How does the climate crisis transform the luxury industry

Consumers and investors are increasingly concerned about environmental issues. From alternative raw materials to which categories are growing faster, Luca Solca studied four issues facing the luxury goods industry.

Geneva, Switzerland-Consumers and investors are increasingly concerned about the environment, and four related forces will reshape the luxury goods market. More importantly, as climate and population growth put greater pressure on our planet, these concerns may intensify over time.

Environmental consumers will increasingly ask themselves which products are the most environmentally friendly, and then buy these products. But this is not an easy question to answer. Under which conditions the environment is much eco-friendly? How much is the water consumption? How about the carbon dioxide emissions? How serious is the pollution? If the mining industry is more environmentally friendly, then hard luxury goods will be the best choice.

Think about this, watches and jewelry have been worn thousands of times before being replaced, and most fashions have been worn dozens of times at most. More importantly, the environmental footprint of maintaining hard luxury goods is negligible. In contrast, the washing and dry cleaning of ready-to-wear garments has created a very negative environmental impact throughout its life cycle, and this effect is as serious in its production process.

Even if we take into account the pollution factor (the CO2 emissions of the mining industry are 2-10 times that of the fashion and accessories manufacturing industry), for those hard luxury brands trying to reduce the impact, using recyclable precious metals may be a very wise move. For example, 71% of Pandora’s gold and silver comes from recycled materials, and the brand’s goal is to reach 100% by 2025.

Alternative raw materials

The consumers ‘concern about animal welfare and the link between animal products and the environment are continuing to rise. Almost all major luxury brands have begun to ban the use of animal fur, which was the pillar product of the luxury industry in the past. As the recent controversy over crocodile farming has shown, we expect that the use of rare leathers may have a similar ending. In December 2018, Chanel announced that it would no longer use rare leather and fur in its collection. Wherever Chanel goes, others will follow.

The problem with leather is the same: Synthetic leather is the choice of only a few brands today, mainly because leather is largely regarded as a by-product of meat production. But as people continue to reduce beef intake, cowhide substitutes will definitely become more and more important. Luxury companies must improve their usage of raw materials, especially when a specific raw material is at the core of their brand’s DNA. Prada’s move to recycle nylon is the best example of proactive management in this regard.

Try to resell, challenge the brand perception

Luxury and fashion products are opening up to a wider audience, and the secondary market is about to usher in major developments. Although environmental issues may be a factor that drives people’s increasing interest in “second-hand” products, the main factor is actually the decline in the price of iconic luxury products for consumers and the increase in retail traffic. Resale giants The RealReal, Vestiaire Collective and Chrono 24 are at the forefront of the “second-hand” revolution, followed by a long list of players available.

Luxury brands are slowly embracing this trend and have established similar special partnerships and initiatives with existing physical and digital retailers such as Selfridges and Farfetch. Just not very long ago, Gucci collaborated with The RealReal to launch an online store.

The demand for second-hand products is often concentrated on big brands, even more than the demand in the primary market. A special study pointed out that Louis Vuitton, Hermès, Chanel and Gucci accounted for most of the second-hand demand for handbags, while Rolex dominated the watch market. This may increase the popularity of products on the Internet and on the street, which also means that luxury giants must further increase their efforts to fight with the brand vulgarization.

Stricter ESG reporting

ESG (Environmental, Social and Corporate Governance) reporting is still in its Primary Stage, much like financial reporting before the introduction of stock market regulators. In the luxury goods industry, companies often emphasize indicators that make themselves look good, while only making limited disclosures in other areas. But driven by consumer and investor demand, this situation may change quickly.

The negative environmental impacts of the fashion and luxury goods industries mainly occur in their extended supply chains. Observing the company’s specific performance and comparing vertically integrated companies at different levels will yield meaningless results.

Even if we look at elements such as carbon emissions that have received much attention recently, we found that Richemont is one of the few companies that report emissions within the “Scope 3”, which means that it not only discloses the third-party suppliers’ Direct emissions and their indirect emissions are also disclosed. The other exception is Kering Group, which also provides more extensive information disclosure. We expect this to become standard practice in the future.

