fashionbusiness

Enslaving workers: has anything changed?

It seems clear that our economic system is based on enslaving workers. That’s how it thrives.

Here we quote an excerpt of Li Edelkoort’s talk from the Voices stage – via Business of Fashion. Edelkoort is one of the most respected trend forecasters. This talk is from 2015, definitely not something new. 

So, why it’s worth sharing again? Because nothing has changed over time!

Enslaving workers and cheap deals

Low prices are enslaving workers and destroying cultural value. 
“The manufacturing of clothes has gone through a rapid and sordid restructuring process, which has seen production leave the western world to profit from and exploit low-income countries,” said Edelkoort. “How can a product that needs to be sown, grown, harvested, combed, spun, knitted, cut and stitched, finished, printed, labelled, packaged and transported cost a couple of Euros?” she asked, comparing fashion’s supply chain to slavery.

“On the hunt for cheaper deals, volume companies, but also some luxury brands, have trusted the making of their wages to underpaid workers living in dire conditions,” she continued. “What’s more, these prices imply the clothes are to be thrown away, discarded like a condom before being loved and savoured, teaching young consumers that fashion has no value. We should make legislation to have minimum prices.”

Has anything changed so far? 

No. That’s why it makes sense to touch on this issue again.

No one planned to find solutions. Brands and governments will never do it! A spontaneous act of understanding is not part of their plans. But the pandemic has contributed to exacerbating the situation. Many people lost their job, and the working conditions are even worse now.

Seven years later, we are still just talking. And talking about change when nothing ever changes can be frustrating. We like words, but actions must follow or change won’t happen.

So we signed the “Good clothes fair pay” petition, which demands a living wage for the people who make our clothes. They need 1 million EU citizen signatures. 

Let’s help them!

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Haute couture: the diversity and inclusion debate

Between tradition and modernity, the latest haute couture shows brought about the debate on diversity and inclusion.

Haute couture shows were back with physical events, and the chit-chat was all about stars and starlets attending this or that one. Well, not just being present, but also walking down the catwalk.

Therefore, the lens pointed to celebrities and not to design or style. Perhaps it is a successful strategy in terms of sales but has no significance for us. Instead of making the show more appealing, it makes us lose interest. Though it demonstrates that you can be rich and famous, it doesn’t mean you have style.

Haute couture and modernity

According to Business of Fashion, diversity and inclusion were missed in Paris. Also, “couture codes are out of sync with the times.” “Big hats, corsets, and taffeta represent a snap back to the old days” – so they say. The only house that featured progress was Balenciaga.

Since we find Balenciaga’s vision quite scary and nonsensical, we prefer to leave modernism to the experts’ authority. And not that the world isn’t distressing as it is right now, but because it is so, it makes sense to work for something more positive.

Haute couture: art made by skilled hands

Haute couture is about beauty, top quality and perfection in execution. Art made by skilled hands. Indeed the show that mastered this concept at its best was Valentino on the steps of Piazza di Spagna in Rome. “The beginning” – back to where everything started for the brand.
With his stunning designs and marvellous silhouettes, Pierpaolo Piccioli’s show was an ode to beauty, colours and mastery. Furthermore, his focus on diversity and inclusion is a political message: people coming together for a better future.

We adored the maxi gowns with flat shoes or kitten heels.
However, experimenting with the future while acknowledging the past is where a truly contemporary vision resides.

Haute couture, diversity and inclusion

Of course, diversity and inclusion are valuable elements, but haute couture can not be inclusive.
Though we may sound boring in repeating this concept, haute couture will not be less elitist because they include plus sizes or different races in the show.

Haute couture is elitist by definition. The price makes it not accessible.

The truth is that you buy haute couture only if you can afford it and if you have a lot of money. Really a lot. Not because you feel represented.

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Tom Ford & the change

The fashion business in a post-pandemic world

Even if it is not easy to plan the best strategy, the need to change is in the air. Strong and palpable. Brands pretend to care but avoid the matter. But since the pandemic hit, nothing has changed. Only a few involved in the discussion are concerned for real.

Now, the news is that Tom Ford will step down as chairman of the CDFA on May 31st.

We quote him:

“When I began my role as chairman in June of 2019, my goal was to help the American fashion industry become more globally recognised for its talent and importance. I could not have imagined the extraordinary circumstances that both the industry and the world would have to navigate — that a pandemic would shut the world down and change the course of our lives and of our businesses forever.”

