Eco Fashion Trend - Research Paper Example

? RECENT TRENDS IN FASHION INDUSTRY ECO FASHION Since the 80s’ ecological concerns have been on the rise. Environmental issues have been on the mind of every global citizen for the past so many years. Manufacturers the world over are wooing the now environmentally sensitive consumers towards products that promise to be environmentally friendly. Fashion has also rapidly evolved to address environmental concerns by going green and organic or what we may broadly categorize as “Eco-fashion”. Primarily speaking “Eco-fashion” seeks to blend social responsibility and environmental issues into a sustainable design philosophy (Loschek I, 2009). Brands and designers are focusing on reducing their carbon footprint by manufacturing products in a manner that is environmentally friendly and employs socially responsible techniques in the production process (Pavithira C, 2010). Post recession, consumers of late have been focusing on vitalities, like their health and reconnecting with nature. Global catastrophes like Hurricanes and Tsunamis have further strengthened this “green” trend. The current study aims to bring out the essence of being socially responsible for organizations who share a major responsibility towards its customers and the economy. Not only the consumers, even the job seekers are looking out for organizations that adopt ethical means of business and display social responsibility to some extent in their business practices.  Marks & Spencer is one such organization that prefers to go with the flow, but this study aims to explore the hidden areas that still remain untapped by the firm inspite of putting up a rigorous effort in adapting to the needed eco changes in work culture. Keywords: Eco-fashion, Organic, Green Customer INTRODUCTION Marks and Spencer has for long met the need of its consumers through fashionable yet affordable clothing. It is a retail giant with massive global operations and manufacturing bases in countries like Bangladesh, India, China, etc. With stringent environment laws and greater awareness in the general public about manufacturing practices, it is an imperative need to lay emphasis on “Eco-Fashion”. Thus, the twin challenges are to create sustainable apparel and also deliver fashion. The tilt towards “Eco” labels is inevitable but the high cost is a hindrance that does not work to the retailer’s advantage. Buzz words associated with “Eco-fashion” are organic, ethically manufactured, sustainable, eco-friendly, Fair trade, reusable, recyclable, etc. Although fashion and environmental concerns appear to be at loggerheads as the former implies products with a short life span whilst the other lays stress on reusability, sustainability and durability, yet the pointers towards sustainable fashion are too strong to ignore (Berry B, 2007). The rapidly growing size of the organic market presents an interesting opportunity for Marks and Spencer. Fashion magazines like Vogue, Elle and Vanity Fair have carried eco-fashion articles to support and underline this trend and the commercial appeal it present. Marks and Spencer already supports the fair trade practices and has launched organic clothing lines (Bayani M O, 2010). Even, mass retailers like Wal-Mart have joined the bandwagon by introducing such collections albeit on a smaller scale. On the whole, fashion retailers have as of now failed to cash in or eco-consumerism. The quest to achieve environmental, social as well as commercial obligations is a very tricky one. The fashion industry as a whole has been focused on the manufacturing and supply side rather than on the consumer’s side. This presents a tremendous opportunity to M & S as it entails making fashionable and affordable products using environmental friendly materials and techniques as well as championing the social cause. There are various factors that support this proposed strategy, U Stringent environment laws U Reduction in carbon footprint U Championing the cause of social responsibility U Greater consumer awareness U Means to achieve product differentiation u Ethical and moral responsibility LITERATURE ASSESSMENT The global apparel industry has witnessed a significant transformation in the recent years and a visible shift towards enhanced efficiency, augmented product differentiation, diversified clientage, need for innovative practices, environmental protection etc . There persists an urge among the retailers along with the apparel shoppers as a whole to adapt with the changing trends in order to sustain them in the industry and display the best fashion trends. The competition has grown more intense due to which organizations are looking out for unusual ways for heading the fashion merchandizing ventures. The most preferable trends that have been adopted and can be implemented by the giant retailers for fruitful results revolve around demographic transformations, societal stimulations, economic impact and environmental trepidations. Retailers are now hunting for opportunities in the foreign markets, for instance most of the companies Like Burberry, Galeries Lafayette or Le Printemps are tying to move towards east. As already known, markets in US and EU have come to a stagnation point; hence retailers find Asia and South America to be profitable options for growth and development (Steele V, 