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The Chinese International Import Expo Fair trading service platform re-launched to empower China’s fashion industry


On the occasion of the 3rd Import Expo, dozens of reporters from Oriental News Channel visited the “‘6 Days + 365 Days’ International Fashion and Creative Exhibition and Trade Center” yesterday to learn more about its service function and development role as the trading service platform of the CIIE, China International Import Expo.

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The report pointed out that, as the only platform to serve the fashion industry among the 18 “6 Days + 365 Days” trading service platforms, “International Fashion Creative Showcase & Trade Center” has integrated its four collaborative fashion industry service platforms of “POP Trend, ULB, Design Infinity, and Sichuang Education”, and introduced overseas quality design power to empower Chinese fashion at the third edition of the fair.

This is not only within our reach, but also our responsibility.

Since the official inauguration of the Expo’s “‘6 Days + 365 Days’ International Fashion Creative Exhibition and Trade Center” in Qingpu District, Shanghai on November 6, 2019. The Expo’s Macau Pavilion were also invited to attend and link up with the exhibition and trade center’s “Design Infinity” fashion industry service platform.


In the Yangtze River Delta fashion industry cluster to conduct a series of traveling exchange and docking activities, in order to bring into play the global fashion products of the Fair trade active momentum and spillover effect, enhance industrial resources docking, industrial cooperation and exchange, and promote the role of multi-local fashion industry linkage and synergistic development.


With the strategic opportunity of the 3rd Fair and the Yangtze River Delta, “International Fashion Creative Exhibition and Trade Center” still lives up to its mission, linking high-quality global and overseas resources, serving the Yangtze River Delta and the innovative development of the fashion industry based on Qingpu, and will not forget its original intention to focus on serving design and originality, and always be a professional service platform to promote the upgrade and transformation of the fashion industry.

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The Road of Fashion in The Sci-tech Age

With the advent of 5G era in the Internet industry, technical progress has an strong impact on people’s life. Intelligent technology is constantly upgrading people’s home life and the way of leisure and entertainment, and consumers who like to stay at home are getting closer to the virtual world. In addition to online selling, human-computer interaction, AR technology, 3D try-on and other technologies have also been realized. Technology has exerted a strong influence in this pandemic. It enables people to make bold attempts on operation mode, consumption idea and even design concept in advance, promotes the progress of human civilization and shows a profound influence on the fashion industry.

As COVID-19 influences the global fashion industry in varying degrees, various fashion events have been postponed; many online celebrities, bloggers and fashion buyers have been absent from the New York and London fashion weeks; Milan fashion week has to end in a hurry; Seoul’s A/W 2020 fashion week in March is also cancelled. Shanghai fashion week, which was originally postponed, has taken a bold new attempt as other fashion weeks have been left baffled. Shanghai fashion week has teamed up with Alibaba’s e-commerce platforms to launch the most special Tmall Fashion Week. It makes use of green screen, AR, virtual KOL, virtual flash and other surreal technologies.

As one of the most successful virtual idol, Hatsune Miku’s commercial value has been tested in the market for more than a decade and remain active. The virtual online celebrity industry is developing rapidly and undergoing a significant shift in the relationship between the brand and consumers. On one hand, the novelty of the topic and the affordable endorsement cost make the virtual online celebrity more cost-effective at this stage. On the other hand, consumers who are tired of the traditional way of celebrity endorsement constantly need new fashion forms, which drives virtual celebrities to develop toward the real and the statement-making directions. Lil Miquela’s team gives her a name in the real world as Miquela Sousa. She is a 20-year-old mixed-race girl between Brazil and Spain living in Los Angeles. And she is also a model and singer. She has her own self-awareness, supports the rights of black people and has spoken out against Donald Trump.

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POP-Up Stores are Coming. Which Style Do You Like?


POP-up stores are seen as short behavior art. “Limited”, “First Launching” and “New Product” are often seen in pop-up stores. POP-up store are always eye-catching through using new technologies, unique storefronts and varying colors. For fashion industry, spring is the fashion season for new styles.



