptor Annual Income: $100,00 Location: Portland, Oregon Hobbies: Welding, Reading, Drawing, Yoga, making art for and attending Burning Man, Going on dates, Fashion

Manufacturers

Based off of my primary research, I have discovered that Calvin Klein Denim has produced 15 million pairs of jeans for the year 2018. About 9 million pairs were produced for North America, 2 million for the European market, 2 million for the Asian market, and 1 million for South America. The remaining 1 million pairs were distributed throughout Africa and Australia. The North American market consists of the United States, Canada, and Mexico. In Europe, the countries with the largest market are Germany and the United Kingdom. Germany is the largest market in Europe by far.

Calvin Klein’s top manufacturers are based out of Sri Lanka, Tunisia, India, China, and Brazil. The number one denim manufacturer for Calvin Klein is the Hirdaramani Group. The Hirdaramani Group manufactures between 6 to 7 million pairs of denim for Calvin Klein a year. A manufacturer in Tunisia, called Manifattura Italiana Cucirini SPA (MIC), produces around 3.5 million pairs of denim. The denim manufacturer in India produces around 1 million pairs of denim. The name of this manufacturer is Shahi Exports. These top three manufacturers produce around 12 million pairs of denim jeans for Calvin Klein. About 1 million pairs of denim are manufactured in China. These manufacturers make up smaller, local organizations. In Brazil, small and local production organizations manufacture for all of the Calvin Klein denim that is to be produced throughout South America.

Country Reports

Calvin Klein’s top two denim apparel manufacturing companies will be incorporated into the sourcing strategy. These two manufacturers are Hirdaramani Group in Sri Lanka and Manifattura Italiana Cucirini (MIC) in Tunisia. A third country will be analyzed based off of their country report, and depend on if and how their operations will be best suited when growing future capacity. One of the manufacturer options will consist of Calvin Klein’s third top manufacturer named Shahi Exports. Shahi is based in India. The three manufacturers Calvin Klein currently works with will be analyzed briefly. Another potential manufacturer chosen in China is Hemp Fortex Industries. Hemp Fortex is the leading hemp fabric mill in China that also participates in the manufacturing industry. A leading manufacturer in Mexico has been identified. This manufacturer is called Global Denim. In the end, a third manufacturer will be selected out of India, Mexico, and China locations and will be incorporated into the sourcing strategy to maximize overall efficiencies. The following country reports will analyze current and future outlooks of each specific country. A political, social and economic overview of each country will be assessed. Trade agreements and overall risk and benefits will be taken into consideration.

Sri Lanka

https://unnavigated.com/backpacking-guides/sri-lanka/

Calvin Klein is currently and has been engaged in business with Sri Lanka for several years and maintains a strong relationship with their top manufacturer. Sri Lanka is considered the Democratic Socialist Republic. Corruption remains common amongst the government ruling (Heritage). However, judicial independence has improved overall. The countries overall population is 21.3 million, with a GDP of $260.00 billion. The GDP growth is at 5.2%. Unemployment ranks at 5% (Heritage). The countries inflation rate is 3.7%.

The countries’ overall economic freedom is ranked 25th throughout the 43 countries that are found in the Asia-Pacific. The government is currently dealing with a high level of debt that reflects the need for better-managed finances throughout the country. The country strongly supports the growth of new business and industry. “A streamlines business startup process has improved an already efficient regulatory system (Heritage).� Strict regulations when firing employees allows for a low rate of turnover of employees. The overall trade of imports and exports throughout the country add up to 51% of manufactured goods (Heritage).

The countries’ future outlook consists of the further development of sustainable and renewable energy, infrastructure, the digital economy, and improving overall education and healthcare (Gov). A rating agency named Fitch has stated that the outlook of the country is considered stable in comparison to the past. Tunisia’s textile industry is one of the country’s top business sectors. The apparel industry has seen substantial growth throughout the past four decades. According to Export, their competitive edge is to build on the value of their products, rather than offering the cheapest production costs. Due to the United States not having a free trade agreement, tariffs are “subject to complex” taxes. Sri Lanka is subject to terrorism and organized crime. Corruption and heavy debt throughout the country remain risks and concerns when engaging in business with the country.

Tunisia

https://stock.adobe.com/images/tunisia-infographics-statistical-data-tunisia-information-vector-illustration-infographic-template-country-information/100261709

Tunisia is home to one of

MIC’s manufacturing facilities for apparel. MIC is Calvin Klein’s second top manufacturer. The countries government operated on a Unitary Semi-Presidential Representative Democratic Republic. The government is structured with a president, prime minister and a legislature court system. The countries overall population is 11.2 million, with a GDP of $130.60 billion. The GDP growth is at 0.8%. Unemployment ranks at 14.8% (Heritage). The countries inflation rate is 3.7%.