2010). Emphasis is laid more on creating tailor made merchandize catering to the local segment targeted rather than producing goods for universal market (Critchell S, 2011). The production process is turning green and eco friendly in order to contribute towards resolving issues like global warming, environment degradation etc. A customer centric approach is focused rather than product or channel based one involving advanced technologies and enriching the shopping experience as a whole for the customer. Most of the organization in the fashion industry such as Gucci, Burberry, Tommy Hilfiger and M&S etc have moved with the trend and have shown their acceptance towards encouraging use of oorganic cotton and reusable bags. But there remains scope for much broader aspects that can be tapped by such giant players in the market. To explore new ideas for the same, special arrangements were made by the top designers of the industry in New York where the main agenda for the programme was to raise money for environmental protection and also inculcate greener business practices ranging right from conception of a product to its ultimate shipping or sale (Critchell S, 2011). The government legislators have also been supporting this cause and calling for drastic measures. A question for short debate to the extent was also put forth by Baroness Young of Hornsey on the 3-Mar in the House of Lords on ethical and sustainable fashion. She asked her majesty’s government as to the plans they have to support and promote the ethical fashion industry. She mentioned that she herself was an ambassador for the Ethical Fashion Forum and for Made-bys, which works closely with many brands to help them develop ethical standards. It was revealed that we have reached a point where demonstration of our sense of belonging is giving way to over consumption of clothing, which is at the expense of ruthless agricultural practices, resource intensive, fiber and garment production, exploitation of garment workers and consumers who are little informed about the labor practices involved. DEFRA (Department for Environment, food and Rural affairs) initiative from the previous government was a key step in the direction and the RAGS fund (responsible and accountable garment sector) aims to support the private sector to adapt ethical approaches in manufacturing in developing economies. The recently set-up Sustainable Apparel Coalition will also lead the clothing sector towards improving ethical and sustainable strategies more prone towards eco friendly norms and policies. This trend will help the consumer become more aware and informed of their buying decisions. The government also supports the wave by taking steps to improve traceability in the supply chain as it is a very complex thing to do but can act as a check and further promote the cause. TREND AND ITS REIN Though there is increasing awareness and demand for “eco-fashion”, the costs involved act as a major hindrance to sales. The prices of organic cotton are already high due to low productivity per hectare coupled with manufacturing facilities that have to be compliant to earn the ethical/ fair trade badge, are major deterrents. The high cost of organic component can be offset by optimizing the other efficiencies involved in the apparel life cycle process. A retailer has to invest in technologies and processes to drive up efficiencies and drive down costs. The organization’s focus on ethical fashion has already started and is gaining acceptance amongst its customer base. Last year itself, it sold 300000 units of clothing made from over 2 million bottles. Already, the focus is on converting 10% of its cotton to organic or fair trade or both. They are also supporting the Better Cotton program by encouraging mainstream cotton growers to improve their agro practices. These are small yet steady steps towards a sustainable future. The future is green and M & S is taking all necessary measures to ensure it takes a sizeable chunk of the “eco-fashion” pie. The debate here is that whether all this does transform into noteworthy investments for the retailer earning it a decent return. Does it mean that it is pursuing an eco strategy just to comply with the norms or does it make any commercial sense in the foreseeable future? Investments just for the same of compliance minus consumer focus are not very fruitful. A green label garment does not radiate the same aesthetic color appeal as its synthetic counterpart nor it may have the same comfort level and is overall expensive in terms of sourcing. SWOT ANALYSIS FOR THE CHOSEN TREND STRENGTHS Renewed approach for producing goods and maintaining high standards as benchmarks for competitors in the industry Huge amount of expenditure planned for attaining eco-plan 100 point eco-plan Degradable Packaging Extension of Fair Trade Cotton Plan Reduction in carbon footprint strategy Low cost distribution networks High quality products and services Customer Centric Approach WEAKNESSES Clothing range lacks segmentation Deficiencies in IT and online delivery services Unnecessary Wastage OPPORTUNITIES Strengthening collaboration with MAS Setting up and expanding the construction of ‘green’ factories Niche retailing innovation THREATS Imitation of Trend by other competitors Market Stagnation Unstable Market Increased Pollution Content SECTION B