Peacebird Men re-interprets the classic characters in Sesame Street. Trouble Andrew and Reilly show their 2 special collaboration collections, exploring new possibilities.


Oishi x AKOP

Oishi joins hands with Han Huohuo to release the Oishi x AKOP collection. Salted egg yellow is the main tone, with black and white tones. The inspiration comes from the salted egg potato chips of Oishi. Oishi’s garments in collaborated collections will be for sale in pop-up stores. The interesting point is that the outside fitting model wears a large salted egg, and the new salted egg chips are placed in the yellow shopping cart.

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The Lacoste x Keith Haring collection uniquely interprets street fashion. Lacoste keeps a balance between classics and fashion, while Keith Haring is rebellious and unruly. The walls are inspired by Keith Haring’s classic works. The dancing figures set a basic tone. The collaborated items are bright and vibrant. The vintage subway seats and street vending machines are placed in stores. The soft colors and light are artistic.



UNDER PEACE once collaborated with HELLO KITTY, SpongeBob and others. In 2019, UNDER PEACE joined hands with Junji Itou, a famous Japanese horror cartoonist. Junji Itou’s best work Tomie is chosen. The grown-up, classic and interesting style is combined with Under Peace’s military, street and skateboard.


Recommended Inspirational Graphics





The fashion industry is actually the world’s largest source of pollution

In the past few years, the fashion industry has not only exposed all kinds of discrimination allegations, it has also become the world’s largest source of pollution. We are not talking about fashion giants, but “luxury goods.”

Currently, about 87% of the produced globally 5.3 million tons clothing each year is burned or discarded. At the current rate, the textile industry will discharge more than 20 million tons of plastic microfibers into the ocean by 2050 . By 2030, we expect to use two resources of the earth, and the demand of clothing will increase by 63%.

And in 2018, some reporters discovered that Burberry has destroyed nearly 30 million pounds worth of clothes, bags, perfumes and shoes – those that appeared on the runway and in the brand boutiques. Burning out of unsalable inventory is an open secret to the fashion industry. Over the past few years, Richemont, with Cartier and Chloé, as well as Céline and Chanel, have been approved for destroying millions of pounds of unsalable stock. Bond Street may not be much different from “Made in Bangladesh.”

We must ask ourselves how these environmental slaughter are associated with the value of luxury goods. Why are luxury brands so backward in their pursuit of environmental protection? Most importantly, how do they completely discard the meaning of luxury?

Every fashion big brand does this, or has done this. why? Because the establishment of luxury brands is based on the premise of scarcity and unparalleled importance of exclusivity. The price cuts for the products are bad enough. If they can’t sell them, they don’t become as cheap as the fast-moving brands or they are thrown into the trash. Excessive luxury brands appear in discount malls such as TK Maxx, which dilute the brand’s stock price.

In addition, if “luxury” products become too easy to buy, they can easily fall into the hands of counterfeiters. The £450 million black market is not only illegal, but also causes vulnerable groups and illegal immigrants to be exploited as cheap labor. The benefits generated may be used to organize crime and smuggle weapons, drugs and population.

However, these products are burned – most of them are not degradable (zippers, synthetic fibers and plastic buttons) – it is certainly not the answer. This approach reflects a broader systemic problem in the fashion industry. For example, the fear of the “sheet business.” Does a normal person buy bed linen at full price? Everyone who knows how to pursue a good deal knows that you can always buy the same product with less money. This also applies to T-shirts or designer brand off-season skirts.

The public’s shock to this incineration product reflects the cultural shift in the luxury industry that is a crossroads from the rise of e-commerce, social media and mid-end brands.

Luxury should be represent the scarcity, tailoring and deliberation in production and design. However, in the 1980s, luxury brands became large businesses, and fashion became an international industry. The boutique opened in Dubai, the lipstick was sold in Beijing, and the suitcase was opened in Moscow. A large number of perfumes, cosmetics and sunglasses began to grow in revenues for major fashion brands. The products that could not be sold were burnt down at the temple of Mamen.