“The pandemic challenged all of us to think about our businesses in new ways—from the design process and production, to how we reach and speak to our customers.”

Tom Ford

The need to change

Since the beginning of our blog, we have talked profusely about change and shifting behaviours in our lifestyle. Therefore, finding new business models. And we highlighted how the pandemic was the catalyst which opened our eyes and led us to a new perspective. So, we find it interesting to listen to Tom Ford and recall his evolution. From the moment he revived Gucci with his minimal, bold, and ultra sexy style saving the brand from bankruptcy in the 90s. To how he revamped Yves Saint Laurent and the launch of his namesake brand in 2005.

Many years have passed, and now things are different, so what was right in the 90s does not work anymore.

The need to change is evident. And finding new ways to pursue the fashion business is something we cannot ignore anymore.

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Production chains impasse

The urgency to make a change

Production chains have been disrupted first by the pandemic and second by the war in Ukraine. Which, unfortunately, doesn’t seem to have a short term solution.

And so, the question arises about how to reorganise the production system in a new sustainable way.

The most striking point is that the western world is set up only for consuming goods produced in countries where wages are below the standards which would allow a decent life. That is a dead-end system: corporations will never renounce that magnificent cake which secures their profits. At the same time, everyone worldwide contributes to sustaining that system by overconsuming goods.

With a complete lack of vision, most companies hope to get back to normal soon, identifying that normal with the pre-pandemic and prewar structure. But the war and the new outbreak in China added more problems, further slowing raw material supplies and destroying markets. So it just got worse. While disrupting production chains, those catastrophic events are bringing in radical changes. And maybe, even those companies who prayed for “back to normal” will understand that life will never be the same, nor will production chains.

Production chains – What are the possibilities?

Small-sized companies offering local productions are more prone to change and more adaptable to new situations. The big chains don’t have this ability to change and adapt quickly.
Artisanal should be the new normal, guided by the principle of going ahead with production only when there is a commitment to purchase. No overproduction.
Also, more focused production would give space to creativity, which is fundamental to conceiving meaningful products, goods made to last and worth buying.

Small, artisanal and creative are just some of the elements that provide a thoughtful and sustainable business model.

Of course, being creative means taking risks, so no one wants to do it because there’s no guarantee of success. But the catastrophic events we are witnessing tell us that we must change now.
In order to provide sustainable production chains, we need people leading the industries with innovative visions based on ethical principles.

Taking risks is part of the game. There’s no other way to make a change.

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The upscale drive

Revising the (over)production model

Ending the diffusion lines is one of the strategies implemented by fashion Maisons lately. Why this change of direction? And is it the start of a new business model?

What is a diffusion line?

The diffusion lines, also named second lines, are ready-to-wear collections whose name is similar or somehow recalls the designer’s name. The inspiration and design of these clothing and accessory lines come from the Maison archive. But they get simplified in terms of patterns, working, and materials to offer the spirit of the brand at a lower price. More affordable, or relatively so. However, much lower compared to the main lines.

Indeed main lines dominate the high-end segment of the market, meaning they are expensive. But if they remained in that high-end segment, brands would miss the majority of the market.

So, driven by greed and speed, brands launched diffusion lines as an opportunity to expand the business and maximise profits. Specifically, diffusion lines were conceived and produced for the mass market.

Apart from some trailblazers like Armani, whose Emporio line was born in 1980, many diffusion lines started spreading in the 90s and mushroomed during 2000. For decades brands focused on evergrowing, ever-expanding, overproducing, and heavy discounting policies. So they triggered a vicious cycle that led to an oversaturated market deprived of value.
Now, something is changing. Some fashion Maison backed up, undertaking a new (or not so new) route.

The new strategy: quitting the diffusion lines

Recently, Valentino decided to eliminate the Red Valentino line from 2024 (launched in 2003) to focus more on couture.
Likewise, Chloè is to phase out its See by Chloé line over the next three years, addressed as a – “natural and necessary evolution for the long term.”

So, in the short term, brands have maximised profit through secondary lines. But, in the long run, this strategy has compromised the market and their own image.

Now the market is almost dead, and this forced them to change their path.
If fashion Maisons want to stay relevant in an oversaturated market, they need to do some cleaning. Ending the diffusion lines will allow brands a more focused business model.

Though we do not expect they will stop overproducing, we are curious to see what they will do next!

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