The countries overall economic freedom is ranked 10th throughout the 14 countries that are ranked in the Middle East and North Africa (Heritage).

Significant improvements have been made to reform trade and investment freedom. The unemployment rate is extremely high. The average population is relatively young. The government is in the process of generating more jobs by making fiscal reforms. These include “floating the exchange rate, cutting the fiscal deficit, reducing the bloated bureaucracy, reducing subsidies, restructuring loss-making state enterprises, and reining in public sector debt” (Heritage). However, risk is caused by unions and political parties that are challenging the implementation of these reforms.

Regulatory efficiency is not up to speed in Tunisia. Inconsistency and lack of transparency continue to cause issues throughout the countries business system. Workers throughout various industries are considered to be “low-skilled.” However, their trade economy makes up to 91% of their GDP. The textile industry in Tunisia is one of the most promising. Over 250 companies manufacture apparel goods. Tunisia’s government is not as supportive of investing in foreign trade as the average country is. Terrorism, civil disobedience, bribery, corruption, and labor unrest are high risks in Tunisia.

Shahi Exports is Calvin Klein’s third top manufacturer for denim jeans. The manufacturer is located in India. India is considered a Parliamentary Democracy. It is structured similarly to the United States in the sense that it operates as a legislative, executive and judicial branch. The countries overall population is 1.3 billion, with a GDP of $8.7 trillion. The GDP growth is at 7.3%.

Unemployment ranks at 3.5% (Heritage).

The countries inflation rate is 4.9%.

India

The countries overall economic freedom is ranked 30th out of 43 countries in the Asia Pacific (Heritage). The country is working towards development into an “open-market” economy. “Corruption, underdeveloped infrastructure, a restrictive and burdensome regulatory environment, and poor financial and budget management continue to undermine overall development” (Heritage). Electricity is something that the country is known for having fast access to. However, the government is working on regulating this in order to better overall quality of life and business.

The United States and India do not engage in a free trade agreement. The average tax applied to goods in India is 6.3%. The government is not known for actively investing their time and money into the improvement and growth of foreign trade. One of India’s most important industries to their economy is the textile industry. According to IBEF, the industry was worth about $150 billion. It is predicted to grow to $250 billion by 2019. Disputed territory and human rights are also points to asses when deciding to do business in India. The country is known for having a history of using child labor and having a high level of discrimination in the workplace.

China

Hemp Fortex Industries is a manufacturer that will be analyzed as an option for a third manufacturer moving forward with capacity and sustainable denim’s future outlook. It is important to assess the ins and out of the Country in order to get a clear idea its business climate, risks, government, textile industry, etc. The United States and China are currently under tension. The Trump Tariffs and U.S. Chinese trade wars indicate uncertainty with trade throughout the two countries. Chinese import taxes and risen drastically, which includes the apparel industry.

The Chinese government is considered a communist party. The government has been in the process of increasing the integrity of “judicial effectiveness.” This is being done by handling fiscal health, labor freedom, and property rights issues (Heritage). The population reaches a total of 1.4 billion.

China’s GDP is $21.3 trillion with a 6.9% growth rate. Unemployment percentage is 4.6% Inflation is 2.0%.

The countries overall economy is known for being considered

“mostly unfree.” The current economy is focusing on “investment-led growth,” according to Gov. The future of imports and government acceptance is most likely to decrease in the future. The overall economy is considered the world’s biggest and they hold the title for the largest exporters. Opening and running a business in China poses many challenges and can be extremely difficult to start due to government regulations and red tape.

The country is known for having challenges in the past with legal rights. Red flags have been raised in the past with child labor, ethnic minorities, LGBT persons, gender, migrant workers, and overall worker’s conditions and rights. The current apparel and textile industry are struggling to secure financing. The United States and China do not currently engage in a free trade agreement. When importing and exporting goods, taxes, and trade agreements are necessary to be taken into account.

Mexico

Mexico is one of the countries under speculation for future growth and manufacturing. A partnership with Global Denim manufacturing operations will be taken into consideration as a possible third manufacturer in the sourcing strategy. If it is not initially picked to be introduced into production for the new product rollout, the manufacturer can always be kept for further consideration in the event of a need to expand growth due to an increase in capacity.

Mexico holds the title of the seventh largest denim jeans exporter in the world. Employment and educational reforms are on the rise, despite political triggers causing crime and violence. The countries government is set up as a Federal Presidential Republic. Every six years, the democracy elects a new president. The democracy is similar to that of the United States in the sense that it is set up with different branches of government. However, the country is known for its corruption, violence, and crime. Due to this, businesses have to pay attention to their goods leaving and arriving on time and make sure cargo in its original condition. Theft and tampering of good in transit are not uncommon.