Before we think that it’s too late and desperate, we need to remember that the brand-name packs that burn in the fire of hell are not all. There is also a brand in the world that respects the definition of the word “luxury”. For example, in Hermès, everything is handmade, meaning they can control their supply chain and only launch a limited number of products each year – so they have a reputation list. The French brand also has an innovative project called “Petit H”, where craftsmen make small pieces of fabric and leather, smart and stylish.

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HERM’S Petit H series made of leftover leather

The younger generation of designers are not only happy to develop sustainable production methods, but also to make it sexy. Richard Malone is known for his brightly colored, sculpturally tailored women’s wear, but it is less well known that most of the materials he uses come from marine waste, fishing nets, plastic bottles and acrylics in school uniforms, recycled into cleverly tailored knitwear, and In general, the “green” fashion in people’s minds is very different. It’s hard to imagine the full color of the clothes. He was also worked with a group of female textile workers in Tamil Nadu, India, and hired them to dye them in a natural, low-consumption, pollution-free way. Richard is just one example of this generation of young designers who use innovative and low-key methods to make clothes and care about environmental issues.

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Richard Malone 2019 READY-TO-WEAR

But when is moral high ground able to stop people’s love for beauty? Compared to what this dress does, we are more likely to care more about how it looks like wearing it. That’s why Malone’s clothes perfectly match the realities of women’s life – sculpted shoulder-length long coats, high-waisted flared pants, streamlined cut cross-knit dresses that are not only hand-made, but also it is easy to machine wash.

“Fashion has changed a lot. The changes in the past 20 years are incredible,” Richard said. “For me, it’s important to create products that are practical, not unrealistic. We can’t afford factory production, so we Make it yourself. This is what consumers want, they are smart, they can see through marketing and promotion.”

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Richard Malone

The Irish designer previously worked for several luxury brands, where he witnessed the burnt exotic leather and unsalable materials. “The quality of some luxury brands is no different from that of high street products,” he points out. “The quality is the same, just the difference, the difference between 2000 and 200,000.”

This brings us back to the most important question: how to solve the status we are facing? For many brands, the answer is a circular economy. This is a “cycle” of value, and products and materials are recycled, remade, and reused. This is a way to replace the traditional linear cycle of the product – manufacturing, use, and disposal. At last year’s Copenhagen Fashion Summit, H&M, Stella McCartney, Nike, and some ironic Burberry gave a speech about making the cycle of manufacturing, using, and discarding the apparel industry a thing of the past. H&M even promised an admirable plan: to be fully cycled and renewable by 2030.

“Fortunately, the environment is changing through information transparency, technology and consumer awareness,” said Julie Gilhart, former fashion director at Barneys New York and a fashion consultant who has long supported sustainable development. She pointed out that more than 77% of Millennials are more inclined to buy environmentally friendly brands, but prices and aesthetics cannot be ignored.

All of this is also requires widespread acceptance of the second-hand trading market. The market has expanded with the rise of companies such as The RealReal and Vestiaire Collective that sell proven second-hand designer clothing and luxury goods in the form of Net-a-Porter. In April, Stella McCartney and The RealReal, pioneers of animal abuse, entered into a partnership to participate in the circular economy. Their concept is that when you hang a Stella McCartney product on a second-hand trading platform, you get a £100 voucher for the brand’s new product. Simple but equally genius.

“This method of cleaning and rebuilding the wardrobe is completely recyclable,” Gilhart explains. “Stella strongly encourages people to sell their clothes to a dealer like the RealReal so that her clothes are not thrown into the trash. Keep their value for a long time.”

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red and grey color suits for men

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Stella McCartney 2019 READY-TO-WEAR

It is clear that the fashion industry is ultimately for consumer service. Many consumers pay more attention to price, novelty, quality and design than the moral considerations of purchasing choices. Just look at the endless appetite of young people like Boohoo, Miss Guided and ASOS, and you can see that they will choose cheaper, not carefully designed, produced or recyclable clothes – Especially when they know that the “luxury” brand is the same as the fast-moving brand.

Now, the fundamental solution to the problem depends on the fashion brand itself, especially for those aspiring brands, who need to set a real standard and definition of what is “luxury” – a source of pride and deliberation.