A large bulk of the fashion industry is feeling pretty smug with itself. The just-gone G7 summit in Biarritz, France, a meeting of the world’s largest economies, saw French President Emmanuel Macron, accompanied by Economy and Finance Minister, Bruno Le Maire, Minister of Labour, Muriel Pénicaud, and Deputy Minister of Ecological and Solidary Transition, Brune Poirson, launch the ‘Fashion Pact’. An initiative to minimise the environmental impact of the fashion industry, the Fashion Pact, signed by various fashion companies and brands, made numerous commitments regarding sustainability, renewable energy and biodiversity.
Left - Tall glass of Pinault?! The 'Fashion Pact' launch at the recent G7 summit
Making plenty of noise, and, while anything in the right direction, particularly while the Amazon rainforest is burning, is welcome, it’s worth looking at some of the detail.
Thirty two companies representing around 150 brands and roughly 30% of the fashion industry committed to:
“100% renewable energy across own operations with the ambition to incentivise implementation of renewables in all high impact manufacturing processes along the entire supply chain by 2030.”
“Protect the oceans: by reducing the fashion industry’s negative impact on the world’s oceans through practical initiatives, such as gradually removing the usage of single-use plastics.”
“Restore biodiversity: by achieving objectives that use Science-Based Targets to restore natural ecosystems and protect species.”
“Stop global warming: by creating and deploying an action plan for achieving the objective of zero greenhouse gas emissions by 2050, in order to keep global warming below a 1.5°C pathway between now and 2100.”
These all feel like the least they can do. Words like ‘gradually’ and ‘ambition’ make most of this wishful thinking. But, waiting until 2050 to achieve zero greenhouse gas emissions is laughable. Most of the signatories will be dead by then. It’s 31 years away!!! Who’s to say any of these companies will still be in business?
We live in a very stressful and confusing time. Environmental paralysis is understandable amongst consumers not sure exactly what they can do to combat climate change. But, waiting until 2050 to ‘possibly’ make that new handbag zero carbon emissions ain’t one of them. Green lip service is becoming increasingly frustrating and brands are going to have to give definite and distinct decisions while updating consumers on progress and fact based information much faster than this. People want to see something.
The brands involved include adidas, Bestseller, Burberry, Capri Holding Limited, Carrefour, Chanel, Ermenegildo Zegna, Everybody & Everyone, Fashion3, Fung Group, Galeries Lafayette, Gap Inc, Giorgio Armani, H&M Group, Hermès, Inditex, Karl Lagerfeld, Kering, La Redoute, matchesfashion.com, Moncler, Nike, Nordstrom, Prada Group, Puma, PVH Corp., Ralph Lauren, Ruyi, Salvatore Ferragamo, Selfridges Group, Stella McCartney and Tapestry.
In April 2019, ahead of the G7 meeting, Emmanuel Macron gave François-Henri Pinault, Chairman and Chief Executive Officer of Kering, a mission to bring together the leading players in fashion and textile, with the aim of setting practical objectives for reducing the environmental impact of their industry. And the Fashion Pact was born.
This goes someway to explain the most noticable luxury absentee from the list, the LVMH group. LVMH, Kering's main luxury competition, announced in May that it was partnering with Unesco on a five-year deal, allowing the fashion houses in the group access to “a network of experts at the regional level and in different disciplines to drive the development and success of their initiatives to protect biodiversity” and secure transparent supply chains. They’ve also recently cemented a tie-up with British designer Stella McCartney to lead their charge in sustainable luxury.
The majority of these brands don’t know what the eco-future looks like, but they know they need to start making the right noises yet want to continue to generate billions of dollars in yearly turnovers. Signing up to things like the ‘Fashion Pact’ focuses minds, but the time frame makes it a case of we’ll start tomorrow, which goes against the current urgent 'Climate Emergency' feeling felt within the wider population.
Kering issued a statement saying, “Private companies, working alongside nation states, have an essential role to play in protecting the planet. With the Fashion Pact, some leading players in the fashion and textile sector are joining forces for the first time to launch an unprecedented movement. A collective endeavour by its nature, the Fashion Pact is open to any company that wants to help to fundamentally transform the practices of the fashion and textile industry, and to meet the environmental challenges of our century.”
If these luxury companies worked as quickly as they did when chucking money at Notre-Dame, after its fire, then we’d really be getting somewhere. Pinault found €100m (£90m) down the back of the sofa and the Arnault family stumped up €200m within hours of the flames being put out.
Governments will need to bring in legislation much sooner to force these companies to do more. We’re going to look back at this period of history and wonder how we got through it sanely, but what we know is, we have to start today.
Baby-Boomer bashing has become a favourite Millennial and Gen Z past time. Yes, yes, we know they’ve taken our futures, they own everything, have everything and our lives won’t materialistically match theirs, but they should be aspired to rather than looked at enviously and begrudgingly. This is the youngest generation of older people ever and they are staying in good health for longer.
Left - The Young Old - It's very hard to find an image which isn't patronising or a stereotype of the elderly
They are also choosing to work longer. A recent survey by jobs website, ‘Rest Less’, shows almost one in 12 of people in their 70s are working, compared with one in 22 a decade ago. Admittedly, there are more older people, overall, but, it is a growing trend driven partially by skills shortages. There has been an increase of 285,000 workers over 70 over the past ten years.