According to the United States Department of state, the United States is Mexico’s third largest trading partner. In 2017, 82% of exports in Mexico’s went to the United States (state.gov). The United States and Mexico share a border that spans 2,000 miles. The bilateral relations between the two countries directly impact education exchanges, economic reform, drug control, citizen security, migration, energy cooperation and entrepreneurship, and innovation. The United States and Mexico no longer have the NAFTA agreement. It has been renamed to USMCA as of October 1, 2018 (Washington Post). The changes of USMCA will phase in over time. A positive impact of the change in policy is the upgrade in environmental and labor rights. These upgrades are specifically targeted at Mexico. This revised trade agreement must be taken into consideration due to the uncertainty of effects it will have on the apparel manufacturing industry.

Mexico’s current social standings are as follows. The countries current population is 127.5 million. Mexico’s population growth rate has been steadily increasing over the past years. The country is having an overall issue with supporting infrastructure to build and maintain suitable and adequate housing for the growing population. As of 2018, the countries current unemployment rate is 3.8%. The poverty rate has maintained a level of 46.2% since the year 2014. The overall gap in wealth is extremely wide. The richest section of the population earns 20 times more than the poorest individuals. However, the overall government is ensuring that gender discrimination is put to a stop and strict education reforms are put into place.

Mexico has a free market economy with a GDP of $19,500 per capita. The overall tourism and oil production industries are in the process of growing. IT sectors are an area of growth throughout the country as well. As of March 2018, Mexico’s inflation rate reached 5.04%. Inflation has increased by 1% within the past year. The government is trying to combat this by raising interest rates.

Country Rankings

Supplier Rankings

Line Plan

Planning & Placement Strategy The most accepting states of the “can-

nabis culture” include Washington, Oregon, California, and Colorado.

According to Forbes, these four states rank within the top 15 “greenest states.” Their ranks are Washington at number 3, Oregon at number 2, California at number 14, and Colorado at number 13. Since these four states have been identified as being home to the new denim lines target market, units will be placed in select Macy’s department stores within the main cities. Calvin Klein has over 200 operated stores in Macy’s around the United States. These top cities include San Diego, Los Angeles, San Francisco, Portland, Seattle, and Washington.

Calvin Klein produced nine million units of denim for North America alone.

Eight million of these units are for the United States. Calvin Klein’s online sales consist of 10% of their revenue. Historically, 65% of these online purchases are made by men. Assuming the above statistics, a roll-out plan of 500,000 units will be produced and sold online and in-stores. The roll-out amount of units will account for replenishment throughout the year. Initially, one supplier and two manufacturers will be held accountable for producing the initial 500,000 units. The supplier will be Hemp Fortex Industries and the Manufacturers will with Hirdaramani Group and Manifattura Italiana Cucirini.

However, future suppliers and manufacturers will be taken into account when planning for future growth and forecasts.

Hemp Fortex Industries will be the

supplier for the hemp textiles. They are the largest hemp textile producer in the world. They will be able to meet capacity at the lowest price.

Calvin Klein will continue to utilize their top two manufacturers when producing the new hemp denim line.

The relationships that they have built with the suppliers is unbeatable. The first placement strategy equally divides up the four styles and how much of each will be produced. Both Hirdaramani and MIC manufacturers will be producing equal parts of the 500,000 units.

The second placement strategy allows for growth with capacity for the hemp denim line. Mexico has been chosen as the future manufacturer.

Their manufacturer ranking has exceeded expectations and meets Calvin Klein’s sourcing guidelines. Their close proximity to the United States serves as a huge advantage. Mexico’s manufacturing costs are the highest out of all of the countries. However, by keeping their production levels at a lower amount than other manufacturers, margins are still at an extremely high rate.

Final Placement Strategy

Future Placement Strategy

Transportation

It has been established that Calvin Klein works with the top tier of denim manufacturers. It is no surprise that they also contract with a world-class transportation and logistics company. The company that handles the logistics of Calvin Klein apparel for all of the countries is Maersk Line. Maersk Line is the largest shipping company in the world. They are known for their flexibility, reliability and eco-friendly services. The company’s fleet of ships accounts to 639. They sail “every major trade lane on the globe.” The transportation and logistics company is the number one carrier of choice for the world’s leading apparel brands.

Maersk states that they understand

that sustainability is a key issue for many “fashion-conscious consumers.”

The shipping line works directly with Calvin Klein to ensure that the brand and its consumers will have a route planned that is the most environmentally friendly and responsible. Maersk Line can confidently state that they offer the lowest CO2 shipping in the industry.

Their logistical actions are ensured to have a minimal impact on the environment. Calvin Klein is able to work with Maersk Line’s in-house experts to discuss specific areas of focus of sustainability within Calvin Klein’s supply chain.

The product will be shipped through Maersk Line to make its way from Tunisia and Sri Lanka to the ports of Savannah, GA and Wilmington, North Carolina to get to the warehouses and distribution centers.

