Shein looks to Mexico for manufacturing

Image: Shein Ireland via Shein Group Shein, the Chinese ultra-fast fashion giant, has made a strategic move to commence garment production in Mexico. This decision comes as Shein aims to diversify and localise its manufacturing capabilities and strengthen its foothold in key markets such as Latin America and the United States. The company, headquartered in Singapore, recently announced plans to allocate 70 million dollars over the next five years to empower its ecosystem of third-party manufacturing suppliers. In addition to Mexico, Shein has also set its sights on Brazil as a manufacturing and export hub for the Latin American region. This localisation strategy has proven to be one of Shein's most successful approaches to date, allowing the company to tailor its factories and production facilities based on the specific needs of local markets. Moreover, this move serves as a deliberate effort by Shein to reduce its political dependence on China and avoid any potential issues with the United States, a key market for the company. Recent concerns were raised when a U.S. federal commission reported that Shein sourced cotton from China's Xinjiang region, which has been banned in the U.S. due to its association with Uyghur forced labour. To address such challenges and maintain its growth trajectory, Shein plans to fund its expansion into Mexico and Brazil using the two billion dollars in capital it raised from investors. Despite a valuation cut to 66 billion dollars in its latest funding round, Shein continues to achieve impressive annual revenue growth of 40 percent, as reported by Reuters. Localising production Shein's ambitious plans for Brazil involve an expectation that 85 percent of its sales will be driven by local manufacturers and vendors by the end of 2026. While the company has not yet commented on its specific strategy for Mexico, Marcelo Claure, Chairman of Shein in Latin America, emphasised the significance of leveraging global scale and operational excellence to support local economies and ecosystems. In a statement made in April, Claure highlighted the opportunity to further localise the supply chain to benefit consumers, small businesses, and the broader economy. Shein's move into Mexico and Brazil represents a calculated step towards solidifying its digital presence and expanding its marketplaces in the fast-paced world of fast fashion.
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American Eagle Outfitters lowers FY outlook

Image: American Eagle Outfitters American Eagle Outfitters (AEO) has lowered its full-year guidance after reporting a small increase in revenue and narrowing profits in the first quarter. In the three months to April 29, revenue at the US fashion retailer increased 2 percent to 1.1 billion billion dollars, with store revenue up 5 percent but digital revenue down 4 percent. Breaking it down by brand, revenue at its namesake label dropped 2 percent to 671 million dollars, while revenue at Aerie rose 12 percent to 359 million dollars. Total net income narrowed to 18.45 million dollars from 31.74 million dollars a year earlier. “We entered 2023 with a cautious plan, balancing continued optimism for our brands with the flexibility to navigate uncertainty in the macro environment,” CEO and chair Jay Schottenstein told investors. He said he was “pleased to note that this strategy delivered for us, as we successfully managed through the first quarter and achieved results in-line with plan”. Full-year guidance AEO lowered its full-year outlook based on its first quarter results. The company now expects revenue in the range of flat to down low-single digits, compared to its previous guidance of flat to up low-single digits. Meanwhile, it expects operating income in the range of 250 million dollars to 270 million dollars, down from its previous estimate of between 270 million dollars and 310 million dollars. Schottenstein said: “With ongoing macro challenges, we are maintaining a clear focus on inventory discipline, cost savings and efficiencies across the business. “Looking forward, our priority is to rebuild operating margins, while also seeking opportunities for profitable growth and to deliver more consistent shareholder returns.”
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Lenzing announces strategic partnership with Karl Mayer Group

Image: Lenzing fibre Lenzing Group, a leading global producer of wood-based speciality fibres, is teaming up with Karl Mayer Group, who manufacture textile machinery to facilitate the adoption of more botanic, biodegradable and fossil-fuel-free materials during textile production in both warp knitting and flat knitting machines. In a statement, Lenzing said that the strategic partnership would empower sustainable and aesthetic innovations in flat and warp knits as it strives to increase the adoption of fossil-fuel-free materials to achieve “a greener textile value chain”. The partnership will enable the adoption of Lenzing-produced Tencel Lyocell fibres and Tencel Lyocell filament yarn in warp knitting machines and further reduce the environmental impact of using Stoll flat knitting machines with the use of carbon-zero Tencel fibres in its fully fashioned flat knitting process. Florian Heubrandner, vice president of global textiles business at Lenzing, said: “Lenzing continues to join hands with like-minded partners to pioneer solutions that improve the quality of textile products and enable the ongoing sustainable development and growth of the industry. “Through this partnership with the Karl Mayer Group, we will inspire the textile value chain to take proactive steps towards achieving their climate goals with easier adoption of botanic and biodegradable materials, meeting the needs of brands and consumers who are looking for eco-conscious products.” Image: Karl Mayer Group Arno Gärtner, chief executive of Karl Mayer Group, added: “The Karl Mayer Group is a leading manufacturer of textile machinery and always has its finger on the pulse of its markets. In addition to productivity, sustainability has become a key success factor for our customers. We work with pioneers throughout the textile value chain to provide them with solutions that have a low environmental impact. “Yarn is particularly important in this respect. Recycled man-made fibres can be used with high efficiency on our machines. We want to expand the range of materials that can be processed to include petroleum-free yarn variants through our cooperation with Lenzing. In addition to more sustainability, this will also open up the potential for new product developments.”
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Haus Labs by Lady Gaga to launch exclusively at Sephora UK

