After searching Women's Wear Daily Online, I came across an interesting article in regards to the use of synthetic fabrics throughout the world. The article of discussion if "U.N. Seeks to Reduce Synthetic Fabric." This article may be found at http://www.wwd.com/markets-news/un-seeks-to-reduce-synthetic-fabric-2093369.
With the recent moves towards America and other countries "Go Green," the U.N. has stepped in to make a difference in the apparel industry. The U.N. is making an effort to improve the worlds supply of natural resources and has declared 2009 as "The International Year of Natural Fibers." This is due in part to protect the environment and to safeguard the communities that produce vegetal fibers like jute, flax and ramie, as well as camel hair and cashmere (U.N. Seeks to Reduce Synthetic Fibers).
The U.N. is trying to enforce regulations to make sure that all producers of natural fibers have the technology and knowledge to produce fibers of the highest quality. The Food and Agriculture Organization (FAO) will be taking part to make sure that the standards and regulations are being enforced. The FAO is working to cut the amount of pesticides used by farmers on crops, such as cotton, which not only reduces negative environmental impact, but helps farmers by minimizing dependence on expensive chemicals (U.N. Seeks to Reduce Synthetic Fibers).
The ultimate goal of this new enforcement is to raise public awareness on natural fibers and encourage cooperation among industry groups. The U.N. will be making the public aware through various events in 2009, including displays and fashion shows, as well as conferences being held at FIT in New York on cotton sustainability and at the Gaston College Textile Technology Center in Belmont, NC on applications for alpaca.
Wednesday, April 8, 2009
Wednesday, April 1, 2009
When the Rich Get Less Rich
Article of discussion titled "When the Rich Get Less Rich" by Valerie Seckler. Article can be found at http://www.wwd.com/business-news/when-the-rich-get-less-rich-2088349/print/
Since the rise of the simpler living and economic movements, the luxury consumption of consumers could shrink even when the economy straightens up and spending becomes less tight. According to a survey conducted by PricewaterhouseCoopers and Retail Forward, less-exclusive, less-expensive goods may occur in as many as half the households with annual income of $100,000 to $250,000. This is largely due to greater difficulties securing credits. This will put a strain on high-end fashion, electronics, and home remodeling. Many consumers are making changes from brands such as Prada and Vera Wang to Nordstrom and Bloomingdale's.
High-end spending has been on the decline also because of the decline in the public optimism on the economy. With unemployment at 8.1% and rising, few increases in personal income, and the upper middle class's anxiety about the recession will end is reflected in consumer saving and preserving of capital investments.
More Americans are becoming more satisfied with what they have and saving their income during this economic strain. It is also being seen as "a fundamental shift away from materialism," as quoted by John Zogby, CEO of Zogby International.
Since the rise of the simpler living and economic movements, the luxury consumption of consumers could shrink even when the economy straightens up and spending becomes less tight. According to a survey conducted by PricewaterhouseCoopers and Retail Forward, less-exclusive, less-expensive goods may occur in as many as half the households with annual income of $100,000 to $250,000. This is largely due to greater difficulties securing credits. This will put a strain on high-end fashion, electronics, and home remodeling. Many consumers are making changes from brands such as Prada and Vera Wang to Nordstrom and Bloomingdale's.
High-end spending has been on the decline also because of the decline in the public optimism on the economy. With unemployment at 8.1% and rising, few increases in personal income, and the upper middle class's anxiety about the recession will end is reflected in consumer saving and preserving of capital investments.
More Americans are becoming more satisfied with what they have and saving their income during this economic strain. It is also being seen as "a fundamental shift away from materialism," as quoted by John Zogby, CEO of Zogby International.
Wednesday, March 25, 2009
Shoppers Find Other Retailers during Bad Economic Times
Article of discussion: Ross Profits equals street view; stands by outlook
http://www.reuters.com/article/marketsNews/idINN1941333520090319?rpc=44
Ross Stores Inc. reported its profits last week and meet Wall Street's expectations and the company full-year outlook. This is due to consumers remaining desire for name brand clothing, which Ross offers at relatively attractive prices. "The company's low prices for brand name merchandise- from clothes to home goods- have attracted consumers seeking deep discounts as they grapple with job losses, tighter access to credit and weak home values.
The chances of buying top-brand items cheaply as increased with the closing of competitive department stores such as Goody's and Mervyn's. Other department stores, such as Macy's and J.C. Penny plan to lean inventories to match consumer demand. This is leaving manufacturers with excess merchandise that Ross can buy for a low price. The Chief Executive of Ross Stores, Inc. reported that the name brands have never been better due to the current economy and slow down of buying from other stores.