The path from Sri Lanka will go through the Suez Canal, through the Mediterranean Sea, then past the Gibraltar straight to make its way across the Atlantic Ocean. Apparel items imported to the United States from Sri Lanka is taxed up to 20.9%. Once they are processed through the port of Savannah, they will be transported to the warehouse in McDonough, GA. The remaining units will be shipped from Tunisia to North Carolina. Both warehouses in Georgia and North Carolina have capabilities to store the inventory until shipped to the end commerce through an e-commerce purchase. The path it will follow will be through the Gibraltar Strait and through the Atlantic Ocean. Apparel items imported to the United States from Tunisia is taxed up to 20.9%.

Maersk provides the option to transport goods through boat or ship. For all countries, Maersk will deliver product to Macy’s stores on the West Coast by truck.

Transportation Ranking

Distribution

According to Calvin Klein’s Annual report, the brand owns and leases various global facilities. In New York City, Calvin Klein has administrative offices and showrooms leased throughout two locations. In Amsterdam, The Netherlands, Calvin Klein leases warehouses, showrooms, and administrative offices. Other leased Calvin Klein distribution centers are located in Venlo/Oud Gastel, The Netherlands, McDonough, Georgia, and in Montreal, Canada. Other owned distribution centers are located throughout Jonesville, North Carolina, Reading, Pennsylvania, and Brinkley, Arkansas.

I have learned through interviews, during my primary research analysis, which are the top distribution centers that process the largest amount of Calvin Klein denim. In the United States, the top two distribution centers are located in McDonough, Georgia and Jonesville, North Carolina.

The leased warehouse and distribution centers in Georgia process about 50% of Calvin Klein Denim for North America. The warehouse that the company owns in North Carolina process about 50% as well. The number one warehouse in Europe is the leased location outside of Amsterdam, the Netherlands in Venlo/Oud Gastel. In China, third-party warehouses and distribution channels are used.

The shipment from Sri Lanka will make its way to the McDonough, GA warehouse since it is slightly bigger than the North Carolina facilities. The Tunisia shipment will find a home at the Jonesville, North Carolina warehouse and distribution center. Once the Calvin Klein Hemp Jeans are transported to their designated warehouses, they will be shipped out to consumers by ground or air shipments. This will depend on what type of shipping the buyers will be purchasing through e-commerce platforms.

Items will ship from the McDonough, Georgia and Jonesville, North Carolina warehouses and distribution centers. Maersk trucks transportation will transport goods from the East Coast to West Coast Macy’s stores. Department store will also serve as an option for storing inventory.

Conclusion & Future Outlook

Due to the absence of industrial hemp in the United States since the 1950’s; it is not possible to accurately predict the potential market and future outlook of United States hemp production. Congressional Research Services have “continued to introduce legislation to further advance industrial hemp and address continued perceived obstacles to hemp production in the United States; specifically, an expanded version of the Industrial Hemp Farming Act.” As we await the passing of the Farm Bill in 2018, we are awaiting the fate of industrial hemp cultivation in the United States. If the farm bill is passed the potential for the industrial hemp industry in the United States is huge. If the U.S. is able to produce the raw material, manufacturing may be more likely to take place closer to the United States borders.

The future outlook of the company is to scale from 500,000 to 1,000,000 units. Existing chosen manufacturers will be able to meet this, however, it would be ideal if Calvin Klein could partner with the Mexican government to grow industrial hemp.

Calvin Klein currently gets product from Cone Denim Mill. The brand could work with the mill to establish infrastructure for hemp textile production and produce close to home in order to ensure close to home supplies. Calvin Klein does not have any traditional retail stores on the West Coast. Because of this, product will be sold online and in select Macy’s in the main cities on the West Coast. It is important to ensure transparency and on time delivery with Macy’s and online shoppers. Suggested RFID tracking will be used and negotiation with Macy’s is important to ensure ample lead times.

Industrial hemp is a crop that our country was founded on. The United States First American flag was hand stitched and made out of hemp fabric. Our founding fathers grew the crop in their backyards. Calvin Klein is known for their rich American heritage. It makes perfect sense to pair this historical crop with Calvin Klein’s brand’s identity. By sourcing from the world’s leading hemp textile suppliers, to manufacturing at the greatest denim apparel manufacturers, Calvin Klein will have a top of the line denim pant made from a hemp fabric blend. The above strategy and initiative for a complete sourcing strategy will be the path to success for putting Calvin Klein on the map as a company that views sustainability as a necessity.

Costing

Sources

Liahren Is Leading Factory of Bamboo Fabrics, Hemp Fabrics ,Milk Fabric,Modal Fabrics, Tencel Fabrics, Pearl Fiber Fabrics, Rose Fabrics, Mint Fabrics, New Fabrics Factory and Bamboo Washcloths,Bamboo Towel, Bamboo Blanket, Bamboo Baby Products, Bamboo Swaddle, Bamboo Hooded Towel, Bamboo Muslin, Bamboo Bathrobe, Bamboo Bedding, Bamboo Quilt, Hemp Fabrics, Hemp Yarn Factory, Bamboo Fabric Stock, Hemp Fabric Stock, Organic Fabric Stock,Bamboo Fabrics, Hemp Fabrics, Bamboo Washcloths Factory, Bamboo Towel Factory,Bamboo Baby Products Factory., www. liahren.com/about_liahren.

