overproduction

Hints of Sustainability at PFW

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Are these sustainability efforts credible?


On the last days of Paris Fashion Week Fall/Winter 24-25, hints of sustainability emerged. Yet, amidst these hopeful murmurs, recent revelations cast a shadow of doubt over the industry’s commitment to genuine change.

Stella McCartney’s fashion show opened with a call to action to save the planet. In the video, Mother Nature sends a message to humanity: “It’s About Fucking Time.” Perhaps gentle words are no longer sufficient to spur the necessary transformation. Indeed, the stark reality of increased pollution rates this year tempers our optimism.

Apparently, Stella McCartney, an environmental activist, operates through sustainable practices. In fact, the media present her as one of the brands more involved in the discussion around sustainability.

However, reports from Business of Fashion unveil staggering figures of unsold inventory weighing heavily on these conglomerates. We quote B.O.F.: “LVMH and Kering are grappling with billions of dollars of unsold inventory.”

Analysing sustainability hints and related news


Now, let’s compare the two pieces of news in an attempt to understand more about sustainability. In this juxtaposition, a disconcerting dissonance emerges.

LVMH and Kering are the largest conglomerates in the fashion industry. LVMH owns Louis Vuitton, Givenchy, Dior, Fendi, Celine, Kenzo and many more. Kering owns Gucci, Balenciaga, Bottega Veneta, McQueen, Saint Laurent, and more.
Despite both groups having billions of dollars of unsold inventory, they have made countless new samples for the fashion weeks. No one tried to create beautiful presentations with fewer garments. Moreover, they are ready to churn out tons of new clothes and accessories for the Fall/Winter 24-25 season.

In 2019, Stella McCartney signed a deal with LVMH group to accelerate its worldwide development in terms of business and strategy. Before, the designer partnered with the rival conglomerate Kering. So, McCartney stands at the intersection of conflicting narratives.

Can a designer embedded within a behemoth corporation, driven by perpetual growth and overproduction, truly champion sustainability? Stella McCartney’s game recalls the manoeuvres politicians play. Perhaps sustainability in fashion remains a game of optics, a veneer to placate conscientious consumers.

Conclusion: unanswered questions


The hints of sustainability that emerged at Paris Fashion Week appear diluted, if not altogether illusory. The sobering reality of overproduction and the unsolved dilemma of excess inventory force us to confront uncomfortable truths about the industry’s commitment to change.

In conclusion, lingering questions remain with us: What fate awaits the mountains of unsold garments? Will they be incinerated, shipped off to distant shores, or left to languish in forgotten warehouses? And can we truly place our trust in designers who navigate the corridors of power within colossal conglomerates?

The answers to these questions may hold the key to unlocking a more sustainable future for fashion. One grounded not in superficial gestures but in substantive action and genuine accountability.

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Florence Luxury Leather Goods in Stagnation

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No orders, overproduction trap leads to thousands on furlough


It is concerning that Florence luxury leather goods compartment is experiencing stagnation.

Specifically, “Il Corriere Fiorentino” titled: “in Florence the luxury district is stuck: no orders from the brands and 4.000 workers on furlough.” The article says that it’s been many weeks that the area of Scandicci is on alert. The fact has been discussed for a few months but hasn’t officially emerged due to the social safety nets. However, the latest data from the syndicates exceeds the level of concern. Moreover, it seems that around Florence, warehouses are packed with unsold goods and can no longer contain them for space reasons.

What caused the leather goods stagnation in Florence?


Apparently, the perfect storm hit the luxury leather goods field: inflation and international crises reversed more on the middle class, the main target of accessible luxury leather goods. As a result, 250 companies that typically produce for luxury and affordable luxury brands are now facing the threat of downsizing or closure. On the contrary, it’s interesting to notice that the fast fashion area in Prato is thriving. There’s no sense of sustainability, but with low prices, people don’t care about being sustainable.
Also, the mechanization of production implemented to churn out more pieces in less time represents another possible cause.
Currently, there is an ongoing negotiation between the representatives of the workers’ unions and the most important international fashion brands that make production in the area.

A brief background


The Florentine leather tradition is renowned worldwide. Upon fully embracing the capitalistic framework, companies planned the relocation to China to maximise profit. Please forget the “made in” labels… Then, COVID-19 dismantled this system by interrupting production chains and long-distance delivery. So, we witnessed the re-shoring: brands repositioned production in Italy. Yet not to reward or develop artisanal production but rather for large quantities and numbers. In other words, the scheme tells a story of mass production and eternal growth. Now, the mechanism has jammed.

