(1) Foreword
In 2019, many clothing brands declared bankruptcy or closed their entities Stores, including Forever21, went bankrupt and closed 178 U.S. branches, and planned to end most of its international business in Asia and Europe; Avenue, a large-size women’s clothing chain in New Jersey, announced that it would close 222 physical stores in the United States; and Dressbarn, an affordable women’s clothing chain, suffered from poor sales. Jia will close nearly 650 stores. In addition, apparel brands such as American Apparel, Payless and Gymboree have closed thousands of physical stores and entered into restructuring to reduce costs.
The “fast fashion” trend in which consumers pursue novel clothing at low prices in a short period of time has brought high profits and popularity to Forever21. However, the company applied for After the bankruptcy, the textile and apparel industry began to discuss the reasons behind it. Some people believe that the rise of e-commerce has led to changes in consumption habits. For example, according to Entrepreneur, 51% of Americans prefer to shop online, and the figure among Millennials is as high as 67%. In addition, “fast fashion” has long been criticized by the world for lowering costs and mass-manufacturing garments, exploiting labor and causing environmental damage. The collapse of a garment factory in Bangladesh in 2013, killing thousands of workers, prompted most major U.S. apparel manufacturers to join safety oversight groups and require supply chains to have safety standards.
According to data from McKinsey & Company, global consumers’ average annual spending on clothing increased by 60% from 2000 to 2014. The Ellen MacArthur Foundation, a British non-profit organization dedicated to reducing waste, said that the number of times clothing was worn before being discarded dropped by 36% from 2002 to 2016. According to data from the US Environmental Protection Agency, the weight of textiles in US landfills increased by 67.7% from 2000 to 2015.
“Sustainable fashion” has become increasingly popular among the younger generation in recent years, and young people are more concerned about the environmental protection effect of the clothes they buy. A 2019 report by McKinsey & Company and Business of Fashion shows that Generation Z, who will have 40% of their consumption potential by 2020, believes that companies must assume social and environmental responsibilities. Therefore, the consumption trends of the new generation will affect the development of the apparel industry, including the second-hand apparel market. Rise, recycle and remake old clothes, and integrate technology to understand market supply and demand, and conduct production and manufacturing in a more efficient manner.
(2) Second-hand clothing
As environmental awareness gradually rises Nowadays, more and more American consumers are buying second-hand clothes. According to data from GlobalData retail analysis company, the U.S. second-hand clothes market will reach US$64 billion by 2028. Distributor J.C. Penney said in August that it would set up special areas of 500-1,000 square feet in its 30 physical stores to provide thredUp, the world’s largest second-hand consignment website, to sell second-hand brand-name women’s clothing and handbags. J.C. Penney is gradually expanding its used goods business as consumers look for bargains and make environmental sustainability part of their shopping habits.
ThredUp, a second-hand consignment website, said that 35,000 second-hand products including Gap, Gucci and other brands are resold on the website, and the discounts can be as high as 90% of the original selling price. . In addition, the US second-hand market has grown 21 times faster than the overall retail apparel market in the past three years. Macy’s has a similar partnership with thredUp. H&M and Zara place recycling bins in their stores to collect used clothes, which are sorted and resold, sent to emerging markets, or remade into other products.
(3) Old clothes remade
Unlike other plastics In the finished goods industry, apparel manufacturers face little regulatory pressure on the waste generated by their products. France is the only country that requires textile manufacturers to be responsible for product recycling and disposal, and the UK is developing a similar law. Most recycled clothing is remade into low-priced products such as rags or insulation materials, but ends up in landfills. Currently, most of the clothing made from recycled materials on the market uses recycled PET bottles instead of old textiles. According to the Ellen MacArthur Foundation, less than 1% of the fiber used to make new clothing comes from recycled clothing. Part of the challenge of recycling old clothes into new ones is that most clothes are made from blended materials such as cotton or polyester that are difficult to separate.
Brand clothing industry said that due to the shrinkage of raw materials and consumers’ concern about environmental impact, they are investing in the development of technology for remaking old clothes into new clothes. H&M said that with climate change and increasing pressure on land use, it is necessary to develop recycled materials. The H&M Foundation, a non-profit organization sponsored by the founding family of H&M, is researching ways to use existing fibers to make clothes. The foundation has recently cooperated with local R&D institutions in Hong Kong to set up a textile recycling pilot plant, which uses chemical and hot water technology to recycle a mixture of recycled cotton and polyester into new yarn. It is still in the development stage.