Company Overview - Taian Realchance Eco-Tex Company Ltd., realchance.en.alibaba.com/company_profile.html?spm=a2700.icbuShop.88.28.77e35593aNroYu. Textiles and Apparel, otexa.trade.gov/msrpoint.htm.

HempFortexWeb, www.hempfortex.com/index.aspx.

“32 Secrets To Spotting The Boho Man This Summer | Boho Chic | Pinterest | Boho, Summer and Hippie Chic.” Pinterest, www.pinterest.co.uk/pin/546554104760139549/?lp=true.

Admin. “5 Trends for the Denim Industry in 2018.” An All American Life, 22 Jan. 2018, www.allamericanclothing.com/ life/2018/01/22/5-trends-for-the-denim-industry-in-2018.html.

“All.” Superego, superegoworld.com/collections/all?page=4.

“Analysis | U.S., Canada and Mexico Just Reached a Sweeping New NAFTA Deal. Here’s What’s in It.” The Washington Post, WP Company, 1 Oct. 2018, www.washingtonpost.com/business/2018/10/01/us-canada-mexico-just-reached-sweepingnew-nafta-deal-heres-whats-it/?noredirect=on&utm_term=.0b46158d73c0.

“Blue Jeans.” How Products Are Made, www.madehow.com/Volume-1/Blue-Jeans.html.

“Company Information.” Taian Lianchuang Hemp Textile Co., Ltd., hempspring.en.china.cn/about.html.

Cassidy, and Mantor. “Cone Denim Debuts Sustainable Denim with Lenzing Group.” FashionNetwork.com, 8 June 2018, uk.fashionnetwork.com/news/Cone-Denim-debuts-sustainable-denim-with-Lenzing-Group,985851.html#.W6rk2S2ZORs. Arthurfriedman. “Cone Denim Teams With E3 Sustainable Cotton Program.” WWD, WWD, 2 Dec. 2015, wwd.com/fashion-news/textiles/cone-denim-bayer-cropscience-e3-cotton-program-10289185/.

“Contact Us.” Hempest, www.hempest.com/contact-us/.

“Contact Us.” National Hemp Association, nationalhempassociation.org/contact-us/.

“Cotton.” WWF, World Wildlife Fund, www.worldwildlife.org/industries/cotton.

Admin. “Cotton vs. Hemp Debate.” Trusted Clothes, 18 May 2017, www.trustedclothes.com/blog/2017/05/19/cotton-vs-hempdebate/.

“CRAiLAR FTI.” CRAiLAR FTI Home Comments, www.crailar-fti.com/.

“DENIM FINISHES.” Textile Value Chain, textilevaluechain.com/index.php/article/industry-general/item/485-denim-finishes.

“Denim Market by Product (Jeans, Jackets & Shirts, Dresses), by Segment (Mass Market, Standard, Premium), by Consumer Type (Men, Women, Children), by Distribution Channel (Specialty Stores, Department Stores, Hypermarkets & Supermarkets, Online, Exclusive Stores), by Geography (U.S., Canada, Germany, France, U.K., Italy, Spain, Netherlands, Russia, Belgium, China, Japan, India, Philippines, South Korea, Australia, Pakistan, New Zealand, Thailand, Malaysia, Vietnam, Brazil, Mexico, Turkey, U.A.E., Saudi Arabia, South Africa) – Global Market Size, Share, Development, Growth and Demand Forecast, 2013 – 2023.” Denim Market Size, Share | Industry Analysis Report, 2023, www.psmarketresearch.com/market-analysis/denim-jeans-market.

“Denim Market to Reach $79,211 Million by 2023.” Market Research Reports, Consulting Services: P&S Intelligence, www. psmarketresearch.com/press-release/denim-market.

Donaldson, Tara. “Passport to Denim: A Snapshot of the Global Denim Market.” Sourcing Journal, 8 May 2018, sourcingjournal.com/denim/denim-mills/global-denim-market-105089/.

“Engineered for Excellence.” ITV Denim, www.itvdenim.com/.

“Feature Stories.” Wrangler, Lee Invest to Transform Denim Manufacturing, www.vfc.com/news/company-news/detail/54465/wrangler-lee-invest-to-transform-denim-manufacturing.

Felippi, Till. “Archroma Breaks New Ground with New Aniline-Free* Indigo for Denim.” Archroma, www.archroma.com/ news-releases/archroma-breaks-new-ground-with-new-aniline-free-indigo-for-denim/.

