Are storm clouds on the horizon for fashion sector?
11-12-2023
ARE STORM CLOUDS ON THE HORIZON FOR FASHION SECTOR?
Sportswear retail companies have thrived in recent
years, so could the fact a handful have fallen into financial difficulty
recently signal the wider fashion sector is about to face yet another crisis?
Last week saw two European sports companies fall on hard times despite the activewear category usually being one of the most resilient in the sector.
UK fashion conglomerate Frasers Group
withdrew its acquisition of Austrian sports retailer SportScheck,
following its insolvency. Plus, JD-Sports owned Sports
Unlimited retail confirmed it had appointed curators after being declared
bankrupt.
Is a Fashion sector
storm brewing?
In an exclusive interview with Just Style,
PDS Limited’s vice chairman Pallak Seth warned the current economic climate has
created a
“perfect storm” for the apparel sector.
He’s seeing consumers tightening their belts
and reducing their clothing budgets just as many apparel companies are facing
higher material, energy and freight costs.
So, it begs the question — is the apparel
sector on the cusp of another storm?
Amidst the backdrop of COP28, which
continues this week, these sports retail bankruptcies were a stark reminder of
the financial pressures all organisations are facing alongside the need for
environmental reform.
Leading fashion activism movement Fashion
Revolution used the climate summit to call on the global fashion industry to
make radical change, noting its environmental impact and “deep social
inequalities”.
Is there a way for the fashion sector to
make the radical changes needed, despite the current economic climate?
Financial pressure has often been seen as a
competitor to sustainability goals, but the two might not be as incompatible as
previously thought.
Last week fashion giants Bestseller
and H&M Group announced at the event plans to develop an offshore wind
energy project in Bangladesh, aimed at boosting the sector’s
transition to renewable energy.
The event also saw biological recycling
company Protein
Evolution announce a project with luxury fashion brand Stella McCartney
that showcases the “world’s first” garment produced using package and textile
strappings waste.
Protein Evolution claims the resulting
polyester is “infinitely recyclable,” and crucially a cost-effective,
high-quality way to combat plastic waste.
Renewable energy is already cheaper than
fossil fuels in most cases. A cost-effective recyclable polyester fibre also
adds hope that sustainable fashion solutions may soon become viable
alternatives, particularly as the cost of virgin materials increase.
With the fashion sector facing another tough
economic outlook as we head into 2024, these cost-effective and climate-saving
alternatives may soon become the only way forward.
By Just Style
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