AREAS FOR RECONSTRUCTION M & S has to start at the very base to make this strategy a success in and also earn decent ROI apart from garnering a sizeable market share. The focus has to be at the product level right from the very first stage. The 3 key areas are: Challenges Confronted by M&S to ‘Go Green’ O Research/ design and development u Green and organic raw materials including dyes. u Compliances of manufacturing facilities u Trimming down energy intensive processes O Supply chain/ logistics/ distribution u Efficiency in storage u Reduction in carbon emission/ footprint while transportation u Eco friendly packaging O Product disposal u Stress on recycling u Minimization of solid waste Critical Analysis Correct identification of materials is of primary importance as this sets off the process and also reduces the cost implication as well as the environmental impact at the last stage i.e. product disposal. Placing sourcing offices and personnel close to manufacturing locations can bring the costs further and reduce carbon footprint by bringing down transportation costs of finished products as well as raw materials. Investment in software and hardware to aid in computing efficiency in production processes as well as optimizing labor output using time and motion study (Ogle J, Hyllegard K & Dunbar B, 2004). M& S has given a great thought towards adoption of natural fibers for clothing, vegetable dyes and other material which are biodegradable in nature (Peterson M J, 2009). To add on value to the above process, the organization can take advantage of overpowering the conventional farming patterns where almost third of a pound of pesticides and fertilizers were utilized to produce a certain quantity of cotton with which just one unit of a t-shirt could be manufactured. M & S has a brilliant opportunity to set plants where organic raw materials can be produced and the company can attain advantage of backward integration and reduced costs in manufacturing. NEED FOR CREATING GREEN CUSTOMER Going green has become the most popular slogan adopted by consumers in the current times. These clients are identified by their conduct as they are more socially responsible, believe in ethical conduct, prefer creativity in grooming culture, have a deep sense for environment fortification. M& S can avail prospects by creating awareness among customers for becoming an active member of the green wave and for which the organization can tap lucrative market areas especially in North America, Western Europe, Japan, Australia and most promising emerging Asian market. The annual expenditures as anticipated be made by green customers are expected to grow manifolds in the coming years. Even when the economy suffered a massive economic crisis, the inclination towards green products remained consistent (Marlow L, 2007). The data gathered reveals that almost six Americans among ten prefer to buy green products (Cohen M, 2007). M & S needs to target those customers who can be converted into green consumers and thereby develop a market base for the firm. The organic market is not just a philanthropic cause as the sheer size and growth rate presents a viable commercial opportunity. In 2001, organic cotton production was 0.03% of the global production but due to increasing demand it was 0.76% in 200 8 ( Organic Trade Association, 2010). It is a small indicator of the things to come. Despite the global economic downturn, 2008, was a very busy year for the global organic cotton sector wherein it logged $ 4.3 billion in sales on organic cotton apparel and home textile products. This is a YoY (Year on year) increase of almost 35% above the previous year’s sales of $ 3.2 billion in 2008. In UK alone sales increased by almost 40% to ? 100 million in 2008-2009 (Soil Association Organic Market Report 2009). Incursions by fashion retailers into this particular segment are on the rise and the trend is bound to stay. The long term strategy should focus on increasing the share of fashionable ethical and eco friendly goods at an affordable price to the masses. This is a strategy that can only be adopted by a retailer of M & S’s magnitude. It should leverage its clout over its supplier base through sheer volume and earn economies and efficiencies. The otherwise high cost of raw material should be negated by better production and design management. As per a campaign “look behind the label” by M & S in 2008, about 78% of the British people would like to know the way their apparel are manufactured right from the point of origin to the conditions of workers to chemicals used in the process. In PAN UK 2003 survey, 75% of the population said that they knew little or nothing about the impact of clothing production but expressed desire to be informed (Ochoa C M L, 2009) A survey was carried out in November 2006 through a questionnaire containing restricted choices. Information was collected from over 100 males and females in the age group of 20-35 from different socio-economic and cultural backgrounds from the following 6 markets: Piccadilly Circus, Oxford circus, Bond Street, Knightsbridge, Covent Garden and Leicester Square (McDaniel C & Gates R, 2006). As per the data analysis, the inclination of customers towards the use of organic or environmental friendly products was ascertained. The results displayed are mentioned