“Fortune 500 China Leading Textile and Clothing Manufacturers 2018 | Statistic.” Statista, www.statista.com/statistics/454671/china-fortune-500-leading-textile-and-clothing-manufacturers/.

Friedman, Arthur. “Industrial Hemp Eyed as New Cash Crop for Textiles and Beyond.” Sourcing Journal, 17 May 2018, sourcingjournal.com/topics/raw-materials/industrial-hemp-textiles-106158/.

“Fundamentals.” PVH, www.pvh.com/investor-relations/fundamentals.

“Gap Inc. Unveils New Sustainable Manufacturing Goal to Conserve 10 Billion Liters of Water by the E.” Gap Inc., corporate.gapinc.com/en-us/articles/2018/03/gap-inc-unveils-new-sustainable-manufacturing-goal.

TodayShow. “Hemp and High Fashion Ruled the Runway.” TODAY.com, www.today.com/news/hemp-high-fashionruled-runway-wbna22952534.

“Hemp Production Around The World.” Hemp Edification, 21 Oct. 2016, hempedification.wordpress.com/2016/08/27/ hemp-production-around-the-world/.

“Hemp Production Around The World.” Hemp Edification, 21 Oct. 2016, hempedification.wordpress.com/2016/08/27/ hemp-production-around-the-world/.

“Hemp: Perfect for Earth Day And No Longer Just For ‘Hippies.’” PRWeb, 18 Apr. 2006, www.prweb.com/releases/2006/04/prweb373270.htm. www0HEMPEST0com. “Hempest Clothing Factory.” YouTube, YouTube, 29 Mar. 2009, www.youtube.com/ watch?v=ax2dJYQxQsI&feature=related.

“Hempfortex. Audit Report. Hemp Fortex Industries (Rushan) Ltd 乳山汉泰大麻纺织有限公司. Chengdong Industrial Zone, Rushan City, Shangdong Province 山东省乳山市城东工业区.” PDF, docplayer.net/58666042-Hempfortex-audit-report-hemp-fortex-industriesrushan-ltd-ru-shan-yi-tai-da-ma-fang-zhi-you-xian-gong-si--chengdong-industrial-zone-rushan-city-shangdong-province-shandong-sheng-ru-shan-shi-cheng-dong-gong-ye-qu.html.

“HempTraders.com.” Hemp Traders: Suppliers of Fine Hemp Products, www.hemptraders.com/Custom-Manufacturing-s/1880.htm.

“History.” Candiani Spa, www.candianidenim.it/.

“Home.” Breadcrumb House Icon, www.invista.com/.

“How Textile Manufacturers Are Making Denim More Sustainable.” How Textile Manufacturers Are Making Denim More Sustainable - Le Souk, www.lesouk.co/articles/material-inspiration/how-textile-manufacturers-are-making-denim-more-sustainable.

“India.” Indian Economy: Population, Facts, GDP, Corruption, Business, Trade, FDI, www.heritage.org/index/country/ india.

“Industrial Hemp.” How Products Are Made, www.madehow.com/Volume-6/Industrial-Hemp.html.

FashionUnited. “Infographic - Data from the Denim Industry.” Fashionunited, Fashionunited, 16 Aug. 2017, fashionunited. com/news/business/infographic-data-from-the-denim-industry/2016092613027. levis. “Introducing Levi Strauss & Co. Project F.L.X.” YouTube, YouTube, 27 Feb. 2018, www.youtube.com/ watch?v=SMDlbNpE6dU. www.fibre2fashion.com. “ITV Denim Shows Three Collections at Global Denim Awards.” Fibre2Fashion, www.fibre2fashion.com/news/fashion-news/itv-denim-shows-three-collections-at-global-denim-awards-206527-newsdetails.htm.

“JEANOLOGIA “ THE SCIENCE OF FINISHING.’” Jeanologia, www.jeanologia.com/.

Kondej, Magdalena. “Sustainability in the Denim Industry: Interview with Michael Kobori, Levi Strauss & Co.” EMI Blog, Euromonitor International, 20 Feb. 2018, blog.euromonitor.com/2016/12/sustainability-denim-industry-interview-michael-kobori-vice-president-sustainability-levi-strauss.html.

“Lenzing Group.” Lenzing – Innovative by Nature, www.lenzing.com/en/.

“Levi’s Cleans Up Denim Supply Chain with Digital Finishing Process.” Sustainablebrands.com, www.sustainablebrands. com/news_and_views/chemistry_materials_packaging/sustainable_brands/levi’s_cleans_denim_supply_chain_aut.

“Levi’s Environmental Audit Summary.” Materialslab, 6 Dec. 2015, materialslab.wordpress.com/2015/12/06/levis-environmental-audit-summary/.

“List of Suppliers.” EIHA European Industrial Hemp Association, eiha.org/suppliers/.