Endless recycling is an attempt to establish a model for plastic recycling and reuse. Its supporters say that remaking old clothes into new clothes will reduce greenhouse gas emissions. , reducing the amount of oil used in the manufacture of synthetic fibers, the fertilizers and water needed to grow cotton, and the chemicals used in production and dyeing. Inditex funds textile recycling research at MIT and plans to invest US$3.5 million in closed loop technology in 2020 and cooperate with Lenzing, an Austrian cellulose fiber manufacturer, to remake new fibers from cotton waste. Clothing must be sorted before it can be recycled and remadeIn this category, European companies have developed the Fibersort system, which can identify fiber materials and automatically separate large quantities of clothing.
(4) Combination of apparel industry and new technology
In pursuit of For high-efficiency production, the seemingly traditional apparel industry is gradually using new technologies, such as big data analysis, artificial intelligence and automated manufacturing, to accurately predict consumer preferences and achieve lean production. In recent years, Nike has actively acquired new companies and expanded various marketing strategies. In 2016, it acquired VirginMEGA, a digital design studio in New York invested by the Virgin Group, to help build its business platform SNKRS application; in 2018, it acquired Zodiac, a consumer data analysis company. Accelerate its digital transformation; in April this year, it merged with Israeli computer vision company Invertex to launch NikeeFit, a new 3D scanning function that can accurately predict customer shoe sizes. In addition, Nike acquired Celect, an artificial intelligence platform and predictive analysis company based in Boston, and plans to integrate Celect technology into Nike’s mobile applications and websites. It hopes that Celect technology will reduce the out-of-stock rate and effectively control the demand and inventory of sports shoes and apparel. Reduce cost pressure.
Nike has also launched “Nike Adventure Club” to enter the children’s sports shoe subscription service market. According to the membership level, more than 100 new styles of Nike and Converse sports shoes can be selected. Nike said that if the old sneakers returned by members are in good condition, they will be donated to families in need or recycled through the NikeoGrind project, which separates the rubber, foam, leather and textile mixture of the old shoes and then grinds them into particles for use. For footwear, apparel and other products.
Puma plans to launch PumaFi self-tying smart sports shoes in 2020, which are comparable to NikeAdaptBB self-tying shoes? sports shoes. PumaFi is the first product of the PumaFitIntelligence technology platform. It can automatically fine-tune the fit of Puma smart sneakers. It connects to the Fi app on your phone via Bluetooth to control the tongue motor and slides to help tighten and loosen the hidden shoes. bring.
In addition, Ralph Lauren announced in November that it will install digital product identifiers (IDs) on its clothing products. Consumers can scan the product label QRCode with their smartphones to immediately know whether to purchase it. Go to genuine products and get detailed product information and style matching suggestions. The company also uses this new technology to understand its product supply, helping to increase orders and reduce inventory. RalphLauren is the first high-end clothing brand to launch this product.
(5) Impact and conclusion of US-China trade tariffs
According to According to data analysis by the U.S. Trade Representative’s Office (USTR) and the U.S. Census Bureau (Census Bureau), China’s exports of women’s/girls’ apparel and shoes to the United States in 2018 amounted to US$23.5 billion, accounting for approximately 42% of the total imports of U.S. women’s apparel; while men’s / Boys’ apparel and shoes reached US$10.9 billion, accounting for approximately 26% of the total imported men’s apparel.
The U.S. and China are criticizing each other and imposing additional tariffs, which has affected many clothing and footwear imported from China. U.S. importers and retailers may absorb some or all of the tariff costs themselves, but retailers say the tariff costs will eventually be passed on to consumers, who may buy less or choose lower-quality goods.
Economists from the United States International Trade Commission (USITC) stated in a 2018 report that women spend more on clothing than men. As of 2015, women’s clothing The existing average import tariffs are also higher than those for men’s clothing, at 14.9% and 12% respectively. In addition, most women’s clothing in the United States is manufactured in factories in China and Vietnam. In addition to being affected by U.S.-China tariffs, President Trump’s withdrawal from the Trans-Pacific Partnership (TPP) also requires Vietnamese-made clothing exported to the United States to still bear the cost of tariffs. . As for men’s clothing, it is usually produced in countries such as Mexico that have free trade agreements with the United States, so tariff costs are lower.
In view of Trump’s encouragement of “manufacturing reshoring,” Adidas announced in early November that it would close its “Speedfactory” (Speedfactory) in the United States and Germany and transfer technology to Vietnam. with supply factories in China. Adidas’ rapid factory in Atlanta started operating at the end of 2017 to be closer to American consumers, respond quickly to consumer demand, and use automated production to shorten delivery times. Adidas stated that it will use existing production capacity more effectively and increase the flexibility of product design. , therefore decided to move the automated production line to Asia to achieve “more flexible and economical” operational benefits.