Due to better health and an appetite for a certain standard of lifestyle many of this generation is lucky enough to enjoy working and are using the additional income on luxury holidays and prestige cars. I look at my parents and they are both working past traditional retirement ages. Mortgages paid off, free travel, fuel allowance! and in good health, they see no reason to retire. This is the energetic generation of the 1960s and they don’t want to slow down just because they are getting older.
Stuart Lewis, of Rest Less, said, ‘Gone are the days of working hard five days a week for four and a half decades before suddenly stopping. We can see that part-time work is growing in popularity among the over-70s, both male and female.’
Baby boomers were born between 1944 and 1964. They're currently between 55-75 years old. They are the most successful generation of people ever and represent nearly 20% of the American and UK public.
Netwealth, a wealth manager, analysed the Office for National Statistics’ Wealth and Assets surveys between 2006 and 2016 (the most recent data available) and found those aged over 65 owned 28 per cent of the UK’s household wealth in 2006, a figure which had increased to 36 per cent 10 years later. The analysis also found that one in five (20 per cent) of over-65s in the UK to be a millionaire, compared with 7 per cent in 2006. The total wealth owned by over 65s nearly doubled - from £2.4trillion to £4.7trillion - in the decade between 2006 and 2016, while in comparison, those between 25 and 54 years old saw their wealth increase by just 9 per cent in real terms during the same time. That means that for every £1 of UK household wealth, Baby Boomers own the biggest share of 36p.
Author, Camilla Cavendish, has just published a new book called ‘Extra Time: 10 Lessons For An Ageing World’. She cites Mick Jagger, still touring at the age of 75, as an example of the so-called “young-old”; the growing number of people who extend an active and healthy middle age into their late Seventies. According to Cavendish, dementia rates have actually fallen by 20 per cent in the past 20 years in the UK.
“It’s not old age that’s getting longer, it’s middle age,” she writes. “We need to . . . stop lumping everyone from 60 to 100 together, and accept its normal to be vibrant and capable in your 70s”.
During the same period we’ve seen a massive decrease in traditional killers of older men and women. According to the British Medical Journal, between 1990 and 2013 cardio vascular disease death rates in England declined by 52%, coronary heart disease (CHD) by 60%, and stroke by 46%. The reason has been attributed to the reduction in smokers and also the banning of smoking in public places in 2007.
Many people lose their sense of purpose when they no longer work and if you don’t want to retire why should you when we live in a country of record employment and the demand is there for workers with experience? Old age should be a balance and many of these people are choosing to work part time which goes to pay for their more indulgent free time. So, what does it mean for businesses and brands?
I think we saw an example late last year when LVMH bought the travel company Belmond. LVMH, paid $25 per Belmond share, a premium of more than 40 percent on the company’s closing price, a deal valued at $2.6 billion. Established over 40 years ago with the Hotel Cipriani in Venice, Belmond owns and operates a collection of the world’s finest hotels and luxury travel companies in 24 countries including Hotel Splendido in Portofino, Copacabana Palace in Rio de Janeiro, Le Manoir aux Quat’Saisons in Oxfordshire, plus the Venice Simplon-Orient-Express and Belmond Royal Scotsman luxury trains and cruises such as Belmond Afloat in France fleet and Belmond Road to Mandalay.
Bernard Arnault, Chairman and Chief Executive Offer of LVMH, said, “Belmond delivers unique experiences to discerning travellers and owns a number of exceptional assets in the most desirable destinations. Its heritage, its innovative services, its excellence in execution and its entrepreneurship resonates well with the values of the Group and is complementary to our own Cheval Blanc maisons and the Bvlgari hotels activities. This acquisition will significantly increase LVMH’s presence in the ultimate hospitality world.”
This “ultimate hospitality world” is targeted squarely at those with the time and disposable incomes. LVMH has just unveiled plans to open a Cheval Blanc hotel in Mayfair. The Cheval Blanc brand was created in 2006 and has locations in Courchevel, the Maldives, Saint-Barthelemy and Saint Tropez. The former department store La Samaritaine in Paris is due to reopen as a Cheval Blanc hotel later this year. Estimated to cost £500 million, the development would be a joint project between LVMH and real instate investor O and H Group, which owns the sites on 8-14 Grafton Street, 163-164 New Bond Street and 22-24 Bruton Lane. If planning permission for the London hotel is granted, work would begin at the start of 2020, with a view to opening the Foster and Partners designed hotel in the third quarter of 2022.
A natural progression from owning and running the luxury retail stores of Bond Street for LVMH, another new luxury hotel and apartment development is The Residences at Mandarin Oriental Mayfair. Currently being built, and due to open in 2021, they are next door to Fenwicks on Hanover Square and residents will enjoy privileged access to a full suite of services and amenities provided by the integrated Mandarin Oriental Mayfair Hotel, including in-residence dining & house keeping, 24/7 Concierge, valet parking, an opulent spa and roof terrace bar overlooking Mayfair.
Left - The Old Old - One way not to hit 100?!
A big opportunity for brands is there. A move away from material goods to holidays and experiences actually makes more sense for this older generation than it does for Millennials. These people have enough stuff and they’ve often outgrown the novelty and fripperies of fashion while at the same time having the leisure time to take more holidays and at higher price points. This ‘Young Old’ generation has the luxury of time and money. They are healthier and more active. They’ve worked hard and have been blessed with the rise of property values and generous pension schemes. By choosing to work longer they are topping up their incomes and as such are a very attractive demographic for businesses specialising in life's luxuries. Sadly, for subsequent generations, working past traditional retirement ages could be less of an option and more of a necessity.
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