Tag Archives: Sports & Outdoor Footwear (TRBC level 5)

Factbox-Foreign fashion retailer in China | Instant News


(Reuters) – Fashion brands, including H&M, Nike and Adidas, have come under fire on Chinese social media for previous statements they made expressing concern over labor conditions in Xinjiang province.

FILE PHOTO: Workers install a lamp bearing the Nike logo outside the Wukesong Arena in Beijing, China August 28, 2019. REUTERS / Tingshu Wang

Internet users in China are also targeting the Better Cotton Initiative (BCI), a group promoting sustainable cotton production which said in October it was suspending its approval of cotton sourced from Xinjiang for the 2020-2021 season, citing human rights concerns.

BCI members include Nike, Adidas, H&M, and Fast Retailing Japan.

Here’s a breakdown of some of the businesses of foreign fashion companies in China:

Inditex

The Spanish firm’s annual report says it has 337 stores in mainland China – 141 of its flagship brand Zara, which opened its largest store in Asia in Beijing’s Wangfujing neighborhood last October. The company does not report sales by country.

This was sourced from 477 suppliers who run 2,318 factories in China, its website says.

The company has said that 100% of its cotton will be organic, recycled and supplied through BCI by 2025.

H&M

The Swedish Group has 505 stores in China.

China is H&M’s fourth largest market with sales of 9.75 billion Swedish crowns in the 12 months to November 2020.

China and Bangladesh are H&M’s biggest production markets for clothing, says the H&M website. The retailer owns or has contractual relationships with more than 1,300 factories in the country, according to data on its website.

H&M said its cotton would no longer be sourced from Xinjiang after BCI cut ties to the region in October 2020.

Nike

Nike said in its earnings statement that Greater China reported revenue growth of 51% to a total of $ 2.28 billion in the quarter to the end of February.

A statement on Nike’s website said that it did not source cotton from Xinjiang but that “traceability at the raw material level is an area of ​​continuing focus”.

Adidas

The German company said in its 2020 annual report that its 2020 net sales in China, excluding the Reebok brand, were 4.3 billion euros, out of a total of 18.4 billion.

The annual report says 15% of Adidas footwear, 20% apparel and 36% of accessories and fixtures such as balls and bags are manufactured in China.

In its 2020 social impact report, the company said it had asked its suppliers to stop sourcing cotton yarn from Xinjiang, and supported BCI’s decision to cut ties with the region and said the group was its “main source”. cotton.

Fast Retail

Fast Retailing has about 800 Uniqlo stores in mainland China, roughly the same number as in its home market, Japan. It cites huge gains in mainland China in the fourth quarter of 2020.

The company reported revenues of 455.9 billion yen ($ 4.1 billion) in China, Hong Kong and Taiwan in the financial year ended August 31, 2020, 22% of total revenue.

More than half of its fabric factories and sewing plants are located in China, says the Fast Retailing website.

Fast Retailing said no Uniqlo products were produced in the Xinjiang region and no production partners were subcontracted to fabric or spinning mills in the region.

Muji

Muji Japan, which is owned by Ryohin Keikaku Co., operates 275 stores in mainland China, out of 975 worldwide.

The retailer was quoted as telling China The Global Times that they used Xinjiang cotton, earning praise from Chinese internet users, who praised the company’s “survival instinct”.

In a statement to Reuters, Ryohin Keikaku said it was concerned about reports of forced labor and discrimination in the region.

It said it had recently conducted due diligence for the Xinjiang plant, which has an indirect link through its supply chain, and also assigned an independent audit group to conduct an on-site audit.

“The results confirm that at this point, no significant problems have been identified except for problems which can be fixed by the farm or the spinning mill taking action on its own to make immediate repairs,” he said.

Reporting by Victoria Waldersee. Edited by Jane Merriman

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GBL purchased Germany’s Canyon Bicyles due to increased pandemic demand | Instant News


FRANKFURT (Reuters) – Belgian investor Groupe Bruxelles Lambert (GBL) has agreed to buy Germany’s Canyon Bicycles on the bet that the company’s strong growth will continue after the COVID-19 pandemic subsides.