The company's net profit rose to $97.4 million in the quarter ending January 31. Profits for the organization are at $94.5 million and sales are steadily on the rise. This proves that consumers are still shopping...but shopping smarter and always on the search for a bargain.
http://www.reuters.com/article/marketsNews/idINN1941333520090319?rpc=44
Ross Stores Inc. reported its profits last week and meet Wall Street's expectations and the company full-year outlook. This is due to consumers remaining desire for name brand clothing, which Ross offers at relatively attractive prices. "The company's low prices for brand name merchandise- from clothes to home goods- have attracted consumers seeking deep discounts as they grapple with job losses, tighter access to credit and weak home values.
The chances of buying top-brand items cheaply as increased with the closing of competitive department stores such as Goody's and Mervyn's. Other department stores, such as Macy's and J.C. Penny plan to lean inventories to match consumer demand. This is leaving manufacturers with excess merchandise that Ross can buy for a low price. The Chief Executive of Ross Stores, Inc. reported that the name brands have never been better due to the current economy and slow down of buying from other stores.
The company's net profit rose to $97.4 million in the quarter ending January 31. Profits for the organization are at $94.5 million and sales are steadily on the rise. This proves that consumers are still shopping...but shopping smarter and always on the search for a bargain.
Wednesday, March 18, 2009
Blog # 6: Change in Consumer Spending
The article of discussion is titled: The Great Escape- Consumer Style
Found on WWD. http://www.wwd.com/business-news/the-great-escape-consumer-style-2073438
This article discusses the changes that many consumers are making in reference to the economy. Box office sales are at their highest since the holidays and fast food restaurants are being known as "simple pleasures." As the trend of luxury and moderate stores take a big hit with the economy and lack of consumer purchases, chocolate, quarter-pounders and gym memberships are increasing. Consumers are escaping to the movies and in search of comfort foods. According to executive vice president of Strategic Initiatives at BIGresearch, "Consumers of all ages and income levels are being bombarded with so much change in the economy, gas prices, etc, that they feel out of control, not in charge of their loves. They will be drawn into more of those things that they can be in charge of."
Consumers are dumping unnecessary utilities in their households, s. a cable TV and land line phones. The Internet has however remained in many households because of the ability to do job searches and stay connected to the world. The idea of "bargain shopping" has become a new trend and people are more accepting to buying items at a discount. It is becoming popular to hear people brag about how little they spent on an item they purchased, whereas in the past, people were more prone to brag of how much they paid for items.
In spite of the downward falling economy, consumers are finding alternatives to keep themselves afloat. Renting a movie, going to an afternoon movie, grabbing dinner at the nearest McDonald's, or visiting the gym are allowing consumers to stay optimistic about the outcome of the current economic crisis.
Found on WWD. http://www.wwd.com/business-news/the-great-escape-consumer-style-2073438
This article discusses the changes that many consumers are making in reference to the economy. Box office sales are at their highest since the holidays and fast food restaurants are being known as "simple pleasures." As the trend of luxury and moderate stores take a big hit with the economy and lack of consumer purchases, chocolate, quarter-pounders and gym memberships are increasing. Consumers are escaping to the movies and in search of comfort foods. According to executive vice president of Strategic Initiatives at BIGresearch, "Consumers of all ages and income levels are being bombarded with so much change in the economy, gas prices, etc, that they feel out of control, not in charge of their loves. They will be drawn into more of those things that they can be in charge of."
Consumers are dumping unnecessary utilities in their households, s. a cable TV and land line phones. The Internet has however remained in many households because of the ability to do job searches and stay connected to the world. The idea of "bargain shopping" has become a new trend and people are more accepting to buying items at a discount. It is becoming popular to hear people brag about how little they spent on an item they purchased, whereas in the past, people were more prone to brag of how much they paid for items.
In spite of the downward falling economy, consumers are finding alternatives to keep themselves afloat. Renting a movie, going to an afternoon movie, grabbing dinner at the nearest McDonald's, or visiting the gym are allowing consumers to stay optimistic about the outcome of the current economic crisis.
Tuesday, March 3, 2009
Blog 5: H&M Launches Home Textiles
Article Titled: H&M Launches Home Textiles in Bid to Offset Fashion Slowdown
H&M aims to introduce fashionable home textiles into selection stores and its new online home-textile business to make up for the slowing sales of its stores. This will include a range of pillows, towels, curtains and other textile products.