Image: Haus Labs by Lady Gaga Beauty The make-up brand Haus Labs by Lady Gaga is to debut in the UK, exclusively at Sephora UK, next month. Lady Gaga’s brand, which is already sold exclusively at Sephora in the US and Canada, will be available from the beauty emporium’s new UK store at Westfield White City and online at Sepora.co.uk from June 6. The viral and award-winning Haus Labs beauty brand offers products in nine key categories across colour and complexion, and the UK line-up will include all 51 shades of Triclone Skintech Foundation, which has become a viral hit on TikTok with more than nine billion views. Image: Haus Labs by Lady Gaga “I’m extremely excited to announce that we are bringing brand-new, supercharged, clean artistry make-up to the UK, through a place that has inspired me for years, Sephora,” said Lady Gaga in a statement. “At Haus Labs, artistry is for everyone, and no one should have to damage their skin or sacrifice their principles and values to be self-expressive with high-performance make-up.” Sylvie Moreau, president of Sephora Europe and the Middle East, added: “We are very excited to launch Haus Labs by Lady Gaga exclusively in the UK market. At Sephora, we are constantly looking for innovative brands to bring to our customers. We are confident they will be thrilled to discover the creative and inspiring world of Haus Labs and thrilled to experience the brand’s game-changing formulas.” The make-up brand will be available from Sephora from June 6. The retailer will also be hosting an evening with Haus Labs global artistry director Sarah Tanno, who will be conducting a pro make-up tutorial at Sephora Westfield. Image: Haus Labs by Lady Gaga Image: Haus Labs by Lady Gaga
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Zara names Stripe as payments partner for resale platform

Image: Zara; Zara Pre-Owned Stripe, a financial infrastructure platform for businesses, has been selected as Zara’s payments partner to process all payments for the retailer’s pre-owned clothing marketplace, Zara Pre-Owned. In a statement, Zara said it will use Stripe Connect to move funds between buyers and sellers of pre-owned Zara products. The multi-payment infrastructure tool will enable the retailer to embed Stripe’s global payments platform directly into the Zara Pre-Owned marketplace, offloading all payments-related requirements onto Stripe, while keeping the customer experience fully Zara branded. The Spanish retailer launched Zara Pre-Owned in the UK last year, allowing customers to resell their Zara items through a peer-to-peer process. Sellers take pictures of their unwanted Zara products, which are then cross-referenced with Zara’s product portfolio, giving potential buyers detailed information on the items they wish to purchase. The platform also offers Zara customers the option to donate their clothes or request a repair. The Zara resale platform is expected to expand across other European markets in the second half of 2023.
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Shein secures two billion dollar raise, cuts valuation by third

Image: Shein Fast fashion giant Shein has reportedly raised two billion dollars in its latest round of funding, placing its valuation at 66 billion dollars. The new figure, reported by The Wall Street Journal, is a third off the 100 billion dollars that Shein was initially valued at last year, and comes despite the retailer raking in around 23 billion dollars in revenue in 2022. The raise is seemingly unfettered by the continued scrutiny the Chinese company has been placed under, both for its lacklustre environmental practices and its heavily reported workers rights allegations. In a bid to improve its identity on an international scale, the firm has been setting up shop outside of China, most recently opening a headquarters in Dublin where the core of its EMEA operations will be. The news also runs alongside reports that Shein has set its sights on re-entering India, a market it had been banned from over two years ago. Through a strategic partnership with Reliance Retail, Shein will now have access to the Indian firm’s sourcing capabilities and logistics infrastructure, according to media reports, along with the group’s network of online and offline stores. The company has also faced a challenge from the rapid growth of competitor Temu, which has sprung up in recent months and offers a similarly affordable alternative to Shein, despite also being a firm originating from China.
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Percival bolsters board to lead brand strategy and business growth