GBL, which is also adidas’ largest shareholder, declined to comment on pricing, but two people with knowledge of the matter said the deal valued the maker of premium conventional and electric bikes at around 800 million euros ($ 972 million), including debt.

Canyon sales have grown at an average rate of 25% annually over the past seven years, and now exceed 400 million euros, GBL said in a statement.

Germany saw a sharp increase in bicycle sales this year as COVID-19 prompted people to use them more often for exercise and avoiding public transportation.

The company, founded in 1985 as a bicycle retailer, started producing Canyon-branded bikes in 1996 and TSG bought a minority stake in 2016, allowing the expansion of Canyon to the United States.

As part of the transaction, the minority investor TSG Consumer Partners will exit its ownership. The founder of the company, Roman Arnold, will remain chairman and reinvest most of his earnings with GBL.

Former Apple manager Tony Fadell also took part.

Reuters reported in October that Arnold had put a stake in the company up for sale.

($ 1 = 0.8233 euros)

Reporting by Arno Schuetze and Alexander Hubner; Edited by Jan Harvey

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Doesn’t fit into the new era? The fate of formal fashion hangs by a thread | Instant News


MILAN / SYDNEY / LONDON (Reuters) – Italian luxury designer Brunello Cucinelli makes men’s suits that sell for up to 7,000 euros ($ 8,200). But even he – like most people around the world – hasn’t worn a suit for months, let alone bought one.

Cravats and bow ties are displayed for sale at Dege & Skinner tailors on Savile Row, amidst the coronavirus disease (COVID-19) outbreak, in London, England October 7, 2020. REUTERS / Hannah McKay

“We are all locked up at home, so this is the first jacket I have worn since March,” Cucinelli told Reuters in Milan as he presented his new collection in September, wearing a light gray blazer.

Most people in “white collar” jobs work from home, with a newfound love for sweatpants, a trend some experts hope to outlast the pandemic. And few, if any, weddings or parties are taking place.

This seismic shift in behavior has had a profound impact across the supply chain for suits and formal wear, boosting a fashion sector that spans every continent.

In Australia, the world’s largest producer of merino wool, prices plummeted, reaching their lowest point in a decade. Many sheep breeders are in trouble, keeping wool in every pen that is available in hopes of recovering it.

In northern Italy, wool mills that buy from farmers and weave cloth for high-end suits have seen their own orders from retailers take a dip.

In the United States and Europe, several retail chains specializing in business apparel such as Men’s Wearhouse, Brooks Brothers, and TM Lewin have closed stores or filed for bankruptcy over the past few months, and many more could follow.

Players at all levels have told Reuters they are being forced to adapt to survive, from farmers turning to other forms of agriculture to factories making more elastic fabrics to new types of clothing that wrinkle less and are more resistant to stains.

“People want to be more comfortable and less inclined to wear formal suits,” said Silvio Botto Poala, managing director of Lanificio Botto Giuseppe, a wool factory at the textile center Biella Italia that counts Armani, Max Mara, Ralph Lauren and Hermes among its customers.

“With Zoom conferences and smart work, you will see men wearing shirts, maybe even ties, but not many suits.”

MERINO FARMERS UNDERWAY

The price of fine wool in Australia has more than halved during a turbulent 18-month period, as the usual healthy purchases of merino wool from Italian factories have almost stalled.

The benchmark price for merino wool fell to A $ 8.58 ($ 6.1) per kg in early September, auction results show, down from A $ 20.16 in early 2019. Since then, some have recovered to over A $ 10 .

Andrew Blanch, managing director of New England Wool in New South Wales, which sucks wool from farms for Italian textile makers, said many buyers now have excess supplies.

“They all have wool that needs to be thrown away before they even get back on the market here,” said Blanch, speaking by phone from a wool auction in Sydney’s western suburbs.