Marcus, Brian Wingfield and Miriam. “America’s Greenest States.” Forbes, Forbes Magazine, 19 July 2012, www.forbes. com/2007/10/16/environment-energy-vermont-biz-beltway-cx_bw_mm_1017greenstates.html#1944eae0119d.

“Mexico.” U.S. Department of State, U.S. Department of State, 1 Apr. 2018, www.state.gov/r/pa/ei/bgn/35749.htm.

“MIC - Manifattura Italiana Cucirini SPA.” MIC - Manifattura Italiana Cucirini SPA, www.micspa.com/.

Belly. “Most Common Finishes for Jeans – Denim Help.” Denim Help, 21 Mar. 2015, www.denimhelp.com/most-commonfinishes-for-jeans/.

Munuera, Sandra Bódalo. “Jeanologia on How to Make the Denim Industry More Sustainable.” Fashionunited, Fashionunited, 27 Oct. 2017, fashionunited.uk/news/fashion/jeanologia-on-how-to-make-the-denim-industry-more-sustainable/2017102726481.

“On the Maersk Logo in America.” Michael Zigmund, www.michaelzigmund.com/blog/2015/4/23/on-the-maersk-logo-inamerica.

“Organic Cotton Infographic | Learn // Infographics | Pinterest | Organic Cotton, Infographic and Organic.” Pinterest, www.pinterest.com/pin/143270831876265416/.

“Our Core Values.” PVH, www.pvh.com/company/our-values.

“Overseas Business Risk - India.” GOV.UK, www.gov.uk/government/publications/overseas-business-risk-india/overseas-business-risk-india.

“Overseas Business Risk - Tunisia.” GOV.UK, www.gov.uk/government/publications/overseas-business-risk-tunisia/overseas-business-risk-tunisia.

“Overseas Business Risk - Tunisia.” GOV.UK, www.gov.uk/government/publications/overseas-business-risk-tunisia/overseas-business-risk-tunisia.

“Overseas Business Risk – Sri Lanka.” GOV.UK, www.gov.uk/government/publications/overseas-business-risk-sri-lanka/ overseas-business-risk-sri-lanka.

Preuss, Simone. “Sustainable Textile Innovations: Hemp Fibres.” Fashionunited, Fashionunited, 10 July 2017, fashionunited.uk/news/business/sustainable-textile-innovations-hemp-fibres/2017071025112.

“Process Flow Chart of Denim Manufacturing | Manufacturing Process of Denim Garments.” Textile Learner: One Stop Solution for Textiles, textilelearner.blogspot.com/2012/07/process-flow-chart-of-denim.html.

Scibetta, and Christian Scibetta. “Report: Sustainability to Drive Growth in Premium Denim Market.” Sourcing Journal, 11 Oct. 2016, sourcingjournal.com/denim/denim-brands/report-sustainability-drive-growth-premium-denim-market-96783/.

“Retail Sales of the Global Denim Jeans Market 2012-2021 | Statistic.” Statista, www.statista.com/statistics/734419/globaldenim-jeans-market-retail-sales-value/.

Heddels. “Rope Dyeing.” Heddels, www.heddels.com/dictionary/rope-dyeing/.

“Saitex: Benevolence in Business.” Carved in Blue, 2 Oct. 2017, www.carvedinblue.lenzing-fibers.com/saitex-benevolence-business/.

Salfino, Catherine. “Innovation and Culture Shifts Drive Increases in Global Denim.” Sourcing Journal, 1 Aug. 2018, sourcingjournal.com/topics/lifestyle-monitor/global-denim-innovation-113793/.

“Scripting Must Be Enabled to Use This Site.” Importing Hemp Products into the U.S., help.cbp.gov/app/answers/detail/a_id/1751/~/importing-hemp-products-into-the-u.s.

“Shahi Exports Pvt Ltd.” Shahi Exports Pvt Ltd., shahi.co.in/.

“Shop By Department.” Gap Inc. Sustainability & Gap For Good | Gap, www.gap.com/browse/info.do?cid=1093808#anchor_modal-container.

Heddels. “Slasher Dyed.” Heddels, www.heddels.com/dictionary/slasher-dyed/.

“Sri Lanka.” Sri Lanka Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption, www.heritage.org/index/country/srilanka.

“Sri Lanka - TextilesSri Lanka - Textiles.” Sri Lanka - Textiles, www.export.gov/article?id=Sri-Lanka-Textiles.

“STANDARD 100 by OEKO-TEX®.” OEKO-TEX® | STANDARD 100 by OEKO-TEX®, www.oeko-tex.com/en/business/certifications_and_services/ots_100/ots_100_start.xhtml.

“StexFibers | Hemp a Game Changer.” StexFibers | Hemp a Game Changer, www.stexfibers.com/.

“StexFibers | Hemp a Game Changer.” StexFibers | Hemp a Game Changer, www.stexfibers.com/.