Image: Percival/VGC Partners; Cheryl Calegari, non-executive chair and Dan Rookwood, board director British menswear brand Percival, looking to double sales figures and expand international growth, has appointed Cheryl Calegari as non-executive chair and Dan Rookwood as a board director to bolster its investment group VGC Partners board. In a statement, Percival said that the Calegari and Rookwood bring a wealth of experience and will be instrumental in leading brand strategy and business growth alongside the menswear brand’s senior management team, led by chief executive Christopher Gove. The move is part of Percival’s brand ambition to become synonymous with menswear globally, offering a direct-to-consumer platform that “delivers accessible uniqueness to every man’s wardrobe”. During 2023, the brand has set ambitious goals to double sales figures by focusing on expanding product categories and international growth. Commenting on the appointments, Gove said: “We are delighted to have Cheryl Calegari and Dan Rookwood supporting us on our growth journey, their wealth of brand and industry knowledge working with market-leading retail businesses is a huge asset to our team. “They are both great additions to our board and will help us drive and deliver our forecasted business performance for 2023 and beyond.” VGC Partners appoints two new board members to grow menswear brand Percival Calegari is currently an independent consultant and advisor, supporting brands and striving to make a positive impact on their business, people, culture and customers, and has most recently been advising high-growth brands Therabody and luxury sneaker retailer Kick Game with a focus on marketing strategy and business development. Her previous roles include being vice president of marketing for Beats By Dre and senior director of global brand marketing at Converse. “Percival is a brand that truly disrupts the norm with a considered design aesthetic, collaborations and product innovation and Percival’s ambitious growth journey,” said Calegari. “Throughout my career, I have helped lead transformational brand building, iconic creative, cultural connectivity and business results and look forward to championing this next chapter.” While Percival adds that Rookwood brings “an abundance of fashion and brand industry knowledge,” and has been working with Percival’s investment group VGC Partners since June 2022 as head of brand supporting VGC’s portfolio to elevate all aspects of their brand and marketing strategies. His previous experience includes leading Nike’s editorial team globally, as well as being the US editor at Mr Porter and style director of Men’s Health. On his new role, Rookwood added: “I’ve been a brand fan of Percival’s since the very beginning, and I made the initial introduction to VGC years ago. I’ve enjoyed seeing the brand’s success, especially since VGC invested, but now to have the opportunity to be a part of that success as a director is a privilege and a pleasure. With my background in menswear and brand building, I’m excited about what I can bring to the table to help Percival fulfil its potential.”
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Not so carbon neutral: Gucci adjusts sustainability goals

Image: Gucci Salon, Los Angeles Gucci is under scrutiny for reportedly adjusting its approach to reduce its environmental impact, raising questions about the future of sustainable fashion. The report has drawn attention to Gucci's ambitious decadelong plan to reduce its environmental footprint, according to the Business of Fashion. Gucci was very vocal about its carbon neutral claims in September 2019. At the time the company stated that it had offset its greenhouse gas emissions from its operations and supply chain for the previous year. Gucci achieved this through supporting three UN-backed REDD+ projects in Peru, Cambodia, and Kenya. To achieve carbon neutrality, Gucci pledged to become carbon neutral across its entire supply chain by 2020. Additionally, the brand set targets to reduce its greenhouse gas emissions, water use, and waste production by 50 percent by 2025. This commitment to sustainability reflected Gucci's broader strategy to minimise its environmental impact. While some praised this move as a positive step towards sustainable fashion, others remained skeptical of carbon offsetting as an effective solution to combat climate change. Critics argue that offsetting fails to address the underlying causes of emissions and may perpetuate greenwashing practices. Need for transparency Gucci's decision to adjust its carbon neutral claim can be interpreted as a response to these criticisms, reflecting a desire for greater transparency. The brand stated that it is reevaluating its approach to offsetting and exploring alternative strategies to reduce its environmental impact. Parent company Kering has not made any statements or updates to its sustainability claims or initiatives across its Group. The issue of fashion companies making false carbon neutral claims is a growing concern within the industry. While some brands genuinely strive to reduce their environmental impact, there have been instances where companies have engaged in greenwashing, misleading consumers about their sustainability efforts. It is crucial for consumers to be discerning and hold brands accountable for their claims. Scrutinising the transparency and credibility of a brand's sustainability initiatives, such as verifying their carbon offsetting practices and certifications, can help in identifying companies that are genuinely committed to reducing their environmental footprint. Gucci, one of luxury fashion's most powerful and profitable businesses, can be no exception. This article has been adjusted after publication to provide our readers with the most transparent and factual news possible.
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2nd Denim Innovation Night to Showcase Country’s Capability in Innovation

Dhaka - 2nd Denim Innovation Night presented by Pacific Jeans held yesterday Tuesday during the 14th Bangladesh Denim Expo to showcase the innovation in the country’s denim industry. The show displayed the very latest in sustainably produced and innovative denim products from Pacific Jeans to apparel brands and retailers, embassy representatives, development partners and to the representatives of the industry supply chain. About 500 invited guests got the opportunity to witness first-hand the denim research, design and production innovation provided by the Bangladeshi denim Group highlighting the breadth and depth of denim innovation available in the country – from fibre, through to fabrics, design, manufacture and finishing – a true 'top-to-toe' representation of the very best of Bangladesh's capabilities in the denim field. Pacific Jeans Limited is the pioneer in manufacturing premium jeans in Bangladesh, exporting to over 50 countries. With a continuous focus on quality improvement and value addition, adoption of updated denim processing technology, commitment towards safe and sustainable industry, the group has become one of the preferred suppliers to leading global fashion retailers. The program was inaugurated by Commerce Minister Tipu Munshi, MP; while the Head of the Delegation of the European Union in Bangladesh H.E. Charles Whiteley was the Guest of Honor; President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan and Country Representative of the Japan External Trade Organization (JETRO) in Bangladesh Yuji Ando were special guests at the program. The 1st Denim Innovation Night was presented by Pacific Jeans during the 7th edition of Bangladesh Denim Expo in November 2017. The central theme of this 14th edition of Bangladesh Denim Expo is ‘Innovator’.
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