“If the shop doesn’t open, everyone just retreats. Many orders we buy from wool have recently been canceled by their clients in the US and throughout Europe. “

He said China, which along with Italy buys most of Australia’s annual wool exports for more than A $ 3 billion, is now “the only exhibition in town” although Chinese buyers are also getting less wool.

Many merino sheep breeders store their wool in sheds or storage facilities; although some people who are still emerging from a three-year drought sell their balances to weak markets in order to survive financially.

“Not everyone is big enough to hold their wool clips and wait for the prices to change,” said Dave Young, a farmer near the town of Yass in New South Wales. “We are in a position where we have to fill the market in a relatively short time after the price reduction.”

Young, who has about 4,500 sheep on his property, said he had refocused some operations to provide lamb.

WOL WEAVER GLOOM

The food chain is surging into northern Italy, and Botto Poala estimates his factory sales are down 25% from 63 million euros last year and they will take 2-3 years to recover.

However the business is isolated to some degree because most of it makes women’s clothing fabrics; others are more pessimistic.

“For some businesses, we are talking about a 50% -80% drop in sales,” said Ettore Piacenza, general manager of the Fratelli Piacenza wool factory, a centuries-old family business with an annual turnover of 52 million euros. He also heads the wool mill department of a local business association.

Botto Poala says more than 50% of his mill’s turnover now comes from wool which has been made more elastic by tilling it or adding lycra to it.

This is because whatever demand remains for a suit, it is more likely for fabrics that are more stain resistant and less wrinkled, while such fabrics can also be used for casual wear, the wool mill said.

Italian luxury label Etro, for example, recently launched a “24 hour jacket” made of jersey and combining wool and cotton.

‘MY CLIENT IS AT PJs’

The gradual movement towards casual clothing has been taking place over the years. In 2019, even Goldman Sachs – a bastion of custom-made suits – relaxed the dress code for its staff. Not to mention the rise of Silicon Valley’s hipsters.

But COVID has stepped up that change – increasing sales of comfortable and sportswear at the expense of business wear.

In the second quarter of this year, when much of the world was locked in, Nike became the hottest brand according to Lyst, a global fashion search platform that analyzes the behavior of more than nine million online shoppers every month.

This is the first time since the Lyst Index began that a luxury fashion brand has not occupied the top position.

Gap’s Athleta unit, which sells tights, jogging pants, sweaters and tracksuits, was the best performing fashion line in the three months to August 1. Sales were up 6%, compared to a 52% drop at Banana Republic, which is known for its more stylish outfits.

Clothing was ranked among the items with the highest discounts and lowest sales in France, Italy and Germany in September, according to data compiled by StyleSage, which combs prices on websites.

Cheaper labels for mid-market including Asos, Topman, Guess and Hugo Boss had the sharpest price drops, up to 50%.

Falling demand for office clothing led to a multistory of US retailers, also including Jos. A. Bank and J. Crew, filed for bankruptcy during the summer and more retailers face an uncertain future.

Retail consultancy Coresight Research estimates that 20,000 to 25,000 US stores could close by the end of the year, compared with around 9,800 in 2019.

“I admit I haven’t bought office clothes this year. “I can tell you the fact that walking around the City, there are very few lawsuits on display,” said James Whitaker, a partner at the law firm Mayer Brown in London.

Indeed business has been “very slow” even since the late closure of the company for Jasper Littman, a tailor trained on Savile Row, a famous London street for tailoring for men.

Littman said his clients, mostly lawyers and bankers, “sit at home in pajamas”.

She usually makes about 200 outfits a year, but has only made 63 so far in 2020.

Customers are reluctant to take the risk of taking the train to pick up even a suit that has been made with the deposit paid.

“There’s no point in them doing that, because they’ll be getting a coat they can’t wear.”

Reporting by Silvia Aloisi in Milan, Jonathan Barrett in Sydney and Martinne Geller in London; Additional reporting by Jill Gralow, Carolyn Cohn and Aleksandra Michalska; Edited by Pravin Char

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