There has not been a lack of advertising for the H&M Home's launch because of the uncertainty of the retail markets. A retail analyst, Anne Critchlow, states that "When you're launching a completely new concept , which Home is, you're not sure immediately what's goin to work...This is a way of testing the range and build it up over time."
H&M is currently seeing a slowdown in the fashion business with record drops each month since August. In its biggest market, Germany, H&M generates a quarter of its revenues, the unemployment rate has risen to 7.9%. Home furnishing sales overall have fell to 5.2% from a year ago in Germany.
H&M states that it has no immediate plans to open H&M Home stores but it will be sticking to its plans of opening 225 new clothing stores this financial year.
I do not think that now is the time for H&M to launch their new division to the brand. The fact that the economy will not get any better for a period of time shows the H&M needs to potentially hold off expanding its brand with the opening of 225 stores as well. If its largest market base is experiencing high unemployment, there are few people that have disposable income right now, so, in my opinion, H&M can potentially practice money savings techniques and possible downsizing.
H&M aims to introduce fashionable home textiles into selection stores and its new online home-textile business to make up for the slowing sales of its stores. This will include a range of pillows, towels, curtains and other textile products.
There has not been a lack of advertising for the H&M Home's launch because of the uncertainty of the retail markets. A retail analyst, Anne Critchlow, states that "When you're launching a completely new concept , which Home is, you're not sure immediately what's goin to work...This is a way of testing the range and build it up over time."
H&M is currently seeing a slowdown in the fashion business with record drops each month since August. In its biggest market, Germany, H&M generates a quarter of its revenues, the unemployment rate has risen to 7.9%. Home furnishing sales overall have fell to 5.2% from a year ago in Germany.
H&M states that it has no immediate plans to open H&M Home stores but it will be sticking to its plans of opening 225 new clothing stores this financial year.
I do not think that now is the time for H&M to launch their new division to the brand. The fact that the economy will not get any better for a period of time shows the H&M needs to potentially hold off expanding its brand with the opening of 225 stores as well. If its largest market base is experiencing high unemployment, there are few people that have disposable income right now, so, in my opinion, H&M can potentially practice money savings techniques and possible downsizing.
Wednesday, February 18, 2009
Blog Four: Wal-Mart Shifts Apparel Buying to New York
Refer to the recent article published on BusinessWeek.com titled Wal-Mart Shifts Apparel Buying to New York
Last week, Wal-Mart Stores made a decision to consolidate its apparel buying operations in New York instead of the Bentonville headquarters location. This meant major changes for the two big companies that sell their merchandise to Wal-Mart stores and have a large portion of their revenues come from the retailer. Those two companies being VF and Hanesbrands. I will be focusing on VF and the impact of Wal-Mart's decision because I am employed as an intern with VF Jeanswear that sells directly to Wal-Mart. When I came to work the day after Wal-Mart had made the decision to send their apparel buying to New York, all the top merchandisers were on the edge, nervous, and frustrated. When my boss told me of the news, she simply stated "Of all my years of working in this industry, I have never seen anything like this!"
Wal-Mart' plan with the recent decision was a part of the restructuring process and, to Wal-Mart leaders, it made sense to move apparel operations to the city that is all about apparel and fashion. Why would there be an apparel operation in the middle of Arkansas anyway? According to the article, the only apparel functions that will remain in Bentonville will be the in-season planning, replenishment, pricing, and modular development. The apparel functions of design and development, marketing, buying, preseason planning, and brand merchandising will all be moved to the New York location.
This relocation and restructuring strategy left 700 to 800 Wal-Mart corporate headquarters employees jobless. I would have never expected the big power house such as Wal-mart to make such a huge layoff at it's corporate office. Through working with Wal-Mart at my current job, there were no obvious signs of any changes, but I guess this is a way of telling that you never know what to expect. For the juniors department that I work in, we had just been offered more floor space in quite a few of the high volume Wal-mart stores, which is a big deal with the current economic standing. The current changes in the apparel functions of Wal-Mart have presented a challenge for the employees of VF in being more innovative in the apparel process and merchandising more effectively since managers will now be presenting their merchandise to a much more competitive and informative audience.