underneath. Organic clothes: Organic clothes purchased – 31% Showed Interest in Organic clothing – 41% “Yes” if Organic clothes are available at their favorite shop – 62% Not because they have not heard of organic clothing - 49% Heard about organic clothes but not seen in stores – 41% Lack of awareness + expensive + not fashionable + not interested – 10% If Organic clothing was available in your favorite shop, would you buy? (McDaniel C & Gates R, 2006) (McDaniel C & Gates R, 2006) Why have you never bought Organic clothes? The survey indicated that respondents overall have a very positive attitude towards organic fashion and the following were the three main attributes for favoring organic clothing: Softness and higher cotton quality Enhance quality of life To support and protect the environment These results can be a direction for marketers such as M&S to delve deeper into understanding of consumer interests in organic clothing and a strategy can be based on the same. Maybe, organic and ethical fashion needs to be re-branded and re-launched in a new manner with a total turnaround in orthodox promotional activities. Support from Organization supporting the cause is highly advisable. M&S has to pull the consumer and show them a new side of organic clothing much differentiated from the “plain Jane” look. A refreshing side would not only make the consumers see the inherent benefits of the product like environment and social causes but also actively associate with the product. Product differentiation through advertising, tags and labels along with certified labeling, in-shop trained staff and education and probably alternative channels of distribution. Lowering of the lead time and enhanced supply chain strategy is also required (Moisander J & Pesonen S, 2002). The volumes hence generated would lower the input cost and also bring down the final retailing price. The long term benefits are immense as more and more consumers become aware and adapt the concept To achieve the above goal, M&S can target: The youth, who are more environmental friendly and sensitive towards related issues as they belong to the age group that bears responsibility to pass on a healthy environment to future generations (Straughan & Roberts, 1999). Baby Boomers can prove to be a profitable segment for the organization as they are found to be more inclined towards environmental friendly products, especially the female segment as revealed in a study conducted by Mahoney S (2008). All the homemakers who fall in the age bracket of 30 to 40 can be a beneficial target for the organization as they are the ones who make the ultimate purchasing decision for their homes and can be easily motivated to get inclined towards green purchasing. The elite section of the society can be a good source to tap on as this segment has enough means and resources to buy high priced eco friendly products and can easily influence their peers and other associates to be a part of the league. BIBLIOGRAPHY Berry, B. (2007). “Going Green: The Future of the Retail Food Industry”. Agri-Food Trade Service, July, www.ats.agr.gc.ca. Bayani ,M, O. (2010). “Marks & Spencer’s plan to green production chain goes into high gear” . Published on 2nd March, 2010. Retrieved on 28th March, 2011 Available at . http://www.ecoseed.org/business/retail-and-packaging/article/23-retail-packaging/6498-marks-spencer%e2%80%99s-plan-to-green-production-chain-goes-into-high-gear Cohen, M. (2007). “Is the Green Consumer Trend Over?”. Environmental Leader, 4 December. Retrieved on 27th March, 2011. Available at www.environmentalleader.com. Critchell ,S. (2011). “Going green: fashion industry steps up”. Published on 31st March, 2011 Retrieved on 28th March, 2011Available at http://67.192.244.59/IR/IRnews/Going-green-fashion-industry-steps-up--349.aspx Marlow, L. (2007). “LOHAS: What every green business needs to know about their market”, Retrieved on 28th March, 2011. Available at The Green Directory, www.thegreendirectory.com.au. McDaniel, C & Gates, R . (2006). “Marketing Research Essentials”. Fifth edition. Published by United States of America: Wiley. Moisander, J. & Pesonen, S. (2002). “Narratives of sustainable ways of living: constructing the self and the other as a green consumer”. Management Decision, 40(4), pp. 329-342. Mahoney, S. (2008). “Study: Boomers, Not Gen Y, Biggest Green Shoppers”. 9th September, Available at www.mediapost.com. Ogle, J., Hyllegard, K. & Dunbar, B. (2004). “Environment and Behaviour, Predicting Patronage Behaviours”. September, pp. 717–740. Organic Trade Association. (2010). “Organic Cotton Facts”. Posted on 16th Feb, 2011. Retrieved on 28th March, 2011. Available at 2010 http://www.ota.com/organic/mt/organic_cotton.html Ochoa C M L. (2009). Will ‘Eco-Fashion’ Take Off? A Survey of Potential Customers of Organic Cotton Clothes in London. Retrieved on 28th March, 2011. Published on 16th June, 2009. Available at http://www.eafit.edu.co/revistas/administer/Documents/AdministerNo16-Ecomoda.pdf Pavithira ,C. (2010). “Emerging Trends in Retail Marketing Strategy”. Published on 28th April, 2010. Retrieved on 28th March, 2011. Available at http://www.ebctc.com/retail/emerging-trends-in-retail-marketing-strategy Soil Association Organic market report 2009. ( 2009). Retrieved on 28th March, 2011. 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