Textiles, Fashion, Sports and Footwear

Fashion Industry Overview & Sustainability (FREE)

Short summary of fashion industry including history, trends, drivers and sustainability

History of Textile Clothing

  • 9.000 BC – Textile clothes are made from wool in Mesopotamia (current Turkey, Iran and Irak).
  • 5.000 BC – Clothes are made from cotton in India, Pakistan, Latin America
  • 3.000 BC – Clothes are made from Flax in Egypt
  • 3.000 BC – Clothes are made from Silk in China

Nylon

  • Invented in 1932 by Dupont de Neymours
  • Nylon is a fossil-based synthetic fibres
  • Cheap alternative to natural fibres
  • Will lead to Polyester and Acrylic
  • 2015 = 48 Mn Ton of polyester produced
  • 2015 = 26 Mn Ton of cotton produced
  • Advantages of Polyester compared to cotton:
    • cheaper
    • easier to process
    • colours remain longer

Fashion Capitals

Traditional fashion capitals

  • Paris
  • Milan
  • New York
  • London

Newcomers

  • Shanghai
  • Lagos

Fashion Industry Global Turnover

  • $ 1000 Bn in 2002
  • $ 2500 Bn in 2015
  • Expected turnover in 2025 = $ 5000 Bn

Clothes Consumption per Year per Capita

  • UK = 26.7 kg / capita (equivalent of 16 jeans and 40 T-Shirts)
  • US / Canada / Germany = 16 Kg / capita
  • Italy = 14.5 Kg / capita
  • France = 9 Kg / capita
  • China = 5 Kg / capita –> expected: 10-16 Kg/ capita in 2030
  • World Average = 5Kg / capita

China in Fashion Industry

  • China is currently the biggest fashion market in the world
  • China represents 38 % of the annual Growth of the fashion industry
  • China consumes 35 % of luxury goods

Fashion Industry Profit

Most profit of the fashion industry was made by 20 companies

  • Nike (US)
  • Inditex (Spain)
  • LVMH (France)
  • TJX (US)
  • Kering (FR)
  • Hermes (FR)
  • Fast Retailing (Japan)

Wealth Forbes Ranking in 2020

  • Bernard Arnault (LVMH) – 3rd place with $ 76 Bn
  • Armancio Ortega (Inditex) – 6th place with $ 55 Bn
  • Phil knight (Nike) – 25th place with $ 30 Bn

Profit Drivers of Fashion Industry

  • Economy of Scale (industrialisation)
  • Technical development (machines)
  • Technological development (Materials)
  • Delocalisation

Delocalisation

Reason for delocalisation: cheap work force & no social protection

  • Biggest losers of delocalisation in second half of 20th century: UK and France
  • Biggest winner of delocalisation in second half of 20th century: China
  • China used to produce 2/3 of all clothes in the 1980s
  • China average monthly wage in 2000 = $ 72
  • China average monthly wage in 2019 = $ 326

China becomes too expensive, Fashion production delocalises to other countries. Average monthly wage in 2019 …

  • Bangladesh = $ 95
  • Laos = $ 128
  • Pakistan = $ 152
  • Vietnam = $ 180
  • Cambodia = $ 182
  • Malaysia = $ 267
  • Indonesia = $ 280
  • Thailand = $ 309

Latest trends, delocalise to following countries (2019)

  • Ethiopia = $ 26
  • Lesotho = $ 146
  • South Africa = $ 244
  • Kenya = $ 267

Reason for delocalisation: low environmental regulation

Fashion is important Source of Pollution

  • Industrial production of textile creates 1.7 Bn ton CO2 / year = the same quantity as aviation and maritime transport together
  • Sourcing of feedstock (Agriculture, cattle (leather) and transport) creates 2.1 Bn ton CO2 / year
  • To reach 1.5 ° t° increase by the year 2100, the fashion industry will need to reduce its GHG by 50%
  • Sweet water consumption of textile industry= 4 %
  • The production of 1 jeans requires 7500 litres of water
  • 20 % of all industrial water pollution
  • Ocean Microplastics: the washing of synthetic textiles produces 35 % of all microplastics in the oceans

Refs

Arte – Les dessous de Cartes – Le Textile

Personal Remarks

The China average wage grew from $72 in 2000 to $ 326 in 2019. This represents an increase of 450 %

Chinese politicians seems to be more efficient than US or EU politicians when it comes to increasing the purchasing power of their populations.

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