In conclusion, the stagnation of Florence leather goods compartment has resulted in a huge surplus of luxury and affordable handbags in storage. Perhaps the fashion industry can put down the mask of sustainability.
So, we wonder, how can brands still plan their fashion business on overproduction? How consciously do brands approach the new Fall/Winter 24-25 sales campaigns releasing numerous new items?

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An Earthquake in the Fashion Industry

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What happens to luxury e-commerce?


An earthquake is going on in the fashion industry, invisible to most. It’s about luxury e-commerce. Specifically, Farfetch, which was about to collapse.

The platform represents the e-tailer everyone talked about. For mainstream fashion shoppers, dazzled by the lights plus an excessive selection, being absent from it meant not belonging to the right circle. For retailers, it was a possibility to make a lot of money. However, the supermarket setting did not intrigue niche fashion enthusiasts at all.

What is Farfetch?


Farfetch is a marketplace that connects brick-and-mortar fashion boutiques. Therefore, people from anywhere in the world can buy their favourite items from a boutique on the other side of the globe and get them delivered to their doorstep. Afterwards, since focusing on the luxury segment, they have started offering services directly to fashion brands. Also, they bought the London boutique Browns.

Who’s behind the group?
Investors gather the Chinese Alibaba; Artemis, the holding company of the Pinault family, owners of Kering; and the Swiss luxury group Richemont.

How does the business work for Farfetch?

They take a 30% cut from all the retailers as they can connect to a worldwide audience. However, born in 2007, the company became profitable in 2014. But, they could hardly maintain the profit. The company shares, valued at about 20 billion dollars at its peak, lost about a third of their value, dropping to a record low of 60 cents. Now, the firm has a market value of $250 million. In fact, the platform was close to bankruptcy.

The earthquake shaking the fashion industry: what happened?


In 2019, Farfetch acquired the Italian New Guards Group, license-owner of Off White and others, reporting unexpected losses of about 2 billion dollars. In other words, by abandoning its inventory-free marketplace strategy, Farfetch lost its original, cost-effective pattern. Yet, their business peaked during the pandemic. But, as the company pursued growth, costs increased simultaneously.
Indeed, the New Guards acquisition reported a 40% drop in sales.

Two more factors contributed to the downfall: brands wanted more control over their products and the discount policy. Moreover, a slowdown in the luxury market had an impact on sales.

Farfetch was supposed to buy a 47.5% stake in Yoox-Net-a-Porter Group, but perhaps we won’t see this deal.
After the share price plummeted, a white knight came to save the e.tailer: the Korean group Coupang, Inc.

What to expect from this earthquake in the fashion industry


For those who see fashion as creative expression and not a giant supermarket, Farfetch isn’t fascinating. Indeed, many call it the ‘Amazon of fashion’ – a destination thriving on relentless discounts.
A few freethinkers might wonder where on earth those exaggerated quantities of garments would be sold. Though it is good to witness brands talking about sustainability while partnering with a company that made overproduction in the fashion industry its business model!

Eventually, an invisible earthquake is happening in the fashion industry, which may result in a tsunami. All the brick-and-mortar retailers connected to the platform have lost their lucrative toy. But, planning to sell through Farfetch, they still have ordered immense quantities of fashion garments. Since local customers were just a tiny percentage of their business, where would they sell their huge stock? Where will they sell the unrealistic budgets pushed by the marketplace?

Now, what should we expect? Will brick-and-mortar ‘Farfetchers’ survive? Or will they fall under the tsunami?

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Understanding The Fashion System

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The truth behind sales & markdowns


Understanding the fashion system involves exposing the hidden environmental costs of frequent fashion promotions and sales. Aiming for sustainability in the fashion industry is critical to saving the planet.

Sales used to occur at the end of the season only. But now, promotions and markdowns are frequent. What’s changed in the fashion industry? Since fashion became finance and brands became properties of corporations, profit has been the only logic guiding the fashion industry. Corporations use overproduction to maximise profit; sales are part of the game.

The negative impact of fashion sales


Sales apparently are a way to get a deal on clothing and other products. But, they contribute to a bigger problem in our society: the value of clothing and the labour that goes into making it is not recognised. In other words, sales devalued product quality and labour.

Sales perpetuate an unsustainable production cycle that harms our planet. To support this profit-driven system, they fuel impulsive buying, encouraging people to buy things they don’t need. Additionally, when brands play a pricing game with their products, it can call into question their credibility. On the one hand, brands praise the value of their products. But a month later, this value has halved. Who are they kidding?

However, overconsumption and overproduction are two faces of the same coin: capitalism, an economic system that values profits above all else. 

