Merger between Coach’s parent company and Versace’s parent company blocked
Tapestry owns big brands like Coach, Kate Spade and Stuart Weitzman. Combine this with Capri’s impressive portfolio of Versace, Jimmy Choo and Michael Kors, and the potential for a very lucrative merger is astronomical. For this very reason, the $8.5 billion merger between these two fashion industry powerhouses was stopped by a judge in the US. This is due to concern from the Federal Trade Commission that the merger would result in a lack of competition. The main issue is that Coach, Michael Kors and Kate Spade are all major players in the ‘affordable luxury’ sector of the market. However, Tapestry still wish to challenge the blocking. Capri’s shares fell 46% after the merger was stopped.
Frasers Group’s Mike Ashley might become Boohoo’s CEO
On the 24th of October Mike Ashley, founder of Frasers Group, was mentioned in an open letter by the retail company to Boohoo, suggesting that he should become their new CEO. This was following the announcement that John Lyttle, current Boohoo CEO will step down. Frasers Group is already the largest shareholder of Boohoo and see this as an opportunity to grow their foothold in the online fashion market, they have put forward Mike Ashley. However, it’s important to note that Frasers own a 23.6% stake in ASOS, a key competitor of Boohoo; as a result, Boohoo are considering this proposal carefully.
New proposal by CIRFS to improve textile Production in the EU
A report by the UN this week outlined that unless drastic action is taken, we could see the planet warming by 3.1°C, far off the original 1.5°C target for limiting temperature increase. Therefore this open letter from the European Man-made Fibres Association (CIRFS) to the EU suggests some action that could be taken to move towards a greener future in the fashion industry. Some of these proposals involve creating a single market for waste and recycling in Europe, this would allow textiles to be recycled on a bigger scale. Furthermore, there’s a call for end-of-life disposal costs across the EU. The open letter can be read in full here.
John Lewis renovates new stores as it insists stores are here to stay
John Lewis plans to spend £800 million on store renovations and improvements in customer experience over the next 4 years. The first to receive a makeover was the Oxford Street store, now sporting a Fragrance Hall, a new and improved Home section, a pop-up store with Sign of the Times (a luxury reseller) and ‘Make-up zones’, with 41 beauty counters and a special area for up-and-coming brands. Later in the year, a collaboration with Jamie Oliver’s Cookery school and cafe is planned.
The next Global Fashion Summit will be held in China
On the 7th of November, the Global Fashion Agenda (GFA) will hold the Global Fashion Summit, partnering with Chinamind NEXT. The purpose of the summit is to discuss issues relating to sustainability and the environment as well as social and ethical topics. This event is to take place in Shanghai at the same time as the China International Import Expo (CIIE), a meeting which showcases innovative technologies designed to improve efficiency and sustainability across the industry. With China being a manufacturing giant in the fashion industry, this could indicate the beginning of a more sustainable future for production there.