Last week, Wal-Mart Stores made a decision to consolidate its apparel buying operations in New York instead of the Bentonville headquarters location. This meant major changes for the two big companies that sell their merchandise to Wal-Mart stores and have a large portion of their revenues come from the retailer. Those two companies being VF and Hanesbrands. I will be focusing on VF and the impact of Wal-Mart's decision because I am employed as an intern with VF Jeanswear that sells directly to Wal-Mart. When I came to work the day after Wal-Mart had made the decision to send their apparel buying to New York, all the top merchandisers were on the edge, nervous, and frustrated. When my boss told me of the news, she simply stated "Of all my years of working in this industry, I have never seen anything like this!"
Wal-Mart' plan with the recent decision was a part of the restructuring process and, to Wal-Mart leaders, it made sense to move apparel operations to the city that is all about apparel and fashion. Why would there be an apparel operation in the middle of Arkansas anyway? According to the article, the only apparel functions that will remain in Bentonville will be the in-season planning, replenishment, pricing, and modular development. The apparel functions of design and development, marketing, buying, preseason planning, and brand merchandising will all be moved to the New York location.
This relocation and restructuring strategy left 700 to 800 Wal-Mart corporate headquarters employees jobless. I would have never expected the big power house such as Wal-mart to make such a huge layoff at it's corporate office. Through working with Wal-Mart at my current job, there were no obvious signs of any changes, but I guess this is a way of telling that you never know what to expect. For the juniors department that I work in, we had just been offered more floor space in quite a few of the high volume Wal-mart stores, which is a big deal with the current economic standing. The current changes in the apparel functions of Wal-Mart have presented a challenge for the employees of VF in being more innovative in the apparel process and merchandising more effectively since managers will now be presenting their merchandise to a much more competitive and informative audience.
Wednesday, February 11, 2009
Blog Three: Financial issues in Italian Fashion Label
Article: Fashion's Growing Toll: Bankruptcy for Ittierre
As of Monday, February 9, 2009, the licensing and production unit of IT Holding SpA, which the parent of Gianfranco Ferre Malo, Exte, and many other Italian fashion brands, announced that it will be filing for bankruptcy protection after running out of cash. There is great fear that all the fashion brands of the organization will go down as well. IT Holding manages under license via Ittierre the Just Cavalli, VJC Versace, Versace Sport, and Galliano labels. Ittierre was placed into administration to allow the group to be restructured and continue its business operations and the divisions shares were suspended on the Milan Bourse following the announcement.
IT Holdings recent financial strands are a result of "the absence of the conditions necessary to continue operations in a regular course of business; in particular with regards to the availability of the necessary financial resources and continuity of its license agreements." The division of IT Holding that is having problems, Itteirre, is the most profitable part of the fashion group and viewed as the "jewel" of the organization's reputation. With the filing of bankruptcy for this division, there are only dark forecast as to what will happen to the remaining brands under IT Holdings. The company has basically been seen as invaluable and has large amounts of debt.
Versace has been trying to buy back VJC Versace and Versace Sport licenses on concerns over what might happen to Ittierre if IT Holding opens its capital to private equity but was unable to strike a deal. There is only hope that finances and restructuring will work out for the popular Italian fashion group. This article is clear indicator that the current economic situation is an international phenomena and not just limited to the United States. Not even high fashion is able to survive in the economic crisis.
As of Monday, February 9, 2009, the licensing and production unit of IT Holding SpA, which the parent of Gianfranco Ferre Malo, Exte, and many other Italian fashion brands, announced that it will be filing for bankruptcy protection after running out of cash. There is great fear that all the fashion brands of the organization will go down as well. IT Holding manages under license via Ittierre the Just Cavalli, VJC Versace, Versace Sport, and Galliano labels. Ittierre was placed into administration to allow the group to be restructured and continue its business operations and the divisions shares were suspended on the Milan Bourse following the announcement.
IT Holdings recent financial strands are a result of "the absence of the conditions necessary to continue operations in a regular course of business; in particular with regards to the availability of the necessary financial resources and continuity of its license agreements." The division of IT Holding that is having problems, Itteirre, is the most profitable part of the fashion group and viewed as the "jewel" of the organization's reputation. With the filing of bankruptcy for this division, there are only dark forecast as to what will happen to the remaining brands under IT Holdings. The company has basically been seen as invaluable and has large amounts of debt.
Versace has been trying to buy back VJC Versace and Versace Sport licenses on concerns over what might happen to Ittierre if IT Holding opens its capital to private equity but was unable to strike a deal. There is only hope that finances and restructuring will work out for the popular Italian fashion group. This article is clear indicator that the current economic situation is an international phenomena and not just limited to the United States. Not even high fashion is able to survive in the economic crisis.
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