“Stitching with a Successful Thread.” European-Business.com, 28 Sept. 2018, www.european-business.com/manifattura-italiana-cucirini-spa/portrait/. superegoclothiers. “Superego: Redressing America With Hemp.” YouTube, YouTube, 10 Feb. 2016, www.youtube.com/ watch?v=qZlx6_1nGzA. “Sustainability Highlights 2017.” A Changing World, www.maersk.com/about/sustainability/highlights-2017.

“Textile & Apparel in Tunisia.” INVEST in TUNISIA, www.investintunisia.tn/En/strengths-of-the-sector_128_277.

Textiles, Ecological. “ECOLOGICAL TEXTILES.” Homepage, webshop.ecologicaltextiles.nl/.

“The 11 Selvedge Denim Mills to Know - From Cone to Kuroki.” Heddels, 9 May 2018, www.heddels.com/2017/10/the-11-selvedge-denim-mills-to-know/.

SnarkyNomad. “The Inexplicable Nonexistence of Hemp Jeans.” Snarky Nomad, snarkynomad.com/the-inexplicable-nonexistence-of-hemp-jeans/.

“The Latest Updates on the 2018 Farm Bill – Farm Aid.” Farm Aid, 1 Oct. 2018, www.farmaid.org/blog/2018-farm-bill-latestupdates/.

“The Millenial Consumer a Driving Force for Corporate Sustainability.” YouTube, YouTube, 9 Aug. 2018, www.youtube. com/watch?time_continue=8&v=9ahO8DZFUdg.

“The Millennial Consumer: A Driving Force For Corporate Sustainability.” Ecosphere , 12 Oct. 2018, ecosphere.plus/blog/millennial-consumer-driving-force-corporate-sustainability/.

“The Status of Hemp Legislation: State by State.” National Hemp Association, nationalhempassociation.org/state-by-statehemp-legislation/.

“The World’s Largest Public Companies.” Forbes, Forbes Magazine, www.forbes.com/global2000/list/#industry:Apparel_2FAccessories.

“Timeline: U.S. Relations With China 1949-2018.” Council on Foreign Relations, Council on Foreign Relations, www.cfr.org/ timeline/us-relations-china.

“Timeline: U.S. Relations With China 1949-2018.” Council on Foreign Relations, Council on Foreign Relations, www.cfr.org/ timeline/us-relations-china.

“Top Apparel Manufacturer.” Hirdaramani, www.hirdaramani.com/.

“Total Value of Imported Selected Hemp Products in the U.S. 2017 | Statistic.” Statista, www.statista.com/statistics/240076/ virtue-of-imports-of-selected-hemp-products-in-the-us/.

Townsend, John Converse. “Goodbye Cotton, Hello Hemp?” The Huffington Post, TheHuffingtonPost.com, 7 Dec. 2017, www.huffingtonpost.com/john-converse-townsend/goodbye-cotton-hello-hemp_b_8401262.html.

“Tunisia.” Tunisia Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption, www.heritage.org/index/country/tunisia.

Medafrica. “Tunisia: AICS Finanzia Progetto Sviluppo Rurale.” MedAfrica, MedAfrica, 18 Sept. 2018, www.medafrica. it/2018/09/18/tunisia-aics-finanzia-progetto-sviluppo-rurale/.

“USTR Issues Fact Sheet on Impact of USMCA for Manufacturing • EMSNow.” EMSNow, 3 Oct. 2018, emsnow.com/ustrissues-fact-sheet-on-impact-of-usmca-for-manufacturing/.

Velasquez, Angela. “Candiani Denim Honors Its Past by Securing a Sustainable Future.” Sourcing Journal, 31 July 2018, sourcingjournal.com/denim/denim-mills/candiani-sustainability-113714/.

Velasquez, Angela. “Sustainable Dyes, Softness and Manila Hemp: New Trends in Denim Emerge at Sourcing at Magic.”

Sourcing Journal, 13 Aug. 2018, sourcingjournal.com/denim/denim-trade-shows/denim-district-sourcing-magic-trends-115144/.

Velasquez, Angela. “Three Denim Wash and Finish Trends to Know for Fall/Winter 19-20.” Sourcing Journal, 2 July 2018, sourcingjournal.com/denim/denim-trends/denim-wash-finish-trends-fall-winter-19-20-110036/.

“Venue & Accommodation.” 15th International Conference of the European Industrial Hemp Association (EIHA), 12-13 June 2018, 1 Dec. 2008, eiha-conference.org/pressrelease?id=161.

“What Countries Grow Hemp? | Hemp Growing Countries.” Ministry of Hemp, ministryofhemp.com/hemp/countries/.

“Why We Should Look Towards Europe For Hemp & CBD | Hemp in Europe.” Ministry of Hemp, 25 Jan. 2018, ministryofhemp.com/blog/europe-hemp-cbd/.