Despite the apparent fascination, thinking individuals should consider the detrimental impact of sales on the planet and people. With overproduction and fashion waste visible from space, the fashion industry significantly contributes to climate crises, biodiversity loss, and environmental degradation. In fact, the recent UN guidelines underscore the urgent need to combat unsustainable consumption patterns.

The call is clear: curbing overconsumption. To do so, we must acknowledge sales and frequent markdowns as symptoms of a profit-oriented system that harms our environment. But, to find solutions, first, we must grasp how the fashion system operates.

The fashion system: who does it work?


Understanding the fashion system means analysing the upstream negotiations. Brands pressure retailers to meet escalating budget demands each season (minimum amount or quantity). That leads to excessive purchasing beyond actual retailers’ demand. To ensure profits for brands, retailers buy more than they can sell, leading to overstock.
Excess inventory drives up retail prices because most quantities of merchandise are sold only during sales. So, higher prices throughout the season partially cover this loss.
Lastly, overstock forces retailers into a cycle of frequent discounts and promotions, aiming to encourage more purchases from end consumers.

This interconnected cycle of consumption and production cannot be rectified by addressing only one aspect without considering the other. In this context, we cannot trust brands who preach sustainable fashion.

Solutions: sustainable fashion practices


Sustainable fashion practices for retailers: Stop The Sales! 

• Reduce the quantities of clothing and accessories ordered per season. If brands do not accept lower orders, do not buy from them. By preventing overstock, retailers can maintain fair prices throughout the year. Both retailers and consumers would benefit from this.
• Refrain from excessive discount events like Black Fridays, promotions, and sales. Customers are no longer willing to buy at the true value of a garment.
• Educate consumers to prioritise quality over quantity, investing in durable, timeless pieces and understanding the value behind their purchases.

What Consumers Can Do: be agents of change!

• Don’t contribute to the climate crisis. Change the system: make conscious choices. 
• Buy less, much less during the season. Take only quality items that complement your existing wardrobe; reuse clothes.
• Avoid trendy items; embrace a timeless aesthetic that transcends fleeting fashion. Remember, quality endures – good design transcends trends. It doesn’t have an expiry date.

Ultimately, sales aren’t sustainable. Understanding the fashion system, how brands’ pressure on retailers drives over-purchasing, inflates retail prices, prompting endless discounts, and addressing both consumption and overproduction, is vital for impactful change.

At suite123, we prioritise good design, timeless fashion, and conscious consumption. And we care about people and the planet. Therefore, we do not endorse sales. 

Let’s make conscious decisions about what we consume, nurturing a sustainable world for generations to come.

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A Quiet Act of Rebellion

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Our fashion story beyond the beaten path


Our stance at suite123 is a quiet act of rebellion against the fashion industry’s dominant business model.

The fashion system relies on relentless overproduction and manipulative marketing strategies. Despite mounting evidence of the industry’s devastation on the environment and despite the unmeasurable fashion waste, brands keep making large quantities of new clothes. And shops continue to order endless varieties of clothing from these brands. Likewise, people keep purchasing and discarding clothes. Nothing ever changes. The only thing that changes is labels. Now, garments are labeled as sustainable just to play with illusion.

Fashion rebellion #formodernhumans


So, at suite123, we rebel against corporations that talk the talk but fail to walk the walk.
And we rebel against the masses who follow the carnival barkers blindly, contributing to perpetuating a system that exploits workers. This system, in turn, depletes the masses’ rights, yet they refuse to see it. In fact, despite the information available, most people ignore it and keep supporting the very brands exploiting people and the planet.

We are not a big corporation. On the contrary, we are a tiny independent boutique that operates on a private shopping pattern. An experiment outside the norm in the fashion universe.

Thoughtful design, independent creators, limited productions


Our rebellion lies in endorsing thoughtful design, independent creators, and advocating for limited productions. Also, educating people and encouraging the choice of a select few quality pieces over mindless accumulation. In other words, we advocate for limited quantities of quality garments for a tiny niche of individuals who are free thinkers.

For the new year, our dedication persists in seeking creativity, good design and quality to curate a limited selection that encapsulates true essence. It’s about less, much less, but better. No gimmicks, no endless arrays of clothing, and no false claims of sustainability. Also, no carnival barkers to fill you with pointless stuff. Instead, a meticulous curation of meaningful garments, unwavering in its value.

Rather than conforming to a fashion system that screams, we thrive in quiet working. Being aware of how our model is somewhat revolutionary in an industry flattened by business logic, we persist with our quiet act of rebellion.

In a world of fashion noise, we choose the quiet revolution of mindful curation and quality over quantity.

We invite you to join us on this journey!

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