Boots, a cardigan, a festive blouse, and a long silver coat with faux fur trim, which cost $32.00, but looks like a million bucks. “If it falls apart, you just toss it away!” said Jo Jo, a teen-consumer-proudly wearing her purchase. Environmentally, that is more and more of a problem. With rainbow piles of sweaters and T-shirts that often cost less than a sandwich, stores like Primark are leaders in the quick-growing “fast fashion” industry, selling cheap garments that can be used and discarded without a second thought. Consumers, especially teenagers, love the concept, pioneered also by stores like H&M internationally and by Old Navy and Target in the United States, since it allows them to shift styles with speed on a low budget.
But clothes — and fast clothes in particular — are a large and worsening source of the carbon emissions that contribute to global warming, because of how they are both produced and cared for, concludes a new report from researchers at Cambridge University titled “Well Dressed?” The global textile industry must become eco-conscious, the report concludes. It explores how to develop a more “sustainable clothing” industry — a seeming oxymoron in a world where fashions change every few months. It is hard to imagine how customers who rush after trends, or the stores that serve them, will respond to the report’s suggestions: that people lease clothes and return them at the end of a month or a season, so the garments can be lent again to someone else — like library books — and that they buy more expensive and durable clothing that can be worn for years. In terms of care, the report highlights the benefits of synthetic fabrics that require less hot water to wash and less ironing. It suggests that consumers air-dry clothes and throw away their tumble dryers, which require huge amounts of energy. Consumers spend more than $1 trillion a year on clothing and textiles, an estimated one-third of that in Western Europe, another third in North America, and about a quarter in Asia. In many places, cheap, readily disposable clothes have displaced hand-me-downs as the mainstay of dressing. “My mother had the same wardrobe her entire life,” Ms. Neild said. “For my daughter, styles change every six months and you need to keep up.” As a result, women’s clothing sales in Britain rose by 21 percent between 2001 and 2005 alone to about £24 billion ($47.6 billion), spurred by lower prices, according to the Cambridge report. And while many people have grown accustomed to recycling cans, bottles and newspapers, used clothes are generally thrown away. “In a wealthy society, clothing and textiles are bought as much for fashion as for function,” the report says, and that means that clothes are replaced “before the end of their natural life.” Dr. Julian Allwood, who led a team of environmental researchers in conducting the report, noted in an interview that it is now easier for British consumers to toss unwanted clothes than to take them to a recycling center, and easier to throw clothes into the hamper for a quick machine wash and dry than to sponge off stains. He hopes his report will educate shoppers about the costs to the environment, so that they change their behavior. There are many examples of how changing consumer priorities have forced even the most-classic retailers to alter the way they do business. In their efforts to buy green, customers tend to focus on packaging and chemicals, issues that do not factor in with clothing. Likewise, they purchase “natural” fibers like cotton, believing they are good for the environment. But that is not always the case: while so-called organic cotton is exemplary in the way it avoids pesticides, cotton garments squander energy because they must be washed frequently at high temperatures, and generally require tumble-drying and ironing.
Sixty percent of the carbon emissions generated by a simple cotton T-shirt comes from the 25 washes and machine dryings it will require, the Cambridge study found. A polyester blouse, by contrast, takes more energy to make, since synthetic fabric comes from materials like wood and oil. But upkeep is far more fuel-efficient, since polyester cleans more easily and dries faster. Over a lifetime, a polyester blouse uses less energy than a cotton T-shirt. One way to change the balance would be to develop technology to treat cotton so that it did not absorb odors so readily. Also, Dr. Allwood said that “reducing washing temperature has a huge impact,” speaking of a significant drop from about 122 Fahrenheit to 105. Even better, he said, would be to drop washing temperature below normal body temperatures, but that would require changes in washing machines and detergents. The report suggests that retailers could begin to lease clothes for a season (just as wedding stores rent tuxedos) or buy back old clothes from customers at a discount, for recycling. Audrey Mammana, who is 45, said she was not “a throw-away person” and would be happy to lease high-end clothing for a season. She would also be willing to repair old clothes to extend their use, although fewer shops perform this task. But, she added: “If you cut out tumble-drying, I think you’d lose me. I couldn’t do without that.”
(Sourced from www.nytimes.com, 2007)
LVMH Group Managing Director Antonio Belloni told Bloomberg News on Apr. 16 that his company is seeking acquisitions but offered no specifics. Valuations are certainly attractive, as major luxury stocks are trading at less than 10 times their 2008 earnings before interest, taxes, depreciation, and amortization, compared with a ratio of almost 14 times last June. However, tight credit markets have made it all but impossible to finance a buyout, and many private equity firms are stuck without backing. A leveraged buyout deal for German fashion house Escada crumbled in April, and Italian fashion house Roberto Cavalli has been seeking a buyer since last summer. "People are being very careful," says William Plane, director at Savigny Partners. The best bets for investors are retailers catering to the ultrarich, whether in the U.S., Europe, Asia, or the Mideast. This includes companies such as LVMH, Gucci owner Pinault-Printemps-Redoute, and Herms. "There's much more insulation for the ultraluxury brands whose consumers are relatively unaffected by all that's happening," says Fred Crawford, managing director of AlixPartners in New York. So-called aspirational brands such as Coach and Polo Ralph Lauren (NYSE:RL - News) face the biggest challenges and thus make the riskiest investments, analysts say. Customers who were once more than willing to stretch their budget to buy a hot pair of shoes or cashmere scarf are rethinking their priorities, Crawford says. The firm just completed a survey of thousands of consumers about their shopping habits. "Right now, people are trading down," he notes. Without rising real estate values to fuel consumer spending, some have declared the present era of affordable luxury dead and buried, but most retailing experts see the trend on hold until the economy improves. 
